Page 24 - AWA Vol.41-No.9 issue

AGRICULTURE EXPORT

Algeria Agriculture Market Size & Share Analysis - Growth

Trends And Forecast (2025 - 2030)
The Algeria agriculture market size is valued at USD
33.50 billion in 2025 and is forecast to reach USD 40.95
billion by 2030, advancing at a 4.1% CAGR during the
period. Government investment in desalination, irriga-
tion, and greenhouse infrastructure is stimulating capital
flows, while foreign partners from Qatar and Italy are in-
jecting large-scale project finance that accelerates mech-
anization, logistics modernization, and export capaci-
ty. Precision irrigation, solar-powered cold chains, and
agri-fintech lending platforms are reshaping production
economics in cereals, horticulture, and dairy. Competitive
dynamics favor vertically integrated operators that adopt
technology early, creating higher barriers for traditional
smallholder models. Structural challenges, in particular European markets where quality standards demand con-
water-table salinization, fragmented land titles, and vol- sistent temperature control throughout the supply chain.
atile fertilizer costs, temper growth but are partially offset Expansion of Greenhouse Clusters
by policy support and climate-smart initiatives. Single-tunnel and evolving multispan structures gen-
Rise in Drip-Irrigation Installations erate 3-4 crop cycles yearly, doubling land productivity
Drip systems now cover more than 100,000 hectares and cutting water use via controlled climates. Protected
and lift water-use efficiency by 30-40% relative to flood cultivation is expanding rapidly across Algeria's Med-
methods. Government subsidies covering up to 70% of iterranean coastal regions and peri-urban areas, with
installation costs have democratized access to precision greenhouse technology adoption driven by water scarci-
irrigation, particularly benefiting smallholder farmers ty mitigation and year-round production capabilities. The
who previously lacked capital for such investments. Solar integration of renewable energy systems with greenhouse
pumps linked to these systems remove grid constraints in operations creates sustainable production models that
Saharan farms, positioning the Algeria agriculture market align with Algeria's climate commitments while reducing
to bring an additional 1 million hectares under cultivation. operational costs for energy-intensive controlled environ-
This technological convergence positions Algeria to ex- ment agriculture.
pand cultivated area by one million hectares, as outlined Water-Table Salinization
in government development plans. Soil salinization affects 10-15% of Algeria's irrigated agri-
Government Subsidies for Cereal Intensification cultural areas, with projections indicating worsening con-
Subsidized seed, fertilizer, and guaranteed purchase ditions due to intensive irrigation practices and climate
pricing span over 3 million hectares, raising domestic change impacts on groundwater quality. The challenge
wheat supply to cover 80% of 2024 demand. Partnerships is particularly acute in coastal regions where seawater
with Qatar’s Baladna and Italian investors funnel capital intrusion combines with poor drainage to create increas-
and technology into southern desert zones, further re- ingly saline conditions that reduce crop yields and limit
ducing import reliance and adding 5,000 direct jobs. The suitable crop varieties. Date palm groves in southern Al-
subsidy framework extends beyond input costs to include geria show significant spatial variability in salinity levels,
guaranteed purchase prices, providing farmers with pro- with electrical conductivity measurements revealing con-
duction certainty that encourages investment in improved centrated salt accumulation that threatens long-term ag-
varieties and cultivation techniques. Strategic partner- ricultural sustainability. Advanced irrigation scheduling
ships with Qatar and Italy complement domestic produc- and soil monitoring technologies offer partial solutions,
tion efforts. but widespread adoption requires technical training and
financial support that current extension services struggle
Adoption of Solar-Powered Cold-Chain Units
to provide at scale.
The technology addresses critical infrastructure gaps
that previously resulted in 20-30% post-harvest losses, Fragmented Land Titles
directly impacting farmer profitability and food security Average plot sizes below five hectares limit mechaniza-
outcomes. Integration with photovoltaic systems provides tion economies, while unclear tenure discourages long-
energy independence while reducing operational costs term soil and irrigation investment. The Office national
compared to diesel-powered alternatives, with levelized des terres agricoles is mobilizing 122,000 hectares of
costs significantly lower than conventional cooling solu- state-owned land for private investors, though this ap-
tions. Government initiatives promote cold-chain adop- proach primarily benefits larger operators rather than
tion through targeted subsidies and technical assistance addressing smallholder fragmentation issues. Resolution
programs, recognizing refrigeration as essential infra- requires comprehensive land reform that balances social
structure for agricultural modernization. The expansion equity with economic efficiency, a politically sensitive
of solar-powered cold storage facilities enables Algeria process that extends beyond the current forecast timeline.
to develop export-oriented horticulture, particularly for Circle 28 on enquiry card
22 Vol. 41 No. 9