""

Required Report - public distribution

**Date:** 12/1/2003

**GAIN Report Number:** AG3004

AG3004

**Algeria**

**Dairy and Products**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)Merritt Chesley

U.S. Embassy

**Prepared by:**

Nabila Hales

**Report Highlights:**

Algerian production and consumption of dairy products has stabilized,
although the recent opening of new processing plants may lead to
increased consumption in the future. Although imports continue to be
important, very little is sourced from the United States, due to high
U.S. prices and lack of interest on the part of U.S. suppliers.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Rabat \[MO1\]

\[AG\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Production 3](#production)

[Production Subcategory 3](#production-subcategory)

[Consumption 3](#consumption)

[Consumption Subcategory 3](#__RefHeading___Toc44206937)

[Trade 3](#trade)

[Trade Subcategory 3](#trade-subcategory)

[Stocks 4](#stocks)

[Stocks Subcategory **Error! Bookmark not
defined.**](#__RefHeading___Toc44206941)

[Policy 4](#policy)

[Policy Subcategory **Error! Bookmark not
defined.**](#__RefHeading___Toc44206943)

[Marketing 4](#marketing)

[Marketing Subcategory **Error! Bookmark not
defined.**](#__RefHeading___Toc44206945)

# Executive Summary

# Production

In March 2003, the GOA reopened the imports of heifers from Europe after
a ban of three years because of the BSE disease. These imports will
still be under tight control, but this will help the GOA in its goal to
increase dairy production.

The private sector still dominates the production of processed dairy
products from imported raw materials. Many dairy processing complexes
are still opening in different regions of Algeria,(one creamery
encouraged by PNDA is operational since February 2003 in the south
western region. This plant will supply the region with 5000 liters /
day.)

After many rumors that the price of reconstituted milk would be raised,
processors were disappointed last month when the GOA decided to maintain
the consumer price at the current level, due to its importance as a
protein source for average Algerians.

## Production Subcategory

**Table 1: Chronology of Retail Prices of Milk in Algerian Dinars
(AD):**

+---------+-------------+-----------------+------------+--------------+
| Years   | Farm price  | Fixed price for | Whole milk | Exchange     |
|         | of fresh    | reconstituted   | powder     | Rate         |
|         | milk        | milk (1 liter)  | (0.5 kg    |              |
|         |             |                 | boxes)     | (AD in \$1)  |
|         | (1 liter)   |                 |            |              |
+---------+-------------+-----------------+------------+--------------+
| 1999    | 40          | 20              | 120        | 68           |
|         |             |                 |            |              |
| 2000    | 40          | 20              | 120-140    | 78           |
|         |             |                 |            |              |
| 2001    | 45          | 25              | 120-140    | 76           |
|         |             |                 |            |              |
| 2002    | 45          | 25              | 140        | 80           |
|         |             |                 |            |              |
| 2003    | 50          | 25              | 120-140    | 77           |
+---------+-------------+-----------------+------------+--------------+

Source: Ministry of Commerce and Local Market

# Consumption

[]{#__RefHeading___Toc44206937 .anchor}With the increasing number of
dairy plants and the availability of various dairy products, consumption
of dairy products is expected to increase.

## 

# Trade

With the inadequacy of domestic milk production, Algeria depends on
imports of dairy products, which represent 22 percent of total
agricultural product imports. Since most of the new processors are
operating now, imports are expected to be stable for the next several
years. Although there is considerable interest in purchasing from the
United States, high U.S. prices and lack of response on the part of U.S.
suppliers hamper imports of U.S. dairy products.

## Trade Subcategory

**Table 2: Imports of Dairy Products (January through June 2003) in
MT:**

  ----------------- -------------- ------------- ------------- -------------
  **Countries of    **WMP**        **NFDM**      **BUTTER**    **CHEESE**
  Imports**                                                    

