Southern Sudan Gum Acacia – Sub-sector situational analysis study

Abstract

Southern Sudan is endowed with a diversity of natural forest and woodland resources. Among the non timber forest products, Gum acacia is the most important as it has sustained the Sudanese economy for a long time. The gum belt in Southern Sudan runs across from Eastern Equatoria State, Central Equatoria State, North Barhl El Ghazal State, Warrap State, Unity State, Jonglei State to Upper Nile State. Gum acacia is a seasonal product from the widely-growing A. Senegal and A. seyal. Gum acacia is widely used in the food and pharmaceutical industries as an emulsifier, stabilizer, texturizer, film former and binder. Gum acacia (gum acacia) has the potential to make significant contributions in alleviating poverty by increasing cash incomes for resource poor agro-pastoral communities living in remote areas in Southern Sudan. This study aimed at conducting a rapid gum sub sector analysis and role definition of Gum acacia in supporting poverty reduction, household livelihoods and food security in Southern Sudan in preparation for a multi stakeholders‟ workshop. The results of the study are expected to enlighten the workshop participants on the current state of Gum acacia in Southern Sudan, where it‟s found, estimated quantities or potential, where current harvesting is taking place, who the harvesters are, current uses of gum acacia, current markets and marketing organizations, current prices, overview of relevant policies, map other actors in gum and their activities including challenges being encountered or gaps that need discussion during the workshop. Additionally, other important non timber forest products were to to be identified and traditional knowledge in development and conservation strategies of gum and these NTFPs documented. In order to achieve this, SNV hired a team of two consultants in the framework of NGARA to conduct a situational analysis of the sub-sector assisted by national staff (from GOSS-MAF and SNV). The study focused on three states namely: Upper Nile State (UNS), North Barhl El Ghazal State (NBEGS) and Eastern Equatoria State (EES). The situational analysis was done in a participatory manner so as to get inputs from all actors in the value chain. There were some limitations for the study, key among them being: insecurity, short duration for the wide area covered, few sampling points and a small number of respondents. Despite the limitations, a number of important findings were obtained and reported. Gum acacia from Southern Sudan is produced by two main species, A. senegal (L.) Willd var. senegal and A. seyal Del var. seyal. A short description and distribution for each species is given in the report. The study estimates the potential annual production of Gum acacia from Southern Sudan at 6,541.2 –15,580.3 MT which translates to an annual export value of US $ 12,428,280 -25, 850,300. x Gum from Acacia senegal trees is obtained through tapping the stem and branches while that from A. seyal is exuded through naturally occurring breaks or fissures in the tree branches and bark. Tapping of A. senegal trees starts as early as mid October to early November. The main gum collection season is December-May. A. senegal trees, 3 years and above with tree diameter ranging from 4-16 cm are tapped. Each tree produces approximately 2.5 kg per season, varying with seasons, sites and trees. The gum produced in Southern Sudan is about 19 % of the total production in Sudan. There are more than 150,000 resource poor agro-pastoralists involved in tapping and collection of the gum. Men dominate the collection of gum in UNS, women in NBEGS and herders (boys) in EES. The local uses of gum seem limited to chewing by the locals and being added to milk by some herders. Despite the limited use locally, Gum acacia is an important alternative source of livelihood especially during the drier months when no income may be expected from agricultural produce. More than 50 % of the local communities in gum producing areas depend on gum production as an alternative source of livelihood, especially if the producer price is good. It is only in UNS, where the producers are organized in producer cooperative societies with an overall Umbrella Producer Cooperative union at the county level. The prices of Gum acacia are set by the traders and are currently too low. The collectors used to get SDG 5.6-6.7/kg (US $ 2.6-3.1 /kg )1 of gum hashab in 2005 and earlier but the current prices range from SDG 1.12 -1.34/ kg (US $0.45- 0.54)2 in UNS, SDG 0.5-1/ kg (US $ 0.2-0.4) 3 for gum talha in NBEGS and SDG 1/ kg for gum hashab in EES. The gross income