Reuters quoted trade sources as saying that Algeria excluded French companies from a wheat import tender this week and stipulated that participating companies not offer wheat of French origin, in clear repercussions of renewed diplomatic tension between the two countries.
This step is considered a new reflection of a dispute that occurred 3 years ago, which led to France being excluded from Algerian wheat tenders for months. This step may reinforce the dominance of Black Sea supplies, led by Russian wheat, over the country’s huge import market.
Algeria is one of the largest importers of wheat in the world, and France was for many years its largest supplier by a wide margin.
France’s decision last July to support Morocco’s plan for autonomy for Western Sahara angered Algeria, which supports the Polisario Front’s efforts to establish an independent state there.
Algeria held one of its regular tenders yesterday, Tuesday, and dealers estimated that the Professional Grain Office, the official grain buyer in Algeria, purchased more than 500,000 tons of wheat.
The origin is usually optional in the tenders of the Professional Grains Bureau, as dealers can choose from a group of approved sources, including French wheat.
But 6 informed sources said that French companies did not receive an invitation to participate in that tender, while non-French companies were asked not to propose French wheat among the supply options.
The sources explained that the Professional Office for Grains did not provide reasons for the move, adding that the decision is believed to be linked to tense diplomatic relations, for reasons including the Western Sahara issue.
Neither the Professional Office of Grains nor the Ministries of Foreign Trade and Agriculture in France have responded to requests for comment yet.
French wheat was not a candidate to win any tenders this week due to the weak crop and the significantly high prices, compared to Russia, which is currently the main supplier to Algeria.
However, the step taken by the Professional Grains Office prevented French companies from supplying wheat from other sources, and also raised a state of uncertainty about how long this exclusion would last.
The disputes between Algeria and France three years ago contributed to opening the country’s wheat market to Russia, the world’s largest grain exporter.
Repeated heavy rains this year led to a decline in France’s wheat crop to its lowest level since the 1980s.
It is expected that the decline in yields and the varying quality of milling operations will reduce exports of the largest wheat producing country in the European Union.
Algerian efforts
It is now within reach for Algeria to achieve complete self-sufficiency in durum wheat production, after producing 80% of its annual need during this season.
To achieve this strategic goal, Algeria seeks to expand the cultivated area in the Great South to 500,000 hectares, and includes mainly Qatari investment in an area of 117,000 hectares in southern Algeria, and Italian investment in 36,000 hectares, in addition to national investments in 120,000 hectares.
Data indicate that Algeria imported a value of $2.7 billion during 2022, while producing 3 million tons of this main commodity.
