Algeria: Potato overproduction, the ministry comes to the rescue of farmers

Faced with an exceptional potato overproduction, the Ministry of Agriculture intervened to store a large quantity in order to prevent a collapse in prices, which were already at rock bottom on wholesale markets. This emergency measure aims to protect farmers’ incomes while awaiting the launch of processing facilities designed to sustainably regulate the sector. A portion of the surplus will also be exported.

Creation of 3 potato processing units

Furthermore, the CEO of the state-owned Agrolog group , Mohamed Betraoui, announced the upcoming creation of three processing units located in the East, West, and Center of the country, as part of a strategy to stabilize prices. " We have a stock of approximately 100,000 tons, in addition to 20,000 tons distributed across four provinces. This year, potatoes were purchased at 60 DA per kilo, but we are now selling them off at 15 or 20 DA ," he explained.

According to him, national production exceeds 6 million tons per year, while consumption is estimated at 5 million. " The surplus must be directed towards processing and export. We have signed a contract to store 120,000 tons of late-season potatoes to guarantee business continuity and avoid losses ," he adds, assuring that " we are not abandoning the producers ."

The president of the National Interprofessional Council for the Potato Sector (CNIFPT), Ahcène Ghedmani, welcomes the ministry’s action. " The ministry intervened in Laghouat with a purchase price of around 60 dinars, corresponding to the actual cost of production. Market prices, however, have collapsed," he states. He nevertheless warns of the risks ahead.

“ We are entering a new production cycle. At the end of November, the harvests in El Oued and the coastal areas will drive prices down even further, with losses estimated at over 50%. Under these conditions, producers cannot continue their operations next season. State intervention is necessary ,” he warned. “ When a producer sells at 15 or 20 dinars per kilogram, they are not covering their costs. Some are considering abandoning farming altogether. The ministry’s intervention has allowed some to sell their produce at 60 dinars and limit their losses ,” he added.

Next meeting between the minister and the producers

Ghedmani points out that producers have already submitted several proposals to the relevant authorities for better organization of the sector. " Our main demand is the implementation of stable agricultural contracts to protect producers. In the future, the government could even regulate distribution ," he notes. He advocates for processing. " We need to create industrial zones and processing units to add value to production ," he recommends.

The official announced a meeting this week with the minister to discuss the situation related to the price collapse and the future prospects of the sector. " The price drop is a reality. We will submit our proposals to the minister to prevent the cultivated area from decreasing next season ," he emphasized. He concluded: " Production is abundant, but farmers aren’t earning anything. If the situation continues, there is a risk of seeing production decline ."