Agrodiv Launches 2026 Expansion Plan with New Production Units, Eyes Export Markets
Image: Algerie Eco
Takeaway
Agrodiv's expansion presents opportunities for international investors and technology providers looking to enter the Algerian agro-industrial market. The focus on modernizing production lines and increasing export capacity signals a potential shift in Algeria's trade dynamics, which could impact regional supply chains. Companies in the food processing, packaging, and logistics sectors should monitor Agrodiv's progress and explore potential partnerships.
Algeria's state-owned agro-industrial group, Agrodiv, is set to launch new production units and reactivate previously recovered industrial assets throughout 2026 as part of its strategic expansion plan. This initiative aims to bolster domestic production capacity and strengthen Agrodiv's contribution to the national economy. Selim Djenihi, the acting Chief Executive Officer of Agrodiv, outlined the group's 2026 roadmap, emphasizing strategic projects designed to expand production capacity and meet increasing domestic demand. The plan builds upon the trajectory initiated in 2025, during which Agrodiv integrated several recovered enterprises into its production system.
The Agrodiv plan aligns with the Algerian government's broader strategy to diversify the economy and reduce reliance on food imports. Agriculture currently contributes approximately 12% to Algeria's GDP and employs 20% of the rural population. In 2020, agricultural production exceeded $25 billion, up from $23 billion in 2019. The government has been actively promoting the modernization of the agricultural sector through financial support for farmers, investments in modern farming techniques, and the establishment of agricultural cooperatives. A key focus is on developing strategic sectors such as cereals, oilseeds, corn, and livestock production to decrease the country's $10 billion annual food import bill.
Agrodiv's strategy involves commissioning modern and efficient production units, as well as reactivating industrial assets recovered by the state. This includes the beverages and preserves subsidiary in N'gaous and the Eastern cereals and preserves subsidiary, integrated in 2025. The group is also modernizing existing production units to enhance capacity and improve product quality, supported by targeted training programs. Agrodiv has six subsidiaries specializing in cereal processing, with a production capacity of 51,400 quintals/day for durum wheat and 60,500 quintals/day for common wheat.
This expansion is expected to benefit both domestic consumers and the national economy by increasing the availability of locally produced goods and reducing import dependence. Agrodiv is also seeking to deepen cooperation with national and international partners through industrial partnerships and joint projects focused on expertise exchange and technology transfer. The company's efforts include a "significant diversification" of products and a "noticeable improvement" in production levels.
Looking ahead, Agrodiv aims to strengthen its export orientation and create added value for the national economy. The company is actively seeking to open new markets abroad, which is expected to increase exports, strengthen its international presence, and generate new employment opportunities. In the southern region, Agrodiv has projects underway in Bechar, including a livestock feed unit with a capacity of 700 quintals per day set to launch within six months, and a pasta unit with a capacity of 240 quintals. Future projects also include a minoterie with a capacity of 1,000 quintals/day and a large complex for flour, semolina and pasta production with a capacity of 6,600 quintals/day in Adrar.