Vol. 3 - Issue 1 - Februrary 5th 2003

ACACIA TREES

Who Supplies Gum Arabic?
The Acacia tree originates in Africa.

At one time Sudan was the exclusive supplier
of the Gum Arabic variety, however,
because of the political situation, Chad has been developed
as a supplier and Nigeria is becoming an increasingly
important player in this key local market.

GreenPlanet’s efforts are wholly directed in working
with our Nigerian colleagues, and helping to develop
a significant export opportunity for the country.

In 1998, 95% of world exports came from three countries:
Sudan (56%); Chad (29%); and Nigeria (10%).

Likewise, imports were concentrated in three countries:
France is the largest importer (46%) and re-exporter, followed
by the United States (21%); and the United Kingdom (12%).

The case of Chad shows that new competitors can
successfully enter the market or expand market share.

Chad’s share in the market jumped
from 5% ten years ago, to nearly 30% today.

Our aim is to see Nigeria strengthen
its market share as Chad has done.

Producers looking for niche market opportunities should
consider South American and Asian markets
such as Argentina, Brazil, China, Mexico and Pakistan.

Collateral Benefits of Growing Acacia Trees

Gum Arabic forestation creates job opportunities
for unemployed people, is a rich source of income for local
communities and helps in the fight against desertification,
because the roots serve to stabilise the soil.