(Ecofin Agency) - We could call it the Algerian paradox. While the North African country is facing an annual shortage of 1.5 billion litres of milk, which is driving it to massively invest in powder milk imports, half of the dairy herd is destined for the slaughterhouse.

Walid Bouabdellah, vice-president of the National Organisation for Agricultural Development (ONDA), who shared these surprising statistics with APS, broke down for the media the dynamics which led to this strange situation.

To start with, he explains, the high costs of cattle feed, in addition to having two consecutive years of drought, compel small producers to favour meat over milk. "The losses were acutely felt by the small producers, mainly young investors from wilayas in the North with insufficient land to produce forage".

Moreover, the buying prices for milk which are around 40 dinars per litre do not take this into account. Indeed, the dairy farmers believe this price should get an upward adjustment to about 70 dinars to allow them make ends meet. Finally, the system itself is geared towards an international supply considering imported milk is subsidised by up to 37 dinars per litre against a premium of 12 dinars per litre for the Algerian farmer.

Insisting on the urgency to reverse this trend in a context where Algeria poured US$ 1.8 billion in its imports of milk powder last year, the leader declared: "It is a shame to see a cow from a world-renowned breed, imported at the cost of 300,000 dinars per head, slaughtered."