Miller Magazine Issue: 155 November 2022

98 MILLER / NOVEMBER 2022 COUNTRY PROFILE especially regarding renewable energies. Additionally, to in- crease agriculture development, the government plans to in- tensify agricultural production, revitalize natural resources, and improve water resources use. The new development policy prioritizes investment in agricultural products ensuring food se- curity in Algeria. The government encourages large-scale agri- cultural investments in the Highlands and the “Sahara” (South of Algeria). In addition, the development strategy promotes foreign direct investments and partnerships, particularly in the field of cereals, oilseeds, and sugar production. The develop- ment strategy also encourages crushing and refinery projects that support processing to stimulate the processing industry. Such projects include supporting increased storage capacity, increased cold chain infrastructures, and packaging projects. The government divested itself from agricultural production and processing allowing the private sector to take the lead. The private sector is comprised of wheat and feed millers, dairy processors, vegetable oil refiners, sugar refiners, beverage producers as well as canners, and a pastry industry. Although the local food manufacturing industry is improving, the sector is fundamentally dependent on imports of ingredients and raw materials. In addition, population increase, growing demand for convenient processed foods, as well as improved production capacities favor the expansion of the food processing industry. A MAJOR CONSUMER OF WHEAT Algeria has one of North Africa’s highest per-capita expen- ditures on food thanks to relatively high disposable incomes and consumers’ strong preference for convenient, quality, and premium food and beverages. Algerian households devote 42 percent of their annual expenditure to food needs. Consumer tastes and preferences are changing, especially in the cities where young homemakers tend to be more active, and the number of working women has increased. As a result, consum- ers are turning to ready-to-eat or semi-processed products. WHEAT PRODUCTION OUTLOOK Algeria is a major consumer of cereals and considers wheat as the major staple food. Wheat is used mainly for bread and couscous. Algerian wheat consumption has risen slightly in the past years as a result of increased urbanization, population growth, and increased milling capacity. The North African coun- try is one of the world’s largest importers of wheat. Although