Economy

The population is irregularly distributed throughout the islands of the Azores. The majority of the residents live in São Miguel (53%), followed by Terceira (24%), Pico (6%), Faial (6%), São Jorge (4%), Santa Maria (3%), Graciosa (2%), Flores (2%) and Corvo (0.2%).

The breeding of livestock is very important to the local economy. In Sao Miguel there is almost one cow per person. Fresh milk is the primary raw material used in the Azorean transformation industry. Cheese, butter and powdered milk are the principal goods exported. Meat production is also important to the Azorean economy. High quality beef is exported to both Madeira and continental Portugal. Pork and eggs are primarily produced for the regional market.

The fishing industry provides a major potential for future growth. The economic exclusive zone of the Azores contains a rich and diverse aquatic population, providing a vast array of fresh fish for export as well as canning. Recently some companies have begun smoking fish for domestic consumption and export. Economically the most important species is tuna, which is the principal catch of the commercial fishing fleet. The major catch of the nonindustrial or artisan fishing fleet includes herring, sea bream, conger eel, fork beard and mackerel.

Representing a small percentage of the economy are the sugar beet, chicory, tea, passion fruit and pineapple. The pineapple (Ananassa Sativus, Lindl.) is grown in greenhouses on Sao Miguel (Ponta Delgada, Lagoa and Vila Franca). It was brought to the Island from South America as an ornamental plant about the middle of the 19th century. It was grown on the islands to supply the tables of the wealthy.

The transformation industries focus on the production of foodstuffs, beverages and tobacco in conjunction with smaller industries processing lumber and cork. The majority of these industries is found in São Miguel. Thermal energy is the base for the production of electricity in the region, however other alternatives such as hydro, geothermal and wind generated electricity are in the experimental stage.

Trade within the national borders provides the primary market for Azorean products. Nevertheless foreign trade plays an increasingly important part in the regional economy. Imports are concentrated in products such as cereals, fuels, machinery, transportation materials and primary materials. The most significant export for the Azorean economy are fish preserves. The principal product, canned tuna is marketed mainly in Italy. The geographical dispersion of the archipelago generates increased movement of merchandise due to the transfer of essential products that are not available on the smaller islands. The distance which separates the region from continental Portugal, also contributes to the increased traffic especially in terms of passengers travelling to the region and between the islands.