• EkoNiva held talks with state-owned Giplait on potential dairy farm projects
• Discussions focus on pilot farms for raw milk production, with no figures set yet
• Algeria seeks to cut costly dairy imports by scaling up local production

Russia’s leading milk producer, EkoNiva Group, is considering an investment in Algeria’s dairy sector. A delegation led by its chief executive officer, Stefan Dürr, met last week in Algiers with the management of state-owned Giplait, a key player in milk collection, processing, and distribution in the North African country.

According to local media reports, discussions between the two sides focused on exploring partnership opportunities around the development of pilot dairy farms specialized in raw milk production. Still at an exploratory stage, the talks have not yet clarified planned production capacities or potential investment amounts.

Authorities say the aim of the proposed cooperation is to develop dairy operations based on modern technical standards, combining EkoNiva’s experience in managing large-scale farms with Giplait’s industrial and logistics network. Founded in 1994, the Russian group operates an integrated model covering cattle breeding, feed production, and dairy processing. It manages more than 630,000 hectares and produces over 1.35 million tons of raw milk per year.

Mutual opportunities

EkoNiva’s interest in Algeria is significant, as the country is Africa’s largest importer of dairy products. Data compiled by the Food and Agriculture Organization of the United Nations show that Algeria imported an average of 431,270 tons of dairy products per year between 2020 and 2024, including milk powder, cheese, and butter. Imports peaked at 452,812 tons in 2022.

Over the same period, Algeria’s annual dairy import bill averaged about $1.61 billion, with a high of $2 billion recorded in 2022. In this context, talks with EkoNiva, if they lead to a concrete agreement or investment project, could help strengthen local industry capacity, increase domestic production, and gradually replace imports.

The Russian group’s interest also reflects Algeria’s growing appeal to major international players in the sector, as the country seeks to build a more integrated and competitive local dairy industry. Algeria already hosts one of Africa’s most ambitious dairy projects, led by Qatari group Baladna, which aims to eventually produce 200,000 tons of milk powder per year through a large-scale agro-industrial complex.

With a total estimated cost of $3.5 billion, construction of the plant is scheduled to begin this year, with initial milk powder production expected by the end of 2027. The Baladna project in Algeria is widely seen as the future largest integrated dairy facility in the world.

Stéphanas Assocle