Algeria launches import duty on dairy

Algeria has introduced an import duty on more than 1.000 products, more than half of which are foodstuffs. Butter and cheese also appear on the list, but a lucky break for European exporters is that milk powder is kept out of harm's way.

The import duty is a consequence of an import ban that Algeria has applied for various products since 2018. The boycott was then valid for mobile telephones, household appliances, various foodstuffs and (agricultural) raw materials.

The measure was introduced to protect the country's economy as a result of the disappointing revenues from oil and gas exports. The import stop should give the local 'manufacturing industry' a boost. However, approximately 1 year later, the conclusion is that the measure has had hardly any effect on the local economy.

Levy instead of ban
Instead of a ban, the government is introducing import duties on 1.095 products, ranging from 30% to 200%. For example, there will be an import duty of 70% on (European) dairy products such as butter and cheese. A windfall is that the levy does not apply to whole and skimmed milk powder. This is because Algeria is a major buyer of European milk powders.

The North African country is (after China) the largest importer of whole milk powder. In the first 11 months of 2018, just under 150.000 tons of European product was shipped to the country. In the same period, Algeria also imported another 100.000 tons of skimmed milk powder from Europe.

Poultry and beef meat
The export volumes of European cheeses and butter are in stark contrast to milk powder, which means that dairy exports are largely out of step. In addition to dairy, there is an import duty on poultry and beef meat, various fruits and grains.

Analysts are convinced that Algeria's citizens will bear the brunt of the government's measures, as products are likely to become more expensive.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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