Algeria Boosts Dairy Production with New Rouiba Milk Plant, Eyes Export Growth
Image: Ennahar
Takeaway
The expansion of Algeria's dairy processing capacity presents opportunities for companies involved in dairy technology, genetics, and livestock. Investors should monitor the progress of the National Dairy Program and the performance of key players like Giplait and Laiterie Soummam. Reduced reliance on milk powder imports could shift trade flows, impacting exporters in the EU and the United States.
Algeria inaugurated a new milk processing plant in Rouiba on February 19, 2026, as part of a broader strategy to enhance domestic dairy production and reduce reliance on imports. Minister of Agriculture and Rural Development, Yacine Mehdi Oualid, and Minister of Internal Trade, Amel Abdelatif, presided over the opening of the facility, which belongs to the public conglomerate GIPLI Group. The new plant is located in the capital, Algiers.
The Rouiba plant has a production capacity of 1 million liters of bagged milk and 200,000 liters of UHT (ultra-high temperature) milk per day. The Ministry of Agriculture stated that the new dairy is an important gain for strengthening national production and supporting the milk sector. Algeria aims to achieve self-sufficiency in milk production and reduce its dependence on imports, which have been substantial in recent years. The country imports approximately 1.2 billion liters of dairy products annually, while exporting about 50 million liters. The government launched the National Dairy Program with the goal of self-sufficiency in milk production by 2025.
Algeria's dairy industry processes around 2.1 billion liters of milk annually. The country has approximately 1.8 million dairy cattle, producing around 3.5 billion liters of milk per year. Key players in the Algerian dairy market include Giplait, a major public sector company, Laiterie Soummam, a large private dairy firm, and Alrawabi Dairy Company, a newly established firm with foreign investment. Algeria's annual dairy import reached approximately 6.5 million tons between 2020 and 2022. The government provides incentives with more than DZD 18 billion (~$133 million) in annual support for local fresh milk production.
The new Rouiba plant and similar investments are expected to benefit Algerian consumers through increased availability of locally produced milk and dairy products. These developments may also impact international dairy suppliers, as Algeria seeks to reduce its reliance on imports, particularly of milk powder. In 2023, Algeria imported almost 418,000 metric tons of milk powder. The Ministry of Agriculture has implemented programs to expand herd size and productivity by increasing access to artificial insemination, embryo transfer, and importing pregnant heifers and dairy cattle.
Looking ahead, it will be important to monitor Algeria's progress towards its goal of dairy self-sufficiency. The success of the National Dairy Program and the impact of new production facilities like the Rouiba plant will be key indicators. Factors such as pasture conditions, feed costs, and government subsidies will also play a significant role in shaping the future of Algeria's dairy sector. The Qatar Baladna dairy project is projected to create domestic milk powder production of 194,000 MT per year, all destined for Giplait.