Baladna signs agreement with Algerian Ministry of Agriculture and Rural Development for integrated dairy farming and powder milk production project

Algeria: Baladna Q.P.S.C. signed a Framework Agreement with the Algerian Ministry of Agriculture and Rural Development for the world s largest integra...

Algeria: Baladna Q.P.S.C. signed 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 $3.5bn was signed by Souad Assous, Director General of Agricultural Investment and Land at the Ministry of Agriculture and Rural Development, and Mohamad Moutaz Al Khayyat, Chairman of Baladna. The signing ceremony was attended by H E Youcef Cherfa, Minister of Agriculture and Rural Development in Algeria; H E Laaziz Fayed Fayed, Minister of Finance in Algeria; and H E 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.

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.”

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.”