The Algerian government is addressing the domestic demand for milk, which exceeds the current production capacity by a significant margin, by encouraging modern agriculture and providing subsidies to boost local milk production. Despite being a major importer, Algeria does not produce milk powder and has a annual milk production capacity of 2.5 billion liters, with 73 percent being cow's milk. To close the gap between production and demand, the government plans to provide over USD 129 million in annual support to local milk producers and also supports feed production and irrigation to improve yields.