Algeria, Qatar and Germany seal US$3.5B deal for world’s largest dairy project

ALGERIA – Algeria has signed contracts to set up the world’s biggest integrated dairy farm and milk powder production facility, in a deal worth US$3.5 billion.

The project, located in Adrar province, aims to meet half of the country’s milk powder needs and reduce its reliance on imports.

The Algerian government, through its National Investment Fund, has partnered with Baladna, a leading Qatari dairy producer, to establish Baladna Algeria SPA. German food technology company GEA will handle the construction of the farms and the processing facility.

The project will cover 117,000 hectares and accommodate a herd of 272,000 cows.

Stefan Klebert, chief executive of GEA, described the contract as a major order for his company. “Not only are we building the world’s largest facility of its kind, we are also helping to strengthen regional food security and economic development,” he said.

The plant is designed to produce around 100,000 tonnes of milk powder annually once it reaches full capacity.

This will meet about 50% of Algeria’s national demand. The facility will also produce anhydrous milk fat, with GEA supplying equipment for both milking parlours and processing lines.

Officials say the development will create about 5,000 jobs for Algerian workers, mainly in skilled roles. Construction will begin in early 2026 and the first batches of milk powder are expected by the end of 2027.

Mohamed Moutaz Al-Khayyat, chairperson of Baladna, said the project had gained strong international backing. “This engagement with GEA marks a milestone in the acceleration of the project. We are proud to attract the most prominent national and international expertise and renowned companies from all over the world to contribute to the completion of the project, following the highest international standards,” he said.

Regional context and recent developments

The investment comes at a time when Algeria, home to 44 million people, ranks as the world’s third-largest importer of milk powder. By cutting dependence on imports, the government hopes to improve food security and save foreign currency.

The new dairy initiative also ties into wider agricultural investments across Africa and the Middle East. In recent months, GEA has reported a rise in large-scale food projects, with the Algeria facility among its most significant.

Executives say the order, worth between €140 million (US$162.218 million) and €170 million (US$196.979 million), will be included in the company’s 2025 books.

Industry analysts believe the move signals Algeria’s stronger push to achieve food independence. If the project meets its goals, the country will not only secure a steady milk supply but also position itself as a regional player in dairy processing.

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