for producer from the sale of gum hashab was about 20.3 % of the export value in 2008/9 and 39.1 % in 2007/8. The gross income for the producer from the sale of gum talha was about 33.3 % of the export value in 2008/9 and 25 % in 2007/8. The unit export values ( Per MT) for Gum acacia from Sudan ranged from US $ 1053 in 2003 to US $ 4595; in 2007 (all grades combined) and was US $ 3400 (Hand picked selected) and US $ 2500 (Grade 1) and US $ 1300 (grade 2) in 2008. Gross margins for Gum hashab (from A. senegal ) and gum talha (from A. seyal)are reported. The profits were 3.4 % for trader and 14.6 % for exporter in 2007/8. The trade in Gum acacia in Sudan has been monopolized by the Gum acacia Company (GAC) for along time until its collapse in 2009. The marketing channels of Gum acacia in the three states are reported. In UNS most of the gum is sold to the Northerners. The local merchants have been selling this commodity to individual traders from the North or agents of Gum acacia Company (GAC). These agents or GAC then transport the gum to 1 Exchange rate- 1 US $ =SDG 2.2 (in 2005) 2 Exchange rate -1 US $ = SDG 2.5 3 Exchange rate -1 US $ = SDG 2.5 xi Port Sudan from where the products are exported out of Sudan. In NBEGS, the traders from the North buy the gum from the local traders and transport it to the north and finally to Port Sudan. Gum acacia from NBEGS (mainly from Aweil East) is bought by South Sudan Gum Company Ltd (SSGCL (a company permitted by GOSS to trade in Gum acacia since 2007). The consignment is transported by river to Juba and by road to Mombasa Port. In EES the only gum marketed was delivered to the buyer (Aridlands Resources Ltd, from Kenya) to Lokichogio and then exported through Mombasa Port. The international market of Gum acacia, currently remains polarized, with the European Union and the United States of America on the one hand and the principal producing and exporting countries located in Africa, namely Sudan, Chad and Nigeria on the other hand. The current world demand is high and mean supply over 15 years (1992-2006) is about 46,085 MT, VARYING FROM 30,000 TO 65,000 MT. Europe dominates, the global market of Gum acacia, marketing 83 % of the total amount (in tons) and representing close to 89 %. The main gum producing and exporting countries being Sudan, Chad and Nigeria, accounted for 96 % of Gum acacia exported in 2007. In the last 15 years, Sudan had the highest export accounting for about 63 % of the world exports. However, in 2006, Sudan‟s share in the international market reduced to 35 % while those for Nigeria (32 %) and Chad (27 %) went up sharply. Despite Sudan‟s predominance in the world market, the southern part of the country has not been able to participate fully in the Gum acacia trade due to the lack of awareness by most of the local communities on the importance of the product at the international level and the lack of access to the market. However, there exists an opportunity for aggressive marketing of gum from Southern Sudan. Some of the key current export markets for gum from Southern Sudan include: United States of America, South America, India, Europe, United Arab Emirates (UAE) and Japan. The estimated high potential annual production of Gum acacia from Southern Sudan is an indication of the great potential for investment in trade and value addition in this sub-sector. There is an opportunity for more companies investing in the Gum acacia trade. The investors may need to pay more attention in post harvest handling of Gum acacia to increase its quality. Despite the high potential, the study identifies a number of challenges that require urgent attention. An overview of some of the relevant policies (international and national) that would enhance Gum acacia production and marketing for increased incomes and food security at household levels leading to improved livelihoods in Southern Sudan was done. The national policies include: Forestry, land, monetary and finance, taxation, investment, infrastructure and trade. xii A number of other commercially valuable non timber forest products available in Southern Sudan were also identified and described. These include indigenous fruits from Balanites aegyptiaca (desert date), Tamarindus indica, Zizyphus spina-christi, Sclerocarya birrea, Vitellaria paradoxa (shea nut), Vitex doniana, Grewia tenax, and Borassus aethiopum (yellow coconut), medicinal plants, honey and bee products. The study has also revealed that traditionally-based management system of the gum tree resources and those for the other NTFPS was carried out on a sustainable natural resource conservation basis. The techniques adopted by the local communities included: collection of dead wood and protection of the resource by a council of elders through use of cultural taboos and well laid down informal laws. A number key challenges and gaps have been identified and reported. These include:  The A. seyal yet to be fully exploited and currently being cut as a source of fuel wood.  