Algeria is grappling with a major agricultural paradox: massive surpluses of certain produce like eggs, garlic, watermelons, onions, citrus fruits, and potatoes are piling up due to a lack of processing infrastructure, while key strategic crops such as cereals, oilseeds, and grain maize remain in deficit. Farmers and industry stakeholders are urging the government to increase export capacities to alleviate the growing strain.
Painful Waste Amid Gluts
A particularly striking case of overproduction came to light in mid-June in Biskra, where cucumber growers shared their frustrations on social media. One viral video showed a farmer dumping freshly harvested cucumbers on the ground, unable to sell them at prices that would even cover his cultivation costs.
Despite this flood of produce, Algeria continues to import strategic staples. This could soon change, however, as the government forecasts a bumper crop of durum wheat this year—enough to potentially meet domestic demand by 2026.
High-Profit Crops and Incentives Driving Oversupply
Most of the oversupply affects so-called cash crops—high-profit produce such as watermelons and silage maize, which are more lucrative than grain maize sold at state-fixed prices. Poultry farming is also booming, especially among smallholders who often start operations with minimal investment, sometimes converting garages or greenhouses into poultry coops.
This agricultural boom is partly fueled by favorable policies. The Land Ownership Law (APFA) has opened up free access to agricultural land and water, sparking a rush among aspiring farmers and investors. The National Agricultural Development Plan (PNDA) and fertilizer subsidies, which recently increased from 20% to 50%, have further boosted production.
In El Oued, for example, onion overproduction has become chronic. Farmers there have repeatedly voiced concern, with some unable to sell their crops for more than 5 dinars per kilo—far below production costs. Calls have been made for better storage facilities and the opening of export routes to neighboring Libya and Tunisia.
Private-sector players have also contributed to the surge. Companies like ACI in Blida are revitalizing citrus orchards in Mitidja, while Vitroplant is introducing high-yield fruit tree varieties, including peaches and pistachios, that may soon add to future surpluses.
Solutions: Storage, Export, and Processing
To manage these surpluses, authorities are leaning on three main solutions: cold storage, exports, and processing.
The spread of cold storage facilities in recent years has enabled the preservation of potatoes, onions, and garlic. Export support covers up to 50% of costs. According to El Watan, the Mascara region exported over 4,500 quintals of onions to Mauritania, Libya, Tunisia, and Portugal earlier this year. It also began shipping 110,000 quintals of garlic to the UK.
Tomato processing has also seen notable progress. In September 2024, Mostefa Mazouzi, head of the tomato industry board, reported production of up to 160,000 tonnes of triple-concentrated tomato paste. However, around 60,000 tonnes of raw tomatoes are in surplus, and due to subsidy policies, they cannot be exported.
Mazouzi noted a significant shortfall in processing capacity, with 30 factories—75% of which are located in the eastern part of the country—insufficient to meet national needs. In response, the food company La Belle, based in Sidi Khettab (Relizane), is expanding its facilities. The project includes three new tomato-processing lines, a harissa and jam production plant, cold storage units, and a logistics platform. It has drawn the attention of Algeria’s Investment Promotion Agency.
Market Regulation and Structural Reform
Despite these efforts, overproduction remains a costly issue. In November 2024, Professor Ali Daoudi of the National Higher School of Agronomy in El Harrach stressed the need for market regulation. With 1.2 million producers and a vast number of intermediaries, the sector lacks the coordination necessary to align supply with demand.
According to Daoudi, these intermediaries effectively act as market regulators under state-defined negotiation rules. He advocates for greater transparency in wholesale market pricing and broader data accessibility, arguing that digital tools are essential for producers to anticipate trends and adjust accordingly.
This aligns with President Abdelmadjid Tebboune’s frequent calls for the digital transformation of the agricultural sector—an initiative that may prove crucial to resolving Algeria’s structural imbalance between production and demand.
