AGRICULTURE
Although Algeria is the second-largest country in Africa, the arable land of about 8.2 million hectares accounts for only 3.4 percent of the total land area. The vast Sahara desert, which spans much of the south central part of the country, is not available for agriculture.
Between 1961 and 1987, all arable land was controlled by the state, which divided the land into state farms, known as domaines agricoles socialistes . State farms were dismantled in 1987 and the land was divided into smaller collective and individual farms. Despite these measures, about one-third of cultivable land in Algeria is still owned by the government, which leases the land to private investors and farmers. The remaining two-thirds of arable land (about 5 million hectares) is privately owned.
Algeria's main crops are cereals (mainly wheat and barley), citrus fruit, vegetables, and grapes. Fresh dates exports have risen sharply in the past decade and have become the second-largest export after hydrocarbons.
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Land sq. km (per capita) Tractors (per capita) Value added current US$ (per capita) Arable and permanent cropland Arable land Permanent cropland Permanent crops Fertilizer consumption Fertilizer use : 11.3 kg
Food production index : 116.8 % |
Some 72,000 hectares are cultivated with palm trees, mainly in the Saharan oases. Algerian dates are mainly exported to France, Russia, Senegal, and Belgium. Algeria was once a major exporter of wine and associated products.
Despite government efforts to revive the sector, production has fallen significantly since 1962, reaching 248,000 hectoliters (6,552,160 U.S. gallons) in 1996, down from 410,000 hectoliters (10,832,200 U.S. gallons) in 1992. Algeria is also a producer of olive oil, and production has generally averaged around 150,000 hecto-liters (3,963,000 U.S. gallons) annually.
The bulk of Algeria's crops are cultivated in the fertile but narrow plains around Bejaïa and Annaba in the east, in the Mitidja Plain south of Algiers, and beyond Oran from Sidi Bel Abbes to 
Tlemcen. The agricultural sector's dependence on rainwater for irrigation has often affected its production levels, especially during droughts. The cereal harvest, for example, was badly affected by drought conditions that plagued North Africa in 2000, producing only half of its annual yield. Hence, despite government efforts to extend funding and technical assistance to farmers and increase the productivity of the agricultural sector, Algeria imports the bulk of the food it consumes, especially cereals (mainly wheat).
Over the past three decades, agricultural output has fallen by around 30%, according to figures from the Ministry of Agriculture and Rural Development. This is despite high levels of investment and price support from the state and improvements in technology and agri-sciences. According to some estimates, up to 70% of the daily calorie intake of Algerians is met by imported foods, a level the government is keen to push down.
• Algeria‘s new agricultural development strategy places special emphasis on improving food productions and quality in order to reduce the import bill.
• Arable land represents about 8 million hectares, of which 51% is dedicated to field crops, mostly cereals and pulses, 6% to arboriculture, and 3% to industrial crops. Only 7% of this arable land is irrigated, and Algeria‘s agriculture remains rainfall dependent, thus leaving the country still reliant on imports to fulfill demand for some food needs.
• About 70% of agricultural farms are of small sizes, i.e., less than 10 hectares, and 80% of 
these farms are individual farms.
• Algeria‘s main agricultural export products are dates, grapes and wine, olives and olive oil, and vegetables.
• The European Union is Algeria‘s major agricultural trading partner, with 39% of agricultural and food imports coming from EU countries. As a result of its geographic proximity to Europe and the lack of direct shipping lines between the Indian and North Africa, Indian exporters face stiff competition from EU suppliers. The transshipment of Indian exports through Europe significantly increases shipping costs to Algeria from India.
• Algeria, nevertheless, can become a market with good potential for Indian suppliers. Last year, for the first time, Algeria has bought for $36 million of Indian meat.
• However, Algerian customs consider that about $120 million of Indian processed food enter Algerian market after being repackaged in the Middle-East.
• The Parliament is expected to pass in 2011 a Law allowing Foreign entities to buy or to rent farm lands in Algeria.
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