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Baladna to Develop World's Largest Integrated Agricultural Project in Algeria

Qatar 05.06.2024
Source: The DairyNews
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Qatar-based dairy company Baladna Q.P.S.C. is set to embark on the world's largest integrated agricultural project in Algeria, featuring a herd of approximately 270,000 animals and an annual milk production capacity of 1.7 billion litres.
Baladna to Develop World's Largest Integrated Agricultural Project in Algeria
Baladna has formalized a framework agreement with the Algerian Ministry of Agriculture and Rural Development. The venture, which will see Baladna holding a 51% stake and the Algerian State, through the National Investment Fund, holding 49%, will invest an estimated US$3.5 billion in the expansive project. Spanning 117,000 hectares, the development will be divided into three hubs, each encompassing an arable farming operation, a dairy and beef farming operation, and a powdered milk manufacturing facility.

Powdered Milk Demand
The initiative aims to satisfy 50% of Algeria’s national demand for powdered milk, enhance the local supply of red meat, generate 5,000 direct local jobs, and support the expansion of the national cattle stock. By leveraging advanced technology and best management practices, the project seeks to boost dairy farming efficiency, lower production costs through economies of scale, and enhance control over the entire value chain.

This project aligns with the Algerian state's strategy to bolster national food security by increasing the production of widely-consumed products.

Bolstering Food Security
Mohamad Moutaz Al-Khayyat, Chairman of Baladna, expressed enthusiasm about the partnership, stating: “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.”

He added, “Baladna has a proven track record of rapid and significant achievements in Qatar, having attained self-sufficiency within a mere 12 months by employing leading international technologies and leveraging extensive expertise in the agriculture industry. We eagerly anticipate replicating this success in Algeria, applying these valuable insights to implement exemplary, sustainable practices on an international scale.”

Baladna Dairy Production
Established in 2014, Baladna is Qatar’s largest dairy and beverage producer, supplying over 95% of the country’s fresh milk. The company’s operations span over 2.4 million square meters and can accommodate 24,000 Holstein cows. Baladna's diverse product lines include fresh milk, evaporated milk, sterilized cream, yoghurt, laban, long-life milk, cheese, labneh, fresh cream, desserts, and non-dairy products such as juices, meat, and organic fertilizers.

As a publicly traded company, Baladna reported a turnover of US$285.5 million last year, a 7.2% increase from the previous year. Net profit rose by 36% to €29.7 million, representing a margin of over 10%. The company continues to explore opportunities to enhance its product mix by developing and introducing innovative products and strategically optimizing its product portfolio. In the past year, Baladna introduced new SKUs to the market, including evaporated milk and sterilized cream, previously imported into the country. Additionally, Baladna launched its first domestic production of an international brand, producing spreadable cheese for Bel Group under the brands La Vache Qui Rit and Jibnet Abu Al Walad.