Agriculture is one of the priority sectors for the development of the Algerian economy. The Government encourages the creation of modern agricultural farms, especially in the field of grain cultivation, by providing state land on preferential terms, but Algeria continues to depend on imports of agricultural products.
The structure of Algerian crop production is dominated by vegetables along with fruits and berries. Vegetable production during the analyzed period steadily increased with an average annual growth rate of 3.4% and, according to estimates, reached 11.4 million tons at the end of the 2021/22 agricultural season. The main crops are potatoes (4.7 million tons), as well as tomatoes and dried onions (1.8 million tons each).
The production of fruits and berries also showed positive dynamics, increasing in five years from 6.7 to 7.8 million tons with an average annual growth rate of 3.9%. The key crops of this sub-sector are represented by watermelons (2.4 million tons), oranges and dates (1.2 million tons each).
Since rain-fed agriculture is mainly widespread on the territory of the country, the yield of grain crops significantly depends on the amount and distribution of precipitation, which explains the fluctuations in production volumes over the years. In 2021/22, the sowing of grain crops took place under favorable weather conditions, but by mid-February 2021, dry weather was established. Despite the fact that humidification subsequently normalized in the north-east of the country, drought was observed in the majority of Algerian grain cultivation areas. As a result, the volume of grain production decreased to 3.5 million tons, which is 20.6% lower than the previous season.
Animal husbandry is historically significant for Algeria, since most of the country's population is ethnically related to the Berbers — the original nomadic peoples who inhabited North Africa. Algeria has developed meat production, with lamb accounting for the largest volume: according to estimates for 2021, the volume amounted to almost 340 thousand tons.
Poultry and beef meat were produced 283.6 and 137.8 thousand tons, respectively. Milk production in Algeria is also at a high level, but there is a decrease in production from 3.6 to 3.2 million tons over five years (-8.8%). At the same time, according to the USDA, the country is insufficiently self-sufficient in milk, which creates a stable demand for imported products.
According to UN Comtrade, in 2021 the total volume of imports of agricultural products of Algeria amounted to 9.2 billion US dollars, an increase of 12.0% compared to 2020 (+1.0 billion US dollars). The cumulative average annual growth rate of agroimport for 2017-2021 was 3.1%.
By the end of 2021, wheat (23.9%), milk powder (13.7%), soybean oil (8.7%), corn (8.6%) and beet and cane sugar (8.4%) dominated in the value structure of imports of agricultural products of Algeria. Collectively, the data of the top 5 product categories accounted for 63.3% of imports, and the top 10 categories took 76.5%.
The increase in imports compared to the previous year was mainly due to an increase in the supply of wheat (+563.2 million US dollars), soybean oil (+304.4 million US dollars), soybeans (+204.5 million US dollars) and milk powder (+150.2 million US dollars).
In dynamics over five years, the most pronounced increase in imports is characteristic of soybeans: from less than 0.1 to 464.5 million US dollars.
The main exporting countries of agricultural products to Algeria in value terms in 2021 were Brazil (14.7%), Argentina (12.6%), France (11.2%) and Germany (8.2%). The share of the top 10 countries accounted for 73.7% of the Algerian agricultural import.
Since 2017, there has been a significant increase in deliveries from Germany (4.7 times), Poland (4.1 times) and Turkey (1.9 times). Imports of Russian products in value terms over the past five years have increased to 336.8 million US dollars (+40.7%).
According to UN Comtrade, in 2021 the total volume of exports of agricultural products of Algeria reached 543.0 million US dollars, an increase of 12.2% compared to 2020 (+59.0 million US dollars). The cumulative average annual growth rate of agricultural exports for 2017-2021 was 7.9%.
The basis of exports of agricultural products of Algeria is beet and cane sugar, as well as dates, which accounted for 73.6% of the country's exports in value terms in 2021. In addition, Algeria exports soybean oil (5.2% of the total exports of agricultural products of Algeria), plants used for food purposes (4.6%) and shellfish (4.3%).
In 2021, the main importing countries of agricultural products from Algeria were Jordan (13.0%), Spain (11.9%) and France (11.7%). In total, the top 10 importing countries accounted for 76.7% of Algeria's agricultural exports in 2021. Russia's share in the supply of agricultural products from Algeria in 2021 amounted to 2.4%, and the volume in value terms reached a maximum in five years — 13.1 million US dollars.
Rice and pasta are among the most widely consumed foods in the country due to their availability and use in many traditional local dishes. The demand for these products increased significantly during the period of restrictive measures in the fight against COVID-19 and remained at the same level after the abolition of anti-covid restrictions.
Pasta is among the staple foods that the Algerian Government subsidizes to ensure its accessibility to citizens. The government also subsidizes the cost of wheat used for food production to lower prices.
The pasta market is dominated by local producers who offer Algerians products at the most favorable prices, as well as due to consumer loyalty to local brands and a developed local distribution network.
The most popular type of oil consumed in Algeria is soy, whose production volumes are subsidized by the state. In 2021/22, according to USDA data, the volume of soybean oil consumption amounted to 845 thousand tons. Palm oil occupies the second place in the structure of consumption of vegetable oils in Algeria, the volume of consumption of which mainly consists of imported supplies. In 2021/22, according to USDA data, palm oil consumption in Algeria amounted to 145 thousand tons.
Mutton is the most popular type of meat in Algeria, which is an integral part of the national cuisine. Next in popularity are chicken and beef. After the abolition of anti-cow restrictions, meat and meat products sold in modern retail chains faced high competition from traditional markets, which consumers more often choose as a place of purchase due to a wider selection of products and lower prices.
Chilled meat is more popular among consumers in Algeria. The low demand for frozen products is also explained by the underdeveloped infrastructure of refrigeration facilities: in most traditional retail outlets, which are leading in number compared to super and hypermarkets, there are no freezers.
In the segment of finished meat products and semi-finished products, manufacturers are more likely to release new products that can reduce the amount of time spent on cooking, as well as introduce new packaging formats that preserve the freshness of products longer.
The most popular categories among dairy products in Algeria are considered to be drinking and powdered milk. Various types of imported cheese, such as cottage cheese and processed cheese with additives, are also gaining popularity.
With the lifting of restrictive measures, Algerians began to visit public catering establishments more often again, especially Western-style fast food establishments, which stimulated an increase in demand for products such as butter, cheeses, milk and cream, but at the same time their sales decreased somewhat in retail chains.
