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Technical-Economic Study of the Agri-Food Investment Project “Big Milk Production Unit in Algeria- 4000 Dairy Cows”

Received: 19 September 2024     Accepted: 9 October 2024     Published: 6 November 2024
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Abstract

National milk production reached 3.52 billion liters in 2017, including more than 2.58 billion liters of cow's milk (73%), according to a report by the Ministry of Agriculture, Rural Development and Fisheries in Algeria. Due to the geographical location of the State of Biskra, its environmental diversity, its water resources, its flat lands and its human potential with its crops, the Zibans region has endowed its agricultural, pastoral and agri-food professions. According to statistics from the Directorate of Agricultural Services (DSA) of the Wilaya of Biskra (2019), milk production in the State of Biskra has seen a slight increase of 1% since 2016, reaching 44,783,000 liters, to reach 45,244,820 liters in 2019. Meeting the needs of milk consumers at the local, regional and national levels remains a challenge for the Ministry of Commerce and the Ministry of Agriculture. In this regard, the main objectives of the Bouchagroune Dairy are: participation in the development of the local social and economic sector (State of Biskra) by providing products that can contribute to meeting milk needs at the local level, creating jobs and increasing tax revenues to the public treasury. This technical-economic study has shown the feasibility of the project “Big Milk Production Unit in Algeria- 4000 Dairy Cows” that it will cover 100% of the local needs of the Biskra region, 50% of the regional needs and 20% of the national needs.

Published in International Journal of Agricultural Economics (Volume 9, Issue 6)
DOI 10.11648/j.ijae.20240906.11
Page(s) 287-294
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Algeria, Biskra, Agri Food, Milk Production, Technical Economic Study

