Algeria Inks $3.5 Billion Agreement with Qatar’s Leading Dairy Producer Baladna

Algeria made a significant move by inking a $3.5 billion agreement with Baladna, Qatar’s leading dairy producer, on Wednesday. The deal paves the way for the establishment of a massive cattle-breeding farm geared towards meeting the high demand for powdered milk in the North African nation.

According to reports, the project is anticipated to produce 200,000 tonnes of powdered milk annually, which could potentially fulfill half of the country’s demand for this dairy product.

The Algerian agriculture ministry has announced an extensive project spanning 170,000 hectares in the Adrar province. This initiative encompasses a cattle feed farm, a farm dedicated to cattle for the production of milk and meat, as well as a factory designed to produce powdered milk.

The deal was signed in Algiers between Souad Assous, head of agricultural and land investments at the Algerian agriculture ministry, and Baladna chairman Mohamad Moutaz Al-Khayyat, the statement added.

Algeria, a country of almost 45 million, has seen several milk shortages in recent years and heavily relies on imports for powdered milk and other food products.

In 2021, imports of powdered milk reached nearly $600 million in Algeria, according to data from the National Interprofessional Milk Office.

The project, expected to be up and running in 2026, would also “supply the local market with red meat and help increase the national cattle population”, the statement said.

It would also create some 5,000 directs jobs, it added.