Abstract
Algeria, the second largest of Africa' s economies, has increasingly struggled
with food security in recent
years. A dry and arid climate, limited water
resources and an inability to procure adequate fertiliser
volumes are just
some of the factors affecting production. Meanwhile, an increasingly affluent
society
with burgeoning consumption demand has compounded Algeria' s
position as a net food importer. BMI' s
latest Algeria Agribusiness Report
considers the potential for Algerian agriculture as diminishing
petrodollars accelerate state plans for economic diversification.
Improving the productivity of the country' s agricultural sector remains a
priority concern for the Algerian
government as the subject of food
self-sufficiency becomes a regional obsession for countries in the
Middle
East and North Africa (MENA) region with limited farming potential. Earlier in
2009, the Arab
Centre for the Studies of Arid Zones and Dry Lands (ACSAD)
held its first conference for developing
agricultural research and
co-operation in the region, which, alongside the privatisation of various
stateowned
production units, is hoped to encourage a greater degree of
private sector market participation.
The government has sought to initiate
agricultural reforms in order to help producers gain the best
possible
yields from the sector. Fundamentals concerning food safety, productivity and
relevant seed/crop
types are among some of the areas that have been
targeted. The dairy industry in particular is seen as the
sub-sector
holding the most potential in terms of domestic and export demand and the
state has been keen
to improve the scale and quality of the industry,
particularly as the EU - where Algeria sources nearly two
thirds of its
dairy imports - is likely to have less white goods for exports as it exercises
its attempts to
streamline the industry by phasing out production
quotas.
To this end, Algeria has been less than shy in seeking production
tips from some of the world' s
agricultural big hitters. For example,
Brazil, from which Algeria is one of the biggest importers of milk
powder,
is being enlisted to help the MENA nation improve its dairy outlook. An
Algerian delegation
recently visited Latin America to open talks with
dairy officials regarding the prospect of technical
assistance with dairy
production in return for concessions on Algerian fossil fuels. Similarly so
with
grains production, where Brazil has successfully adopted the use of
seeds with attributes potentially
suitable for cultivation in the arid
deserts of Algeria.
For the last couple of decades the state has provided
subsidies and aid to farmers in order to encourage
production.
Furthermore, food subsidies have been given to those in society less able to
afford staple
consumption goods, although this dynamic is coming under
pressure as the economic rationale of
continued subsidies is being
questioned.
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