1. Introduction
National milk production reached 3.52 billion liters in 2017, including more than 2.58 billion liters of cow's milk (73%), according to a press release from the Ministry of Agriculture, Rural Development and Fisheries .
"The cost of producing milk reached 179.71 billion dinars in 2017," the same source said.
In this regard, the ministry reported 971,633 head of dairy cows, 17,709,588 sheep, 2,949,646 dairy goats and 207,884 camels.
Regarding the ranking by wilaya, the wilaya of Sétif tops the list with a production of 287,325,000 liters in 2017 followed by Tizi Ouzou (178,785,000 liters) and Sidi Bel Abbes (167,178,000).
The geographical location of the wilaya of Biskra, its ecological diversity, its water resources, its flat lands and its human potential with their crops have given the Zibans region its agro-pastoral and agro-food vocation.
According to statistics from the DSA Biskra (2019), milk production in the wilaya of Biskra has seen a slight increase of 1%, since 2016 when it was 44,783,000 liters to reach 45,244,820 liters in 2019.
Goat and sheep milk production represent the majority of production, they reached 18,283,240 liters, 16,213,500 liters respectively in 2019, followed by bovine milk production with 8,471,580 liters and then camel milk production with 2 276,500 liters during the same year (2019).
To this end, the main objectives of dairy Bouchagroune are:
1. Participation in the development of the local socio-economic sector (wilaya of Biskra).
2. Participation in the availability of dairy products and its derivatives in the local and national market.
3. Creation of new permanent & fixed-term employment positions for young unemployed people (34 employment positions planned).
4. Contributions to increasing tax revenues for the public treasury.
2. Results and Discussion
2.1. Current Situation (Dairies in the Wilaya of Biskra)
a) Biskra Milk (SARL):
Address: The industrial zone.
Municipality / Wilaya of registration: Biskra / Biskra.
This unit is the first processing unit in the willaya of Biskra. It started its activity in 2004. Its current production capacity is 19,000 liters/day.
b) Amira Milk (EURL):
Address: Cite Rais Ahmed.
Municipality / Wilaya of registration: Ourelal / Biskra.
This processing unit started its activity in 2005, considered the most productive dairy in the Biskra region, it presents various dairy products, its current production capacity is 20,000 liters/day.
c) Djemina Lait (SNC):
Address: El Harmlia South.
Municipality / Wilaya of registration: Zeribet El Oued / Biskra.
This processing unit started its activity in 2016; the state has not yet supported it with milk powder. Its products are entirely based on raw milk only; its current production capacity is 1600 liters/day.
d) Dairy production in the Wilaya of Biskra:
According to statistics from the DSA Biskra (2019), milk production in the wilaya of Biskra has seen a slight increase of 1%, since 2016 when it was 44,783,000 L liters to reach 45,244,820 liters in 2019.
Goat and sheep milk production represent the majority of production, they reached 18,283,240 liters, 16,213,500 liters respectively in 2019, followed by bovine milk production with 8,471,580 liters and then camel milk production with 2 276,500 liters during the same year (2019).
2.2. General Information About the Project
Appointment: Biskra Dairy
Nature of the project: Agri-food investment
Legal form: Legal entity
Proposed headquarters: Activities area – national road No. 46 – Commune of Bouchagroune – Daira de Tolga – Wilaya of Biskra
Overall cost of the project: 2000000000.00 DA
Financial ressources:
Self-financing 30% i.e.: 600000000.00 DA
National Bank of Algeria 70% i.e.: 1400000000.00 DA
Source of raw products (Raw milk): Biskra cattle farm
Potential customers: Consumers from the local and national market
2.3. Location of the Project
Project address: Activities area – national road No. 46 – Commune of Bouchagroune – Daira de Tolga – Wilaya of Biskra
Area: 130051.36 m² (13 hectares)
Perimeter: 1439.89 m
Borders:
1. North: Mountainous area
2. South: National road no. 46
3. East: Mountainous area
4. West: Mountainous area
Geographic coordinates:
N 34° 44’ 22’’ E 5°26’ 44’’ Altitude: 161 m
The Biskra dairy is located near national road No. 46, which is a strategic and important location, which allows it to provide good and free advertising. In addition to the availability of all living and working conditions: water, electricity, gas, easy access to the dairy.
Figure 1. Geographical location of Laiterie de Biskra.
2.4. Investment Objectives
1. Participation in the development of the local and national socio-economic sector.
2. Participation in the availability of dairy products and its derivatives in the local market (wilaya of Biskra 100%) and (National 20%).
3. Creation of new permanent & fixed-term employment positions for young unemployed people (250 employment positions planned).
4. Contributions to increasing tax revenues for the public treasury.
5. Participation in the preservation and protection of the environment.
2.5. Economic and Social Impact of the Project
1. Contribute to covering the demand for milk in the wilaya of Biskra and nationally.
2. Helping to increase tax revenue for the public treasury.
3. Creation of jobs (CDI-CDD).
3. Experimental
3.1. Features of the Current Offer
According to statistics from the DSA Biskra (2019), milk production in the wilaya of Biskra has seen a slight increase of 1%, since 2016 when it was 44,783,000 L liters to reach 45,244,820 liters in 2019.
Goat and sheep milk production represent the majority of production, they reached 18,283,240 liters, 16,213,500 liters respectively in 2019, followed by bovine milk production with 8,471,580 liters and then camel milk production with 2 276,500 liters during the same year (2019).
The supply is currently insufficient in terms of dairy products and its derivatives in the wilaya of Biskra. There are only three dairies in the wilaya of Biskra:
a) Biskra Milk (SARL):
This unit is the first processing unit in the Biskra willaya. It started its activity in 2004. Its current production capacity is 19,000 liters/day.
b) Amira Milk (EURL)
This processing unit started its activity in 2005, considered the most productive dairy in the Biskra region, it presents various dairy products, its current production capacity is 20,000 liters/day.
c) Djemina Milk (SNC)
This processing unit started its activity in 2016, the state has not yet supported it with milk powder. Its products are entirely based on raw milk only; its current production capacity is 1600 liters/day.
3.2. Features of the Offer in the Future
The Biskra Dairy will meet the needs of local consumers with reasonable prices for dairy products and its derivatives:

