The rich soil made it one of the best agricultural regions on the island. As a result, Lagoa grew rapidly, acquiring town status in 1522. Wheat, woad and vines were grown here. During the 18th century, the boom in the orange market helped to enrich the town, whose port played an important role in trade. Then came the first industries, notably an alcohol distillery, and the first pineapple crops. From 1862 onwards, the town became an important ceramics center. Today, the main crops are tobacco, chicory, beet, pineapple, banana and orange.

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