The document submitted by the Algerian Ministry of Agriculture on Wednesday revealed that the two sides have signed an agreement to build a large cattle farm in southern Algeria, mainly dedicated to the production of milk powder and meat. The agreement was jointly signed by Suad Asus, the head of agriculture and land investment at the Algerian Ministry of Agriculture, and Mohamed Mutaz Hayat, the Chairman of Balladna, in the capital city of Algiers.

Algeria hopes to reduce milk powder imports and create more employment opportunities for young people through this measure. According to the Ministry of Agriculture, the cattle farm in Balladna is expected to officially start production in 2026. This measure will not only help meet domestic demand, but also further promote the development of Algeria's agricultural economy.BalaDNA is the largest milk and dairy production company in Qatar, listed on the Qatar Stock Exchange in 2019 with a market value of approximately $2.5 billion. It produces fresh ultra-high temperature milk. The project will cover an area of 170000 hectares in Adral Province, divided into three centers, each including a farmland farm, a dairy and beef farm, and a milk powder manufacturing plant. Balladner stated that the number of cattle in the region will reach 270000, with an annual production of approximately 1.7 billion liters of milk.

BalaDNA stated that it will hold 51% of the shares in the complex, with the remaining 49% held by the Algerian government through its national investment fund.Gulf Company stated in its submission to the stock exchange that the project will meet 50% of Algeria's milk powder demand and create 5000 direct employment opportunities in the local area.

Balladner added, "It will also utilize modern technology and best management practices to improve dairy farming efficiency, reduce production costs through economies of scale, and strengthen control over the entire value chain."

Milk is an important industry in Algeria, and in recent years, there has been a shortage of products in the country. Therefore, this North African country heavily relies on milk powder imports - according to data from the Economic Complexity Observatory, Algeria imported concentrated milk worth $1.62 billion in 2022. According to these indicators, Algeria was the world's second largest importer of concentrated milk at that time.

This month, local reports reported that queuing up to receive rationed and subsidized milk powder has become the norm in various cities in Algeria. Many Algerians protested on social media that they had to wait for several hours to receive milk.

In the past few years, a large number of cattle and other livestock have been smuggled into Algeria. For example, in October 2022, authorities announced the seizure of 20 smugglers intending to cross the border from Tunisia into Algeria. Part of the reason for this situation is that countries with common drought conditions have higher raw material costs.EditorXuNing