Dairy products:

Dairy derivatives

2024: 50000 liter / day

2027: 10000 tons /year

2025: 100000 liter / day

2028: 20000 tons /year

2026: 150000 liter / day

2029: 30000 tons /year

2027: 200000 liter / day

2030: 40000 tons /year

2028: 250000 liter / day

2029: 300000 liter / day

2030: 350000 liter / day

3.2.1. Human Resources
1. Director
2. Commercial director
3. Technical director
4. General secretary
5. Executive secretary (02)
6. Human Resources Manager
7. Accounting manager
8. Responsible for general resources
9. Quality Manager
10. Health, safety and environment manager
11. Internal security manager
12. Accountant (02)
13. Administrative staff (30)
14. Cashier (05)
15. Storekeeper (05)
16. Food engineer (02)
17. Quality control engineer (01)
18. Quality control technician (05)
19. Industrial chain operator (100)
20. Maintenance operator (10)
21. Driver (30)
22. HSE Guardians (20)
23. Housekeeper
3.2.2. Operating Equipment
1. Storage store for raw products (raw milk)
2. Quality control laboratory
3. Milk production lines
4. Pasteurization lines
5. Freezing and cooling rooms
6. Storage stores
7. Marketing stores
8. Refrigerated trucks for transporting raw products (raw milk)
9. Refrigerated trucks for distribution of dairy products and derivatives
10. Service vehicles.
Figure 2. Milk processing equipment (Original).
Figure 3. Quality control laboratory.
Figure 4. Pasteurisation line.
3.2.3. Milk Products and Derivatives
Figure 5. Biskra Dairy Product (Pasteurized Milk).
Figure 6. Biskra Dairy Product (cow’s milk and cheese).
Figure 7. Biskra Dairy Product (Sorbet, butter, yogurt).
Figure 8. Transport of dairy products.
Figure 9. Transport of dairy product derivatives.
3.3. Investment Development Plan in 05 Years
Table 1. Investment Development Plan in 05 Years.

Operation

2023

2024

2025

2026

2027

Fitting out and equipping the dairy

x

Sale of pasteurised cow's milk

x

Sale of cow's milk pasteurized (Biskra)

x

Sale of pasteurized cow's milk (National)

x

Sale (sorbet, butter, yogurt, cheese) (Biskra)

x

Sale (sorbet, butter, yogurt, cheese) (National)

x

3.4. Provisional Investment Expenses (2023 - 2028)
Table 2. Provisional Investment Expenses (2023 - 2028).

Designation

Number

Amount HT (DA)

Working capital

01

100000000.00

Total layout of the dairy

01

1000000000.00

Milk production line

01

100000000.00

Laboratory equipment

01

50000000.00

Solar energy

01

50000000.00

Hydraulic drilling and network

01

50000000.00

Refrigerator Truck (raw milk transport)

20

200000000.00

Refrigerator Truck (transport milk and derivatives)

20

200000000.00

Service vehicles

10

50000000.00

Cold storage

10

5000000.00

Paying workers

250

1000000000.00

Taxes and insurance (each year)

5 years

100000000.00

Unplanned charges

5 years

100000000.00

Total (Ht)

3100000000.00

The investment costs for the period (2023-2028) are estimated at: (3100000000.00 DA excluding tax).
3.5. Overall Investment Revenues (2023-2028)
2023: year of construction and equipment:
Table 3. Overall Investment Revenues in 2023.

Designation

Quantity

Amount excluding tax (DA)

tons / liter / bag

Sale of pasteurized cow's milk

/

/

Sale (Sorbet, butter, yogurt, cheese, Sorbet, butter, yogurt, cheese)

/

/

Total

0

2024: 1st year of start of production:
Table 4. Overall Investment Revenues in 2024.

