Supply/Demand Basics

  • Significant growth of corn imports, 4.5 MMT in 2019 where Soybean meals is 1.5 MMT.
  • Barley imports fluctuate depending on local production with 650 TMT imported in 2018 and 300 TMT of barley were imported in 2019 due to good local harvest.
  • No imports of corn co-products.
  • Corn quality a concern but buyers are also very price sensitive.

Country Overview

  • Population / growth: 41.6 million / 1.6%
  • Urban % / growth:  73.2% / 2.46%
  • GDP / growth (PPP): $167.6 billion / 1.4%
  • GDP per capita (PPP): $15,200
  • State-dominated economy with restrictions on imports and foreign investment.
  • The oil and gas sector is the country’s main source of revenues, generated about 70% of total budget receipts.
  • Fragile and political instability faced in Algeria made feed miller reticent and afraid being shut down and their activities frozen.

Trade and Market Share Overview

  • Argentina and Brazil combined corn market share is 95%. Algeria did not buy U.S. Corn in 2019.
  • The E.U. 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 corn.

Policy Overview

  • Imported corn is subject to 5% import duty and 0% VAT.
  • 30% import duty and 0% VAT on corn co-products effective January 1st, 2018, discouraging use of DDGS despite the successful trials conducted in the past years.
  • VAT on all ingredients is still exempted except for soybean meal that remains at 19 percent.