ALGERIA -Qatari food giant, Baladna is set to finalize an agreement with the Algerian government to establish a farm dedicated to milk production, along with a plant for manufacturing powdered milk within Algerian.

According to sources familiar with the matter, Baladna, a prominent player in Qatar’s agricultural sector known for its excellence in milk and dairy production, aims to inaugurate a vast farm occupying 100,000 hectares.

Algerian President Abdelmadjid Tebboune affirmed the impending agreement, disclosing that the farm will be strategically located in Adrar, situated in the southwestern region of Algeria.

This move shows the Algerian government’s commitment to fostering domestic agricultural production and reducing reliance on imports.”

Baladna, Qatar’s largest milk and dairy producer, gained global recognition following its pivotal role during the 2017 Gulf Cooperation Council (GCC) crisis, which prompted a shift in Qatar’s production focus towards achieving food security.

Since its debut on the Qatar Stock Exchange in October 2019, Baladna has experienced remarkable growth, expanding its footprint both locally and internationally.

In another related development last July, Baladna increased its stake in Egypt’s Juhayna Food Industries, a leading dairy and juice producer in the region.

This move followed an initial investment in May 2022, where Baladna acquired a 10.1% stake in Juhayna Food Industries, signalling its commitment to regional expansion and diversification.

The Algerian government encouraged the private sector to invest in local industries to create a conducive environment for such partnerships.

Meanwhile, in Algeria, where milk and its derivatives constitute significant food expenditure, initiatives like Baladna’s venture are seen to enhance domestic production capacity and reduce reliance on costly imports.

While specific details regarding the location of the factory site and the magnitude of investment remain undisclosed, Baladna’s engagement in evaluating potential farm sites in the El-Bayadh region in southwest Algeria signals the company’s earnestness in realizing this ambitious project.

This investment venture not only promises to fortify Algeria’s local dairy industry but also serves as a strategic move for Baladna to expand its presence in North Africa.

With a substantial portion of Algeria’s annual milk powder consumption currently imported, this collaboration can potentially mitigate the country’s expenditure on milk imports, which amounts to approximately US$800 million annually, according to official data.

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