Désignation

Quantitéton / litre / sachet

Montant HT (DA)

Vente lait de vache pasteurisé

50000

780000000.00

Vente (Sorbet, beurre, yaourt, fromage, Sorbet, beurre, yaourt, fromage)

/

/

2025: 2nd year of start of production:
Table 5. Overall Investment Revenues in 2025.

Designation

Quantity

Amount excluding tax (DA)

tons / liter / bag

Sale of pasteurized cow's milk

100000

1560000000.00

Sale (Sorbet, butter, yogurt, cheese, Sorbet, butter, yogurt, cheese)

/

/

Total

1560000000.00

2026: 3rd year of start of production:
Table 6. Overall Investment Revenues in 2026.

Designation

Quantity tons / liter / bag

Amount excluding tax (DA)

Sale of pasteurized cow's milk

150000

2340000000.00

Sale (Sorbet, butter, yogurt, cheese, Sorbet, butter, yogurt, cheese)

/

/

Total

2340000000.00

2027: 4th year of start of production:
Table 7. Overall Investment Revenues in 2027.

Designation

Quantity tons / liter / bag

Amount excluding tax (DA)

Sale of pasteurized cow's milk

200000

3120000000.00

Sale (Sorbet, butter, yogurt, cheese, Sorbet, butter, yogurt, cheese)

100000

50000000.00

Total

3170000000.000

2028: 5th year of production start-up:
Table 8. Overall Investment Revenues in 2028.

Designation

Quantity tons / liter / bag

Amount excluding tax (DA)

Sale of pasteurized cow's milk

2500000

3900000000.00

Sale (Sorbet, butter, yogurt, cheese, Sorbet, butter, yogurt, cheese)

200000

100000000.00

Total

4000000000.00

The overall investment revenue for the period (2023-2028) is estimated at (11850000000.00 DA excluding tax).
3.6. Statistical Assessment
Overall revenue (2023-2028): 11850000000.00 DA excluding tax
Overall charge (2023-2028): 3100000000.00 DA excluding tax
Net gain (2023-2028): 11850000000.00 DA - 3100000000.00 DA
Net gain (2023-2028) = 8750000000.00 DA excluding tax.
4. Conclusion and Discussion
The technical-economic analysis of this project shows us that:
1. This project contributes 100% to the development of the local and national socio-economic sector.
2. This project contributes to the availability of dairy products and its derivatives in the local (100%) and national (20%) market.
3. This project contributes to the creation of permanent and fixed-term employment positions for young unemployed people (250 employment positions planned).
4. This project contributes to increasing tax revenue for the public treasury.
5. The Biskra dairy is located near national road No. 46, which is a strategic and important place, which allows it to provide good and free advertising.
6. This project contributes to the preservation and protection of the environment.
Abbreviations

