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Algeria Agribusiness Report Q3 2009Published by: Business Monitor International Published: Jun. 29, 2009 - 32 Pages Table of Contents
AbstractAlgeria, the second largest of Africa's economies, has increasingly struggled with food security in recentyears. A dry and arid climate, limited water resources and an inability to procure adequate fertiliservolumes are just some of the factors affecting production. Meanwhile, an increasingly affluent societywith burgeoning consumption demand has compounded Algeria's position as a net food importer. BMI'slatest Algeria Agribusiness Report considers the potential for Algerian agriculture as diminishingpetrodollars accelerate state plans for economic diversification.Improving the productivity of the country's agricultural sector remains a priority concern for the Algeriangovernment as the subject of food self-sufficiency becomes a regional obsession for countries in theMiddle East and North Africa (MENA) region with limited farming potential. Earlier in 2009, the ArabCentre for the Studies of Arid Zones and Dry Lands (ACSAD) held its first conference for developingagricultural research and co-operation in the region, which, alongside the privatisation of various stateownedproduction 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 bestpossible yields from the sector. Fundamentals concerning food safety, productivity and relevant seed/croptypes are among some of the areas that have been targeted. The dairy industry in particular is seen as thesub-sector holding the most potential in terms of domestic and export demand and the state has been keento improve the scale and quality of the industry, particularly as the EU - where Algeria sources nearly twothirds of its dairy imports - is likely to have less white goods for exports as it exercises its attempts tostreamline 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'sagricultural big hitters. For example, Brazil, from which Algeria is one of the biggest importers of milkpowder, is being enlisted to help the MENA nation improve its dairy outlook. An Algerian delegationrecently visited Latin America to open talks with dairy officials regarding the prospect of technicalassistance with dairy production in return for concessions on Algerian fossil fuels. Similarly so withgrains production, where Brazil has successfully adopted the use of seeds with attributes potentiallysuitable 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 encourageproduction. Furthermore, food subsidies have been given to those in society less able to afford stapleconsumption goods, although this dynamic is coming under pressure as the economic rationale ofcontinued subsidies is being questioned. Get Full Details About This Report >> |
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