Algeria to import record 5 million tonnes of corn in 2024/2025

ALGERIA –  According to the latest forecasts from the United States Department of Agriculture (USDA), Algeria is expected to import a record 5 million tonnes of corn in the 2024/2025 season.

This marks a significant increase from the annual average of 4 million tonnes recorded since 2020, underscoring the growing importance of corn imports in the country’s agricultural economy.

This milestone positions Algeria as the world’s ninth-largest importer of corn and the second-largest buyer on the African continent, trailing only Egypt.

According to USDA, the heightened demand is predominantly attributed to the robust needs of the poultry industry, supplemented by the beef and dairy sectors. As a result, Algeria’s corn purchasing bill averages US$900 million annually, highlighting the sector’s significant economic impact.

Despite the burgeoning demand, Algeria’s local production of grain corn remains negligible.

The country’s focus has historically been on silage corn, which serves as fodder for dairy farms. In 2021, the El Menia region in southern Algeria produced 163,000 tonnes of corn, of which 92% was silage corn. This preference is driven by its superior profitability for investors.

Recognizing the strategic importance of grain corn, the Algerian government has declared its cultivation a priority, aligning it with essential crops such as wheat, oilseeds, and pulses.

A development plan aims to expand corn cultivation to 220,000 hectares in the southern wilayas by 2028. To incentivize farmers, the Ministry of Agriculture announced in September an increase in the purchase price of a quintal of corn from 4,500 dinars (US$33.7) to 5,000 dinars (US$37.4).

Reliance on South American suppliers

In the short term, Algeria remains heavily dependent on imports from South America, with Argentina and Brazil supplying the majority of its corn needs.

Over the past five years, these two countries have accounted for 87% of Algeria’s corn shipments. Argentina leads the way, exporting 2.3 million tonnes to Algeria in the 2022/2023 season, followed by Brazil with 1.2 million tonnes.

This reliance continues in the current season. In October 2024, the National Office of Livestock Feed (ONAB) issued an international tender for 320,000 tonnes of fodder corn, restricted to suppliers from Argentina and Brazil. Another tender in November sought 240,000 tonnes for delivery in December 2024.

While import volumes are rising, Algeria’s purchasing bill may see some relief due to favorable market conditions.

Increased availability of corn in Argentina and Brazil is expected to lead to substantial global exports, driving down prices. As of November 4, 2024, export prices for Argentine and Brazilian corn were US$208 and US$219 per tonne, respectively, compared to US$306 and US$298 on the same date in 2022.

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