ALGIERS, April 24 (Xinhua) -- Algeria and Qatar on Wednesday signed an agreement worth 3.5 billion U.S. dollars to establish an integrated milk powder production project in southern Algeria, the official APS news agency reported.

The agreement was signed by Souad Assous, director general of the Agricultural Investment Department at the Algerian Ministry of Agriculture and Rural Development, and Mohamad Moutaz Al-Khayyat, chairman of Qatari dairy company Baladna.

The project would span 117,000 hectares and be divided into three clusters, including farms for cereal and fodder production, facilities for cow breeding, milk and meat production, as well as a milk powder production unit.

Once operational, the project is expected to create 5,000 direct job opportunities and meet 50 percent of Algeria's demand for milk powder, fulfill local market needs for red meat, and contribute to the expansion of the national cattle herd.