Gum Comes From Sudan
Raw gum arabic is a popular ingredient in Coca-Cola. It is produced in Sudan from the acacia tree, which is native to the country. The acacia trees are difficult to grow and require hand picking by farmers. However, the gum arabic produced in Sudan is valuable in the manufacturing industry. It is shipped to Europe for processing and sold to global companies. However, the output of gum arabic from Sudan is only about half of what it once was. The decline can be attributed to a variety of factors, including climate change.
It has been estimated that the country earned up to $81.8 million in 2010 from its gum arabic exports. It exported forty-six thousand tonnes last year, up from eighteen thousand tonnes in 2010. The price of gum arabic has increased sharply since then, and Sudan could earn over $200 million this year. While this is only a fraction of the money lost from Sudan’s oil exports, it suggests that the country should look at developing other export industries.
Sudan’s gum arabic production is the largest in the world. It accounts for 60 per cent of the world’s raw gum arabic exports. Its ‘gum belt’ is five hundred thousand square kilometers and covers a vast area. The region has also recently been hit by fighting between rebels and the army, which has impeded production in three farming regions.
How Much Gum Comes From Sudan?
Despite this, Sudan’s gum arabic is rarely listed on soft drinks. Instead, it is listed as acacia gum or E414 on labels. PepsiCo, the company that produces Coca-Cola, has confirmed that it uses gum arabic in its products.
The Sudan government held a monopoly on the gum trade until 2009, but the market has opened up to private enterprises, and the government is now considering establishing processing centers where the gum is grown. The Gum Arabic Company, which was a government-sponsored monopoly until recently, is investing in factories to turn its raw gum into powder for export. The company has a 90% stake in the processing plant in Port Sudan.
Sudan is still bringing in gum arabic to the United States, but the amount of gum arabic destined for the U.S. has dropped considerably. According to the Commerce Department, imports of gum arabic from Sudan were $2.4 million in June of this year, compared to $2.8 million a year ago. One Gum Arabic company owner estimates that as much as 5,000 tons of gum arabic have been exported from Sudan, which is far less than the total for last year. This is largely because the country has increased its exports and lowered its imports.
Although Sudan has a significant raw gum industry, its production has decreased over the last 40 years. Much of this decline is due to the government’s inefficient pricing policy. The government fails to pay its farmers adequate prices for the gum they produce. Additionally, the volatility of the export price forced end-users to look for gum from elsewhere. Furthermore, the GAC has accumulated a significant amount of stocks, jeopardizing its financial sustainability. In response, the Economic Committee of the Council of Ministers recently ordered the suspension of GAC’s monopoly export power.
