March 27, 2025 – Algiers, Algeria – Algeria and Qatar have sealed a landmark deal to launch an integrated powdered milk production project in southern Algeria, valued at $3.5 billion. The final agreement was signed on Thursday during a ceremony co-chaired by Algeria’s Minister of Agriculture, Rural Development, and Fisheries, Youcef Cherfa, and Kamel Rezig, advisor to the President on trade, supply, control, and import-export.
A Milestone in Agricultural Cooperation
The agreement was formalized between Souad Assaous, Director General of Agricultural Investment and Land at the Ministry, and Ali Al-Ali, Chairman of Baladna-Algérie, a joint venture spearheading the project. The signing took place in the presence of ministry officials and the head of Algeria’s National Investment Fund (FNI), according to a ministry statement.
A parallel deal was also inked between Baladna-Algérie and the National Interprofessional Office for Milk and Dairy Products (ONIL) to secure the purchase of powdered milk produced by the project. This contract was signed by Al-Ali and ONIL’s Director General, reinforcing the initiative’s focus on meeting domestic demand.
Project Scope and Goals
Spanning 117,000 hectares, the ambitious project includes:
- Farms for growing fodder.
- Cattle farms for milk and meat production.
- A state-of-the-art powdered milk factory.
The initiative aims to produce 50% of Algeria’s powdered milk needs locally, paving the way for self-sufficiency. It also seeks to bolster the red meat supply, create jobs, and increase the national cattle herd. With a footprint in the Adrar wilaya, exploratory drilling and feasibility studies have already begun, marking the project’s early progress.
Economic and Strategic Impact
Valued at $3.5 billion, this venture ranks among Algeria’s largest agricultural projects. By reducing reliance on imported dairy and boosting local meat production, it aligns with the country’s broader goals of food security and economic diversification. The collaboration with Qatar’s Baladna, a leading dairy company, underscores the strategic partnership between the two nations.
“This project is a game-changer for Algeria’s agricultural sector,” the ministry statement noted, highlighting its potential to transform the southern region into a hub of sustainable production.
Next Steps
With groundwork underway in Adrar, the focus now shifts to scaling up infrastructure and operational capacity. The project’s success could set a precedent for future agro-industrial investments, strengthening Algeria’s position in regional food markets.
