Baladna Algeria Signs $500Mn Initial Contracts for First Phase of Integrated Agri-Industrial Project

Baladna has announced the signing of initial contracts valued over $500mn between Baladna Algeria and a group of Algerian and international suppliers and consultants in the capital, Algiers. 

The agreements are part of the first phase of the company’s integrated agri-industrial project for powdered milk production in Algeria, which represents a total investment of $3.5bn.

In a statement published on Tuesday on the Qatar Stock Exchange website, the company said these agreements mark the official launch of this strategic investment, aimed at enhancing food security and reducing reliance on imports — thereby contributing positively to Algeria’s national economy.

Baladna Algeria is a joint-stock Algerian company established through a partnership between a subsidiary of Baladna Q.P.S.C. and Algeria’s National Investment Fund.

The signed contracts cover a wide range of critical sectors, including agricultural technologies, production lines, irrigation equipment, water well drilling, steel and metal structure supplies, in addition to consultancy services in project management, topographic surveying, soil analysis, and environmental impact studies. 

Among the key international suppliers and consultants are GEA (Germany), a leader in dairy processing and automated milking systems; Valmont (USA), specialised in water-efficient irrigation systems; UCC, a globally recognised contracting firm; and EHAF, a prominent engineering consultancy.

Leading Algerian companies involved include Condor-Travocovia, RedMed Contracting, and EFORHYD, specialised in water well drilling.

Moutaz al-Khayyat, Chairman of Baladna, stated that the signing of these initial contracts, which form a key part of the project’s first phase, marks a major milestone in what is considered one of the largest agri-industrial projects of its kind in the world.

He added: "Today, we are taking a critical step in the execution of this integrated agri-industrial project for dairy and powdered milk production in Algeria, which aims to achieve self-sufficiency in one of the country’s most essential and widely consumed food products. 

We are proud to bring together top-tier global and national expertise through collaboration with leading companies from the US, Germany, Qatar, and Algeria. 

These combined efforts will ensure the project is delivered on schedule and according to the highest international standards — starting with field studies, soil and water analysis, construction, and the design and implementation of world-class irrigation networks and production lines."

Ramez al-Khayyat, Board Member and Managing Director, affirmed that the project is progressing rapidly. 

He praised the co-operation with a select group of leading companies in their respective sectors, noting that the first phase includes land reclamation and construction work for two out of four farms, one out of two factories, and 700 of the planned 1,400 pivot irrigation units. He added that production is scheduled to begin before construction of the first phase is fully completed, with herd formation planned to start in 2026.

The Baladna Algeria project is considered one of the largest agri-industrial ventures in the world and the first of its kind in Algeria.

 Spanning 117,000 hectares, the project is being developed through a strategic partnership between Baladna Q.P.S.C. and the Algerian government, represented by the National Investment Fund.

Focused on dairy cow farming and powdered milk production, the initiative is expected to supply 50% of Algeria’s national demand for powdered milk, supporting the country’s goal of achieving food self-sufficiency. In addition to dairy, the project will contribute to red meat supply and is expected to generate more than 5,000 job opportunities for the local workforce.