Russia’s largest milk producer, EkoNiva Group, is exploring potential investment opportunities in Algeria’s dairy sector as the North African country seeks to reduce its heavy reliance on dairy imports and expand domestic production, according to local media reports and industry sources.
A delegation from EkoNiva, led by its chief executive officer Stefan Dürr, held talks last week in Algiers with senior management of state-owned dairy group Giplait, a major player in milk collection, processing and distribution across Algeria. The discussions focused on possible partnerships to develop pilot dairy farms dedicated to raw milk production, the reports said.
The talks remain at an exploratory stage, with no details disclosed on potential production capacity, investment size or timelines. However, officials involved in the discussions said the aim would be to establish modern dairy farming operations that combine EkoNiva’s experience in large-scale milk production with Giplait’s existing industrial facilities and nationwide logistics network.
Founded in 1994, EkoNiva has grown into Russia’s leading dairy producer, operating a vertically integrated model that spans cattle breeding, feed production and milk processing. The group manages more than 630,000 hectares of farmland and produces over 1.35 million tonnes of raw milk annually, making it one of Europe’s largest milk producers.
For Algeria, any potential partnership with EkoNiva would come as part of a broader strategy to strengthen local dairy production and curb imports, which weigh heavily on the country’s trade balance and public finances. Algeria is Africa’s largest importer of dairy products, driven by strong domestic demand and limited local supply.
More Read
Data from the Food and Agriculture Organization of the United Nations (FAO) show that Algeria imported an average of about 431,000 tonnes of dairy products per year between 2020 and 2024, including milk powder, cheese and butter. Imports peaked at nearly 453,000 tonnes in 2022, reflecting high global prices and strong domestic consumption.
Over the same period, Algeria’s annual dairy import bill averaged around $1.61 billion, with costs reaching about $2 billion in 2022, according to FAO data. The government has repeatedly cited dairy imports as a priority area for import substitution, alongside cereals and vegetable oils.
Officials say that developing large-scale, technically advanced dairy farms could help increase local raw milk production, reduce dependence on imported milk powder and stabilise supply for processors. Giplait, which plays a central role in collecting and processing locally produced milk, is seen as a key partner in any effort to scale up domestic production.
More Read
EkoNiva’s interest also underscores Algeria’s growing attractiveness to foreign agribusiness investors, as authorities promote large agricultural projects and offer incentives to boost food security. The country has been encouraging foreign partnerships to introduce advanced farming techniques, improve productivity and build integrated agro-industrial value chains.
Algeria is already home to one of Africa’s most ambitious dairy investments, led by Qatari dairy group Baladna. The project aims to establish a large-scale agro-industrial complex capable of producing up to 200,000 tonnes of milk powder per year, significantly reducing Algeria’s reliance on imports.
With a total estimated cost of about $3.5 billion, the Baladna project is expected to begin construction this year, with initial milk powder production targeted for the end of 2027. The complex is designed to integrate feed production, cattle farming and milk processing on a single site and is widely seen as a cornerstone of Algeria’s dairy development strategy.
Industry analysts say that if talks with EkoNiva progress to a concrete investment, the project could complement existing initiatives by focusing on raw milk production rather than powder processing alone. That could help strengthen upstream supply and support a more resilient domestic dairy value chain.
For now, discussions between EkoNiva and Giplait remain preliminary. But the talks highlight Algeria’s determination to attract major international players as it works to transform its dairy sector and reduce exposure to volatile global food markets.
