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BULLETIN MNS March 2009 GUM ARABIC AND GUM RESINS MARKET NEWS SERVICE (MNS) QUARTERLY EDITION

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Page 1: GUM ARABICCover Page - s3. · PDF fileinclude major importers, exporters, manufacturers, ... such as guar gum or pectin, ... United States it possesses the FDA GRAS

BULLETIN MNS March 2009

GUM ARABIC AND GUM RESINS MARKET NEWS SERVICE (MNS) QUARTERLY EDITION

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Disclaimer

This report has been prepared without formal editing, as a service to exporters and industries in developing countries by the Market News Service (MNS), Division of Market Development, International Trade Centre.The Joint Agency of the World Trade Organization and The United Nations. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without prior permission in writing from the International Trade Centre. The mention of specific companies or of certain commercial products and brand names does not imply that they are endorsed or recommended by ITC in preference to others of a similar nature that are not mentioned. The designations employed and the presentation of material on the map do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any Country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

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Market News Service Gum Arabic

Market News Service

GUM ARABIC AND GUM RESINS

Report prepared for ITC’s Market News Service by: Mr. Salif Touré Issue 1 March, 2009

The Market News Service of the International Trade Centre UNCTAD/WTO (ITC) provides timely and detailed price and market information on selected primary and semi-processed products of particular interest to developing countries and economies in transition. Regular access to such information is vital to companies deciding when and where they should sell or buy products on international markets. MNS thus aims to serve as a market intelligence tool, to enable developing countries realize their full income potential through global trade expansion. MNS does not act as a broker and is exclusively an information service with the objective of improving market transparency and encouraging price and quality competition for the benefit of all market players. MNS’ team of product specialists draws its information from a network of correspondents in many countries worldwide, collecting up-to-date data on wholesale prices paid for specific products, supply and demand trends, and economic, climatic and legislative information that can affect the short-term market situation of particular products. MNS' information providers include major importers, exporters, manufacturers, wholesalers, and governmental organizations. We continuously encourage and welcome new sources of information. Should you be interested in becoming an information provider and contributing to MNS' efforts to improve market transparency and facilitate trade, please contact us at [email protected]. The information provided in this report was obtained from several sources and relates to various Gum Arabic characteristics, the supply and demand situation of the product, economic and legislative environment as well as the effects of climate change on its global trade.

For more information about the report and Market News Service, please contact [email protected] or visit our website on http://www.intracen.org/mns

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Market News Service Gum Arabic

INDEX

OVERVIEW OF GUM ARABIC 3 The product 3 Major uses of Gum Arabic 4 THE GLOBAL GUM ARABIC MARKET 5 Global crude gum exports and price trends 5 Global imports and price trends 9 Factors affecting the global market 16 Role of women and gum production 17 Gum production, a still non-industrialised process 17 Conclusion 19

OVERVIEW OF GUM RESINS 20 The Products : Incense, myrrh and opoponax 20 Overview and utilisations 20

THE GLOBAL GUM RESIN MARKET 24 Exports 24 Imports and global trends in consumption 29 Opportunities, threats and factors affecting the gum resin market 31 Conclusion 32

FAIRS AND EXHIBITIONS 34

ANNEXES 35

Part I: Gum Arabic 35 Abbreviations 35 Useful Addresses 35 References and Information Sources 38

Part II: Gum Resins 38 Useful Addresses 38 References and Information Sources 39

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Market News Service 3 Gum Arabic

OVERVIEW OF GUM ARABIC Of all gum types traded globally, gum arabic is the most popular and the most in

demand both at the production and global trade levels.

