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Agribusiness management skills for agricultural smallholders in Africa

par Mohamed Ali Trabelsi
Technical University of Munich - Master of science Agrarmanagement 2020

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3.3 Improved Production (Improved Scenario)

In order to improve the hard situation confronted in the agriculture field, farmers in Algeria have resorted to many innovative tools and practices to rescue its loss in reproductive capacity. For example, the adoption of technical innovations in the irrigation system like the mini-pivot which have considerably affected the production system

In fact, the government has supported smallholders to develop new irrigated perimeters and has created new farms particularly in its south. Added to this, it has attempted to remove the main limiting factor: water deficit modernization in agriculture which has a tremendous impact on the expansion of arable land. Therefore, with increasing number of boreholes and the mobilization of new investments for the realization of hydraulic infrastructures, new techniques like, mobile drip irrigation system(mini-pivot), have been implemented and permit an optimal and better exploitation of water resources.

Further, in order to sell the crops at a good price, smallholders have thought about storing them and selling them when prices rise. However, Algeria is characterized by a semi-arid climate and high- temperatures make the situation harder. Therefore it's


necessary for it to find innovative solutions to store the products for long periods of time.

Accordingly, the increase in production will occur and it is necessary to find other innovative marketing channels and even improve the quality of the agricultural product and move towards export.

Moreover, the current study is going to highlight other improved techniques such as an example, good agricultural practices (GAP), which include accurate farm measurement, the use of crop calendars, the diversification of production and, the adoption of basic cultivation techniques to improves water management and increase land productivity. In addition, the access to other financial services such as savings, loan insurance and other facilities are the key techniques for more improved farming production.

3.4 Material

In this present study, the case of Algeria was chosen following the contributions during the internship period in the preparation of the training FBS Potato for Algeria.

Figure 3 selected FBS Training

Source: GIZ/ FBS Potato. 2020


Algeria is the largest country in Africa and the most populated in the Maghreb region. Gross domestic product is rising moderately at 1.4 percent per year. Its development (like in the entire economy) depends essentially on the production and exportation of oil and natural gas. Nearly half of Algeria's 40 million people are under the age of 25. The major economic policy challenge is to create sufficient jobs for the young population, which continues to grow rapidly. The country's natural resources are under increasing pressure from population growth, economic development and climate change.

The project is taking place in the commune of El Oued, also called Oued Souf. It is located in the northeastern Algerian Sahara and south of Chott Melrhir, which is 79 km east-northeast of Touggourt, 212 km northeast of Ouargla and 512 km southeast of Algeria.

Figure 4 Google Maps. (n.d.). location of the municipality el Oued

Regarding agriculture, potato has become one of the main crops for domestic consumption. Thus, Algeria is the greatest potato producer in the Arab world and the second in Africa, after South Africa. Algerians annually consume the equivalent of three times the world average of 31 kilograms. Algeria produces 47 million quintals annually, with local demand being met by local producers. However, the disorganization that characterizes this sector causes a surplus at certain times of the year. The large quantities that the market cannot absorb tend to drive prices down.


The Municipality of El Oued is ranked first in terms of potato production, with 13 million quintals and a planted area of 40,000 hectares, representing 30% of national production. The importance of the commune El Oued in the potatoes production makes it a strategic product for the national economy, the private partners and the expectations of the local market. The action zone of the FBS potato project took place in this area.

For the following study a database established by the consultants of the FBS potato project will be used. It includes all economic calculations for the main product potato and the two complementary products peanut and onion. In order to answer the research question, economic calculations will be used for analysis and discussion.

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