H’lib Dzair

Last update of this page: 2023.07.27

Tackling Local Challenges: Understanding the Issue

85% of Algerian dairy producers are smallholder farmers, and accompanying them is central to an autonomous and resilient food system in Algeria.  

Due to a scarcity of fresh milk production, Algeria heavily relies on imported milk powder as ~40% of its population's milk consumption is not covered by local production. To improve its food security, the Algerian Government has recently taken steps to prioritize the development of domestic dairy production and decrease its reliance on imported milk powder. 

Yet, the Algerian dairy sector faces several challenges:  

1. Low milk production rates, with an average yield of around 10 liters per cow per day, 
2. Limited technical knowledge and managerial expertise among smallholder farmers,
3. Limited local production of animal feed, resulting in difficulties to manage milk costs production,
4. Challenges in obtaining funding and acquiring necessary equipment for farmers.

Introducing the Coalition: A Unified Front for Change

Back in 2014, Danone Ecosystem co-created with Danone-Djurdjura Algeria and GIZ International the H’lib Dzair project.  

A New Model for Progress: The Project's Vision

The project provides to Algerian smallholder farmers a comprehensive support through 3 pillars at farm level: Training, mentoring and finance.  

At finance level trials were conducted on how to reduce feed costs. The project also helped smallholder farmers to get access to credit advances on government subsidies. Finally, farmers are able to explore new streams of income.  

H’lib Dzair also develops the Algerian small dairy sector by working with actors across the entire farm ecosystem to support smallholder farmers activities at distribution level through the creation – among other things - of 39 Milk Collection Centers.  

Benefits for the Whole Ecosystem [2022 project impact] 

To date, the project has enabled 1400+ Algerian dairy farmers and has had several positive impacts on the whole ecosystem:

Environmental: Reduced the carbon footprint of milk by 5% from 2.80 to 2.63kg CO2 eq./kg FPCM (2020-2021)

Social:

• 97% of farmers report improved living conditions for their families, and improved working conditions [Survey conducted among 152 farmers in 2022],  
• 85% income increase of subsistence producers, and 17% increase for other small farmers, driven by higher productivity and prices, impacting 2,500+ lives

Economic:

• -14% decrease in feed production costs for the farmers who took part in the “Feed the Cow” pilot program (2022) 
• Milk yield per cow from 12L (2019) to 17.66L (2022)
• Feed autonomy from 2% (2016) to 10% (2022)

The H’lib Dzair project has supported rural development in Algeria and strengthened local dairy value chains. 

Sources: 

• 85% - Moustafa K., Pam DL., Current Situation of Milk and Red Meat Industry in Algeria, 2016 [Online]
  https://bit.ly/3UHV8Py
• ~40% - Nabila Hales, Dairy and Products Annual, in Algeria, 2022 [Online] https://bit.ly/3FD3ZgT