ALGERIA – The Algerian purchasing agency, Office National Interprofessionnel du Lait et de Produits Laitiers (ONIL), has initiated a tender for Skimmed Milk Powder (SMP) and Whole Milk Powder (WMP) with delivery scheduled between June and September 2024.

Set to conclude on March 27th, the tender welcomes bids from sellers worldwide.

This move comes as ONIL issued new import permits in late February, aligning with market expectations amidst reports of subdued international dairy demand in the first quarter of 2024.

Market analysts anticipate that the majority of SMP will originate from the European Union (EU), with EU sellers poised to offer competitive prices to bolster export volumes.

Meanwhile, New Zealand is anticipated to remain a primary source for WMP, owing to its competitive pricing compared to EU producers.

Despite ongoing disruptions caused by Houthi rebel attacks in the Red Sea, which have prompted some freighters to reroute ships around Africa, exporters from New Zealand are not anticipated to encounter significant challenges given the delivery timeline spanning from June to September.

The tender announcement underscores ONIL’s commitment to meeting Algeria’s dairy product requirements and maintaining a steady supply amidst global market dynamics.

As market conditions evolve, monitoring by industry analysts such as Mintec will provide further insights into dairy market trends and developments. For inquiries or additional information, stakeholders are encouraged to reach out directly.

According to a report released by the United States Department of Agriculture (USDA), Algeria stands out as one of the leading consumers of milk in North Africa.

However, despite efforts by the Government of Algeria (GOA) to boost domestic milk production over the past two decades, local fluid milk production still falls short of meeting the annual consumption demand of approximately 4.5 billion liters (4.5 million metric tons).

Constraints persist in animal husbandry, feed, and nutrition management, hindering the success of these programs. As a result, milk powder imports continued to rise in 2023.

Trade Data Monitor (TDM) figures revealed that in the calendar year 2022, Algeria’s milk powder imports surged compared to the previous year.

The country imported nearly 419,000 metric tons of total dry milk powder, including both whole milk powder (WMP) and nonfat dry milk (NFDM).

While milk powder imports escalate, Algeria’s imports of butter and cheese have been on a downward trajectory over the past five years.

This decline is attributed to measures implemented to regulate food product imports and the upward trend in international prices.

Despite efforts to enhance domestic production, Algeria’s reliance on milk powder imports underscores the ongoing challenges faced by the country’s dairy industry.

As demand continues to outstrip local supply, policymakers may need to explore additional strategies to address these persistent issues and ensure a stable milk supply for Algerian consumers.

Subscribe to our food and agriculture industry email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE