Agriculture In Algeria - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Agriculture In Algeria - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Algerian agriculture market is projected to register a CAGR of 2.4% during the forecast period (2022-2027).

The labor shortage in the agriculture industry due to movement restrictions and difficulties in importing and exporting agricultural products has affected the whole supply chain, including producers, manufacturers, and transport companies. The country's export and import products of raw materials have been hard hit because of the lockdown due to the COVID-19 pandemic.

Algeria is currently the largest country in Africa and in the Arab world, with a total landmass of 2.38m sq. km. Algeria is rich in natural resources but is still largely unexplored. Despite this, the country import about USD 8 billion in agricultural commodities and food annually, according to the USDA's Algeria agriculture report 2018. Algeria’s overall strategy is to reduce its reliance on imports. The government of Algeria is pursuing agriculture development and modernization as a means of diversifying the economy and attracting foreign and domestic investments. The government policies and programs to increase domestic production, privatization of the seed sector, and investment in agricultural infrastructure are the major drivers for the market.

According to United States Department of Agriculture, the agricultural sector in Algeria accounts for 13% of the country’s GDP and employs about 11% of the Algerian population. The highest share in the economy’s performance led the government to consider the agricultural sector a priority sector. The government is putting huge efforts to attract foreign and domestic investments to reduce the country’s reliance on imports. As part of its effort to boost the agricultural sector, the government is offering incentives on taxes, including farming concessions, and free long-term leases of farmland to foreign investors and local counterparts. For instance, in September 2020, the Algerian Minister of Agriculture (MoA) presented the Algerian Agriculture Roadmap 2020-2024, which offers opportunities for exporters and investors despite its overall objective to reduce imports. Opportunities are mainly focused on wheat, milk powder, soybean meal, corn, food and beverage ingredients, animal feed, pulses, tree nuts, almonds, and wood. The favorable legislative policies and increasing investments are driving the agriculture market.

According to the Food and Agriculture Organization, fruits such as watermelon, oranges, dates, grapes, and apples were the majorly grown fruit varieties in the country in 2020. The production of fruits increased to 7.05 million metric ton in 2020 from 6.37 million metric ton in 2016. Accordingly, watermelons accounted for 31.2% of production among primary fruits, and oranges accounted for 75.7% of production among citrus varieties in 2019. In order to reduce the reliance on imports, the Algerian government is offering incentives on taxes, including farming concessions, and free long-term leases of farmland to foreign investors and local counterparts. The country has been revolutionizing its technology sector in the field of agriculture by adopting soil-less farming. Farmers are adopting hydroponic techniques to increase vegetable production. Hence, all these factors contribute to increased production of fruits in the country.

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