There is war in Sudan. The production of gum arabic is also affected by the fighting. The resin is in many products, such as Coca Cola or Pepsi. Now there could be delivery bottlenecks.
This article first appeared on RTL.de
Gum arabic is one of the most desirable products Sudan has to offer. Around 70 percent of global production comes from acacia trees in the Sahel zone, the so-called “Gum Belt”. This gum arabic belt runs from Senegal to Nigeria to Somalia. The main export countries are Nigeria, Chad and Sudan – and none of the three countries can be described as particularly stable.
War in Sudan could lead to supply problems for Coca Cola and Pepsico
But now exporters are sounding the alarm. Because the current conflict in Sudan could have a negative impact on the production of the coveted gum arabic. As the Reuters news agency reports, manufacturers such as Coca Cola or Pepsico are said to have stored supplies for three to six months. “Depending on how long the conflict lasts, there may well be an impact on finished goods on the shelf – branded goods from well-known manufacturers,” Richard Finnegan told Reuters. He is a sourcing manager at Kerry Group, a supplier of gum arabic to most major food and beverage companies.
“Companies like Pepsi and Coke cannot exist without gum arabic in their formulations,” Dani Haddad told Reuters. He is the Marketing and Development Manager of Agrigum, one of the top ten global suppliers of the valuable gum. The Kerry Group estimates that global production of gum arabic is around 120,000 tons per year, with a value of 1.1 billion US dollars.
Gum arabic barred from US sanctions on Sudan
Twelve exporters, suppliers and traders told the Reuters news agency that the gum arabicumi trade had come to a standstill. According to experts, there are also alternatives to gum arabic for many products, but not for the manufacturers of carbonated drinks such as Coca Cola or Pepsi.
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A political decision in the USA also shows how important gum arabic is for the industry: gum arabic has been exempt from US sanctions against Sudan since the 1990s. If the conflict in Sudan lasts longer, there could be supply bottlenecks in the supermarkets for soft drinks and certain sweets – and that for a longer period of time.
Source: Stern
