- Baladna signs a $3.5 billion agreement with the Algerian Ministry of Agriculture for the world’s largest dairy project.
- Baladna and the Algerian Ministry of Agriculture form a joint venture with 51% and 49% ownership respectively.
- Project aims to meet 50% of Algeria’s powdered milk demand, create 5,000 jobs, and boost national cattle stock.
- “Baladna” project aligns with Algeria’s strategy for domestic production, enhancing food security.
Baladna Q.P.S.C. has recently signed a significant Framework Agreement with the Algerian Ministry of Agriculture and Rural Development. This agreement marks the launch of the world’s largest integrated dairy farming and production project.
The project aims to produce powdered milk in southern Algeria. The total investment for this project is $3.5 billion.
The agreement was signed by Souad Assous, Director General of Agricultural Investment and Land at the Ministry of Agriculture and Rural Development, and Mohamad Moutaz Al Khayyat, Chairman of Baladna.
The signing ceremony was attended by distinguished guests, including H E Youcef Cherfa, Minister of Agriculture and Rural Development in Algeria; H E Laaziz Fayed Fayed, Minister of Finance in Algeria; and H E Abdelaziz Ali Al Nama, the Qatari Ambassador to Algeria.
The venture will have 51% ownership by Baladna and 49% by the Algerian State through the National Investment Fund. It is poised to develop a large-scale vertically integrated dairy operation in Algeria.
This project will cover 117,000 hectares and will be segregated into three hubs. Each hub will comprise an arable farming operation, a dairy and beef farming operation, and a powdered milk manufacturing facility.
Mohamad Moutaz Al Khayyat, Chairman of Baladna, expressed his enthusiasm for the agreement. He stated, “We are delighted to formalize this partnership between Baladna and the Algerian Ministry of Agriculture and Rural Development.
This strategic project is a cornerstone in fostering the growth of Algeria’s agricultural sector, driving the nation toward self-sufficiency, and bolstering food security—a critical global challenge that commands concerted efforts from countries and international entities alike.”
This partnership promises to significantly contribute to Algeria’s agricultural growth, reinforcing its journey towards self-sufficiency and enhancing food security on a global scale.
With a proven track record of rapid and significant achievements in Qatar, Baladna has emerged as a beacon of self-sufficiency within a mere 12 months. By employing foremost international technologies and leveraging a wealth of expertise in the agriculture industry, Baladna achieved this remarkable feat.
Now, fueled by anticipation, they aim to replicate this success in Algeria, sharing valuable experiences and technologies to implement exemplary, sustainable practices on an international scale.
Malcolm Jordan, CEO of Baladna, expressed his enthusiasm for the endeavor, highlighting the potential to establish one of the world’s largest vertically integrated dairy companies through collaboration with Algerian partners.
This strategic partnership not only aligns with Baladna’s ambitious growth objectives but also promises significant returns and long-term value for shareholders.
The project sets out with ambitious goals, aiming to meet 50% of Algeria’s national demand for powdered milk, while also supplementing the local market with red meat. Moreover, it seeks to create 5,000 direct local jobs and contribute to the growth of the national cattle stock.
Leveraging modern technology and best management practices, the initiative aims to enhance dairy farming efficiency, reduce production costs through economies of scale, and improve control over the entire value chain.
Altogether, the “Baladna” project for powdered milk production aligns seamlessly with the Algerian state’s strategy to bolster food security by producing widely consumed products domestically. This strategic alignment underscores the project’s significance in contributing to national goals and ensuring a more resilient food supply chain for Algeria.
