Sudan Conflict Threatens Global Supply of Key Fizzy Drinks Ingredient

The conflict in Sudan has left international consumer goods makers racing to shore up supplies of gum arabic – critical to the food, drinks and cosmetics industry.

Sudan is the world’s largest producer of gum arabic, a resin tapped from the acacia tree.

 

 

 

Wary of Sudan’s political instability, companies dependent on gum arabic, such as Coca-Cola and Pepsico, have long stockpiled supplies, some keeping between three to six months worth to avoid being caught short, exporters and industry sources said.

“Depending on how long the conflict continues there may well be ramifications for finished goods on the shelf – branded goods made by household names,” said Richard Finnegan, a procurement manager at Kerry Group, a supplier of gum arabic to most major food and drink firms.

He estimates current stockpiles will run out in five to six months.

Also, this is a view shared by Martijn Bergkamp, a partner at Dutch supplier FOGA Gum, who estimated supplies would last for three to six months.

Alwaleed Ali, who owns AGP Innovations Co Ltd, a gum arabic exporting business, said his customers are looking for alternative countries to supply the product.

US-based Ingredion Inc, an ingredients supplier in Illinois, said: “We have proactive measures in place across our business to ensure the continuity of supply for our customers.”

 

Gum Arabic Production

Global production of gum arabic is about 120,000 tonnes a year, worth $1.1bn (£883m), according to estimates cited by Kerry Group.

Kerry Group and other suppliers, including Sweden’s Gum Sudan, said communicating with contacts on the ground has been difficult.

“Our suppliers are struggling to secure necessities because of the conflict,” said Jinesh Doshi, managing director of Vijay Bros, an importer based in Mumbai, India. “Both buyers and sellers are clueless on when things will normalise.”

 

Failed Deal

The current crisis in Sudan comes after two generals fell out over a recent internationally brokered deal with democracy activists, which was meant to incorporate the paramilitary Rapid Support Forces (RSF) into the military and eventually lead to civilian rule.

In 2019, Sudanese Leader, Omar al Bashir was overthrown in a popular uprising. The army and RSF later jointly mounted a 2021 military coup.

But the relationship between the two factions broke down during negotiations to integrate and form a civilian government.

 

 

 

Reuters/Hauwa Abu