  **Germany**       **607**        **1,702**     **0**         **20**

  **Spain**         **707**        **772**       **0**         **494,230**

  **Australia**     **613**        **0**         **476**       **3,057**

  **Argentina**     **9,127**      **5,345**     **0**         **107**

  **Belgium**       **6,667**      **2,744**     **1,746**     **158**

  **Canada**        **102**        **25**        **0**         **0**

  **France**        **23,286**     **8,223**     **1,574**     **292**

  **Great Britain** **1,156**      **160**       **336**       **59**

  **Ireland**       **1,627**      **828**       **105**       **709**

  **New Zealand**   **9,377**      **1,026**     **1,044**     **1,811**

  **Poland**        **555**        **9,299**     **0**         **0**

  **U.S.**          **48**         **0**         **0**         **0**

  **OTHERS**        **3,698**      **4,516**     **2,236**     **2,084**

  **TOTAL**         **57,570**     **34,640**    **7,517**     **502,527**
  ----------------- -------------- ------------- ------------- -------------

# Stocks

# Policy

Please see AG1008 for explanation of Algerian tariff system for dairy
products. In the 2003 finance law, the duty for whey (tariff code
04041000) was reduced from 30 to 15 percent. In addition, as reported
previously, the DAP (a temporary additional duty) is reduced 12 percent
each year, with the goal of reaching 0 in 2006, and since July 2003 is
now 36 percent.

# Marketing

  --------------- ------------- ---------- ---------- ---------- ---------- ---------- ---------
  **PSD Table**                                                                        

  **Country**     **Algeria**                                                          

  **Commodity**   **Dairy, Dry                                   (1000 MT)             
                  Whole Milk                                                           
                  Powder**                                                             

                  2002          Revised    2003       Estimate   2004       Forecast   UOM

                  USDA Official Post       USDA       Post       USDA       Post       
                  \[Old\]       Estimate   Official   Estimate   Official   Estimate   
                                \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]    

  **Market Year                 01/2002               01/2003               01/2004    MM/YYYY
  Begin**                                                                              

  Beginning       12            3          4          4          4          5          (1000 MT)
  Stocks                                                                               

  Production      0             0          0          0          0          0          (1000 MT)

  Intra EC        0             0          0          0          0          0          (1000 MT)
  Imports                                                                              

  Other Imports   112           121        120        121        0          121        (1000 MT)

  TOTAL Imports   112           121        120        121        0          121        (1000 MT)

  TOTAL SUPPLY    124           124        124        125        4          126        (1000 MT)

  Intra EC        0             0          0          0          0          0          (1000 MT)
  Exports                                                                              

  Other Exports   0             0          0          0          0          0          (1000 MT)

  TOTAL Exports   0             0          0          0          0          0          (1000 MT)

  Human Dom.      120           120        120        120        0          121        (1000 MT)
  Consumption                                                                          

  Other Use,      0             0          0          0          0          0          (1000 MT)
  Losses                                                                               

  Total Dom.      120           120        120        120        0          121        (1000 MT)
  Consumption                                                                          

  TOTAL Use       120           120        120        120        0          121        (1000 MT)

  Ending Stocks   4             4          4          5          0          5          (1000 MT)

  TOTAL           124           124        124        125        0          126        (1000 MT)
  DISTRIBUTION                                                                         

  Calendar Yr.    0             0          0          0          0          0          (1000 MT)
  Imp. from U.S.                                                                       

  Calendar Yr.    0             0          0          0          0          0          (1000 MT)
  Exp. to U.S.                                                                         

                                                                                       

                                                                                       

                                                                                       
  --------------- ------------- ---------- ---------- ---------- ---------- ---------- ---------

  -------------------- --------------- -------------------- ---------------
  **Import Trade                                            
  Matrix**                                                  

  **Country**          Algeria                              

  **Commodity**        Dairy, Dry                           
                       Whole Milk                           
                       Powder                               

  Time period                          Units:               MT

  Imports for:         **2002**                             2003

  U.S.                 96              U.S.                 

