Algeria's OAIC Purchases 600,000 Tons of Milling Wheat Amid Focus on Food Security
Image: TSA
Takeaway
The OAIC's consistent wheat purchases at relatively stable prices ($259-260/ton) suggest a calculated approach to managing import costs amidst global market fluctuations. Investors in Black Sea grain should monitor Algerian tender activity, as OAIC's optional-origin purchasing strategy can create demand surges in specific regions. Companies involved in grain storage and logistics should also note Algeria's ongoing construction of silos and storage centers.
Algeria's state grains agency, the Office Algérien Interprofessionnel des Céréales (OAIC), purchased approximately 600,000 metric tons of milling wheat in a tender that closed on February 25, 2026. The purchases were made at around $259 to $260 per ton, cost and freight included (c&f). The wheat is sought for shipment in three periods from main supply regions, including Europe: April 16-30, May 1-15, and May 16-31. For shipments sourced from South America or Australia, the shipment window is one month earlier.
Algeria continues to import substantial quantities of wheat to meet domestic demand and replenish its reserves. The country is among the world's largest wheat consumers, with the USDA estimating imports at 8.3 million metric tons for the 2022/23 season. In 2021, cereals represented approximately a quarter of Algeria's $9 billion food import bill. The Algerian government is prioritizing investment in the agricultural sector to ensure food security and reduce reliance on imports. To that end, the government established a program to construct 30 silos and 350 storage centers throughout the country, prioritizing areas where cereals are grown.
To further reduce import dependence, the Minister of Agriculture and Rural Development, Yacine Oualid, has recently focused on boosting domestic corn production, a key component of poultry feed, through development in the Sahara. The government encourages modern industrial agriculture using satellites, digitization, and other innovative tools, especially regarding renewable energies. The National Mechanisation Council, comprising the State, manufacturers and farmers, will be responsible for developing a coherent policy through accurate assessment of needs, optimisation of imports (which consume $1.5 billion annually in equipment), and the development of a local industry. Mechanisation could double production in five years, from 4 million tonnes of cereals per year to 8 million, covering 80% of national needs (compared to 50% today).
The recent wheat tender saw prices at around $259-$260 a ton (c&f), which is similar to the level reported on Tuesday. Negotiations for further purchases on Wednesday proved difficult, as sellers sought prices above $260, a level the OAIC resisted. While Algeria's tender purchases are origin-optional, prices suggest that wheat from the Black Sea region, including Ukraine, Romania, and Bulgaria, could be supplied. Argentine wheat is not expected to be used due to tightening supplies after recent large sales.
Looking ahead, Algeria's agricultural policy aims to revive the sector by doubling yields and export capacity through mechanization. President Abdelmadjid Tebboune has emphasized the urgent need to move from subsistence production to an export-oriented model. The country aims to ensure total self-sufficiency in cereals, particularly durum wheat, while reducing dependence on imports. The USDA forecasts Algeria's wheat imports at above 9 million metric tons (MMT) in the current and next season.