Algeria Issues Tender for Milling Wheat Amid Shifting Trade Dynamics
Algeria Issues Tender for Milling Wheat Amid Shifting Trade Dynamics

Algeria Issues Tender for Milling Wheat Amid Shifting Trade Dynamics

  • 24-Dec-2024 10:00 PM
  • Journalist: Xiang Hong

Algeria’s state grains agency, the Office of Algerian Cereals Import (OAIC), has issued an international tender for the purchase of milling wheat, with the deadline for price offers set for Tuesday, December 24. The offers will need to remain valid until Wednesday, December 25, according to European traders. The tender seeks a nominal 50,000 metric tons of wheat and could see Algeria purchasing significantly more than this volume, which is common with OAIC tenders.

The wheat is to be sourced from optional origins, meaning suppliers from various global regions, including Europe, are invited to participate. The desired shipment periods for the wheat are set between February 1-15, February 16-28, March 1-15, and March 16-31, 2025. However, if the wheat is sourced from South America or Australia, the shipment dates would be moved up by a month, as the journey from these regions takes longer.

This move by OAIC highlights Algeria’s ongoing demand for milling wheat, which is a key staple in the country’s bread and food production sectors. The international tender is part of Algeria’s regular wheat procurement strategy, aimed at securing its domestic wheat supply needs. While the nominal volume for this particular tender is 50,000 tons, traders note that Algeria often purchases larger quantities, reflecting the country’s growing appetite for wheat imports.

In its most recent full-scale milling wheat tender held in late October, OAIC was estimated by traders to have secured around 600,000 tons of wheat, intended for shipment in December. The volume purchased in this tender underscores Algeria’s increasing reliance on wheat imports to meet domestic demand.

Historically, Algeria has sourced most of its wheat imports from France, which has been a key supplier to the North African nation for many years. However, the landscape of Algeria’s wheat procurement has been shifting in recent months, with Russian and other Black Sea region exporters gaining significant ground in the Algerian market. This shift is particularly evident in OAIC’s tenders since early October, which have seen French wheat sidelined amid diplomatic tensions between Algeria and France. These tensions have likely impacted trade dynamics, with Algeria diversifying its wheat suppliers to reduce its dependency on French grain.

While OAIC has stated that it treats all suppliers equally and does not release specific details about its tender processes, the growing role of Russia and Black Sea exporters in Algeria’s wheat market is apparent. The changing trade patterns reflect broader geopolitical shifts and a changing global wheat market landscape.

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