Algeria – New Zealand – Nations turning liquid commodities into economic prosperity.

This report comprehensively analyses Algeria’s dairy market and its significance as a major importer of New Zealand’s dairy products, particularly Whole Milk Powder (WMP). Algeria purchased NZ$1,053,749,827 worth of New Zealand dairy products, in the year ending March 2024, positioning it as New Zealand’s second-largest buyer, of dairy products globally after China. Algeria’s demand for WMP, highlights its status as the second largest importer of this product globally. Algeria relies on milk powder imports to meet 45% of its domestic demand, due to limitations in domestic production capacity.

Algeria, the largest country in North Africa, gained independence from France in 1962, and boasts rich hydrocarbon resources, constituting 93% of its export earnings. Algeria has a population of 44-47 million, with 50% under the age of 30, underscores a youthful demographic, that drives consumption patterns and economic dynamics.

This report aims to assess New Zealand’s potential to enhance its dairy exports to Algeria, and identify opportunities for value-addition in the export process.

Methodology

A literature review was conducted to understand the Algerian dairy market. Supplemented by seven semi-structured interviews, with key stakeholders in New Zealand’s dairy industry participants, involved in trade with Algeria.

Analysis

The Algerian market relies heavily on imported dairy products, primarily whole milk powder reconstituted into milk, and other consumer-ready products. Importers operate under government quotas, issued by the Algerian Dairy Buying Agency, known as ‘Office National Interprofessional du Lait et de Produits Laitiers’ (ONIL), facilitating global tenders, including bids from New Zealand companies.

Key Findings

Algeria purchased NZ$1,053,749,827 of New Zealand dairy products year ending March 2024. Making Algeria, New Zealand’s second-largest buyer of dairy products.
Algeria is the second largest importer of Whole Milk Powder globally, importing 45% of its domestic demand due to limited local production capabilities.
Algerians consume 201kg of dairy per capita annually, significantly higher than the global average of 90kg.

Recommendations

• Establish a local presence in Algeria through an agent to facilitate business engagements and navigate regulatory frameworks effectively.
• Explore opportunities for value-addition beyond commodity exports by leveraging New Zealand’s expertise in Agri-tech services and food processing to provide integrated services via expertise in irrigation, genetics, milk processing, agri-tech software, et cetera.
• Build strategic initiatives to enhance market presence and explore value-added services can further strengthen New Zealand’s position in Algeria’s dairy sector.