DSA

Directorate of Agricultural Services

SARL

Limited Liability Company

EURL

Single-person Limited Liability Company

SNC

The General Partnership

Funding
This article is supported by the Sustainable Development Office of Dr NOUI Abderrahmane in Biskra (Algeria).
Conflicts of Interest
The authors declare no conflicts of interest.
References
[1] NOUI, A. (2023) «Étude Technico-économique ZONE AGRO-ALIMENTAIRE - Commune de BOUCHAGROUNE - BISKRA - Algérie» Rapport technique.
[2] NOUI, A. (2023) «O MÉTODO CORRETO DE PUBLICAÇÃO DE PESQUISAS CIENTÍFICAS EM CIÊNCIAS HIDRÁULICAS», PROCEEDING XXX CONGRESO LATINOAMERICANO DE HIDRÁULICA V 07 AL 11 DE NOVIEMBRE DE 2022.
[3] NOUI, A. (2023) «HOW TO PUBLISH SOCIAL SCIENCE RESEARCH IN HIGH-IMPACT JOURNALS», PROCEEDING of 9. INTERNATIONAL PARIS CONGRESS ON SOCIAL SCIENCES & HUMANITIES August 25-27, 2023 – Paris.
[4] NOUI, A. (2023) «CONTRIBUIÇÃO DA PROTEÇÃO DA CIDADE DE BISKRA (ARGÉLIA) CONTRA INUNDAÇÕES PELA GABIONNAGE DE OUED SIDI ZERZOUR», PROCEEDING XXX CONGRESO LATINOAMERICANO DE HIDRÁULICA V 07 AL 11 DE NOVIEMBRE DE 2022.
[5] NOUI, A. GUESBAYA, Z. (2022), "COVID-19: What Lessons Learned in Anticipation of Future Pandemics in the Field of Water Resources ", Advances, Vol 3 N° 3 Pages 60-64.
[6] NOUI, A. (2022), "L’ASSURANCE QUALITÉ AU SERVICE DE LA RECHERCHE SCIENTIFIQUE “CAS DU CENTRE DE RECHERCHE SCIENTIFIQUE ET TECHNIQUE SUR LES RÉGIONS ARIDES (CRSTRA)", PROCEEDINGS OF THE INTERNATIONAL CONGRESS. TEACHING FOR THE FUTURE, Algiers 24 avril 2022. ISBN: 978-84-1369-354-5.
[7] Office de Développement de l'Agriculture industrielle en terres Sahariennes (ODAS) Algérie, 2022.
[8] Office National des Terres Agricoles (ONTA) Algérie.
[9] Bureau National d’Études pour le Développement Rural (BNEDER) Algérie, 2021.
[10] Programme d’Appui au Secteur de l’Agriculture, y compris dans la gestion de l’eau, l’agro-industrie et la pollution agricole (PASA) Algérie, 2018.
[11] l'Agence Algérienne de Promotion de l'Investissement AAPI, 2023.
[12] École Nationale Supérieure Agronomique – Kasdi Merbah, 2020.
[13] MINISTÈRE DE L’AGRICULTURE ET DU DÉVELOPPEMENT RURAL – Algérie, 2017.
[14] Direction des services agricoles Biskra, 2019.
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    Noui, A., Kamli, M., Guesbaya, Z. (2024). Technical-Economic Study of the Agri-Food Investment Project “Big Milk Production Unit in Algeria- 4000 Dairy Cows”. International Journal of Agricultural Economics, 9(6), 287-294. https://doi.org/10.11648/j.ijae.20240906.11

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    ACS Style

    Noui, A.; Kamli, M.; Guesbaya, Z. Technical-Economic Study of the Agri-Food Investment Project “Big Milk Production Unit in Algeria- 4000 Dairy Cows”. Int. J. Agric. Econ. 2024, 9(6), 287-294. doi: 10.11648/j.ijae.20240906.11

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    AMA Style

    Noui A, Kamli M, Guesbaya Z. Technical-Economic Study of the Agri-Food Investment Project “Big Milk Production Unit in Algeria- 4000 Dairy Cows”. Int J Agric Econ. 2024;9(6):287-294. doi: 10.11648/j.ijae.20240906.11

