Algiers: Baladna Q.P.S.C. announced the signing of initial contracts valued at over $500 million between Baladna Algeria and a group of Algerian and international suppliers and consultants in the capital, Algiers. The agreements are part of the first phase of the company's integrated agri-industrial project for powdered milk production in Algeria, which represents a total investment of $3.5 billion.
According to Qatar News Agency, the company stated in a release on the Qatar Stock Exchange website that these agreements signify the official commencement of this strategic investment. The project aims to bolster food security and decrease dependence on imports, thereby making a positive contribution to Algeria's national economy.
Baladna Algeria is established as a joint-stock company through a partnership between a subsidiary of Baladna Q.P.S.C. and Algeria's National Investment Fund. The signed contracts encompass critical sectors such as agricultural technologies, production lines, irrigation equipment, water well drilling, and steel and metal structure supplies. They also include consultancy services in project management, topographic surveying, soil analysis, and environmental impact studies. Major international suppliers and consultants include Germany's GEA, the USA's Valmont, UCC, and EHAF. Key Algerian companies involved are Condor-Travocovia, RedMed Contracting, and EFORHYD.
Moutaz Al Khayyat, Chairman of Baladna QPSC, stated that these initial contracts represent a major milestone in one of the world's largest agri-industrial projects. He emphasized that the project aims to achieve self-sufficiency in one of Algeria's essential food products, bringing together top-tier expertise from the United States, Germany, Qatar, and Algeria to ensure timely delivery according to international standards.
Ramez Al Khayyat, Board Member and Managing Director, highlighted the rapid progress of the project. He praised the collaboration with leading sector companies, noting that the first phase involves land reclamation and construction for two out of four farms, one out of two factories, and 700 of the planned 1,400 pivot irrigation units. Production is slated to begin before the first phase's construction is fully completed, with herd formation set to start in 2026.
The Baladna Algeria project, considered one of the world's largest agri-industrial ventures and the first of its kind in Algeria, spans 117,000 hectares. It is a strategic partnership between Baladna Q.P.S.C. and the Algerian government, represented by the National Investment Fund. Focused on dairy cow farming and powdered milk production, the initiative is expected to supply 50% of Algeria's national demand for powdered milk and aims to support the country's goal of achieving food self-sufficiency. Additionally, the project will contribute to the red meat supply and is anticipated to create over 5,000 job opportunities for the local workforce.