Algeria, traditionally a major importer of French soft wheat, has significantly reduced its purchases from France, turning instead to Russian suppliers. This shift is influenced by diplomatic strains between Algeria and France, as well as competitive pricing and quality offered by Russian wheat exporters.
Historically, Algeria imported up to 5 million metric tons of French soft wheat annually, accounting for about half of France’s wheat exports outside the European Union. However, recent data indicates a sharp decline in these figures. In the 2024/25 season, France’s wheat exports outside the EU are projected to be just 3.5 million metric tons, the smallest volume this century. This downturn is partly due to Algeria’s reduced imports, with only one shipment sent to Algeria between July and December 2024.
Several factors have contributed to this realignment. Diplomatic tensions escalated after France supported Morocco’s sovereignty over the disputed Western Sahara region, a stance opposed by Algeria. In response, Algeria’s state grains agency, OAIC, excluded French companies from its wheat import tenders and instructed other participants not to offer French-origin wheat.
Concurrently, Russia has bolstered its wheat exports to Algeria. In 2023, Algeria imported approximately 2.6 million metric tons of Russian wheat, a 90% increase from the previous year. By mid-October 2024, Russia had supplied an additional 2 million metric tons of grain to Algeria, with wheat comprising 1.8 million metric tons of this total.
The competitiveness of Russian wheat is attributed to its higher protein content, enhancing baking quality, and more attractive pricing compared to French wheat. Additionally, unfavorable weather conditions in France have led to a poor harvest, further diminishing its export capacity.
For France, losing a significant market like Algeria poses challenges to its agricultural sector, necessitating the search for alternative buyers. Efforts are underway to diversify export destinations, including markets in Saudi Arabia and the Middle East. However, French exporters face stiff competition from other global suppliers, particularly Russia, which continues to offer competitive pricing and quality.
Algeria’s pivot from French to Russian wheat imports underscores the profound impact that diplomatic relations and market competitiveness have on international agricultural trade. This development highlights the necessity for exporters to adapt to geopolitical shifts and evolving market dynamics to maintain their global standing.
Error