Page 19 - AA 2023 Year Book Website

Algeria

ALGERIAN WHEAT MARKET

tion, revitalize natural resources, and im- and couscous. Algerian wheat consump-
prove water resources use. The new de- tion has risen slightly in the past years
velopment policy prioritizes investment as a result of increased urbanization,
in agricultural products ensuring food population growth, and increased mill-
security in Algeria. The government en- ing capacity. The North African country
courages large-scale agricultural invest- is one of the world’s largest importers
ments in the Highlands and the “Sahara” of wheat. Although domestic production
(South of Algeria). In addition, the devel- has improved over the years, it remains
opment strategy promotes foreign di- weather-driven, and does not meet do-
rect investments and partnerships, par- mestic demand. Therefore, Algeria con-
ticularly in the field of cereals, oilseeds, tinues to import wheat.
and sugar production. The development
strategy also encourages crushing and In its latest report released on 30th
refinery projects that support process- September, the U.S. Department of Ag-
riculture’s (USDA) Foreign Agricultural
Algeria is among the largest con- ing to stimulate the processing indus- Service (FAS) post in Algiers forecasts
sumers of wheat in the world. Al- try. Such projects include supporting the 2022/23 season wheat harvested
though domestic production has increased storage capacity, increased area at just over 2 million hectares
improved over the years, it remains cold chain infrastructures, and packag- (ha). “Despite, the government making
weather-driven, and does not meet ing projects. pledges to expand cereal production,
domestic demand. Therefore, Algeria The government divested itself from Post believes that due to the adverse ef-
continues to import wheat. USDA esti- agricultural production and processing fects of the pandemic, farmers likely did
mates Algeria’s wheat imports at 8.3 allowing the private sector to take the not expand their operations in a mean-
MMT for the 2022/23 season. lead. The private sector is comprised of ingful way,” USDA reports. Post forecasts
Algeria is the largest country in Africa wheat and feed millers, dairy proces- 2022/23 wheat production at 3.3 million
with more than 43 million people and sors, vegetable oil refiners, sugar refin- metric tons (MMT), and barley at 1.2
vast natural resources. Algeria’s land ers, beverage producers as well as can- MMT.
mass is 2,381,741 sq. km. The desert cov- ners, and a pastry industry. Although the Over the last several years, the gov-
ers more than four-fifths of the country. local food manufacturing industry is im- ernment of Algeria has repeatedly pro-
In addition to its impressive size, Algeria proving, the sector is fundamentally de- claimed the increase in agricultural pro-
has the fourth-largest economy in Africa, pendent on imports of ingredients and duction, specifically highlighting wheat,
and it is one of the continent’s most com- raw materials. In addition, population in- as a national priority. In 2021, the Min-
petitive. The country is the hub of many crease, growing demand for convenient ister of Agriculture (MoA) Abdelhamid
multinational corporations’ francophone processed foods, as well as improved Hemdani announced plans to expand
operations in northwestern Africa. production capacities favor the expan- Algeria’s wheat-planted area to 3.5 mil-
sion of the food processing industry.
The Algerian economy remains domi- lion ha. The government had previously
nated by the oil and gas sector, which A MAJOR CONSUMER indicated that it had surveyed the identi-
accounted for 19 percent of GDP, 93 per- fied favorable agricultural land to culti-
cent of product exports, and 38 percent OF WHEAT vate durum wheat nationwide, particu-
of budget revenues between 2016 and Algeria has one of North Africa’s larly in regions with high rainfall.
2021. After contracting by 5.1 % in 2020, highest per-capita expenditures on In Algeria, grain harvest season begins
Algeria’s GDP rebounded by 3.5 % in food thanks to relatively high dispos- at the end of April through early May in
2021, supported by a robust oil and gas able incomes and consumers’ strong the southern Saharan regions, while in
output rebound. preference for convenient, quality, and the Northern areas, the harvest starts
The agriculture sector is one of the premium food and beverages. Alge- later in May and gathers steam through
priority sectors for the Algerian govern- rian households devote 42 percent of July and August. Harvests in these ar-
ment in its efforts to diversify the econ- their annual expenditure to food needs. eas started with favorable forecasts for
omy and attract foreign and domestic Consumer tastes and preferences are cereals, including durum wheat, bread
investment outside the energy sector. changing, especially in the cities where wheat, barley, and corn. Starting last
After hydrocarbons, agriculture is the young homemakers tend to be more ac- year, the Ministry of Agriculture initiated
country’s second-largest GDP contribu- tive, and the number of working women preparations for the planting campaign
tor, at around 10%, with 25% of the pop- has increased. As a result, consumers in July, instead of September as used in
ulation employed in the sector. Algeria are turning to ready-to-eat or semi-pro- previous years. Plantings were brought
has 8.5 million hectares of arable land. cessed products. forward from October to September.
This decision was undertaken in antici-
The Algerian government encourages WHEAT PRODUCTION pation of benefiting from possible early
modern industrial agriculture using sat- rains. As usual, the MoA made available
ellites, digitization, and other innovative OUTLOOK treated seeds and fertilizers particular-
tools, especially regarding renewable Algeria is a major consumer of cereals ly, bread wheat and durum wheat, bar-
energies. Additionally, to increase ag- and considers wheat as the major staple ley, and certain legumes seeds such as
riculture development, the government food. Wheat is used mainly for bread lentils and chickpeas.
plans to intensify agricultural produc-
Arab Agriculture 2023 17