Algeria’s Economy and Dairy Industry in the 21st Century
Algeria is the largest country in Africa in terms of territory, with approximately 2.4 million square kilometers. Likewise, Algeria represents the fourth largest African economy with a GDP of more than US$200 billion and yearly growth of more than 2.5% over the last three years. Comprised of mostly desert regions, the Algerian population and agricultural settlements are concentrated in the northern part of the country. Towards the Sahara in the southern part of the country, oil fields and desert dominate the landscape. This article explores agriculture in Algeria and the government’s attempt to boost the national dairy industry.
Algeria’s Economy and Dairy Industry in the 21st Century
Algeria is one of five African nations that belong to the Organization of Petroleum Exporting Countries. Therefore, a large amount of the national economy is dependent on oil, natural gas, and industrial manufacturing, which account for more than 95% of Algerian exports. Surprisingly, China is not amongst Algeria’s top export partners. The majority of Algerian exports is destined across the Mediterranean to fueling the European energy markets of Spain, France, Italy, and the United Kingdom. On the other hand, China is Algeria’s most important import partner from which the Maghreb nation purchases agricultural commodities and consumer goods. Meanwhile, agriculture accounts for approximately 13% of the Algerian GDP and is concentrated in wheat, barley, oats, and grapes.
Algeria is one of the largest dairy importers in the world, highly reliant on milk powder and milk imports to meet its domestic market demand. It is estimated that Algeria imports over 300 million metric tons of powder milk valued at more than US$1 billion on a yearly basis. Most of these milk imports originate from New Zealand and the European Union, notably France, Belgium, and Poland. In order to decrease this trade deficit, the Algerian government is working with strategic partners in the international dairy industry, such as the United States, in an initiative to increase its dairy production. As part of this initiative, the Algerian dairy industry is set to import 240.000 head of dairy cattle by 2019. Thus far, fresh milk collection has increased from 189 million liters in 2009 to 964 million liters in 2014. Likewise, production is expected to reach 1.9 million metric tons by 2019. In terms of milk origin, some 70% of the milk originates from cows, whereas the other 30% comes from sheep, goats, and camels. Another key element of the Algerian government’s initiative is a 30% increase in fodder seed production for animal feed.
The number dairy processing plants in Algeria has increased from 88 in 2009 to 182 in 2015, with 15 of these factories being owned and operated by the Ministry of Agriculture. This national initiative is already yielding positive results, as Algeria has become the North African country with the highest per capita amount of milk consumption at 120 liters per year. Similarly, during 2016, the value of milk imports into Algeria has decreased by 27.5% and the volume of these imports has decreased by 8.5%, when compared to 2015.