If you have a car, just outside Ferragudo, in Parchal, on the main road that used to lead to Portimao there is a dirty great LeClerc supermarket and also a LIDL. Sorry I don't know what is in Ferragudo itself.

(As an aside, I say the road that used to lead to Portimao as the old bridge, the Ponte Metallica, had to be closed to all road traffic as it is structurally unsound. This means that by car it is now a 5 mile diversion between Ferragudo and Portimao. You can still walk across the bridge or ride your bike - I did. The bridge will be closed for at least another year. There is talk of a ferry from Ferragudo to Portimao but so far as I know nothing has come of it as yet.)

There is a butcher in Ferragudo, who is friendly but speaks no English, so point to what you want. Bare in mind that their cuts are not the same as an English butchers. We used this man regularly. There are a number of mini-markets in the village, but again most of the owners do not speak English.This a lovely Portugese village that is starting to be ruined by developement, so get htere quickly whilst the locals still only speak Portugese