How a key ingredient in Coca-Cola, M&M's is smuggled from war-torn Sudan
Gum arabic, essential for products like Coca-Cola, is increasingly smuggled from Sudan, where the RSF controls production and complicates supply chains, raising concerns about product legitimacy and ethical sourcing.
Read original articleGum arabic, a crucial ingredient in products like Coca-Cola and M&M’s, is being increasingly smuggled from conflict-ridden Sudan, complicating supply chains for Western companies. Sudan accounts for approximately 80% of the global gum arabic supply, harvested from acacia trees. The paramilitary Rapid Support Forces (RSF) have taken control of key gum-producing regions, leading to the trafficking of this raw material without proper certification. Traders report that the RSF charges fees for protection and control over the gum trade, which is now being exported through informal markets to neighboring countries. Despite the RSF's claims of protecting the trade, industry sources express concerns about the legitimacy of the supply chain, as many traders cannot confirm the origins of their products. Companies like Ingredion and Nexira are diversifying their sourcing to mitigate risks associated with the conflict. However, the opaque nature of the trade raises alarms about the potential infiltration of illicit products into global supply chains. The RSF has also banned exports of certain goods, including gum arabic, to Egypt in retaliation for military actions. The situation highlights the challenges faced by companies in ensuring ethical sourcing amid ongoing violence and instability in Sudan.
- Gum arabic is vital for many consumer products and Sudan is the primary global supplier.
- The RSF controls gum production areas and charges fees for protection, complicating supply chain integrity.
- Many traders are unable to provide certification for the gum, raising concerns about its origins.
- Companies are diversifying their sourcing to avoid conflict-related risks.
- The RSF has banned certain exports, further complicating the trade dynamics.
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At $4-$7 per Kg in the US, the cost per Coke can would be in the order of 0.025 cents (guesstimate).
This is interesting considering that 80% of the supply comes from Sudan.
It is a nearly universal ingredient in processed foods and professional kitchens. I wonder how the economics work to push the price down.
EDIT: Apparently naturally abundant Acacia trees produce it with barely any oversight and it is easy to harvest in large quantities compared to how much volume is needed in end-products. I suppose if Sudan tried to squeeze their monopoly other suppliers would easily come up in other regions. The reason for the monopoly must simply be a combination of a favorable environment and the fact that they are willing to do it very cheaply because unfortunately they don’t have many other options to sustain themselves.
https://www.ide.go.jp/English/Data/Africa_file/Company/sudan...
Seems weird world population and consumption increased by... a lot sinc ethe 60s but Sudans production halfedand still accounts for 80% of world demand? I guess there's substitutes, or some uses deprecated.
Sudan has had a military dictatorship from 1989-2019 (led by Omar al-Bashir).
In 2017, both President Obama and President Trump lifted sanctions on Sudan, after al-Bashir reneged on a promise to step down just two years earlier.
In 2018/2019, price hikes resulted in massive protests and a subsequent revolution against al-Bashir. This finally resolved in 2019, when a joint military-civilian political agreement, constitution, and council were formed. At that point, lots of aid was needed in order to rebuild and stabilize the country, but as usual, actually getting that money was difficult. The bulk of it came from Saudi Arabia and the UAE.
In 2021, there were two more coups.
In 2023, a new civil war broke out between the military dictatorship and a paramilitary branch of it. That war is still persisting. War crimes are rampant, mass-murder and genocide persist, almost the entire country cannot afford food. The main backer of the paramilitary group preventing the conflict from ending is the UAE.
It's gum arabic.
> Sudan produces around 80 per cent of the world’s gum arabic, a natural substance harvested from acacia trees that’s used widely to mix, stabilise and thicken ingredients in mass-market products including L’Oreal lipsticks and Nestle pet food.
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