World Grain - September 2011 - 22

COUNTRYFOCUS

Focus on Algeria
Country’s milling sector expands, now has approximately 330 mills
by Chris Lyddon

Key Facts
Capital: Algiers Population: 34,994,937 (July 2011 est.) Religions: Sunni Muslim (state religion) 99%, Christian and Jewish 1%. Location: Northern Africa, bordering the Mediterranean Sea, between Morocco and Tunisia. Government: Republic; Chief of state and head of government: President Abdelaziz Bouteflika (since April 28, 1999). Economy: Algeria’s economy remains dominated by the state, a legacy of the country’s socialist post-independence development model. Gradual liberalization since the mid-1990s has opened up more of the economy, but in recent years Algeria has imposed new restrictions on foreign involvement in its economy and largely halted the privatization of state-owned industries. Hydrocarbons have long been the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the eighth-largest reserves of natural gas in the world and is the fourthlargest gas exporter. It ranks 16th in oil reserves. Thanks to strong hydrocarbon revenues, Algeria has a cushion of $150 billion in foreign currency reserves and a large hydrocarbon stabilization fund. In addition, Algeria’s external debt is extremely low at about 1% of GDP. Algeria has struggled to develop industries outside of hydrocarbons in part because of high costs and an inert state bureaucracy. The government’s efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector have done little to reduce high poverty and youth unemployment rates. In 2010, Algeria began a five-year, $286 billion development program to update the country’s infrastructure and provide jobs. The costly program will boost Algeria’s economy in 2011 but worsen the country’s budget deficit. Long-term economic challenges include diversification from hydrocarbons, relaxing state control of the economy, and providing adequate jobs for younger Algerians. GDP per capita: $7,300 (2010 est.); inflation: 3.9% (2010 est.); unemployment 10% (2010 est.). Currency: Algerian dinars (DZD): 76 dinars equal 1 U.S. dollar (Aug. 22, 2011). Exports: $57.19 billion (2010 est.): petroleum, natural gas, and petroleum products 97%. Imports: $38.38 billion (2010 est.): capital goods, foodstuffs, consumer goods. Major crops/agricultural products: Wheat, barley, oats, grapes, olives, citrus, fruits; sheep, cattle. Agriculture: 8.3% of GDP and 14% of the labor force. Internet: Code. .dz; 572 (2010) hosts and 4.7 million (2009) users.
Source: CIA World Factbook

Algeria is the largest country by area in Africa, but with four-ﬁfths of its area covered by desert, the availability of agricultural land is limited, making it a major importer of grain. The government manages the market to keep down the price of bread. According to the International Grains Council (IGC), Algeria’s total grain production in 2011-12 will be 4.6 million tonnes, down from 4.7 million the year before. Total wheat production is put at 3 million tonnes, down from 3.1 million. That includes durum production of 2.5 million tonnes, up from 2.2 million. Barley production is forecast at an unchanged 1.5 million tonnes. Total grain imports for 2011-12 are forecast at 8.1 million tonnes, down from 8.2 million in 2010-11. Imports include 5.4 million tonnes of wheat, down from 5.9 million. The IGC also predicts barley imports of 200,000 tonnes, up SPAIN from 100,000. It is expecting durum imports of 1.1 million tonnes, down from 1.2 million MOROCCO in 2010-11. The total Algerian market is about 8.4 ALGERIA million tonnes of all wheat, including about 3.4 million tonnes of durum. With a population in Algeria of about 34 million that MALI NIGER consumes about 245 kg per person per year of durum, it is the preferred bread wheat in Algeria as in a large part of North Africa. It i is used for traditional bread. df
TUNISIA LIBYA

MAURITANIA A

DOMINATED BY OAIC The Algerian grain sector is dominated by the Ofﬁce Algerien Interprofessionnel des Cereales (OAIC), the government grain agency. “The OAIC is the state buying agency,” Sarah Mann, manager at the British export promotion body British Cereal Exports, told World Grain. “They’re not just solely responsible
22

September 2011 / World Grain / www.World-Grain.com

http://www.World-Grain.com

World Grain - September 2011

Table of Contents for the Digital Edition of World Grain - September 2011