Analysis of the Effects of State Aid on the Development of Algerian Dairy Farms: The Case of National Unemployment Fund (CNAC)

Abstract

This study is aimed at demonstrating the importance of public investment in developing the dairy sector through support schemes such as the CNAC (national unemployment fund). Fifty-five dairy farms benefiting from CNAC funding were surveyed. The results show that 63% of the beneficiaries have difficulties with the submission and processing of their administrative files. The lack of technical control by the CNAC services was reported by the vast majority of beneficiary farmers (83%). There has been an increase in the number of wage labourers from nine to 20% of the total farm labour force. There has been an increase in the number of farms with a small forage area (0-5 ha). Bovine livestock increased by 12%, the most important breed being the Montbeliarde. More than half of the farmers have increased the amount of concentrates distributed, from an average of 7 to 10 kg per animal per day. Green fodder is also appearing in the form of wrapped silage distributed throughout the year. Milk production increased by 7.3%, from 17.7 litres per cow per day to 19.1 litres per cow per day. Natural breeding is still practised by 42% of farmers, despite the prevalence of artificial insemination. Finally, 54 % of the farmers benefiting from the programme say that dairy production has become unprofitable because of higher production costs. It would be preferable for this mechanism to improve and simplify the administrative procedure and ensure effective follow-up of beneficiary farmers in order to improve the efficiency and effectiveness of CNAC funding.