Qatari-Backed Dairy Farm Set to Reshape Algerian Market, Impacting Irish Dairy Exports
Source: The DairyNews
Qatar's leading dairy processor, Baladna, has inked a monumental $3.5 billion deal to construct an expansive dairy farm and milk powder production facility in Algeria, a significant market for Irish dairy exports.
Upon completion, this endeavor will facilitate the local production of 50% of Algeria's powdered milk requirements, bolster domestic red meat supply, and contribute to the expansion of the national cattle herd.
Algeria has emerged as a pivotal export destination for Irish dairy products, with 31,648 tonnes valued at €100.3 million shipped to the country last year.
Established in 2017, Baladna currently dominates Qatar's fresh dairy market, supplying over 95% of the nation's demand. Starting with a mere 3,400 cows, the company now boasts a herd of 22,000, nourished with hay imported from Asia, Europe, and Africa.
The Algerian venture will entail the establishment of integrated dairy farms and powdered milk production through a collaboration between Baladna and the Algerian government, represented by the National Investment Fund (FNI). Spanning a total area of 117,000 hectares across three sites, the project encompasses cereal and fodder farms, dairy cattle facilities, milk and meat production units, and a powdered milk manufacturing plant. It is anticipated to generate 5,000 direct jobs and yield 200,000 tonnes of milk powder. Considerable concessions, including land access, support, and financing, have been extended to facilitate this initiative.
Algerian President Abdelmadjid Tebboune revealed that the country is on the verge of finalizing the agreement, emphasizing Algeria's pursuit of self-sufficiency. He disclosed that the farm will be located in Adrar, southwestern Algeria.
Conor Mulvihill, Director of Dairy Industry Ireland, acknowledged the industry's vigilance regarding this development, underscoring Algeria's significance despite being a low-margin market for Ireland. While he expressed a lack of immediate concern within the Irish dairy sector, Mulvihill emphasized the importance of monitoring shifting demand dynamics, citing the rapid demographic changes in China. Additionally, he raised environmental concerns, noting that the milk production from the project might lack stringent environmental standards, potentially resulting in a significantly higher carbon footprint.
Algeria has emerged as a pivotal export destination for Irish dairy products, with 31,648 tonnes valued at €100.3 million shipped to the country last year.
Established in 2017, Baladna currently dominates Qatar's fresh dairy market, supplying over 95% of the nation's demand. Starting with a mere 3,400 cows, the company now boasts a herd of 22,000, nourished with hay imported from Asia, Europe, and Africa.
The Algerian venture will entail the establishment of integrated dairy farms and powdered milk production through a collaboration between Baladna and the Algerian government, represented by the National Investment Fund (FNI). Spanning a total area of 117,000 hectares across three sites, the project encompasses cereal and fodder farms, dairy cattle facilities, milk and meat production units, and a powdered milk manufacturing plant. It is anticipated to generate 5,000 direct jobs and yield 200,000 tonnes of milk powder. Considerable concessions, including land access, support, and financing, have been extended to facilitate this initiative.
Algerian President Abdelmadjid Tebboune revealed that the country is on the verge of finalizing the agreement, emphasizing Algeria's pursuit of self-sufficiency. He disclosed that the farm will be located in Adrar, southwestern Algeria.
Conor Mulvihill, Director of Dairy Industry Ireland, acknowledged the industry's vigilance regarding this development, underscoring Algeria's significance despite being a low-margin market for Ireland. While he expressed a lack of immediate concern within the Irish dairy sector, Mulvihill emphasized the importance of monitoring shifting demand dynamics, citing the rapid demographic changes in China. Additionally, he raised environmental concerns, noting that the milk production from the project might lack stringent environmental standards, potentially resulting in a significantly higher carbon footprint.
23.09.2024
Carbon emissions in global milk production - the elephant in the room
I have been thinking to make this post yes/ no. I decided for yes and like to ask everyone to not "shoot the messenger". The chart shows an analysis of IFCN Dairy Research Network from the 2024 supporter conference in Poland.
