Algeria Floats Tender For Dairy Purchase

ALGERIA - The Algerian government has floated an international tender for the purchase of dairy raw materials.
calendar icon 29 December 2010
clock icon 2 minute read

According to the National Department of Milk and Dairy Products, the country intends to purchase skim milk powder, whole milk powder and butter oil. Companies interested in supplying these products should submit their bids by January 10th, 2011, in Algiers.

The tender document may be purchased at the Department for 10,000 Algerian dinars. Enterprises should submit two bids, one technical and the other financial (read the Algerian government's announcement, in French, below).

Algeria is a large importer of milk, because it only produces 50% of its needs. The country was once the leading target market for Brazilian dairy exporters. Now, however, Brazilian sales are low due to strong domestic demand, which leads to high prices, which detract from the competitiveness of the national product against foreign competitors.

Algeria is the fourth leading target market for Brazil among Arab countries. Exports to the country reached US$ 807 million from January to November, a figure 26.7 per cent higher than in the same period of last year. Sugar is, by far, the most exported item. Presently, milk only ranks ninth on the export list.

On the other hand, Algeria is the leading supplier to Brazil in the Arab world. Brazilian imports of Algerian products have reached US$ 2.2 billion from January to November, representing growth of over 70 per cent using the same basis of comparison. Brazil traditionally runs a trade deficit with the North African country, due to oil and derivatives purchases.

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