Trade in agricultural products between Russia and Algeria grew by 2.3 times in 2023. 96% of the trade turnover of the agro-industrial complex between these countries is Russian exports.
Currently, the annual trade turnover in the field of agricultural products between the Russian Federation and Algeria is about 350 million dollars.
Experts see great growth potential: up to $650 million in the next few years.
What does Algeria buy?
First of all, he buys wheat and vegetable oil from Russia.
In total, these 2 positions account for 95% of Algerian agricultural imports from the Russian Federation. At the same time, Russia accounts for 20% of Algerian oil imports.
As for wheat, its supplies were very sharply increased in 2021: the volumes reached 300,000 tons, or about $100 million.
Previously, these deliveries were almost zero. At this pace, it is possible that in the near future Russia will take 10-15% of the Algerian wheat market, experts say.
What is Algeria selling?
Agriculture in Algeria is difficult due to the arid climate, so this country mainly lives off hydrocarbons: oil and gas account for 19% of GDP, 93% of exports, and provide 38% of budget revenues.
Nevertheless, the country is striving to modernize its own agro-industrial complex, and this is happening.
For example, it grows vegetables, fruits and berries, and in these areas there is an increase in production volumes from year to year — by about 3.4% per year.
In total, Algeria produces about 11 million tons of vegetables per season, as well as up to 8 million tons of fruits and berries.
The agro-industrial complex currently provides about 12.3% of the country’s GDP, which is comparable to the oil and gas sector.
However, agricultural products do not occupy such a significant place in the structure of exports, because the bulk of the crop still goes to domestic consumption.
Russia is currently actively purchasing nuts, fruits and berries from Algeria, with an increase in supplies in 2021 amounting to approximately 70% compared to the previous year.
Will Russia become the leading supplier of agricultural products to Algeria?
In this market, the Russian Federation has strong competitors, mainly Algeria buys agricultural products from other countries.
For example, in 2021, Brazil, Argentina, France and Germany accounted for the largest volumes.
In addition to wheat, Algeria is actively purchasing milk powder, soybean oil, corn and sugar.
At the same time, this country is trying to diversify the structure of supplies in the agro-industrial complex as much as possible.
Therefore, the share of Russia may well increase there in order to further balance this structure. But, based on the same diversification strategy, it is hardly possible to “capture” a significant part of the Algerian agricultural import market.
