In 2024, Algeria's agriculture sector demonstrated remarkable growth through strategic initiatives and the launch of significant projects. These efforts focused on enhancing food security and improving self-sufficiency, particularly in the cereals and milk sectors.
Under the guidance of President Abdelmadjid Tebboune, public authorities prioritized partnerships across the country, achieving significant milestones despite recent challenges. With a contribution of $37 billion to the economy, agriculture accounted for 15% of Algeria's GDP, making it the second-largest economic sector after hydrocarbons and a critical job creator.
State-Supported Measures
The government implemented several supportive measures, including:
Increasing the purchase price of grains and legumes from farmers.
Subsidizing fertilizer costs by 50% to counter rising global prices.
Connecting thousands of farms to the electricity grid.
These initiatives strengthened the sector's appeal and facilitated collaborations with international investors, particularly in southern provinces.
Major Agreements and Investments
In July, the Ministry of Agriculture signed a framework agreement with the Italian company BF (Boniface Ferrarisi) to establish an integrated project in Timimoun. Spanning 36,000 hectares, this project aims to produce wheat, lentils, beans, and chickpeas, and includes processing facilities for pasta production, storage silos, and other key infrastructure. Valued at €420 million, the project is expected to boost cereal and legume production, create 6,700 jobs, and expand non-hydrocarbon exports.
Similarly, an agreement with Qatar’s Baladna company in April set the stage for an integrated dairy farming and milk powder production project in Adrar. Covering 117,000 hectares, the $3.5 billion initiative aims to meet 50% of Algeria's milk powder needs, provide red meat for local markets, and create 5,000 direct jobs. This project also includes plans for infant formula production.
Expanding Agricultural Investments
National operators are actively investing in reclaiming agricultural land, especially in southern regions, focusing on strategic crops such as durum wheat, maize, and barley. A key goal is to irrigate one million hectares to achieve self-sufficiency in these crops.
Additionally, the third general agricultural census conducted in mid-2024 revealed over 230,000 new agricultural investments compared to 2001. These results highlight significant progress in land reclamation and agricultural expansion.
Conclusion
Algeria's agriculture sector has established itself as a cornerstone of the economy through targeted investments and partnerships. These projects not only enhance food security but also contribute to sustainable economic growth and job creation, underscoring the sector's vital role in the country's development.
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