Milk market in Algeria

Earlier Report Observations

Algeria's milk market is characterized by a structural reliance on imported milk powder, with domestic production meeting only about 55% of demand. The government's sustained intervention, channeled through the National Interprofessional Office for Milk and Dairy Products (ONIL), involves providing subsidized imported raw materials to dairies and issuing permits to fresh milk collectors. This is part of a broader five-year agricultural plan until 2024, which promotes modern intensive farming complexes, technology adoption, and substantial annual subsidies exceeding 18 billion DA to support breeders, collectors, and processors.

Market volume oscillated between 3.6 million tons and 3.7 million tons from 2018 to 2023. A notable recovery occurred in 2022 when the authorities implemented a new distribution map for subsidized milk and maintained the retail price of bagged milk at 25 dinars per liter to ensure consumer access, which helped improve supply chain efficiency. This period also saw Algeria remain the world's second-largest importer of milk powder, with purchases around 418,000 tons. In 2023, the sector marked a significant infrastructure milestone with the inauguration of the country's largest dairy plant in Rouiba, operated by the state-owned group Giplait, directly aimed at strengthening local processing capacity and reducing import dependency.

The market dynamics were further shaped by external trade shifts, notably a diplomatic rift with France that led to a sharp reduction in French milk imports. In response, Algeria accelerated the diversification of its suppliers toward other African nations. Concurrently, a major project for a 200,000-cow mega dairy farm, developed in partnership with a Qatari company, was launched, reflecting the ongoing strategic push to expand domestic herd size and curb powder milk imports, which still exceeded 400,000 tons annually.

Production milk in Algeria

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Milk production in Algeria increased for the second consecutive year. In 2020, Algeria produced 3 354 K t of milk, showing no significant change compared to the previous year. Between 2017 and 2020, production decreased by 6.7%, which equates to an annualized rate of 2.3%. The lowest production level was recorded in 2018 at 3 243 K t. The largest decline occurred in 2018 with a drop of 9.8%, while the largest increase was seen in 2019 with growth of 3.1%.

Annual dynamics of production in Algeria in kind, 2017-2020, K t

Exports milk from Algeria

Exports in kind, K t

The market showed an unstable trend throughout the period. Export volumes varied significantly, with the lowest point in 2017 and the highest in 2018, showing a 22-fold difference between these years. In 2020, Algeria's milk export volume reached 0.4 K t, representing a substantial drop of 13.0% compared to the previous year. The maximum value was recorded in 2018 at 1.0 K t. The largest decline occurred in 2019 with a decrease of 55.2%, while the largest increase was recorded in 2018 with growth of 2 070.3%.

Annual dynamics of product's exports from Algeria in kind, 2017-2020, K t

From 2017 to 2020, Niger and Mauritania remained the primary buyers of milk from Algeria, together accounting for 84.8% of total exports in kind, with other countries making up the remainder.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Algeria in kind, 2017-2020

Exports in value, M $ US

The market exhibited volatility during these years. Export values reached their lowest point in 2017 and peaked in 2018, with a 15-fold gap between these years. In 2020, milk exports from Algeria amounted to 1 M $ US, representing a solid decrease of 19.9% from the previous year. The maximum value was recorded in 2018 at 2 M $ US. The largest decline occurred in 2019 with a drop of 36.2%, while the largest increase was seen in 2018 with growth of 1 422.8%.

Annual dynamics of product's exports from Algeria in value, 2017-2020, M $ US

From 2017 to 2020, Niger (68.3% of exports in value terms), Mauritania (10.3% of exports in value terms), and Libya (8.2% of exports in value terms) consistently remained the main destinations for exports in value terms, together accounting for 86.9% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Algeria in value, 2017-2020

Imports milk to Algeria

Imports in kind, K t

After two years of reduction, imported milk volumes in Algeria increased. In 2020, imports reached 377.7 K t, indicating a measured increase of 8.2% compared to 2019. Over the period from 2017 to 2020, imports decreased by 11.3%, with a compound annual growth rate of 3.9%. The minimum value was recorded in 2019 at 349.0 K t. The largest decline occurred in 2019 with a decrease of 17.7%.

Annual dynamics of product's imports to Algeria in kind, 2017-2020, K t

From 2017 to 2020, New Zealand (26.5% of imports in kind), Uruguay (14.3% of imports in kind), and Argentina (13.8% of imports in kind) led the structure of imports in kind, together representing 54.7% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Algeria in kind, 2017-2020

Imports in value, M $ US

After two years of decrease, milk imports in Algeria increased. In 2020, Algeria imported 1 109 M $ US of milk, showing a rise of 15.3% year-over-year. Over the period from 2017 to 2020, imports decreased by 10.5%, with a compound annual growth rate of 3.6%. The minimum value was recorded in 2019 at 961 M $ US. The largest decline occurred in 2018 with a drop of 12.9%.

Annual dynamics of product's imports to Algeria in value, 2017-2020, M $ US

From 2017 to 2020, New Zealand (28.7% of imports in value terms), Uruguay (15.6% of imports in value terms), and Argentina (14.8% of imports in value terms) formed the key group of partners for imports in value terms of milk to Algeria, jointly representing 59.1% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Algeria in value, 2017-2020