Algeria inaugurates US$4.45M dairy production unit in Bouira

ALGERIA – Algeria continues its efforts to boost local dairy production with the inauguration of a new US$4.45 million dairy production unit in the wilaya of Bouira, located in the northern part of the country.

The facility, which spans 0.35 hectares, was launched by the Industrial Group for the Production of Milk and its Derivatives (Giplait) on Sunday, November 17, 2024.

This new investment comes as part of Algeria’s broader strategy to reduce its reliance on imported dairy products and increase self-sufficiency in milk production.

The new unit is expected to initially produce 80,000 liters of milk per day, with plans to gradually scale up to 250,000 liters daily.

According to Samah Lahlouh, CEO of Giplait, the project aligns with the Algerian government’s directives to develop the domestic dairy sector and ensure a consistent supply of dairy products for local consumers.

Lahlouh emphasized that this initiative is critical in addressing the country’s current milk production shortfall, which still leaves a significant gap between supply and domestic demand.

Algerian milk consumption is estimated at 4.5 billion liters per year, of which only 55% is covered by local production, according to FAO.

The remainder is met through imports, primarily of powdered milk, which is reconstituted into liquid milk.

These imports cost Algeria around US$800 million annually, according to the Ministry of Agriculture. With the new Bouira facility and additional planned projects, Algeria aims to reduce this dependency and strengthen its dairy industry.

By February 2025, the company plans to launch another dairy facility capable of producing one million liters of milk per day.

This project is part of a national initiative to increase the country’s milk production by an impressive 3,500 tons per day by the end of the first quarter of 2025.

The government is also working to ensure that the country’s dairy industry is an integral component of its food security strategy, which includes enhancing local production to meet the growing demand.

One of the key developments in Algeria’s dairy sector is the expansion led by Qatar’s Baladna Group in the wilaya of Adrar, a project expected to significantly contribute to domestic milk production.

This comes as Algeria seeks to address the persistent challenge of dairy imports, which have accounted for nearly half of the country’s dairy consumption in recent years.

Between 2020 and 2022, Algeria’s dairy imports reached approximately 6.5 million tons annually, according to the Food and Agriculture Organization (FAO).

Currently, Algeria’s dairy industry processes about 2.1 billion liters of milk annually, with the country home to approximately 1.8 million dairy cattle.

In 2023, these cattle produced around 3.5 billion liters of milk, supporting the efforts of key industry players such as Giplait, Laiterie Soummam, and the newly established Alrawabi Dairy Company.

These companies, along with international partnerships, are crucial to meeting Algeria’s demand for dairy products like cheese, milk powder, and whey.

As part of its National Dairy Program, the Algerian government aims for full self-sufficiency in dairy production by 2025, with the goal of cutting down on imports and bolstering local industry through technological advancements and investments.

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