Algeria Invests in Agriculture, Diversifies Wheat Imports Amidst Domestic Production Push
Image: Algerie Eco
Takeaway
The Algerian government's increased investment in agriculture, coupled with its diversification of wheat import sources, presents opportunities for international agribusinesses specializing in irrigation technology, storage solutions, and drought-resistant crop varieties. Companies should monitor tenders from the Algerian Office of Cereals (OAIC) and explore partnerships with local producers to capitalize on the growing demand for agricultural inputs and infrastructure.
Algeria is actively engaging in international agricultural events and bolstering its domestic sector to reduce import dependence. The Ministry of Commerce will participate in the MACFRUT 2026 international fruit and vegetable fair in Rimini, Italy, from April 21-23. Domestically, the Salon National des Fromages et des Produits Laitiers (National Cheese and Dairy Products Fair) will take place in Tizi-Ouzou from April 11-15. These events occur as Algeria continues efforts to increase domestic cereal production while diversifying its sources for wheat imports.
Despite government ambitions to achieve self-sufficiency in durum wheat by the end of 2025, Algeria is projected to import over 9 million tonnes of wheat in the 2025/26 marketing year. To support the agriculture sector, the Algerian government has allocated 764.2 billion dinars (~$5.84 billion) in spending for 2026, a 4% increase from 2025. This budget aims to modernize the sector, improve productivity, and reduce reliance on food imports. The focus includes improving irrigation, expanding cultivated areas, and upgrading storage facilities.
Algeria's agricultural sector faces several challenges, including low cereal yields, averaging 1.8 metric tons per hectare, less than half the global average of 3.9 tons. Post-harvest losses, estimated at 20-30% annually, are attributed to inadequate cold-chain and storage capacity. Modern irrigation covers only 15% of irrigated farmland, exacerbating the impact of declining water resources and chronic drought. The country's arable land is limited, with only 8-10% of its total area suitable for agriculture.
To address these challenges, 90.25% of the 2026 agriculture budget will be directed towards agriculture and rural development programs. Six percent is allocated to forestry, 3% to general administration, and the remainder to fisheries and aquaculture. While Russia remains a key wheat supplier, Ukraine has emerged as another significant source. Cereal import requirements for the 2025/26 marketing year are forecast at 14.6 million tonnes, with wheat accounting for the largest share. Maize imports are also projected to reach 5 million tonnes, driven by the expanding poultry sector.
Looking ahead, Algeria's efforts to expand cultivated areas in the south to 500,000 hectares, with investments from Qatar and Italy, will be crucial. The government aims to increase irrigated farmland by one million hectares by 2028, focusing on wheat, barley, corn, and legumes. Investors should monitor the progress of these initiatives, as well as the impact of weather conditions on domestic cereal production. Food price inflation decreased to -3% in November 2025, but a 4% increase in gasoline prices in January 2026 led to higher retail prices due to increased transport costs, indicating potential volatility.