What the struggle in Sudan has to do with the Coke on the shelf

It is often only a small amount, but it is crucial for many popular products: gum arabic is in soft drinks, chocolate bars and red wine and could become scarce due to the conflict in Sudan.

Because about 80 percent of the gum arabic used worldwide as a thickener and stabilizer comes from Sudan. It is the wound juice of acacia trees, which is obtained by peeling off the bark.

Many well-known brands such as Coca-Cola, Pepsi and Mars depend on the tasteless and odorless dried juice, and substitutes are scarce. The raw material is also used in cosmetics and pharmaceuticals.

Transport and export difficult

A bloody power struggle is currently raging in Sudan. The rivalry between two generals in the East African country has so far claimed more than 500 lives, injured thousands and displaced tens of thousands. Fighting that broke out in Sudan on April 15 also appears to have frozen the trade in raw gum arabic both inside and outside Sudan’s borders, with prices already skyrocketing.

If the situation does not calm down, this could become a problem for many large companies during the year. Companies such as Coca-Cola, Pepsi and Mars have not yet responded to the situation. Nestlé would have taken precautions.

Most manufacturers have six to 12 months of stock in stock, Martijn Bergkamp, ​​a partner at Dutch company Foga, which imports and processes Sudanese gum arabic, told the Wall Street Journal. No company therefore has to stop production immediately.

But it’s unclear what future deliveries will look like. The cultivation in the countryside of the East African country is still not affected, but the production locations around the capital Khartoum are part of the particularly hard-fought area. Moreover, fuel is scarce, which makes transport and export more difficult. The port city of Port Sudan, a hub for the gum arabic trade, has now become primarily a distribution point for people displaced by the conflict seeking safety.

There is little replacement

Finding a replacement is also difficult. Chad and Nigeria also export gum arabic, but in much smaller quantities. Pectin or corn fiber can be used in some products, but that doesn’t come close to the benefits of gum arabic, according to expert Bergkamp.

According to the online platform Observatory of Economic Complexity, the world trade in gum arabic was worth about $363 million in 2021. In 2021, the US alone imported about 20,445 tons of the substance worth about $66 million.

This significant volume of trade also has a political dimension: the fact that Sudan secures such a large share of world consumption could complicate potential sanctions. When the US imposed trade restrictions on Sudan in the 1990s because then-President Omar al-Bashir allegedly supported international terrorist groups, including al-Qaeda, President Bill Clinton created a loophole for gum arabic.