Exclusive: Algeria Bars France from Wheat Import Tender Amid Sour Relations, Sources Say

By Gus Trompiz and Michael Hogan

PARIS – Algeria has excluded French companies from a recent wheat import tender, mandating that participating firms refrain from offering French-origin wheat. This change appears to be a reaction to escalated diplomatic tensions between Algiers and Paris, according to trading sources.

This action recalls a dispute from three years ago that saw France effectively barred from participating in Algeria’s wheat tenders for several months. It could further solidify the dominance of Black Sea wheat supplies, particularly from Russia, in Algeria’s extensive wheat import market.

Algeria ranks among the largest wheat buyers globally, historically relying heavily on French wheat as its primary source.

Tensions intensified following France’s support in July for a plan regarding Western Sahara under Moroccan sovereignty, which incensed Algiers, as it backs the Polisario Front’s aspirations for autonomy in the region.

During a regular tender held on Tuesday, Algeria’s state grains agency purchased over 500,000 metric tons of wheat. Typically, these tenders operate on an optional-origin basis, allowing sellers to choose their grain’s source from a list of approved origins, including France.

However, this time, sources indicated that no invitations were extended to French companies, and non-French participants were explicitly instructed not to offer French wheat supplies. The reasons for this decision were not communicated to the involved firms, but it is widely perceived as indicative of deteriorating diplomatic relations, particularly concerning Western Sahara.

While requests for comments from Algeria’s state grains agency and French agriculture and foreign trade ministries went unanswered, it was indicated that French wheat was unlikely to compete in this tender due to poor harvest outcomes and significantly elevated prices compared to Russian wheat, Algeria’s primary supplier.

Despite this, the agency’s exclusion of French firms potentially impacts their ability to suggest supplies from other origins and raises questions about the duration of this exclusion.

A previous fallout with France three years ago allowed Algeria to diversify its wheat market, increasing its reliance on Russia, the world’s leading wheat exporter. This year’s unusual weather conditions resulted in one of the smallest French wheat harvests since the 1980s, heavily affecting the country’s export capabilities amidst fluctuating grain quality.