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The plans of Algeria's leadership to construct 350 new grain storage facilities will allow for increased imports and expanded sources of supply, especially with grain from Russia, according to analysis by Algerian experts documented by the "RIA Novosti" news agency.
Algeria's Minister of Agriculture, Yusef Sherfa, stated on January 8 that starting from March, the construction of 350 new grain storage facilities will commence, each with a capacity of up to 6 thousand tons. The goal is to ensure the country's food security. Overall, Algeria plans to increase grain storage capacities from 3.4 million tons to 9 million tons.
Murad Kawashi, an economics professor at the University of Umm Al-Bouaghi in Algeria, commenting on this development, said, "Algeria is building 350 grain storage facilities as part of the development strategy of this sector... in light of the increased volume of grain imports and the need to store its own production, on which Algeria heavily relies in the future."
According to the expert, Russia is the main trading partner contributing to the growth of wheat imports to Algeria.
He noted, "The Algerian Republic is clearly seeking to strengthen economic relations with Russia, while relations with France are declining... This is reflected in grain supplies – the volumes of Paris' deliveries have significantly decreased, while shipments from Moscow have increased."
Algerian economist Hisham Haddum also pointed out the advantages of Russian grain for Algeria at the current stage.
He believes that "the availability of high-quality Russian grain at a competitive price makes it a preferable choice for Algeria compared to French grain, which has deteriorated in quality and become more expensive."
Haddum highlighted that in the previous export season, the volume of French wheat imports to Algeria decreased by 85% compared to the previous year. Algeria was previously considered the largest market for grain sales from France.
The expert explained that the advantages of French wheat for Algeria are largely related to logistical considerations – the ability to store the purchased grain outside Algeria due to the proximity of the two countries. With the growing storage capabilities in Algeria, the attractiveness of Russian grain for the country will increase.
Haddum concludes, "Algeria has made a strategic decision to diversify sources of wheat supply and increase storage capacity to create a strategic grain reserve and take advantage of all opportunities in the constantly changing market situation."
In November, the deputy head of the Federal Center for Export of Agricultural Products of the Russian Ministry of Agriculture, Andrey Kucherov, reported that the volume of agricultural exports from Russia to Algeria more than doubled in a year – from $336 million in 2021 to $699 million by the end of 2022. According to data from the Grain Exporters Union, Russia is one of the leading suppliers of grain to Algeria: the country ranks 4th in terms of the volume of purchases of Russian wheat in the 2023-2024 season, and 6th in the overall volume of grain products.
