Baladna Algeria signs US$500M contracts to kick-start dairy investment

ALGERIA – Baladna Algeria, a joint-stock Algerian company, has signed initial contracts valued at over USD 500 million with a group of Algerian and international suppliers and consultants to boost the dairy industry in Algeria.

The contracts are part of the first phase of Baladna’s integrated agri-industrial project for powdered milk production in Algeria, which represents a total investment of US$3.5 billion.

The signed contracts cover a wide range of critical sectors, including agricultural technologies, production lines, irrigation equipment, water well drilling, steel and metal structure supplies, in addition to consultancy services in project management, topographic surveying, soil analysis, and environmental impact studies.

Among the key international suppliers and consultants are GEA (Germany), a leader in dairy processing and automated milking systems; Valmont (USA), specialized in water-efficient irrigation systems; Urbacon UCC, a globally recognized contracting firm; and EHAF, a prominent engineering consultancy. Leading Algerian companies involved include Condor-Travocovia, RedMed Contracting, and EFORHYD, specialized in water well drilling.

Mr. Moutaz Al-Khayyat, Chairman of Baladna, stated, “We are taking a critical step in the execution of this integrated agri-industrial project for dairy and powdered milk production in Algeria, which aims to achieve self-sufficiency in one of the country’s most essential and widely consumed food products.

“We are proud to bring together top-tier global and national expertise through collaboration with leading companies from the United States, Germany, Qatar, and Algeria. These combined efforts will ensure the project is delivered on schedule and according to the highest international standards—starting with field studies, soil and water analysis, construction, and the design and implementation of world-class irrigation networks and production lines.”

The initiative focuses on dairy cow farming and powdered milk production, aiming to supply 50% of Algeria’s national demand for powdered milk locally, thereby supporting the country’s goal of achieving self-sufficiency. It will also contribute to the supply of red meat and create more than 5,000 job opportunities for the local workforce.

The Baladna Algeria project is among the largest in the world and the first of its kind in Algeria. Spanning 117,000 hectares, the project is being developed through a strategic partnership between Baladna Q.P.S.C. and the Algerian government, represented by the National Investment Fund.

Mr. Ramez Al-Khayyat, Board Member and Managing Director of Baladna, expressed confidence in the swift advancement of the powdered milk project in Algeria.

He acknowledged fruitful collaboration with a number of esteemed companies and highlighted the significance of the signed agreements, which span key areas of the initiative’s first phase, such as land preparation, initial construction of two farms and one processing plant, and installation of 700 pivot irrigation units.

He indicated that production is expected to begin before construction is fully completed, with the dairy herd anticipated to be established by 2026.

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