Algeria secures 600,000 mt of milling wheat amid French snub, rising demand

ALGERIA – Algeria has secured between 570,000 and 600,000 metric tonnes of soft milling wheat in its latest international tender, with prices averaging US$267.50 per metric tonne on a cost and freight (C&F) basis.

The state-run Office Algérien Interprofessionnel des Céréales (OAIC) made the purchase for shipment in the first and second half of June, reinforcing its position as one of the world’s top wheat importers as domestic demand continues to climb.

This latest acquisition follows a March 2025 purchase of 450,000mt at a marginally higher cost of US$268.50/mt.

A significant development in this tender round was the absence of French-origin wheat, with most of the supply expected to come from Black Sea origins, particularly Ukraine and ports in Romania and Bulgaria.

Despite recent weakness in MATIF futures, which temporarily made Western EU wheat competitive, French offers were overlooked, fueling speculation that ongoing diplomatic tensions between Algiers and Paris continue to shape Algeria’s grain sourcing strategies.

The May milling wheat contract on MATIF dipped 0.6% to US$238/mt following the unofficial results, before rebounding slightly to US$241/mt ahead of the Easter break, driven by market concerns around trade tariffs.

Historically a dominant French export destination, Algeria’s distancing from French wheat has mirrored a diplomatic cold spell that began in July 2024, when France’s stance on Western Sahara angered Algerian officials.

Despite recent diplomatic overtures, French Foreign Minister Jean-Noel Barrot declared bilateral relations “back to normal”, the grain trade appears slow to reflect the political thaw.

Algeria bets on self-sufficiency in durum wheat by 2025

While Algeria aggressively imports wheat, it is also pushing to improve domestic production, especially of durum wheat, which now represents about 45% of the country’s total cropped area.

President Abdelmadjid Tebboune has pledged self-sufficiency in durum wheat by the end of 2025, but that goal remains ambitious given ongoing challenges in irrigation and yield growth.

Imports of durum wheat in the first eight months of the 2024-25 marketing year stood at 860,000mt, underlining the gap that still exists.

According to the USDA’s Foreign Agricultural Service (FAS), Algeria’s 2025-26 wheat harvest is expected to mirror last season at 3 million metric tonnes, from a harvested area of 2.08 million hectares with an average yield of 1.45mt/ha.

Barley production is also steady at 1.2 million metric tonnes from 1.03 million hectares, yielding 1.17mt/ha.

The northern provinces remain the main cereal-producing regions, with limited success so far in expanding production into southern Algeria, where 500,000 hectares have been earmarked for cultivation. However, poor irrigation infrastructure remains a barrier to this goal.

Population drives demand

Algeria’s wheat demand continues to outstrip supply, driven by population growth and heavy per capita consumption.

FAS forecasts 2025-26 wheat consumption at 12 million metric tonnes, up from 11.8mmt the previous year. With imports projected at 9.4 mmt, Algeria ranks as the fourth-largest wheat importer globally, trailing only Egypt, Indonesia, and the European Union.

Barley accounts for 33% of Algeria’s cropped area and plays a pivotal role in livestock feed, especially with rising sheep numbers.

Demand for barley, used both for feed and traditional food preparations, is projected to remain stable at 700,000 mt for 2025-26. However, should drought conditions worsen, particularly in the already-dry western provinces, barley imports could climb.

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