Algeria secures 600,000T of wheat tender amidst diplomatic tensions with France

ALGERIA — Algeria’s state grains agency, Office Algérien Interprofessionnel des Céréales (OAIC), has awarded an optional-origin international tender for up to 600,000 tonnes of milling wheat.

The tender, priced around US$263 per tonne, including cost and freight, comes as Algeria seeks to balance its supply from diverse sources, including Black Sea countries and even Argentina, amid diplomatic tensions with its traditional partner, France.

The tender results indicate that OAIC has moved quickly this marketing year, already surpassing its average wheat purchase pace.

With shipment periods set for December 1-15 and December 16-31, the deal reflects Algeria’s appetite for imports to meet domestic demand.

Algeria, one of the world’s largest wheat consumers, heavily relies on imports to cover its needs, with the USDA estimating 2024-25 wheat imports at around 9 million tonnes.

The country ranks just behind major wheat importers like Egypt, Indonesia, China, and the EU. Bread wheat accounts for the lion’s share of imports, fulfilling the country’s daily demand for baguettes, flatbreads, and couscous.

Historically a primary supplier to Algeria, France’s role has recently diminished as Russia has expanded its wheat exports to Algeria.

French exporters were reportedly barred from offering French-origin wheat for a second consecutive time, which experts believe could stem from strained political relations.

Tensions escalated after French President Emmanuel Macron recently endorsed Morocco’s plan to establish Western Sahara as an autonomous region. Algeria, a staunch supporter of the Polisario Front seeking self-determination for the territory, responded by shifting wheat sourcing priorities.

Despite France’s exclusion, European traders participated in the tender with non-French wheat, while Russia and other Black Sea exporters, including Romania, Bulgaria, and Ukraine, are expected to fulfill most of the contract.

 Russian suppliers adhered to the country’s export floor price, reportedly offering wheat at around US$9 per tonne higher than the final contracted price. This adherence could mark a strategic shift in pricing to remain competitive.

Additionally, as Argentina’s wheat harvest approaches, its falling prices and increasing export capacity make it an attractive alternative for Algerian buyers. Baltic countries and other European suppliers are also gaining traction in the market, further highlighting the diversification of Algeria’s wheat import sources.

However, Algeria is working toward self-sufficiency in certain grains. President Abdelmadjid Tebboune recently pledged to achieve self-sufficiency in durum wheat by 2025, although import data indicates increasing durum imports rather than reductions.

The 2024-25 harvest yielded approximately 3 million tonnes, showing slight growth from the previous year.

To support domestic cultivation, the Algerian government has provided farmers with free seeds and fertilizers, with plans to increase cereal production to 3.07 million hectares for the 2025-26 season.

Looking ahead, Russia is expected to maintain its position as Algeria’s leading wheat supplier, shipping an estimated 2.3 million tonnes for the current marketing year.

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