Global Arab Network | Algeria Agribusiness - A net importer with improved productivity in staple foodstuffs

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Algeria Agribusiness - A net importer with improved productivity in staple foodstuffs

Global Arab Network - - Sarah Khan

Monday, 21 September 2009 10:36

Algeria is the second largest country in Africa and one of the largest in the world, with a population of 34mn, of which a quarter of the population is employed within the agricultural sector. As the government has strove to diversify the economy away from an overwhelming reliance on the services and energy sectors, this drive has become more and more difficult, owing to various separate, yet mutually exacerbating factors; some external, some domestic.

Research and Markets has announced the addition of the "Algeria Agribusiness Report Q4 2009" report to their offering.

The Algeria Agribusiness service provides proprietary medium term price forecasts for key commodities, including corn, wheat, rice, sugar, cocoa, coffee, soy and milk; in addition to newly-researched competitive intelligence on leading agribusiness producers, traders and suppliers; in-depth analysis of latest industry developments; and essential industry context on Algeria's agribusiness service.

The Algeria Agribusiness Report Q4 2009 takes a look at industry fundamentals as securing food supplies throughout the Arab world increasingly focuses the attention of state leaders.

Continuing the positive 16.58% growth recorded from 2004-2008, The Algeria Agribusiness Report foresees milk production continuing to flourish through to 2013. The low prices currently hindering dairy farmers across the globe is having little effect in Algeria; the country produces only for domestic consumption and local demand shows little sign of waning. This underpins its (The Algeria Agribusiness Report) assertion that y-o-y growth will be recorded in each and every year of the forecast period starting in 2009.

However, the dairy processing subsector, despite the growing popularity of such products within households, is failing to keep pace with the development of the whole milk industry. This will result in a widening deficit as imports continue to flood the economy. The adoption of modern technology and processes largely hold the keys to improving the outlook of processed dairy goods, as well as effective marketing and distribution channels.

The major caveats to growth in Algeria, aside from poor climatic and agronomic fundamentals, are likely to be felt mainly by the scattered smallholder farms. Credit is often disbursed in accordance with titled holdings, something which small farms are often prevented from owning. As such, most of the productivity growth that will be achieved during the course of the outlook will increasingly be attributable to larger producers, as the industry landscape becomes more consolidated.

Consequently, The Algeria Agribusiness Report has a mixed outlook on Algeria over the course of the forecast. Overall, the country will remain a net importer, although with improved productivity in some staple foodstuffs.

Global Arab Network

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