  Others                               Others               

  France               57442                                

  Argentina            18481                                

  Belgium              17129                                

  New Zealand          13961                                

  Great Britain        1519                                 

  Irland               5395                                 

  Canada               1714                                 

  Poland               1196                                 

                                                            

                                                            

  Total for Others     116837                               0

  Others not Listed    4036                                 

  Grand Total          120969                               0

                                                            

                                                            
  -------------------- --------------- -------------------- ---------------

  --------------- ------------- ---------- ---------- ---------- ---------- ---------- ---------
  **Country**     **Algeria**                                                          

  **Commodity**   **Dairy,                                       (1000 MT)             
                  Milk, Nonfat                                                         
                  Dry**                                                                

                  2002          Revised    2003       Estimate   2004       Forecast   UOM

                  USDA Official Post       USDA       Post       USDA       Post       
                  \[Old\]       Estimate   Official   Estimate   Official   Estimate   
                                \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]    

  **Market Year                 01/2002               01/2003               01/2004    MM/YYYY
  Begin**                                                                              

  Beginning       19            2          16         4          2          4          (1000 MT)
  Stocks                                                                               

  Production      0             0          0          0          0          0          (1000 MT)

  Intra EC        0             0          0          0          0          0          (1000 MT)
  Imports                                                                              

  Other Imports   87            114        80         114        0          114        (1000 MT)

  TOTAL Imports   87            114        80         114        0          114        (1000 MT)

  TOTAL SUPPLY    106           116        96         118        2          118        (1000 MT)

  Intra EC        0             0          0          0          0          0          (1000 MT)
  Exports                                                                              

  Other Exports   0             0          0          0          0          0          (1000 MT)

  TOTAL Exports   0             0          0          0          0          0          (1000 MT)

  Human Dom.      90            112        94         114        0          114        (1000 MT)
  Consumption                                                                          

  Other Use,      0             0          0          0          0          0          (1000 MT)
  Losses                                                                               

  Total Dom.      90            112        94         114        0          114        (1000 MT)
  Consumption                                                                          

  TOTAL Use       90            112        94         114        0          114        (1000 MT)

  Ending Stocks   16            4          2          4          0          4          (1000 MT)

  TOTAL           106           116        96         118        0          118        (1000 MT)
  DISTRIBUTION                                                                         

  Calendar Yr.    0             0          0          0          0          0          (1000 MT)
  Imp. from U.S.                                                                       

  Calendar Yr.    0             0          0          0          0          0          (1000 MT)
  Exp. to U.S.                                                                         

                                                                                       

                                                                                       
  --------------- ------------- ---------- ---------- ---------- ---------- ---------- ---------

  -------------------- --------------- -------------------- ---------------
  **Import Trade                                            
  Matrix**                                                  

  **Country**          Algeria                              

  **Commodity**        Dairy, Milk,                         
                       Nonfat Dry                           

  Time period                          Units:               MT

  Imports for:         **2002**                             2003

  U.S.                 99              U.S.                 

  Others                               Others               

  Poland               48049                                

  France               24121                                

  New Zealand          11282                                

  Belgium              6336                                 

  Argentina            4660                                 

  Switzerland          3419                                 

  Brasil               2756                                 

  Czech                2034                                 

  Germany              1463                                 

  Spain                5872                                 

  Total for Others     109992                               0

  Others not Listed    4080                                 

  Grand Total          114171                               0

                                                            
  -------------------- --------------- -------------------- ---------------

  --------------- ------------- ---------- ---------- ---------- ---------- ---------- ---------
  **PSD Table**                                                                        

  **Country**     **Algeria**                                                          

  **Commodity**   **Dairy,                                       (1000 MT)             
                  Cheese**                                                             

                  2002          Revised    2003       Estimate   2004       Forecast   UOM

                  USDA Official Post       USDA       Post       USDA       Post       
                  \[Old\]       Estimate   Official   Estimate   Official   Estimate   
                                \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]    

  **Market Year                 01/2002               01/2002               01/2002    MM/YYYY
  Begin**                                                                              

  Beginning       0             1          0          1          0          1          (1000 MT)
  Stocks                                                                               

  Production      0             4          0          4          0          4          (1000 MT)

  Intra EC        0             0          0          0          0          0          (1000 MT)
  Imports                                                                              

  Other Imports   0             21         0          21         0          21         (1000 MT)

  TOTAL Imports   0             21         0          21         0          21         (1000 MT)

  TOTAL SUPPLY    0             26         0          26         0          26         (1000 MT)

  Intra EC        0             0          0          0          0          0          (1000 MT)
  Exports                                                                              

  Other Exports   0             0          0          0          0          0          (1000 MT)

  TOTAL Exports   0             0          0          0          0          0          (1000 MT)

  Human Dom.      0             25         0          25         0          25         (1000 MT)
  Consumption                                                                          