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  • @article{10.11648/j.ijae.20240906.11,
      author = {Abderrahmane Noui and Meriem Kamli and Zineb Guesbaya},
      title = {Technical-Economic Study of the Agri-Food Investment Project “Big Milk Production Unit in Algeria- 4000 Dairy Cows”},
      journal = {International Journal of Agricultural Economics},
      volume = {9},
      number = {6},
      pages = {287-294},
      doi = {10.11648/j.ijae.20240906.11},
      url = {https://doi.org/10.11648/j.ijae.20240906.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20240906.11},
      abstract = {National milk production reached 3.52 billion liters in 2017, including more than 2.58 billion liters of cow's milk (73%), according to a report by the Ministry of Agriculture, Rural Development and Fisheries in Algeria. Due to the geographical location of the State of Biskra, its environmental diversity, its water resources, its flat lands and its human potential with its crops, the Zibans region has endowed its agricultural, pastoral and agri-food professions. According to statistics from the Directorate of Agricultural Services (DSA) of the Wilaya of Biskra (2019), milk production in the State of Biskra has seen a slight increase of 1% since 2016, reaching 44,783,000 liters, to reach 45,244,820 liters in 2019. Meeting the needs of milk consumers at the local, regional and national levels remains a challenge for the Ministry of Commerce and the Ministry of Agriculture. In this regard, the main objectives of the Bouchagroune Dairy are: participation in the development of the local social and economic sector (State of Biskra) by providing products that can contribute to meeting milk needs at the local level, creating jobs and increasing tax revenues to the public treasury. This technical-economic study has shown the feasibility of the project “Big Milk Production Unit in Algeria- 4000 Dairy Cows” that it will cover 100% of the local needs of the Biskra region, 50% of the regional needs and 20% of the national needs.
    },
     year = {2024}
    }
    

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  • TY  - JOUR
    T1  - Technical-Economic Study of the Agri-Food Investment Project “Big Milk Production Unit in Algeria- 4000 Dairy Cows”
    AU  - Abderrahmane Noui
    AU  - Meriem Kamli
    AU  - Zineb Guesbaya
    Y1  - 2024/11/06
    PY  - 2024
    N1  - https://doi.org/10.11648/j.ijae.20240906.11
    DO  - 10.11648/j.ijae.20240906.11
    T2  - International Journal of Agricultural Economics
    JF  - International Journal of Agricultural Economics
    JO  - International Journal of Agricultural Economics
    SP  - 287
    EP  - 294
    PB  - Science Publishing Group
    SN  - 2575-3843
    UR  - https://doi.org/10.11648/j.ijae.20240906.11
    AB  - National milk production reached 3.52 billion liters in 2017, including more than 2.58 billion liters of cow's milk (73%), according to a report by the Ministry of Agriculture, Rural Development and Fisheries in Algeria. Due to the geographical location of the State of Biskra, its environmental diversity, its water resources, its flat lands and its human potential with its crops, the Zibans region has endowed its agricultural, pastoral and agri-food professions. According to statistics from the Directorate of Agricultural Services (DSA) of the Wilaya of Biskra (2019), milk production in the State of Biskra has seen a slight increase of 1% since 2016, reaching 44,783,000 liters, to reach 45,244,820 liters in 2019. Meeting the needs of milk consumers at the local, regional and national levels remains a challenge for the Ministry of Commerce and the Ministry of Agriculture. In this regard, the main objectives of the Bouchagroune Dairy are: participation in the development of the local social and economic sector (State of Biskra) by providing products that can contribute to meeting milk needs at the local level, creating jobs and increasing tax revenues to the public treasury. This technical-economic study has shown the feasibility of the project “Big Milk Production Unit in Algeria- 4000 Dairy Cows” that it will cover 100% of the local needs of the Biskra region, 50% of the regional needs and 20% of the national needs.
    
    VL  - 9
    IS  - 6
    ER  - 

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Author Information
  • Arid Regions Ecosystems Division, Center for Scientific and Technical Research on Arid Regions (CRSTRA), Biskra, Algeria

  • Arid Regions Ecosystems Division, Center for Scientific and Technical Research on Arid Regions (CRSTRA), Biskra, Algeria

  • Department of Agricultural Sciences, Faculty of Natural Sciences, University of Biskra, Biskra, Algeria

  • Abstract
  • Keywords
  • Document Sections

    1. 1. Introduction
    2. 2. Results and Discussion
    3. 3. Experimental
    4. 4. Conclusion and Discussion
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  • Abbreviations
  • Funding
  • Conflicts of Interest
  • References
  • Cite This Article
  • Author Information