Algeria's Cereal Harvest Set to Fall 35-40% this Year Due to Drought

Algeria has in recent years harvested the bulk of its needs for durum wheat and barley while depending on imports of soft wheat. (Reuters)
Algeria has in recent years harvested the bulk of its needs for durum wheat and barley while depending on imports of soft wheat. (Reuters)
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Algeria's Cereal Harvest Set to Fall 35-40% this Year Due to Drought

Algeria has in recent years harvested the bulk of its needs for durum wheat and barley while depending on imports of soft wheat. (Reuters)
Algeria has in recent years harvested the bulk of its needs for durum wheat and barley while depending on imports of soft wheat. (Reuters)

Grain importer Algeria expects its cereal production for 2020 to fall 35-40% from last year’s 5 million tons because of drought, the head of its farmers’ union told Reuters.

Algeria has in recent years harvested the bulk of its needs for durum wheat and barley while depending on imports of soft wheat, in large part from France.

“Output will drop by 35-40% due to drought,” the farmers’ union chief Mohamed Alioui said. “Drought has hit all provinces in the east and west, mainly those known for high production.”

Movement restrictions linked to the global pandemic contributed to production falling across the country, forcing farmers to revise down expectations, he said.

Lower output means the government will continue to turn to international markets to supply its 45 million people, he said.

Algeria spends around $1.3 billion annually on cereal imports, and wheat, considered a strategic crop, is subsidized.

The harvest is coming to an end in the southern provinces and will start in the north in the next few days, continuing until the end of August.

“We are disappointed. But we hope there will be abundant rain next season,” said farmer Ali Bakali as he visited his two-hectare wheat farm.

Drought hit most crops with farmers waiting for the government to make good on promises to improve irrigation systems.

“We have no other solutions but to find the solutions that allow us to cope with the drought and its impact on agriculture,” Agriculture Minister Abdelhamid Hamdani said last month as reported by state media.

Only about 600,000 hectares of the 1.4 million that are irrigated are planted with cereals.

The government said it will offer incentives, including removing some administrative procedures, for farmers to grow cereals.

President Abdelmadjid Tebboune on Sunday called for a “revolution” in the production of grains and seeds, urging his government to increase durum wheat output and cut soft wheat imports by adopting modern methods and involving more agronomic engineers.



Trump Taps Scott Bessent for Treasury

(FILES) Scott Bessent, head of Key Square Group and former chief investment officer of Soros Fund Management, attends the second day of the annual Allen & Company Sun Valley Conference, July 12, 2017 in Sun Valley, Idaho.(Photo by Drew ANGERER / GETTY IMAGES NORTH AMERICA / AFP)
(FILES) Scott Bessent, head of Key Square Group and former chief investment officer of Soros Fund Management, attends the second day of the annual Allen & Company Sun Valley Conference, July 12, 2017 in Sun Valley, Idaho.(Photo by Drew ANGERER / GETTY IMAGES NORTH AMERICA / AFP)
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Trump Taps Scott Bessent for Treasury

(FILES) Scott Bessent, head of Key Square Group and former chief investment officer of Soros Fund Management, attends the second day of the annual Allen & Company Sun Valley Conference, July 12, 2017 in Sun Valley, Idaho.(Photo by Drew ANGERER / GETTY IMAGES NORTH AMERICA / AFP)
(FILES) Scott Bessent, head of Key Square Group and former chief investment officer of Soros Fund Management, attends the second day of the annual Allen & Company Sun Valley Conference, July 12, 2017 in Sun Valley, Idaho.(Photo by Drew ANGERER / GETTY IMAGES NORTH AMERICA / AFP)

President-elect Donald Trump on Friday said he will nominate prominent investor Scott Bessent as US Treasury secretary, a key cabinet position with vast influence over economic, regulatory and international affairs.

"I am most pleased to nominate Scott Bessent to serve as the 79th Secretary of the Treasury of the United States," Trump said in a statement released on Truth Social. "Scott is widely respected as one of the world's foremost international investors and geopolitical and economic strategists."

Wall Street has been closely watching who Trump will pick, especially given his plans to remake global trade through tariffs and extend and potentially expand the raft of tax cuts enacted during his first term, Reuters reported
The choice came after days of deliberations by Trump as he sorted through a shifting list of candidates. Bessent spent day after day at Trump's Mar-a-Lago home in Florida providing economic advice, sources said, a proximity to the president-elect that may have helped him prevail.
Other names that had been floated included Apollo Global Management Chief Executive Marc Rowan and former Federal Reserve Governor Kevin Warsh. Investor John Paulson had also been a leading candidate, but dropped out, while Wall Street veteran Howard Lutnick, another contender, was appointed as head of the Commerce Department.
Bessent, who did not immediately respond to a request for comment, has advocated for tax reform and deregulation, particularly to spur more bank lending and energy production, as noted in a recent opinion piece he wrote for The Wall Street Journal.
The market's surge after Trump's election victory, he wrote, signaled investor expectations of "higher growth, lower volatility and inflation, and a revitalized economy for all Americans."
"Bessent has been on the side of less aggressive tariffs," said Oxford Economics' Ryan Sweet, adding that picking him makes the steep tariffs Trump proposed on the campaign trail less likely.
Bessent follows other financial luminaries who have taken the job, including former Goldman Sachs executives Robert Rubin, Hank Paulson and Steven Mnuchin, Trump's first Treasury chief. Janet Yellen, the current secretary and first woman in the job, previously chaired the Federal Reserve and White House Council of Economic Advisers.
Republican US Senator Lindsey Graham from South Carolina, Bessent's home state, said in a statement: "President Trump's economic agenda is in good hands with Scott Bessent. I look forward to working closely with Scott and President Trump to lower inflation and create the golden age of prosperity for the American people."