Baladna, a leading dairy and beverage producer in Qatar, has recently made waves by signing a groundbreaking framework agreement with the Algerian Ministry of Agriculture and Rural Development. This partnership, which will be majority-owned by Baladna with a 49% stake held by the Algerian State through the National Investment Fund, aims to invest approximately US$3.5 billion in a mega project spanning 117,000 hectares. The project will be divided into three hubs, each focusing on arable farming, dairy and beef farming, and powdered milk manufacturing.
Powdered milk is a staple in many households globally, including Algeria, where there is a significant national demand for this product. The primary goal of the Baladna-Algeria initiative is to address 50% of Algeria’s powdered milk requirements while also supplementing the local market with red meat. Furthermore, the project aims to create 5,000 direct local jobs, boost the growth of the national cattle stock, and enhance food security in the region.
## Meeting Demand and Enhancing Efficiency
The overarching objective of this partnership is not only to meet the high demand for powdered milk but also to leverage modern technology and best management practices to enhance dairy farming efficiency. By implementing these cutting-edge practices, the project aims to reduce production costs through economies of scale and gain better control over the entire value chain. This streamlined approach will not only benefit the local market but also position Algeria as a key player in the global dairy industry.
In line with the Algerian state’s strategy to bolster food security, this initiative by Baladna underscores the importance of self-sufficiency and sustainable agricultural practices. By localising production and implementing state-of-the-art technology, the project seeks to address critical global challenges, such as food security, which require collaborative efforts from both local and international stakeholders.
## Driving Agricultural Growth and Self-Sufficiency
Mohamad Moutaz Al-Khayyat, the chairman of Baladna, expressed enthusiasm about the partnership with the Algerian Ministry of Agriculture and Rural Development. He emphasised that the strategic project signifies a significant step forward for Algeria’s agricultural sector, paving the way for enhanced self-sufficiency and food security. Al-Khayyat underscored the critical need for concerted efforts from countries and international entities to address global challenges related to food security effectively.
Baladna’s track record of rapid and substantial achievements in Qatar serves as a testament to the company’s proficiency in implementing innovative agricultural practices. By harnessing international technologies and industry expertise, Baladna managed to achieve self-sufficiency in Qatar within a remarkably short span of 12 months. The company aims to replicate this success in Algeria, fostering sustainable practices on a global scale and contributing to the growth and development of the local agricultural sector.
## Baladna: A Leader in Dairy Production
Established in 2014, Baladna has emerged as Qatar’s largest dairy and beverage producer, supplying over 95% of the country’s fresh milk. With a sprawling plot spanning 2.4 million sqm and a capacity to house 24,000 Holstein cows, Baladna stands out for its robust infrastructure and cutting-edge production facilities. The company’s diverse product portfolio includes fresh milk, evaporated milk, sterilised cream, yogurt, laban, long-life milk, cheese, labneh, fresh cream, desserts, and non-dairy products.
As a publicly listed company, Baladna has demonstrated consistent growth and financial stability. In the previous year, the company reported a turnover of US$285.5 million, marking a 7.2% increase from the previous year. The net profit surged by 36% to €29.7 million, reflecting a margin exceeding 10%. Baladna’s commitment to innovation is evident through the introduction of new products to the market and strategic partnerships with international brands.
## Fostering Innovation and Sustainability
In its pursuit of excellence, Baladna continues to explore opportunities to enhance its product mix and introduce innovative offerings to the market. By focusing on strategic product development and optimising its portfolio, the company remains at the forefront of the dairy industry. Notably, Baladna has ventured into domestic production of international brands, further expanding its market presence and catering to evolving consumer preferences.
The collaboration between Baladna and the Algerian Ministry of Agriculture and Rural Development represents a significant milestone in the journey towards enhancing food security, driving agricultural growth, and fostering sustainable practices. Through this strategic partnership, both entities aim to revolutionise the dairy and agricultural landscape in Algeria, setting new benchmarks for efficiency, innovation, and self-sufficiency.
As we witness the evolution of the global dairy industry, initiatives like the Baladna-Algeria project underscore the importance of strategic partnerships, technological innovation, and sustainable practices in addressing critical challenges such as food security. By harnessing the collective expertise and resources of local and international stakeholders, we can pave the way for a more sustainable, secure, and thriving future for the dairy industry in Australia and beyond.
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