Market Profile - Algeria

Supply/Demand Basics

  • Steady growth of corn imports, 4.1 MMT in 2016.
  • Barley imports fluctuate depending on local production, 751 TMT in 2016.
  • No imports of corn co-products.
  • Corn quality a concern but also very sensitive to price.

Country Overview

  • Population: 40.4 million
  • Population growth rate: 2.27%
  • Urban %: 70.13%
  • Urban growth rate: 2.77%
  • GDP: $551.8 billion
  • GDP growth: 4.11%
  • GDP per capita: $14,259
  • State-dominated economy with restrictions on imports and foreign investment.
  • Oil and gas account for 60% of the budget revenue, 40% of GDP and 97% of export earnings.
  • Fragile political and security situations.

Trade and Market Share Issues

  • Argentina and Brazil combined corn market share is 80%. The U.S. comes as a remote third with only 17% market share (690 TMT of U.S. corn imports).
  • The EU and the Black Sea are the main barley suppliers.
  • Majority of imported corn is used for feed mixing on farm.
  • More commercial feed millers are emerging, and they are less willing to pay premium for Argentine red corn.

Policy Issues

  • Imported corn is subject to 5% import duty and 9% VAT.
  • 30% import duty and 9% VAT on corn co-products effective January 1, 2016.
  • Collapsing oil prices lead to reinstating import duties (VAT rate increase from 7% to 9%).