Algerian authorities have selected three primary suppliers for the 'Baladna' project, a significant agricultural initiative led by a Qatari investor. This large-scale project is centered in Adrar province and focuses on the large-scale production of powdered milk and red meat. The ambitious endeavor aims to utilize a minimum of 100,000 hectares of agricultural land for its operations. Additionally, the 'Baladna' project intends to incorporate 270,000 dairy cows into its operations to support its production goals, which include a target of 100,000 tons of powdered milk annually, with the possibility of increasing this output.
Key Suppliers for Mega Project
Notably, there is no trace of French companies among the suppliers for the 'Baladna' project. A French specialized agricultural website, 'Materiel Agricole', showed this absence on Thursday, June 24th. The website's article was specifically titled: 'FBT will supply a farm with 270,000 cows in Algeria with machinery.' In March 2025, 'Baladna Algeria' signed key contracts with the German company 'GEA'. 'GEA' specializes in manufacturing industrial equipment and production lines for the food sector, including advanced dairy technology. This extensive specialization encompasses automated milk equipment, sophisticated milk cooling systems, and full cow farm systems, all key for the 'Baladna' project's success. The Italian company contracted by 'Baladna Group' is responsible for developing and manufacturing engines and transmissions for Fiat commercial and agricultural vehicles. The Italian partner will provide engines with new technological specifications specifically tailored for the project's demanding requirements.
US and Italian Involvement Detailed
In April, 'Baladna' announced plans for an ambitious air bridge operation to transport thirty thousand 'Holstein' cows from the United States. This extensive transport operation is scheduled to commence next November and will span 10 months, requiring a total of 109 flights to complete. The cows are being meticulously sourced from nine different American states, noting the scale and logistical complexity of this component of the project. The value of this specific deal, focused solely on the acquisition and transport of the 'Holstein' cows, exceeds 635 million dollars, showing the significant investment in livestock.
Regarding Italian involvement, 'FBT' is identified as a subsidiary of the large 'Fiat' company. Fiat operates a car manufacturing plant located in Oued Tlélat, near Oran, which further solidifies Italy's industrial presence in Algeria. The Italian company 'FBT' is tasked with developing and manufacturing engines and transmissions for Fiat commercial and agricultural vehicles specifically for deployment within the 'Baladna' project. This includes manufacturing strong six-cylinder diesel engines, specifically 13 indicators of 12.9 liters from 50 GP 330 S/I-A electrical groups, each with a substantial capacity of 330 kVA. These powerful engines are intended for a diverse range of heavy-duty vehicles critical to agricultural operations, including 'New Holland' tractors and both 'Iveco' and 'Kamaz' trucks, ensuring the project has the necessary mechanical power. The Italian partner is committed to providing engines with new technological specifications, designed for optimal performance and efficiency within the project's framework.
Broader Bilateral Relations
Italy has emerged as Algeria's primary partner in recent years, a relationship that has deepened across several sectors. Rome has notably become the primary supplier of Algerian gas to Europe, a critical energy corridor. Italy stands as the sole European country with an automotive industry partnership in Algeria, a significant distinction when contrasted with the French 'Renault' factory, which has been inoperative for approximately six years, signaling a shift in industrial alliances.
Germany is also recognized as a major partner for Algeria, maintaining stable and consistently positive relations. Last November, Algerian President Abdelmadjid Tebboune responded positively to an appeal from German President Frank-Walter Steinmeier to release French-Algerian writer Boualem Sansal, an act that further strengthened diplomatic ties. In a sign of continued high-level engagement, an official visit by the German President is currently being prepared for the upcoming month, indicating ongoing collaboration and dialogue between the two nations.
Relations with the United States are experiencing notable progress, particularly in an energy partnership that has strengthened considerably in recent years. American companies have secured various deals and contracts with Sonatrach, Algeria's national oil and gas company, particularly in southern Algeria, further solidifying this growing collaboration and economic interdependence. This strategic partnership extends beyond energy, as evidenced by the substantial 'Holstein' cow deal for the 'Baladna' project.
Project Scope and Impact
The Algerian-Qatari project for producing powdered milk and red meat is estimated to cost approximately 3.5 billion dollars, representing a substantial foreign direct investment in Algeria's agricultural sector. This ambitious initiative aims to generate five thousand jobs for the local population, providing significant employment opportunities and contributing to regional economic development. The Algerian National Investment Fund contributes to the project, demonstrating national support for this strategic endeavor. The project targets an initial annual production of 100,000 tons of powdered milk, a volume designed to significantly reduce Algeria's reliance on imports. This production volume has the possibility of increasing beyond the initial target, indicating the long-term growth potential and strategic importance of the 'Baladna' project for Algeria's food security and economic diversification.
