December 17, 2024 | 1 year ago

Development of the milk sector: DZD105 billion in subsidies

The milk sector has become a strategic pillar of Algerian public policy, due to its essential role in food security and its direct impact on household purchasing power.

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The Algerian government spends 105 billion dinars to guarantee access to subsidized milk, a strategic product for food security. According to the Court of Auditors' 2024 report, budgetary support covers an average differential of 45 DZD per litre, making it possible to maintain an affordable price despite high import costs (53.6 million centimes/ton of milk powder versus 12.6 million billed to dairies).

Agricultural expert Laâla Boukhalfa underlines the importance of this policy, pointing out that national consumption reaches 130 litres per person/year, compared with a regional average of 45 litres. To reduce its dependence on imports (370,000 tons of milk powder/year), Algeria has launched several structuring projects including the partnership with Baladna (Qatar). This project provides for:

· 117,000 hectares to produce fodder and cereals,

· Annual production of 1.7 billion litres of raw milk and 193,000 tons of milk powder,
50% reduction in imports,

· The creation of 5,000 jobs and technology transfer in the livestock sector.

 

Lastly, the report recommends the adjustments needed to optimize the use of resources, notably by overhauling the price-setting system to ensure a fair income for livestock farmers while preserving household purchasing power.

December 17, 2024 | algeria-logo