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Algeria is the 10th-largest country in the world, with a population of 40 million people and a significant food deficit. The value of trade in Irish agri-food products to Algeria exceeded €40m in 2015. Statistics for the year to date in 2016 show that these upward trends continue, with exports increasing by approximately 14% in the dairy area for the period to the middle of the year.
“The Algerian market is importing about 400,000t per year of dairy,” said Ornua’s regional sales manager for North Africa Saliha Bey, who is based in Algeria. “They are doing a lot of work to promote local production. Algerians are very sensitive in terms of prices, but, at the same time, they consume 120kg/capita.”
The country is experiencing a growth phase at the moment, with inflation at about 4% per year (GDP). That being said, state agency ONIL is still subsidising milk prices to make it more affordable for Algerians. The objective for Irish companies would be to target the ONIL milk powder tenders, as the contracts provide a large market opportunity.
Figures from Bord Bia show that Irish dairy exports to Algeria almost doubled between 2014 and 2015.
Private companies such as Tchinlait import milk powder to produce UHT and flavoured milk products. Glanbia regional sales manager for North Africa Kieran Duggan has been working with Tchinlait over the last few years.
“It’s a sophisticated processing industry and making huge leaps forward in terms of their best in practise,” Duggan said. “The way they handle themselves in terms of conducting business, what I have found in the last four years, is that they are very mature, they use the word serious or direct. In terms of our ability to do business together, they are actually quite compatible.”
However, he added that there are barriers to trade with Algeria, which trade missions can help to come around. Simple things such as the difficulties in applying for visas can be changed he said, as it stands we have no consulate in Algeria which means that when applying for an Irish visa they must go through Abu Dhabi.
“They have a three-month maximum age of product in shipping from Ireland. We have a seasonal production campaign, so that challenges us in certain times of the year to meet that. Competitiveness is always going to be an element – we are in the world market.”
Despite the fact that Glanbia has been exporting product to Algeria for many years, Duggan described the trade mission as “a real enabler”. The focus for sales after quotas were lifted is to build relationships with the end customer.
“For industry partners, it is about the compatibility of our offering with their needs and, ultimately, does that serve with our mandate in terms of growing milk supply and sustaining value in those global markets and that’s the question we will always ask at every juncture.”
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