Olive oil is obtained by means of extraction from the fruit of the olive plant. It is considered extremely healthy because it contains high proportions of polyphenols and monounsaturated fats, mainly comprising of oleic acid. Olive oil has a variety of uses in cosmetics, cooking, soaps and fuel for lighting oil lamps and also for medicinal purposes. It has been researched that about 93% of the total olive oil production in the world can be attributed to the countries belonging to the European Union. While the countries of Spain, Italy, Greece, Turkey etc. lead the list of the foremost olive oil producing countries in the world, Portugal occupies the eighth position in the global production list accounting for about 1% production, 2% consumption and 7.1 kg annual per capita consumption according to 2005 statistics. Portugal because of having Mediterranean type climate in certain parts of the country is conducive to olive oil production. The olive oil produced in various countries has certain distinct characteristics. In Portugal the olive oil is totally ripe, golden and very strong. Some of the olive oil producing regions of Portugal is the Norte Alentejano, the hills of the Moura region, the upper Douro and the Tras-os-Montes in the northern part of Portugal.

With Portugal joining the European Union in 1986 and the various health benefits of olive oil coming to the forefront, the export market for olive oil has greatly opened up which has positively affected the Portuguese economy. This has facilitated the implementation of newer modes of cultivation and mechanized techniques to improve the quality of production. Irrigation too has aided olive oil production in northern Portugal. In fact the rise in refined olive oil production has led to the formation of the DOP or the Designation of Origin system with reference to olive production in Europe which is akin to the DOC regions of wine production.