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Update: Saturday, 15 May 2010    

Milk producers Federation : Private dairies may be closed

Monday Mar 05 2007.

Abdelwahab Ziani, head of Milk Producers Federation disclosed milk powder’ prices are still growing in the international market reaching an average of 2800 euro for one ton.

Mechanisms set by government are positive but allocations are needed to save milk producing companies that are undergoing heavy costs and milk powder shortage, he adds.

We see the mechanisms as a constructive step but we need practical measures, Mr Ziani tells El-Khabar, adding “it is essential to back milk production units who are likely to be closed in 10 days if we still running out of milk powder, which knows a shortage and becomes increasingly expensive”. This situation makes it difficult for the producing companies to meet the demand due to heavy costs especially for private sector, representing 65% of the market shares, Mr Ziani says, adding that prices should be reviewed.

Experts say Algeria is suffering from deficit as to meet market’s needs assessed at over three billion litres, of which 2 billion litres are produced by Algeria which imports more than 650 million dollars. In spite of a plan to import milky cows, Algerian local production failed to cover the need.

For its part, government has decided to halt privatization of dairies in an attempt to protect consumers from any decision private producers might take. The latter are claiming to get government’s support to milk prices increased. Official sources said the cabinet decided to grant allocations to stock breeders and reduce taxes.

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