Algeria Amends Its Bidding And Targets French Wheat Suppliers

October 14, 2020

Algeria has amended the “specifications book” in its new international bid for the purchase of the shipment of grain intended for next November, which allows Russian wheat rich in vitamins to compete with Algeria’s traditional supplying source, that is the French wheat.

Algeria launched its new tender at the beginning of this week, and the French are wise about this amendment to expand the competitors for French wheat, because the entry of Russian wheat, known for its richness in vitamin, compared to its French counterpart, makes the chances of the continuation of the previous situation very difficult.

The French exporters, after the relief they registered following the rise in wheat prices in the global markets, driven by some data, including the Algerian tender, they reduced the repercussions of this data on French exporters, based on a reading provided by a specialist in market dynamics, Paul Cazeneuve, who ruled out the amendment.

What Algeria introduced to the specifications of imported wheat quickly affected traditional suppliers, in reference to French wheat.

The “Agretal” studies office, which specializes in analyzing the market, according to what was reported by the French press agency, France Press, commented on the Algerian tender, saying: “Exporters are anxiously waiting in France to see the result of Algeria’s call for tenders, which includes reducing specifications to allow Black Sea wheat, that is to allow Russia to enter the competition”.

In spite of this, the French suppliers expressed their aspiration to maintain French control over Algeria’s imports of French wheat, in light of the recent rise in the value of the Russian ruble currency against the US dollar, because this would raise the price of Russian wheat, which It is considered new to the national market.

Russia is considered one of Algeria’s traditional partners in terms of arms, but it seems that Algeria and Moscow are continuing to diversify their relations, and Algeria’s amendment of its recent bidding specifications to allow the entry of Russian wheat is an indication of this trend.

Despite the importance of these data in determining the direction of demand for imported wheat, the political situation will undoubtedly have an impact. Algeria, more than a year ago, began reviewing many of its relations with France, including the economic relations that were dominant over others, notably during the regime of former president, Abdelaziz Bouteflika.

It can be understood here that the French economic interests have lost many of their positions in Algeria, since the outbreak of the February 22, 2019 “revolution”, due to political sensitivities between Algeria and Paris, although it was somewhat restored in the last months of President Abdelmadjid Tebboune’s rule.

In about two weeks (by the end of this month) the contract concluded between Algeria and the French branch of the “RATP” company, which is concerned with running the Algeria Metro Corporation, will expire, because the Algerian party decided not to renew this contract, and the government also decided not to renew the contract of the French company “Suez” concerned with running the water sector in the provinces of Algiers and Tipaza, which ends next April, a decision that was preceded by the dismissal of many of its officials last summer, following a serious shortfall in the distribution of drinking water.


finance & economy


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