Page 12 - AA 2024

Algeria

Algeria Below average cereal harvest

gathered in 2023

Planting of the 2024 winter grains
will start in October. The bulk is usu-
ally planted in November after sea-
sonal rains sufficiently replenish soil
moisture.
Harvesting of the 2023 winter grains
was completed in mid August with late
maturing crops in the highlands. Be-
ing largely rainfed, cereal yields are
highly variable depending on rainfall
amounts and distribution.
At the onset of the season in No-
vember and December 2022, rainfall from DZD 45 000 to DZD 60 000/tonne marketing year, exceeding over 2 mil-
amounts and distribution were gen- (equivalent to USD 423 at the official lion tonnes due to advantageous pric-
erally adequate to facilitate planting exchange rate of DZD 142/USD 1, un- ing compared to other origins.
operations. However, for the rest of the changed since 2022), soft (common) Inflation lingers at high levels
season, rainfall was erratic and insuffi- wheat from DZD 35 000 to DZD 50 000/
cient in inland areas, constraining crop tonne (USD 352) and barley from DZD The country’s economy is highly
development. Above average temper- 25 000 to DSD 34 000/tonne (USD 240). dependent on petroleum and natu-
atures in March and April 2023 sped Cereal imports in 2023/24 forecast ral gas for export revenues. Although
up crop maturing. Cropping areas to slightly increase economic growth has moderated, re-
along the coast in the north and north- flecting slightly lower global oil prices
east were less affected by dry weather Even in years with ample domestic compared to 2022, the economy is still
conditions, preventing larger declines production, the country relies heavily expected to grow by 2.8 percent year
in national cereal production. on imports of cereal grains, with soft on year in 2023, down from 3.1 percent
(common, milling) wheat being the in 2022. Despite the increased interest
At the national level, wheat pro- most prominent. In the last five years, in the country as a supplier of natural
duction is estimated at a below aver- the country’s wheat import require- gas, high unemployment levels pre-
age level of 2.5 million tonnes, about ments were on average about 7.6 mil- vail, creating social tensions.
17 percent below the previous year’s lion tonnes per year, mostly common
wheat output. Total cereal production in wheat that represents about 70 percent Both general and food price infla-
2023 is estimated at 3.6 million tonnes, of domestic utilization. tion have been staying at historically
about 12 percent below the previous high levels since late 2021. In July
year’s already weather stricken har- Following the decrease in domestic 2023 (latest data available), the annual
vest and over 20 percent below the five production in 2023, wheat import re- rate of the general price inflation was
year average. Overall, the country ex- quirements for the 2023/24 marketing recorded at 9.4 percent, with a slight
perienced a third consecutive drought year (July/June) are forecast at 9 mil- decline from the 11 percent reached in
season during the 2022/23 crop year, lion tonnes, about 8 percent above the mid 2022, the highest level since 2012.
although the extent of the drought in- imports of the previous marketing year In the same month, food prices in-
duced losses was not as dramatic as and 17 percent above the five year creased by 13.2 percent year on year,
in the 2020/21 crop year, when only average. In addition, about 4 million down from the peak of 17 percent in
about 2.7 million tonnes of total cere- tonnes of maize and slightly less than mid 2022. Part of the current inflation
als were collected. 1 million tonnes of barley, to be used is attributed to high international com-
as feed, are expected to be imported. modity prices as well as to concerns
Procurement prices for 2023 ce-
real grains remained the same as in In the past, the country imported about fiscal deficits and balance of
payments issues.
2022, when the government decided wheat mostly from France, Canada,
to increase them in response to high Germany, the United States of America, Efforts to streamline subsidies on
international prices and with the aim Spain and Mexico. In the 2022/23 mar- gas for domestic use, electricity, heat
to increase the level of local purchas- keting year (July/June), wheat imports and cooking, introduced in 2021, have
es. Compared to 2021, the procure- from the Russian Federation increased been put on hold amidst high inflation
ment price of durum wheat increased four times compared to the 2021/22 levels.
10 Arab Agriculture 2024