Research

03/09/25

Algeria’s Grain Imports

Algeria, which imported approximately 9.5 million tonnes (Mt) of wheat during the 2023/24 marketing year (MY) according to USDA Foreign Agricultural Service (FAS) data, has recently recorded a modest decline in imports, not just for wheat but most grains. Official forecasts for MY 2025/26 show that wheat imports will moderate to around 9.0 Mt for the season, falling 0.5 Mt from 2023/24. These signs of moderation mark a shift influenced not by weakening demand, but rather by a deliberate state-driven push toward self-sufficiency.

To achieve these goals, Algeria set about transforming its agricultural base. Firstly, over 120,000 hectars of land have been allocated to domestic and foreign investors focused on cereal production. Secondly, in the 2024/25 planting season, more than 420,000 tonnes of certified seed were distributed, contributing to the planting of over 3 million hectares, of which nearly 85% was dedicated to durum and barley. Lastly, the government is building out its grain reserve system to reach 6.4 Mt in national capacity by 2026, including over 350 grain collection centers and modernised port silos. This allows Algeria to hedge against volatile global prices and time its tenders more strategically.

This move towards food sovereignty came after diplomatic tensions between France and Algeria in 2021 resulted in Algeria not renewing its wheat import contracts with France. This fallout resulted in a sudden halt in French wheat exports to Algeria, which until 2020 has accounted for nearly 40% of Algeria’s wheat imports (~3.2 Mtpa).

The state-run Office Algérien Interprofessionnel des Céréales (OAIC) remains the sole importer of public grain tenders. However, recent months have seen a clear shift in the company’s sourcing strategy. Due to strained diplomatic ties with France, Algeria has instead increased procurement from Russia, Ukraine, Romania, and Argentina, in addition to earlier diversification towards Canada and South America. According to the USDA FAS, Russia and Ukraine have remained the key grain suppliers to Algeria in the current marketing year, with volumes from France virtually non-existent.

Building on its goal of self-sufficiency, Algeria has committed to discontinuing all durum wheat imports starting in 2026. This announcement comes following what the Agriculture Minster described as an ‘excellent’ harvest during the 2025/26 season, with yields exceeding 5.5-8.0 tonnes/hectar in key growing regions, which is more than sufficient to meet domestic demand. Additionally, it was announced that barley and corn imports would be phased out by 2026, aligning with a broader national plan to reduce food import dependency.

According to USDA data, Algeria’s consumption of barley, corn and wheat stood at 1.8 Mt, 4.9 Mt and 12.0 Mt, respectively, in MY 2024/25. Meanwhile, domestic production of barley, corn and wheat stood at 1.2 Mt, 0.01 Mt and 3.0 Mt during the same period. The largest gap here seems to be in corn trade, with almost all corn being imported last year, making it the second largest agricultural import after wheat. While production has been ramping up over the past few years and is expected to continue increasing, consumption is also expected to increase in the coming years. Therefore, while domestic output is expected to grow, rising demand may limit the extent of import substitution, particularly for corn.

The bright spot in Algerian grain trade thus seems to be corn and (in part) wheat imports. In the past year, a majority of the corn volumes (~75%) has come from the East Coast of South America, both Brazil and Argentina, on geared vessels. Given Brazil’s strong harvest this year and the prospect of weaker Chinese corn demand, South American exporters may continue to play a prominent role in supplying Algeria in the near term.

By Vriddhi Khattar, Dry Bulk Analyst, Research, SSY.

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