Baladna Entrusts Germany’s GEA with Core Contract for World’s Largest Integrated Dairy Project in Algeria

Baladna Entrusts Germany’s GEA with Core Contract for World’s Largest Integrated Dairy Project in Algeria

✍️ BY: Dr. Hana Saada

Algiers, Algeria |  In a landmark step for Algeria’s agricultural and food security ambitions, Baladna Algérie—a joint venture between Qatari agrifood giant Baladna and Algeria’s National Investment Fund (FNI)—has awarded the principal engineering contract for its mega dairy project in Adrar to the renowned German firm GEA Group AG. The contract, estimated between €140 million and €170 million, is part of the first phase of a $3.5 billion integrated dairy complex, which will become the largest of its kind in the world upon completion.

Signed in Algiers on July 28, this agreement is one of 14 contracts—collectively exceeding $500 million—covering advanced agricultural technologies, irrigation systems, structural frameworks, and consulting services for geotechnical, topographical, and environmental assessments. These contracts mark the operational launch of what is positioned to be a transformational agro-industrial endeavor for Algeria and the broader MENA region.

According to GEA’s official statement, the scope of its engagement spans design and construction of both the dairy farm and a state-of-the-art milk powder production facility. This includes automated milking systems, membrane filtration units, thermal processing equipment, evaporation and spray-drying towers, and automated packaging lines. A key feature is the construction of a 40-meter-high drying unit, orchestrated by GEA’s Liquid & Powder Technologies and Farm Technologies divisions, which will manage the project from animal husbandry to final packaging.

“This project ranks among GEA’s most significant single orders to date,” the company noted, emphasizing its legacy of executing large-scale dairy infrastructure in India, China, Qatar, and Ireland.

Situated 90 kilometers from Adrar’s urban center, the mega-farm spans 117,000 hectares and will eventually accommodate 270,000 dairy cows. Upon reaching full operational capacity—anticipated post-2027—the site is expected to produce approximately 100,000 metric tons of milk powder annually, meeting nearly 50% of Algeria’s domestic demand for this essential commodity. Construction is scheduled to begin in early 2026, with initial production targeted for late 2027.

In his remarks at the signing ceremony, GEA CEO Stefan Klebert affirmed:

“We are proud to be entrusted by Baladna and the Algerian government to lead this flagship venture. It reflects our deep commitment to advancing global food security and regional economic development.”

Baladna Chairman, Mohamed Moutaz Al-Khayyat, echoed the sentiment, stating:

“This agreement marks a strategic milestone in fast-tracking the project. We are mobilizing the most sophisticated expertise—both domestic and international—to ensure successful delivery.”

Notably, the project also draws on American agritech, with firms like Valmont Industries—a specialist in high-efficiency irrigation systems—signing on as key technology partners. Additionally, the farm will be stocked with American-bred high-yield dairy cows, reinforcing the multi-national character of the enterprise.

Beyond its industrial scale and technological complexity, the project carries deep strategic importance. It aims to reduce Algeria’s dependence on imported dairy products, enhance food sovereignty, and create approximately 5,000 direct jobs, primarily in the underdeveloped southern region of Adrar.

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