Algeria signs deal for world’s largest milk powder plant
Qatari firm Baladna taps GEA to help boost food security
29 July 2025
2 minute read
By: A contract has been signed to build the world’s largest integrated dairy farm and milk powder facility in Algeria, as the country moves to reduce its dependence on imports and improve food security, according to a press release from GEA.
The deal, formalized at a July 28 signing ceremony in Algiers, brings together Qatari dairy producer Baladna, the Algerian government, and German engineering company GEA Group. The project will be located in Adrar province, about 90 kilometres from the provincial capital.
GEA, one of Europe’s leading suppliers of food processing technology, will deliver equipment and services for both the farming and processing components. The company said the contract — worth between 140 and 170 million euros — is among the largest in its history. Order intake is expected to be recorded in the second half of 2025.
Construction is scheduled to begin in early 2026, with production of milk powder set to start in late 2027. Once fully operational, the facility is expected to produce up to 100,000 tonnes of milk powder annually — enough to meet roughly half of Algeria’s domestic demand.
Algeria is currently the world’s third-largest importer of milk powder. The new facility, operated under a joint venture called Baladna Algeria S.P.A., aims to improve national self-sufficiency and create about 5,000 local jobs.
GEA will supply and install the complete value chain, including dairy farm systems, milking parlours, milk fat and powder processing equipment, spray drying technology, membrane filtration, packaging and automation systems.
GEA CEO Stefan Klebert and Baladna Chairman Mohamed Moutaz Al-Khayyat signed the agreement at the event, which was attended by dignitaries including Qatar’s ambassador to Algeria and Algeria’s minister of agriculture.
No marketing language or promotional statements were included in the signed agreement.
