Fabricated shortage to take $400 million of milk subsidy money

The Algerian commerce ministry Wednesday opened an investigation to determine reasons behind the decrease of subsidized milk quantities intended to people of limited income, according to economic surveillance and fraud repression director.

“The commerce ministry put all the milk production units in Algeria under surveillance to prevent them from using subsidized milk powder to produce by-products,” Abdelhamid Boukahnoun told Echorouk.

This comes as noise was raised about milk powder prices in national market since January 1^st.

Boukahnoun said Gloria which specialized in importing dry milk powder from New Zealand is behind all those noise. Powder prices went up to more than $5,000 per ton.

According to milk units, Milk National Office reduces daily quantities of milk powder given to them while it gives huge quantities to 15 units of public sector. They use milk to produce by-products.

Milk Professional National Office has reduced quantities given to 110 private units by around 90 percent since December compared to their daily production capacities.

The Office imports 136,000 tons of milk powder per year. The real price of a kilograme is 600 DZ while the powder is given to producers in return for 159 DZ.