Laiterie Soummam Invests DZD 4 Billion (~$30 Million) in Production Expansion
Image: TSA
Takeaway
Laiterie Soummam's investment signals confidence in Algeria's dairy market. Companies involved in dairy processing and packaging should monitor Soummam's expansion for potential partnership opportunities. The move to increase UHT milk production may impact smaller local producers who focus on fresh milk, as UHT milk has a longer shelf life and wider distribution potential.
Algeria's leading dairy company, Laiterie Soummam, has invested over 4 billion dinars (~$30 million) to expand its production capabilities at its site in Akbou, Béjaïa province. The investment, which went into operation at the beginning of 2026, includes the acquisition of new production lines to increase the company's output of UHT milk, drinkable yogurt, processed cheese, and fresh cheese in trays. This expansion is expected to generate additional employment opportunities.
Laiterie Soummam, founded in 1993 by Lounis Hamitouche, has grown to become a major player in Algeria's dairy market. In 2011, the company held 42% of the yogurt market share in Algeria. The company also exports to Libya and Canada. On March 18, 2026, Laiterie Soummam announced its first export operation to the United States, including a variety of dairy beverages, fruit juices, creams, and culinary preparations from its catalog of over 200 products. This move aligns with Algeria's broader strategy to diversify exports beyond hydrocarbons.
The Algerian government views the dairy sector as a priority and is working to expand milk production. The Ministry of Agriculture has implemented programs to increase herd size and productivity through artificial insemination, embryo transfer, and the import of pregnant heifers and dairy cattle. In 2022, local fluid milk production was estimated at 2.5 million metric tons, while domestic market needs were estimated at 4.5 million metric tons. To meet the demand, Algeria imports significant quantities of milk powder, with imports totaling almost 418,000 metric tons in 2023.
Laiterie Soummam collaborates with approximately 6,800 farmers across the country through structured agreements. The company operates 11 dairy farms in strategic regions, including Boussaâda, M'sila, Souk Ahras, Constantine, Batna, Djelfa, Khenchela, and Oum El Bouaghi. These farms aim to professionalize the dairy sector and promote best practices in livestock farming. Soummam also relies on 54 collection centers across the country, with a fleet of 48 tanker trucks ensuring a steady supply of raw milk.
Laiterie Soummam's expansion and export initiatives are expected to further solidify its position in the Algerian dairy market and contribute to the country's efforts to reduce reliance on imports. The company's continued investments in production capacity and partnerships with local farmers will be crucial in meeting the growing demand for dairy products in Algeria. Investors should monitor Laiterie Soummam's engagement with local farmers to ensure a stable supply of raw materials, as well as its progress in export markets, particularly in the United States.