Algerian agribusiness company "Industrial group Semoulerie Industrielle de la Mitidja" (SIM) has signed an agreement with French agri-food and animal nutrition company "Glon Sanders" to form a new feed production company, called SIM Algeria Sanders.
The official announcement was made during the lastest trip to the country by France's Industry Minister, Cherif Rahmani. At a meeting organized by UBIFRANCE (French agency for international business development under the supervision of the French Ministry of Economy), Abdelkader Ezzraïmi Taieb, CEO of industrial Semoulerie of Mitidja (SIM group), intervened to present the agreement it had signed with the French group Glon Sanders.
This agreement concerns the creation of a major joint venture between the two groups for the production in Algeria of "compound feed for all types of livestock." The company was formed in partnership under the provisions of the 51/49% rule, as SIM Spa Sanders Algeria with the company to have its headquarters in Blida. The new JV was started with a investment of more than 1 billion dinars (USD$12.7 million).
Eventually, the new company's production will cover the whole country's needs for compound feed, including those for ruminants (cattle, sheep, goats ...) now estimated at 200,000 tons annually.
To start the Algerian-French company is aiming to produce 70,000 tonnes of feed in 2014, they then plan on gradually raising capacity until reaching full capacity in 2019, when it should a total production capcity of 200,000 tons annually.
The company has already produced "a quantity test product" which has been marketed to a sample group of farmers. The results of this test production has seen the farmers using the feed have their milk production grow by 15%, while their performance in fattening cattle has increased by 20%.
Taieb Ezzraïmi said, "it is a question, in fact, not only of manufacturing, but also in supporting farms in Algeria, which is based on the know-how, expertise of Glon Sanders nutrition and breeding behavior." (Valuing local fodder as raw material, determining the types rations tailored to each farm, Advising farmers to improve the power plans, farming techniques and management of herds ...).
"The new joint venture reinforces two major sectors of agriculture that are currently booming in Algeria, the dairy industry and the reat meat industry. Also at the same time, it will impact positively on the economy that can be performed through the Algerian exports of milk powder and, of course meats."
Taieb Ezzraïmi continued, "the first tranche of investment will allow the company SIM Sanders Algeria to position itself as a leading feedd manufacturer for ruminants in Algeria, before targeting, gradually and progressively, to other segments (poultry, horses, etc.)."