ground, or in volcanic rock patches, allowed the establishment of an industry and opened new markets for products originating in Madalena. In the second half of the 17th century, the collapse of the woad industry, which supported many of the Azorean islands, and the decline of Iberian hegemony (Portugal was in a dynastic union with Spain at the time) in the North America, created a syndrome of crisis on the islands. The growth in viticulture onto better quality soils allowed an improvement of the castes, and a growth in the reputation and credibility of Piquense wines. In addition, new markets in North America and Brazil improved exports, which had primarily relied on English patronage and purchases. The growth of wine exports from Pico elevated the neighboring town of Horta to the status of municipality, since all international shipments were made from the island's sheltered port, creating a socio-economic disparity between the disenfranchised Piquense "workers" and the entrepreneurs/landowners from Faial. Along with a demographic growth on Madalena, this shift raised cries for the emancipation of Madalena and the island of Pico. In fact, Father Gaspar Frutuoso and Friar Agostinho de Montalverne certified that the colonists in Madalena had tripled by the 17th century; in 1587, there were less than 3000 inhabitants and around 9000 by 1695, forcing the remodelling of the local church. Pico moved "up the ladder" of urban hierarchies from fifth largest centre in the Azores to fourth, behind São Miguel, Terceira and Faial. By the middle of the 18th century the population was over 19000 inhabitants. The municipality was created on March 8, 1723. In 1793, and between 1800 and 1802, Madalena contributed to 80% of the domestic sales on the island of Pico, primarily from brands of wines to markets in the New World, the Baltics, India and Macau. Until the early 19th century, exports were handled from Horta, where most of the mercantile fleets would make call (owing to its superior services and sheltered bay). But, the island's growth ultimately supported the construction of a sheltered anchorage in Madalena, that would become the port. Yet, as Madalena became the predominant center on the island, it was hit by the phylloxera plague, which destroyed many of the vineyards and began a period of economic deprivation. A diversification of economic activities was the only way to resolve these problems and improve the situation. The fruit industry, and in