The product Gum arabic is the substance that exudes from Acacia senegal or Acacia seyal tree barks. These two species belong to the larger Mimosaceous Legumes plant family. Gum produced by Acacia senegal is known as ‘hard gum’ while gum from Acacia seyal is known as ‘flaky gum’. Gum arabic is a pale orange-brown solid which, when ruptured, releases a vitreous substance. The high-quality varieties are round or tear-shaped, orange-brown in colour with a non-glossy surface. Following industrial transformation into the broken or crushed state, the resulting pieces are vitreous and paler in colour. Unlike several other plant-based gums, gum arabic dissolves easily in water (up to 50%). Acacia senegal gum, in particular, has a low viscosity of 16ml/g on average. It forms a colourless, tasteless solution and is largely non-reactive when mixed with other chemical compounds. Chemically, gum arabic is a slightly acidic complex compound composed of glycoproteins, polysaccharides and their associated calcium, magnesium and potassium salts. The key compound is a branched polysaccharide known as arabic acid, arabin. It is composed of a D-galactose (1,3)-linked base connected to branched (1,6)-linked L-arabinose, L-rhamnose and D-glucoronic acids. The proteins are known as arabinogalactans and are rich in hydroxyproline. Laboratory tests have established the following characteristics for the Acacia senegal and Acacia seyal varieties of gum arabic:

Table 1. Main characteristics of gum arabic Acacia

senegal Acacia seyal

Optical rotation/degrees

- 30 + 51

Average molecular weight (Mw)

380 000 850 000

4-O-methylglycuronic acid

1,5 5,5

Rhamnose (%) 13 4 Nitrogen (%) 0,36 0,15 Glucuronic acid (%) 14,5 6,5 Galactose (%) 44 38 Arabinose (%) 27 46 Source : 3rd NGARA publications series, September 2005 Gum arabic is a soluble, edible fibre. As a result, it remains functional within the organism as has been demonstrated by several studies. Incidentally, edible fibres are defined as the remains of plant cells that are not completely hydrolyzed by enzymes in the small intestine and later diffuse into the large intestine, where they are fermented by microflora. Most of the compounds that fulfil this definition of edible fibres, are polysaccharides from the membrane wall (cellulose, semi-helluloses, and pectins) and cytoplasmic polysaccharides (gums, resistant starch, inulins…). Gum arabic is composed primarily of highly branched galactane polymers, linked to side galactose and/or arabinose chains, which in turn are linked to rhamnose or glucuronic acid residues. The human digestive system does not secrete or synthesise enzymes that effectively hydrolyse such polysaccharides. Hence, gum arabic transits through the stomach and the small intestine without being digested until it is fermented in the large intestine by bacteria.

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Market News Service 4 Gum Arabic

Gum arabic is completely fermented in the colon because no detectable amounts are excreted with the faeces. It is broken down and excreted in gaseous form during respiration or absorbed in the form of short fatty acids by the mucus layer. Other soluble alimentary fibers, such as guar gum or pectin, undergo the same fate in the digestive system. In its Compendium on food additives- Addendum 7 (1999), the joint FAO/WHO committee of experts on food additives (JEFCA) made no distinctions between Acacia senegal and Acacia seyal. Gums

obtained from other Acacia species, though, were not considered equivalent. In Europe, Gum Arabic is authorized as a food additive named E414; while in the United States it possesses the FDA GRAS (Generally Recognized as Safe) status. The food codex attributes an “E” code to other types of traded gums. Hence, E412 is attributed to Guar gum, E413 for gum from acanthus and tragacanth plants, E415 for Xanthane gum, E416 for Karaya gum, E417 for Tara gum and E418 for Gellan gum.

Major uses of Gum Arabic Gum arabic is utilized in the food industry to set flavours, as an emulsifying agent, to prevent the crystallization of sugar in confectionary and as a stabilizing agent in frozen dairy products. It is also useful in the baking industry because of its viscous and adhesive properties, used to stabilize mousses, and as a turbidity agent in beer. In the pharmaceutical industry, gum arabic is utilized to stabilize emulsions, as a binding agent and for coating medications. It is also included in the mixtures for eye drops and cough syrups. In the cosmetic field, it is used as an adhesive in the fabrication of face powders and masks and added to lotions to obtain a creamy and smooth consistency. In the chemical industry, gum arabic is utilized as glue, as a colloid protector and as an ink preservative. It is also used to sensitize lithographic plates, to stiffen cloth, coat certain paper types and for coating metals to prevent corrosion. It is equally used in manufacturing matchsticks and ceramics (Cossalter, 1991).

