Algiers – A recent European report has shed light on the factors that led to Algeria being chosen as the location for a massive integrated dairy production project. The report indicates that the decision to award the “Baladna” project to Algeria was not merely a matter of chance, but the result of a rigorous assessment of the country’s capabilities and potential, surpassing those of its competitors, including Morocco and Spain.
According to the report, the “Baladna” farm project in Adrar, with an investment exceeding $3.5 billion funded by Algerian and Qatari sources, represents a strategic turning point for regional food security. The project’s selection hinged on several key criteria where Algeria held a distinct advantage.
The report highlights that Spain and other European nations face stringent environmental regulations that restrict the establishment of intensive livestock farming complexes. Morocco, on the other hand, is grappling with a severe structural water deficit due to six years of continuous drought, significantly weakening fodder production and driving up costs. These challenges made both countries less attractive for such a large-scale undertaking.
Conversely, the report emphasizes that Algeria offered a unique combination of assets: abundant land suitable for investment, the potential to sustainably harness local water resources, and an institutional framework that allows for long-term concessions to investors. This strategic trifecta made the project viable in the Adrar desert, a feat that no other Mediterranean or European country could match.
The first phase of the project, launched in July 2025 with an investment of $550 million, includes establishing a herd breeding unit, local fodder production, and a milk powder production plant. The project aims to reach a capacity of 270,000 dairy cows within nine years, a figure comparable to the size of entire national herds, signaling a shift towards heavy industry in the dairy sector.
A technological partnership with German company GEA, which previously established a massive “Baladna” facility in Qatar with a capacity of 400,000 liters per day, ensures the transfer of global expertise in dairy project engineering to the Algerian Sahara. This includes providing high-density automated milking systems and advanced drying units. This project aims to transform Algeria from a major importer into a regional exporter of dairy products.
