A Memorandum of Understanding on the creation of the first Algeria-U.S. agriculture joint venture was signed Sunday in Algiers by the Algerian private Lacheb Group and the American International Agriculture Group (AIAG).
With an investment of $100 million, the company named “El Firma” (the farm) will be based in western Algeria (between Mostaganem and Mascara), where the two partners will establish an integrated firm spanning nearly 6,000 ha.
The agreement was signed by CEO of the Lacheb Group Rachid Lacheb and President of AIAG, Dale Didion, in the presence of the US ambassador to Algiers, Joan Polaschik and President of the Algerian-American Business Council Ismael Chikhoune.
Created under the 51-49% rule on foreign investment, the project concerns agricultural fields ranging from irrigation to seed importation and cattle ranching to dairy farming, said Abdelhamid Bouarroudj, consultant at Lacheb Group.
In addition to increasing the production, the two partners eye the creation of 3,000 jobs.
The president of AIAG, Dale Didion underscored that this partnership signed with Lacheb Group aims at reducing the Algerian imports of potato seed and powdered milk.
“This is one of the first partnerships that will introduce the American technology of dairy cattle farms,” he said.
This joint venture is the first project among four others, which were clinched last May.
