Algeria Boosts Domestic Grain Production to Cut $10.97 Billion Import Bill
Image: Echorouk
Takeaway
The Algerian government's commitment to modernizing its agricultural sector presents opportunities for international companies specializing in agricultural technology, equipment, and services. Investors should explore potential partnerships with local Algerian businesses to capitalize on the growing demand for advanced farming solutions. Companies involved in irrigation, precision agriculture, and post-harvest storage could find a receptive market in Algeria.
Algeria is implementing an ambitious national program to boost domestic grain production and reduce its reliance on imports, which cost the country $10.97 billion in 2024. Minister of Agriculture and Rural Development, Yacine El-Mahdi Oualid, emphasized the need to harness all available resources to ensure the success of upcoming agricultural seasons and achieve national food security. President Abdelmadjid Tebboune approved initiatives in January 2026 aimed at promoting mechanization in the agricultural sector.
Algeria's drive for food security is a long-standing effort, with the government launching the National Agricultural Development Programme (PNDA) in 2000, followed by the updated PNDAR in 2002. Between 2000 and 2018, the government allocated DZD 3,000 billion (~$22.2 billion) towards the PNDAR. These programs aimed to modernize farms, expand irrigation, increase arable land, and promote investment in the agricultural sector. The government's 2020-2024 strategy aimed to reduce the yearly food import bill by $10 billion, targeting commodities like wheat, corn, sugar crops, and oilseeds.
The focus is particularly on the grain sector, given Algeria's high average consumption of 218 kilograms per capita annually, compared to the global average of 65 kilograms. The government plans to provide tractors and harvesters to boost crop productivity and reduce losses, which are currently estimated at 10% to 20% due to delays in harvesting and inadequate equipment. The 2026 budget includes US$6 billion to modernize the agriculture sector, a 4% increase from the previous year.
These efforts are intended to benefit Algerian farmers and reduce the country's dependence on foreign suppliers. The rise in food imports in 2024 was mainly driven by meat, vegetables, pulses, and cereals such as wheat and barley. By strengthening local supply chains and encouraging farmers to adopt efficient methods, the government hopes to make Algeria self-sufficient and ensure food security for its citizens.
Looking ahead, Algeria will implement measures to improve soil fertilization, adopt drought-resistant seeds, and practice crop rotation. The planting of 2026 winter cereals began in mid-October 2025 and was expected to be completed by the end of January 2026, though rainfall distribution has been mixed, with western regions experiencing deficits. Investors should monitor the progress of these initiatives and their impact on Algeria's import needs and agricultural output.