Gulf Times | 25 April 2024Baladna signed an agreement with the Algerian Ministry of Agriculture and Rural Development for an Integrated Dairy Farming and Powder Milk Production Project
This venture, held 51% by Baladna and 49% by the Algerian State through the National Investment Fund
Baladna Q.P.S.C. signed today a Framework Agreement with the Algerian Ministry of Agriculture and Rural Development for the world’s largest integrated dairy farming and production project aimed at producing powdered milk in southern Algeria. The agreement that outlines a total investment of $3.5 billion was signed by Ms. Souad Assous, Director General of Agricultural Investment and Land at the Ministry of Agriculture and Rural Development, and Mr. Mohamad Moutaz Al-Khayyat, Chairman of Baladna. The signing ceremony was attended by HE Mr. Youcef Cherfa, Minister of Agriculture and Rural Development in Algeria; HE Mr. Laaziz Fayed Fayed, Minister of Finance in Algeria; and His Excellency Mr. Abdelaziz Ali Al-Nama, the Qatari Ambassador to Algeria, among other dignitaries.
This venture, held 51% by Baladna and 49% by the Algerian State through the National Investment Fund, will develop large scale vertically integrated dairy operation in Algeria. This groundbreaking project will cover 117,000 hectares and will be segregated into three hubs, each comprising of an arable farming operation, a dairy and beef farming operation, and a powdered milk manufacturing facility.
Mr. Mohamad Moutaz Al-Khayyat, Chairman of Baladna, commented on this agreement, saying: "We are delighted to formalize this partnership between Baladna and the Algerian Ministry of Agriculture and Rural Development. This strategic project is a cornerstone in fostering the growth of Algeria's agricultural sector, driving the nation toward self-sufficiency , and bolstering food security—a critical global challenge that commands concerted efforts from countries and international entities alike.
“Baladna has a proven track-record of rapid and significant achievements in Qatar, having attained self-sufficiency within a mere 12 months, courtesy of employing foremost international technologies and leveraging a wealth of expertise in the agriculture industry. It is with great anticipation that we aim to replicate this success in Algeria, encapsulating these valuable experiences and technologies to implement exemplary, sustainable practices on an international scale.”
Mr. Malcolm Jordan, CEO of Baladna added: “We are looking forward to working together with our Algerian partners to build one of the world’s largest vertically integrated dairy companies. This strategic partnership not only aligns with our ambitious growth objectives but also promises significant returns and long-term value for our shareholders.”
The project aims to meet 50% of Algeria’s national demand for powdered milk, supplement the local market with red meat, create 5,000 direct local jobs, and contribute to the growth of the national cattle stock. It will also leverage modern technology and best management practices to enhance dairy farming efficiency, reduce production costs through economies of scale, and improve control over the entire value chain.
The "Baladna" project for powdered milk production is part of the Algerian state's strategy to produce widely consumed products in line with the national food security strategy.
