2024-02-08 23:01:09
The Sudanese crisis which has lasted for almost 10 months has disrupted the trade in gum arabic, a natural additive widely used in the food, cosmetics and pharmaceutical industries. Since January, the crisis in the Red Sea has made the situation a little more complex.
France is the world’s leading importer and processor of gum arabic and as such illustrates the difficulties of the sector, a sector oriented internationally since most of what is imported into France is re-exported to meet needs in particular soda manufacturers.
The gum arrives in France through the port of Le Havre, and it is therefore in Normandy that the two main importers are based, Don’t readet Alland & Robert. These two gum giants are working today in step with the evolution of the global geopolitical situation. The context is so volatile that the CEO of Alland & Robert confides, during a visit to his new production unit in Saint-Aubin-sur-Gaillon, to receive daily news from his Sudanese suppliers.
Sudanese exports put to the test
With the conflict, the gum capital became Port Sudan, on the shores of the Red Sea. This is where trading now takes place and where local suppliers have set up shop. This is also where 70% of Alland & Robert’s supplies come from, Sudan being the world’s leading exporter of gum.
In recent months, the Norman company says it has helped hundreds of Sudanese families to reach more secure production areas. The company has also become, in fact, a lessor and has already advanced millions of euros to pre-finance its purchases, explains the young thirty-year-old CEO. This financial risk-taking is motivated by one objective: security of supplies.
Fall in importers’ margins
Export security has been put to the test since the Houthi attacks in the Red Sea. For importers, who are very dependent on Sudan, the logistical disruptions that have resulted for several weeks are a new hard blow. Shipping acacia exudate from Port Sudan now takes twice as long, with freight rates almost twice as high. “ It’s only negative for now », summarizes the CEO of the Norman company which has logically seen its margins decrease.
The combination of crises has pushed Alland & Robert, like Nexira, to diversify its purchases even further, by increasing its volumes purchased in Chad and Nigeria, for example, or by supporting more embryonic sectors such as that of Kenya.
« The current crises have shown that it is essential for importers to have stock », Explains an expert in the sector. In such a context, what is not purchased by an importer can be purchased by its competitor, and this is what also perhaps explains the determination of gum processors to seek out all available quantities, wherever they are, despite the rise in prices.
Growing global demand
Ensuring trade continuity is vital for players in the sector, as global demand for gum is growing, on average 7 to 8% per year. To anticipate market growth, Alland & Robert increased its production capacity at the beginning of January, which now stands at 30,000 tonnes, or 50% more than previously.
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