Algeria’s OAIC secures up to 600,000 tonnes of milling wheat in international tender
Algeria’s purchases are optional origin but traders suspected the wheat could be sourced from Argentina, which is currently offering very low prices from its large new crop.
ALGERIA – Algeria’s state grains agency, the Office Algérien Interprofessionnel des Céréales (OAIC), has purchased around 600,000 metric tons of milling wheat in an international tender that closed on Monday, according to European traders.
Algeria is one of the world’s largest wheat importers, relying heavily on international markets to meet domestic demand for bread and other staples.
The country typically imports between 6 million and 8 million tons of wheat annually, with milling wheat forming the bulk of purchases.
Argentine wheat is expected to account for a significant share of the supply, reflecting highly competitive prices from South America’s latest harvest.
Traders said purchases were initially reported at around US$254 per metric ton cost and freight (c&f), with market talk indicating the lowest price was US$253 per ton c&f.
Initial estimates of the total volume were mostly around 600,000 tons, although some assessments suggested the tender could have covered as much as 720,000 tons. Final volumes and price confirmations are typically refined in the days following the tender as trade flows are allocated.
The tender specified optional origin wheat, but market participants widely expect Argentina to be a major source.
Argentina is currently offering aggressively priced wheat from its large new crop, which has weighed on global prices and increased its competitiveness in North African tenders.
“The prices are so low that even Black Sea wheat was out of the running,” a trader said.
The wheat was sought for shipment in two loading windows from the main supply regions, including Europe: March 1–15 and March 16–31.
If the wheat is sourced from South America or Australia, shipment is scheduled one month earlier to account for longer transit times. Such staggered shipment periods are standard in OAIC tenders, allowing flexibility depending on origin and logistics.
Despite plans to secure imports, Algeria has been taking steps to reduce its staggering USD 10 billion annual food import bill through science and technology.
In 2025, the government established the National Scientific Council for Food Security, a strategic body created during the National Conference on the Modernization of the Agricultural Sector, held on October 27–28, 2025, in Algiers.
The council is tasked with supporting the government’s goal of improving the agricultural sector’s resilience through scientific research and technological integration.
In addition, the country allocated 764.2 billion dinars (US$5.84 billion) to its agriculture sector under the 2026 Finance Bill, representing a 4% increase from the previous year’s allocation of $US5.5 billion.
The investment, announced on November 3 by Yacine El-Mahdi Oualid, Minister of Agriculture, during a session before the Finance and Budget Committee of the National People’s Assembly (APN), signals the government’s determination to strengthen domestic production and reduce reliance on food imports.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
