Algeria excludes French companies from wheat imports – Russian suppliers benefit

In a clear sign of deteriorating diplomatic relations between Algeria and France, French companies have been excluded from a recent tender for wheat imports by Algeria. According to trade partners, the decision was accompanied by a request that other participating firms should not offer wheat of French origin. This development mirrors a similar dispute from three years ago, when France was also excluded from tenders by the former colonial state for months. This move is likely to further strengthen the now dominant influence of the Black Sea region, particularly Russian wheat, in the Algerian wheat market. Algeria, one of the world's largest wheat buyers, had relied on France as its main supplier for years. However, after France supported a plan in July to place the Western Sahara region under Moroccan sovereignty, there was discontent in Algiers, which supports the autonomy efforts of the Polisario Front. In the latest tender by the state grain agency OAIC on Tuesday, traders estimated that over 500,000 tons of wheat were purchased. Although OAIC tenders normally allow for optional origin, with suppliers able to choose the origin of the grain from various approved sources, French firms were excluded this time. At the same time, non-French participants were signaled not to propose French grain. An explanation from the OAIC was not forthcoming, but trade partners indicate that the decision is based on the strained diplomatic relations. Despite the already slim chances for French wheat due to a poor harvest and higher prices compared to Russia, Algeria’s new main supplier, the exclusion of French firms creates uncertainty about how long this disruption might last. The earlier crisis three years ago had already opened the door wide for the Russian wheat market. This year’s French wheat harvest, affected by heavy rains, produced the lowest yields since the 1980s, thus significantly limiting the export opportunities of the EU's largest wheat-growing nation.