Algeria: Mega-billion-dollar contract to invest in powdered milk
Qatar’s Baladna has signed a mega-billion-dollar contract to build a powdered milk farm in the region of Adrar to break away from powdered milk imports, reports the Middle East online plus agencies.
The 3.5-billion-dollar project, which was signed on the 24th, covers an area of 170,000 hectares in the Adrar province, in the south of the country.
The Algerian agriculture minister described it as “a farm for growing cattle feed, a farm for cattle and producing milk and meat, and a factory for the production of powdered milk.”
In recent years, Algeria has seen several milk shortages, heavily relying on imports for the dairy product. According to data from the National Interprofessional Milk Office, imports of powdered milk reached nearly $600 million in Algeria in 2021.
“Algeria aims to reduce its imports of powdered milk and to create jobs for its youth,” promising to create some 5,000 direct jobs.
According to The World Bank, data shows that 31.3% of Algerian youths, aged 15-24 were unemployed during 2023.
The project, which is predicted to be online in 2026, is expected to help meet 50% of Algeria’s demand for the product, with an expanded yield of 200,000 tonnes of powdered milk per year.
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“We are looking forward to working together with our Algerian partners to build one of the world’s largest vertically integrated dairy companies. This strategic partnership not only aligns with our ambitious growth objectives but also promises significant returns and long-term value for our shareholders,” said Malcolm Jordan, CEO of Baladna.
The proposed measures follow the controversy surrounding the Algerian President, Abdelmadjid Tebboune’s decision to import mass amounts of beef and lamb to the oil-rich nation during Ramadan. This decision was met with criticism and the eventual annulment of Algeria’s produce importation policy.
Middle East Online/ Agencies
