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.
