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Ever heard of gum arabic? Probably not, but we contact him almost every day. It is a raw material used especially in the food industry.
For example, in sweet drinks, the rubber product acts as a stabilizer, binder and thickening agent. In sparkling wine, the substance ensures that the carbon dioxide bubbles are the perfect size. It is also found in sweets such as gum arabic, gummy bears and gum. Likewise in the manufacture of medicines, cosmetics and colours.
Six months’ provisions – and then?
The trick: 70 to 85 percent of gum arabic produced worldwide – by estimate – comes from Sudan. The raw material is also referred to as the “desert gold of Sudan”. The rubber product is obtained from acacia trees growing in the Sahel.
With the outbreak of conflict in the East African country, concerns about supply are growing. Richard Finnegan of Kerry Group, an Irish food company that also supplies gum arabic to other customers, said stocks last another five to six months: “Depending on how long the conflict lasts, it can have an impact on the finished products on the shelves — branded products from well-known manufacturers.
Nestlé and Coca-Cola Calm Switzerland
Beverage maker Coca-Cola, which uses gum arabic in its soft drinks, will also be affected. Coca-Cola Switzerland does not want to look at cards when asked to look at them. The global supply chain ensures that you are prepared in the event of supply bottlenecks. “So you can be sure that your favorite Coca-Cola beverage will be available in Switzerland,” writes a Coca-Cola spokesperson.
Nestlé, the world’s largest food company based in Switzerland, is also one of the largest buyers of gum arabic. A spokesperson there reassured: “So far we have not been affected and we have taken measures to address potential bottlenecks in deliveries and raw materials.”
hope for ceasefire
It is said that Novartis does not use gum arabic in production. Roche cannot immediately say whether potential delivery bottlenecks will affect drug production.
The good news is there are other producers, including Chad, Niger and Mali, who could increase production to fill the gap. After all, gum arabic is a million dollar business, there are incentives. And more importantly: ceasefires are always shorter in Sudan. Although fragile, they offer hope that the violence may soon end.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