Gum resources are under threat from fire and occasional invasion by locusts.  No security of supply as there are no plantations for gum acacia resources or buffer stock to ensure sustainable supply of the gum and current method of gum tapping not sustainable.  Resource inventory data, maps and management plans for the Gum acacia producing tree resources are lacking.  Insecurity, inaccessibility, long distance to gum production areas are a challenge in some sites.  Most communities in non traditional Gum acacia producing areas with gum acacia tree resources are ignorant of the importance of Gum acacia and lack skills to exploit this resource.  There are price fluctuations in the international market.  Increased competition from other producers especially from Chad and Nigeria.  There are limited markets especially for gum from EES  The producer prices are affected by local politics.  The gum marketing and trade is monopolized by a few traders.  There are no producer cooperative groups except in UNS.  High and multiple taxation in Southern Sudan are an impediment to gum trade.  Difficulties in exporting gum from Southern Sudan through Port Sudan.  Exporting through Mombasa port is very expensive due to high transport costs.  There is a general lack of legislated law to govern various institutions.  There are policy gaps in Southern Sudan. Most of the current policies are obsolete and irrelevant and require review. xiii  There is inadequate human resource capacity in the area of quality and quality control coupled with few and ill equipped Universities or laboratories in Southern Sudan.  Southern Sudan is rich in traditional ecological knowledge but this is yet to be properly documented.  There is poor data collection and documentation along the Gum acacia value chain leading to un-reliable statistics and information on Gum acacia trade.  Extension services are ineffective and not extensive.  There is no stakeholders‟ consultative forum. It is concluded that Gum acacia from A. senegal and A. seyal, indigeneous fruits/nuts/seeds, medicinal plants and honey and bee products are significant among the various natural resources in Southern Sudan. These are renewable resources that could be sustainably exploited for household income, employment generation and still conserve biological diversity and ecosystem functions while increasing overall productivity of the land. Some short term, medium term and long term recommendations are given. The key ones being: Short term 1. GOSS-MAF to refine policies on tree products to better suit the producers. 2. Need to identify a suitable brand name that is recognizable internationally and lobby for its registration and adoption through FAO, NGARA and AIPG. 3. State governments should enforce protection and conservation of gum producing tree species. 4. Develop guidelines for sustainable tapping of gum srabic from A. senegal. 5. Promote establishment and strengthening of producer cooperative societies. 6. Promote and support the creation of more micro-finance schemes. 7. Gum acacia value chain analysis 8. Carry out training for all actors along the value chain. 9. Aggressive marketing of Gum acacia and linking the producers to markets 10. GOSS to urgently discuss with the government of national unity on use of Port Sudan. Medium term 1. GOSS-MAF should hasten the introduction of a new Forest Act. 2. Promote formation of an Umbrella Gum acacia society for the whole of Southern Sudan 3. Carry out a detailed traditional ecological knowledge study on non timber forest products (NTFPs). xiv 4. Assess the viability of community based value adding practices for NTFPS. 5. Put in place relevant policies and/or legislation to urgently address missing gaps. 6. Support intensive resource inventory and mapping of the Gum acacia producing resources. 7. Map gum acacia quality variation within and among producing states for the two types of gum. 8. Set a transparent and enabling business environment for private investors. 9. Make changes in rules governing marketing and export of Gum acacia to stimulate production and boost producer incomes. Long term 1. Develop management plans for the Gum acacia resources. 2. Establishment of plantations of A. senegal and A. seyal species. 3. Consider establishing some grinding factories to crush gum into powder