(Ecofin Agency) - The Algerian firm Tifra Lait has inked on Jan. 23, 2017, an agreement with U.S. consortium American International Agriculture Group (AIAG), to establish an Algeria-U.S. joint-venture (JV) in Algeria’s agribusiness sector. The news was reported by the Algerian Press Agency APS.

The agreement was signed by the heads of the two groups in the presence of Abdesselem Chelghoum, Algerian minister of agriculture, rural development and fishery and Smail Chikhoun, chairman of the Algeria-US business council.

The JV which is valued at $250-300 million will be established in Adrad, south of Algiers, the capital city. It will expand over 25,000 hectares and focus on the milk, grains, sweet potatoes, fertilizers, soja, maize and animal feeding industries. It aims to produce 190 million litres of milk per year, 22,000 metric tons (Mt) of grains and 105,000 Mt of animal feed. It should generate 1,500 jobs.

Moreover, the JV, regarding its management, will operate based on the 51%-49% rule applied to foreign investments in Algeria, meaning the Algerian partner will hold a 51% stake.