Algeria's Growing Importance in the Dairy Sector
In the context of an increasingly complex diplomatic and commercial relationship with Brazil, Algeria has emerged as a critically important client for Uruguay's powdered milk industry. Notably, Algeria was the largest buyer of powdered milk from Uruguay in both 2025 and the first quarter of this year, accounting for nearly half of the total exports—49% last year and 43% in the first quarter of this year. This significance is underscored not only by the volume of purchases but also by the fact that Brazil, the second-largest buyer, holds a substantial share of 31% in the first quarter of this year. Collectively, these two markets represent over 80% of the sales of Uruguay's primary export product in the dairy sector.
The Geopolitical Landscape and Its Impact
The geopolitical dynamics of North Africa play a pivotal role in this scenario. A notable population in Morocco, the Sahrawis, has been striving for independence from Morocco since the early 1970s. While they have achieved various forms of recognition, complete independence remains elusive. Spain supports Morocco's position, advocating for limited autonomy for the Sahrawis, whereas Algeria firmly demands total independence, a stance that undermines Morocco's position and consequently enhances Algeria's relative standing in the region.
Uruguay has historically supported the Sahrawi independence movement, with former Foreign Minister Héctor Gros Espiell playing a crucial role in negotiating a ceasefire in this long-overlooked conflict. However, under the previous administration, relations with the Sahrawis were frozen. The current government, led by President Yamandú Orsi, has revitalized these relations, evidenced by the visible presence of Sahrawi representatives at his inauguration.
Despite this, the Spanish government has increasingly aligned itself with Morocco, a country essential for food and energy supplies to the Iberian Peninsula. This proximity between the Spanish and Uruguayan governments poses a potential risk for the dairy sector, as Algeria has threatened to cut its milk purchases if Uruguay does not distance itself from Spain, which maintains a close relationship with Uruguay.
This intricate political chess game is a concern for dairy farmers, as they now see 80% of Uruguay's powdered milk exports hanging in the balance.
As reported by blasinayasociados.com.
