Agri Commodities

Algeria: Agri-Commodity Market Overview

Agri-Commodity

The agriculture commodity trading market of Algeria has great potential. The agriculture sector of Algeria plays a vital role in the development of the country’s economy. Agriculture, with 12.4% of GDP, holds an important position in the Algerian economy. The Agri sector accounts for more than 25 million jobs within the country. Yet, the low agriculture productivity leads to the importation of various Agri commodities. In general, crop productivity is very low as compared to the neighboring country Morocco.

Factors affecting Algeria Agriculture Sector:

The agriculture sector is a high priority for the Government of Algeria (GoA). To boost Agri-commodity trading, the government is taking various steps.  Several factors have hampered the agriculture sector in Algeria:

  • Land tenure constraints
  • Less investment
  • Low water Availability
  • Lack of agriculture Training
  • Lack of proper marketing channels and services support

Government Strategies to Boost Agri-Commodity Sector

Algeria has 8.5 million hectares of arable land and around 20% of the population lives in the rural area. The Ministry of Agriculture, Algeria has launched various initiatives to increase the crop and vegetation growth in the country. Yet, the ministry indicates that the yield per hectare for all grains is down.

The Ministry of Agriculture, Algeria is engaged in various programs to boost the agri-commodities trade to reduce the import bill of the country.

Some of the highlighting steps taken by the GoA are:

  • Allocation of public agriculture land to the private sector on concessional terms
  • Establishment of modern agriculture farms mainly in dairy and cereals
  • Land grant to private investors, with Algerian partner/ private investor/public and foreign investor.
  • Various agriculture educational programs
  • Removal of additional duty on food products
  • Modernizing the irrigation system

Algeria Agri Commodity Trade Market:

The market opportunities lie in the Algeria Agri trade market. Currently, the U.S. exports bulk and intermediate Agri-commodities to Algeria. The prime Agri commodities Algeria imports are:

  • Rice
  • Wheat
  • Pulses
  • Corn
  • Barley
  • Soybean
  • Cotton
  • Dairy Products

The government focuses on developing the sectors of wheat, oilseeds, sugar crops, corn. These food products are imported in bulk quantity. The government aims to increase the yields between 50 and 60 quintals/hectare.

As per the data, the country imports $7.36 billion in foodstuffs from January to November 2020.

The table shows the major food imports and percentage imported by the country in FY 2020.

FY – 2020 Commodity Value in million US dollar
Cereals 2813.8
Milk and Dairy products 1549.74
Sugar and Sugar Confectionaries 774.47
Tea, coffee, spices 325.03
Edible Fruits nuts 301.8
Edible Vegetables 273.27

Source: www.statista.com

The data is taken from a reliable source only.

Consumption of Agri Commodities:

Cereals are mainly consumed while wheat is consumed as a staple food in the country. Wheat is mainly used to produce bread. Hence, Algeria imports wheat in bulk quantity. In the year 2021, the country imports 11.050 MMT wheat for MY2020/21 and 11.200 MMT for MY2021/22. As wheat consumption will remain relatively stable in the near future, the government aims to decrease the import of bread wheat.

Barely is mainly consumed as a grain in the animal feed. Only a minor amount is used for human consumptions. Algeria’s traditional breweries consume a small amount of barley. The country imports 2.0 MMT MY2020/21 and 2.05 MMT for MY2021/2022 barely mainly from Europe.

Agri Trading with Technology:

The government of Algeria is taking the help of Digitalization to improve its Agri-commodity trade market. Algeria’s Agri-commodity Trade market has a lot of scope as the country imports most of the agriculture products. This simply means Algeria’s Agri Commodity market is a golden pot for the traders who want to expand their import/export business.

Numerous B2B platforms help traders in trading globally. They offer various packages that help the traders in importing or exporting agriculture products across the globe. However, the process is time-consuming, and the whole process is a hectic task.

Tradologie.com works by standardizing the requirements of traders and arranging live negotiations with verified sellers capable of supplying the buyer on the platform on standardized trade policies which allow for the trade without a phone call or an email through the safe conduit provided by Tradologie.com.

Experts of the world’s first next-generation platform – Tradologie.com, simplify the entire trading task. They execute every task from getting verified buyers/sellers to shipping. Buy or sell any agriculture product, food product, or branded food product with genuine and verified traders only. The platform allows both the buyers and sellers to negotiate in real-time and finalize their deals without the interruption of any middlemen.

Conclusion:

Despite the various initiatives by the Algerian government, there are still numerous opportunities for the traders in the leading sub-sectors of Agri commodities. Digitalization helps not only importers but exporters also. Therefore, wisely choose the right B2B platform for the import and export of various agri-commodities.

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