Contracts signed to build the world’s biggest integrated dairy in Algeria

Plans have been drawn up to build the world’s biggest integrated dairy farm and milk powder production facility in Algeria, in an investment worth US$3.5 billion.
Home to 44 million people, Algeria is the world’s third largest importer of milk powder, therefore the country’s government is keen to become more self-sustainable in dairy production.
With that in mind the Algerian government, via its National Investment Fund, has entered a partnership with Baladna, a major dairy producer in Qatar, to set up the newly formed company subsidiary Baladna Algeria S.P.A.
The project will consist of a number of farms with a total herd size of 272,000 cows across 117,000 hectares of land in Algeria.
German dairy and food equipment specialist, GEA, has been tasked with building the new farms and production facility. This is one of the biggest orders GEA has taken on and is said to be worth between 140 and 170 million euros, with respective order intake to be booked in second half of 2025.
When in action, the new plant will produce around 50% of Algeria’s national milk powder needs, representing a significant step towards self-sufficiency.
The partnership’s purpose is to finance and manage the construction of a state-of-the-art integrated dairy farming and milk powder production facility in Algeria’s Adrar province. Additionally, the
project will create approximately 5,000 job opportunities for local skilled labor.
Construction will commence at the beginning of 2026, with the first milk powder coming off the production line by the end of 2027.
When at full capacity, the new plant will be able to produce approximately 100,000 tons of milk powder per year.

GEA’s PART IN THE PROJECT

GEA will cover the entire value chain of milk powder production when constructing the facility, right from dairy farming to processing and packaging of the final product.
Stefan Klebert, CEO GEA, said, “We are proud that Baladna and the Algerian government are entrusting GEA to play a key part in this lighthouse project.

“Not only are we building the world’s largest facility of its kind, we are also helping to strengthen regional food security and economic development. This project showcases the attractiveness of our technologies and products, underpinned by our extensive capabilities for large-scale process and plant engineering,” he said.
The company will provide equipment to run the facility’s large milking parlors as well as its milk powder and anhydrous milk fat installations.
These include system solutions, such as separators, membrane filtration, heat treatment, as well as evaporation and spray drying plants. Automated packaging and service components are part of the scope, too.
Mohamed Moutaz Al-Khayyat, chairman of Baladna, said, “This engagement with GEA marks a milestone in the acceleration of the project.
“We are proud to attract the most prominent national and international expertise and renowned companies from all over the world to contribute to the completion of the project, following the
highest international standards,” he said.