Baladna expands into Algeria with dairy, infant milk production deals

ALGERIA – Baladna Trading and Investment W.L.L., a subsidiary of Baladna Q.P.S.C., has signed a shareholder agreement with the Algerian National Investment Fund to strengthen agricultural and industrial cooperation between Qatar and Algeria.

The partnership is set to establish an integrated dairy and milk powder production project in southern Algeria, which is anticipated to be one of the largest agricultural initiatives in the region.

The project, representing the first production phase of the massive partnership between Algeria’s National Investment Fund (FNI) and Baladna, involves an investment exceeding US$3.5 billion and is slated for completion by 2026. 

Once operational, the project is projected to meet 50% of Algeria’s domestic demand for powdered milk. 

This builds on an agreement signed in April between the Algerian Ministry of Agriculture and Rural Development and Baladna, which laid the foundation for a comprehensive project to produce powdered milk in southern Algeria.

The project was set to be implemented in multiple stages, starting with exploratory drilling to assess underground water sources and devising innovative mechanisms to conserve water for this vital endeavor. 

The following steps included cereal cultivation to produce feed for dairy cattle, the establishment of livestock farms for both milk and red meat production, and ultimately the construction of a state-of-the-art powdered milk factory.

According to the agriculture ministers present during the formalization of the agreement, the collaboration highlighted Algeria’s commitment to enhancing food security and bolstering agricultural investments. 

Meanwhile, the partnership has established a legal framework, with Baladna holding a 51% stake in the new Algerian company, while the Algerian National Investment Fund will own 49%. 

This structure is designed to promote local involvement and investment in the project.

In addition, Baladna Trading and Investment previously signed a cooperation agreement with the Algerian Ministry of Industry and Pharmaceutical Production to explore the establishment of an infant milk production project in El-Harrach, Algiers.

The Memorandum of Understanding (MoU) for the infant milk project was signed by Ms. Amal Alam, General Director of Industrial Development at the Ministry, and Mr. Ramez Mohamad Raslan Al Khayyat, Managing Director of Baladna. 

This agreement will facilitate feasibility studies to evaluate the technical, commercial, and financial aspects of the infant milk production project, focusing on optimal investment requirements.

The initiative, which involved a total investment of US$29.8 million, was a collaboration between the private company Algerian Baby Healthcare and the state-owned pharmaceutical group Saidal.

The facility, scheduled to commence operations in the second quarter of 2025, is expected to have an annual production capacity of 15,000 tons of powdered milk and 10,000 tons of infant flour, catering to children aged 0 to 36 months.

According to an industry report, Algeria’s annual consumption of infant milk ranges between 25,000 and 30,000 tons, indicating a strong demand in a market that heavily relies on imported powdered milk. 

Baladna’s initiatives aim to achieve self-sufficiency in infant milk production, adhering to the highest health and safety standards, and thereby reducing dependency on imports.

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