  Other Use,      0             0          0          0          0          0          (1000 MT)
  Losses                                                                               

  Total Dom.      0             25         0          25         0          25         (1000 MT)
  Consumption                                                                          

  TOTAL Use       0             25         0          25         0          25         (1000 MT)

  Ending Stocks   0             1          0          1          0          1          (1000 MT)

  TOTAL           0             26         0          26         0          26         (1000 MT)
  DISTRIBUTION                                                                         

  Calendar Yr.    0             0          0          0          0          0          (1000 MT)
  Imp. from U.S.                                                                       

  Calendar Yr.    0             0          0          0          0          0          (1000 MT)
  Exp. to U.S.                                                                         

                                                                                       
  --------------- ------------- ---------- ---------- ---------- ---------- ---------- ---------

  -------------------- --------------- -------------------- ---------------
  **Import Trade                                            
  Matrix**                                                  

  **Country**          Algeria                              

  **Commodity**        Dairy, Cheese                        

  Time period                          Units:               MT

  Imports for:         **2002**                             2003

  U.S.                 0               U.S.                 

  Others                               Others               

  New Zealand          5530                                 

  Australia            4943                                 

  Netherland           3748                                 

  Great Britain        1797                                 

  Spain                1607                                 

  Ireland              1350                                 

  France               1059                                 

                                                            

                                                            

                                                            

  Total for Others     20034                                0

  Others not Listed    1629                                 

  Grand Total          21663                                0

                                                            
  -------------------- --------------- -------------------- ---------------

  --------------- ------------- ---------- ---------- ---------- ---------- ---------- ---------
  **PSD Table**                                                                        

  **Country**     **Algeria**                                                          

  **Commodity**   **Dairy,                                       (1000 MT)             
                  Butter**                                                             

                  2002          Revised    2003       Estimate   2004       Forecast   UOM

                  USDA Official Post       USDA       Post       USDA       Post       
                  \[Old\]       Estimate   Official   Estimate   Official   Estimate   
                                \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]    

  **Market Year                 01/2002               01/2002               01/2002    MM/YYYY
  Begin**                                                                              

  Beginning       0             1          0          1          0          1          (1000 MT)
  Stocks                                                                               

  Production      0             3          0          3          0          3          (1000 MT)

  Intra EC        0             0          0          0          0          0          (1000 MT)
  Imports                                                                              

  Other Imports   0             12         0          12         0          12         (1000 MT)

  TOTAL Imports   0             12         0          12         0          12         (1000 MT)

  TOTAL SUPPLY    0             16         0          16         0          16         (1000 MT)

  Intra EC        0             0          0          0          0          0          (1000 MT)
  Exports                                                                              

  Other Exports   0             0          0          0          0          0          (1000 MT)

  TOTAL Exports   0             0          0          0          0          0          (1000 MT)

  Domestic        0             15         0          15         0          15         (1000 MT)
  Consumption                                                                          

  TOTAL Use       0             15         0          15         0          15         (1000 MT)

  Ending Stocks   0             1          0          1          0          1          (1000 MT)

  TOTAL           0             16         0          16         0          16         (1000 MT)
  DISTRIBUTION                                                                         

  Calendar Yr.    0             0          0          0          0          0          (1000 MT)
  Imp. from U.S.                                                                       

  Calendar Yr.    0             0          0          0          0          0          (1000 MT)
  Exp. to U.S.                                                                         

                                                                                       
  --------------- ------------- ---------- ---------- ---------- ---------- ---------- ---------

  -------------------- --------------- -------------------- ---------------
  **Import Trade                                            
  Matrix**                                                  

  **Country**          Algeria                              

  **Commodity**        Dairy, Butter                        

  Time period                          Units:               MT

  Imports for:         **2002**                             2003

  U.S.                 0               U.S.                 

  Others                               Others               

  New Zealand          4958                                 

  Netherland           2397                                 

  Belgium              1729                                 

  France               1727                                 

  Great Britain        663                                  

  Australia            618                                  

                                                            

                                                            

                                                            

                                                            

  Total for Others     12092                                0

  Others not Listed    473                                  

  Grand Total          12565                                0

                                                            

                                                            
  -------------------- --------------- -------------------- ---------------