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Algeria expands supply of cheap milk
Algeria, a major importer of milk powder from Europe, New Zealand and Belarus, is rapidly expanding its supply of cheap domestic milk. The latest step in this process is the opening of a new factory with a capacity of 1,4 million litres of milk per day.
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The factory is located in Rouïba in the east of the country. The factory is owned by the Giplait group, which already owns fifteen factories in Algeria. However, the milk that the group produces is not marketed at a free price. A significant part of the production consists of 1-liter cartons of pasteurized milk that are sold at a fixed price of 25 dinars (the equivalent of almost 18 cents) to families with a very low and/or no fixed income.
The difference between the production costs and the sales price is paid by the state. The Algerian government subsidizes many basic needs in the area of food for the rapidly growing population. The government does strive to rely more on its own production for the food supply and to buy less from abroad.
Another initiative of the Algerian government was the establishment of a mega-farm for 270.000 dairy cows in the south of the country in collaboration with the Qatari Baladna Group. A large part of the production of this farm is also intended for the production of 25 dinar milk.
Until now, Algeria has regularly organised tenders for the import of milk powder, to which exporters from all over the world can bid. Sometimes there are several tenders per month. All to feed its own population and maintain social peace in the country.