Washington excluded him from the sanctions it has imposed on Khartoum since the nineties

Sudan conflict threatens gum arabic supply, soft drink industry

  • A Sudanese farmer collects gum arabic before exporting it. Reuters

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The conflict in Sudan has prompted international consumer goods manufacturers into a race to boost supplies of gum arabic, one of the country's most sought-after products and a key ingredient for everything from soft drinks to candy and cosmetics.

About 70 percent of the world's supply of gum Arabic, for which there are few alternatives, comes from acacia trees in the Sahel region, which includes Sudan, which is torn apart by fighting between the army and the paramilitary Rapid Support Forces.

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Exporters and industry sources told Reuters that "companies that fear continued insecurity in Sudan and rely on the product, such as Coca-Cola and PepsiCo, have stockpiled supplies, and some have stocks that cover between three to six months so as not to suffer a shortage."

Richard Finigan, purchasing director at Kerry Group, which supplies gum arabic to most major food and beverage companies, said: "Depending on how long the conflict lasts, there may be repercussions for well-branded manufactured goods."

Finnegan estimated that current stocks would run out within five to six months. Martin Bergkamp, a partner at Dutch supply firm Voga Gam, agreed, saying the stocks were sufficient for three to six months.

A spokesman for Cloita AB said: Swedish, who specializes in the confectionery industry, including laquirole emulsions that use gum arabic, said in an email that "the company has ample stocks of gum arabic."

According to estimates quoted by the Kerry Group, global production of gum arabic is about 120,1 tons per year, worth $1.500 billion. Most of this component comes from the Gum Belt, which stretches <> miles from east to west Africa, where arable land meets the desert, and also includes Ethiopia, Chad, Somalia and Eritrea.

Twelve exporters, suppliers and distributors contacted by Reuters said trade in glue, which helps hold food and drink ingredients, has come to a halt.

Mohamed al-Nour, director of the Gum Arabic company in the United States, which sells the product to consumers as a dietary supplement, said it was now impossible to obtain additional quantities of gum arabic from rural areas of Sudan due to unrest and road closures.

"It can't go on without gum Arabic"

Kerry Group and other suppliers, including Swedish company Jam Sudan, said communication with people on the ground in Sudan is difficult, adding that "Port Sudan, which is used to ship the product, is currently prioritizing civilian evacuations."

Genesh Doshi, managing director of Mumbai-based Vijay Bruce Import, said: "Our suppliers are struggling to secure necessities due to the conflict. "Neither buyers nor sellers know when things will return to normal."

Alwaleed Ali, who owns AGB Innovations Ltd., a gum Arabic export company, said his customers were looking for alternative countries from which to get gum Arabic. "He sells gum to manufacturing companies in France and the United States."

PepsiCo declined to comment on supply and goods matters, while Coca-Cola did not respond to a request for comment.

Danny Haddad, director of marketing and development at Agrigam, one of the world's top 10 suppliers, said: "For companies like Pepsi and Coca-Cola, they can't survive without gum arabic."

In reference to the importance of gum arabic for the consumer goods industry, the United States excluded it from the sanctions it has imposed on Sudan since the nineties, because it is an important commodity and for fear of creating a black market. According to Jam Sudan, Sudanese Bedouins extract gum from acacia trees, then purify and package it across the country. Gum is a source of livelihood for thousands of people, and a ton of its most expensive can cost about $3000,<>.

"There is cheaper and lower quality gum outside Sudan, but the ingredient of choice is only found in acacia trees in Sudan, South Sudan and Chad," said Mohamed El-Nour. The general manager of Savannah Life in Khartoum, Fawaz Abaro, said that "he has purchase orders and intended to export 60 to 70 tons of gum arabic, but he doubts that he will be able to do so because of the conflict."

"There is no stability even in getting food or drink. The situation will not be stable for work."

"All transactions are confused at the moment."

About 70 percent of the world's supply comes from gum arabic, for which there are few alternatives, from acacia trees in the Sahel region, which includes Sudan, which is torn apart by fighting between the army and the paramilitary Rapid Support Forces.

Most of this component comes from the Gum Belt, which stretches 500 miles from east to west Africa, where arable land meets the desert, and also includes Ethiopia, Chad, Somalia and Eritrea.