Algeria – “Baladna” Powdered Milk Project: Second Package of Contracts Signed Worth Over $635 Million

The second package of implementation contracts for the “Baladna Algeria” agricultural and industrial project for powdered milk production—primarily located in Adrar Province—has been signed with Algerian and international partners in services, construction, and dairy cattle supply, with a total value exceeding $635 million.
The signing ceremony, held at the Abdelatif Rahal International Conference Center, was overseen by the Minister of Agriculture, Rural Development and Fisheries, Yacine El Mahdi Oualid, in the presence of representatives from Baladna, the Ambassador of Qatar to Algeria Abdulaziz Ali Al Naama, as well as representatives of Algerian and foreign institutions.
This second package will pave the way for herd establishment, civil works, construction of a concrete plant, residential service facilities, and the launch of a dairy cattle import program.
In his remarks, the minister highlighted the importance of this ambitious project as one of the largest milk production initiatives in Africa, noting that it will open “significant prospects” and strongly encourage investment in southern regions. He described it as a unique global model for transforming desert land into agricultural production hubs.
For his part, the Qatari ambassador confirmed that the project will be delivered within the agreed timeline and through “well-planned steps,” emphasizing that it reflects the “visionary leadership of both countries.”
Baladna Algeria Chairman Ali Al Ali stated that the project is making “tangible progress,” supported by the first package of contracts signed in July 2025.
Meanwhile, Omar Rekkache, Director General of the Algerian Investment Promotion Agency, said the second package marks a “real transition from planning to execution,” demonstrating the seriousness and commitment of all partners. He added that the agency stands ready to facilitate subcontracting opportunities for businesses and startups.
In a statement, the Director General of the National Investment Fund, Saleh Laabni, praised the strong local participation, noting that contracts were signed with seven Algerian companies. Among them is GCB, a subsidiary of Sonatrach Group, which will be responsible for developing major dairy farm facilities designed to accommodate 33,250 cows.
He added that contracts with Algerian firms will help save foreign currency and boost domestic production—key pillars of national economic development.
Details of the Second Contract Package:
Agreement with U.S. companies Hunland and Scarff Bros to import 30,000 dairy cows starting November 2026, via 109 air shipments from over 20 advanced farms in the United States, ensuring animal health and reducing transport time.Contract with Algeria’s GCB (Sonatrach subsidiary) for farm construction.

• Contract with China’s CRECEG and Portugal’s Vilaplano for civil works.
• Contract with Algeria’s RedMed for a 1,000-bed residential facility.
• Contract with SAPCI for concrete plants.
• Contract with IFRESS for another 1,000-bed facility.
• Contracts with Naas Larbi and ECMCO for land development works.
• Contract with U.S.-based Valmont for irrigation systems.
• Strategic partnership with Qatar’s UCC (Urbacon Trading & Contracting).
  This second package, valued at $635 million, reflects strong local involvement, with seven Algerian companies among the ten signatories.
  Previously, in July 2025, Baladna Algeria signed a first package of 14 contracts worth over $500 million.
  The project spans 117,000 hectares and aims, in the long term, to house up to 270,000 dairy cows, producing around 194,000 tons of powdered milk annually, in addition to 250 other products in later phases.
  Implemented as a partnership between Qatar’s Baladna and Algeria’s National Investment Fund, the project aims to cover 50% of Algeria’s powdered milk needs, strengthening food security and reducing import dependence. With a total investment of approximately $3.5 billion, the project is expected to create more than 15,000 jobs during its implementation phase.

Source: https://www.aps.dz/