Gum arabic is used in manufacturing ink, making adhesives, crafts making, used in cosmetic products, in confectionary and in foodstuff. It is also utilized locally in special meals and as chewing gum. Focusing specifically on human consumption, gum arabic is an excellent dietary and nutritional product because it contains less than 1cal for every gram. Ever since the pharaonic era, gum has been utilized in traditional medicine as a calming and softening agent. It is equally included in (traditional) medicine concoctions to address internal ailments such as cough, diarrhea, dysentery and hemorrhage and applied externally, to treat inflammations. It is also used in veterinary medicine, to treat skin diseases and inflammations for example.

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Market News Service 5 Gum Arabic

THE GLOBAL GUM ARABIC MARKET As a result of the current global financial crisis, the beginning of the year 2009 saw an ample supply of gum arabic whereas demand remained low. An analysis of the crisis and its potential consequences on the trade of gum arabic was covered in the last edition of the report. Despite measures taken by some countries and economies to diminish the effects of the crisis,

especially on vulnerable economies, previous predictions turned out to be accurate as several of the major consumer countries of gum arabic have entered into recession. Also, an analysis of the extent to which gum-producing countries are affected by the crisis would be appropriate.

Global crude gum exports and price trends In spite of an overall gloomy environment, the bulk of crude gum arabic exports are still guaranteed by the African gum-producing countries, where the three major producer countries remain Sudan, Chad and Nigeria. Unfortunately, the low industrialization levels of the gum arabic sector in these countries do not provide a viable adaptation measures to the downward trend in global demand. This report analyses data on crude gum arabic exports made available at the end of the year 2008. Therefore, Tables 2, 3 and 4 present the crude gum arabic quantities (in kg) exported between the second and fourth quarters in 2008, by the major gum-producing countries—Sudan, Chad and Nigeria, respectively. Sudanese crude gum arabic exports during the third quarter of 2008 towards the United States, France, the United Kingdom, Italy, Japan, Norway, Finland and China increased from the quantities recorded in the second quarter. However, Sudanese exports to these countries decreased during the fourth quarter except those to the United States for which a 185% growth rate was noted. For Chad, crude gum exports towards the United States, France and Germany decreased

between the second and third quarters in 2008. Most significantly, Chadian exports to the United States and Germany declined at a rate of 39% and 86%, respectively. Yet, a 32% increase was noted for gum exports towards the United Kingdom during that same period. Although Nigerian exports to France, China and Belgium increased during the second and third quarters of 2008, significant decreases in exports to Germany, the United Kingdom and the United States were observed. In 2008, the total quantities of crude gum arabic exported by Sudan, Chad, and Nigeria amounted to 27, 216 tons (63%), 13,656 tons (31%) and 2, 753 tons (6%), respectively. The total production in 2008, in 43,625 tons, represented a 22% decline from the 2007 total of 55,995 tons. This decline is a direct result of a 28% and 56% decline in exports for Sudan and Nigeria. However, Chadian gum arabic increased by 16%, rising from 11,774 tons in 2007 to 13,656 tons in 2008. The decline of gum arabic exports is mostly due to a weak demand from importing countries and consumers, who are negatively affected by the global financial crisis.

Table 2 : Amount of crude gum arabic exported between Q2-2008 and Q4-2008 by Sudan (mirror

data) 2008-Q2 2008-Q3 2008-Q4

Importers Exported amounts Unit Exported amounts Unit Exported amounts Unit

'United States of America 507 889 Kg 520 000 Kg 1 480 462 Kg

'Japan 610 000 Kg 851 000 Kg 479 675 Kg

'Norway 19 200 Kg 32 000 Kg 19 200 Kg

'China 29 000 Kg 49 000 Kg 14 500 Kg

'Brazil 3 000 Kg 3 000 Kg

'Colombia 4 500 Kg

'Denmark 40 Ton

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Market News Service 6 Gum Arabic

2008-Q2 2008-Q3 2008-Q4 Importers

Exported amounts Unit Exported amounts Unit Exported amounts Unit

'Finland 100 Ton 120 Ton

'France 4 078,5 Ton 6 079,8 Ton

'Germany 604 Ton 454 Ton

'Ireland 180 Ton

'Italy 532 Ton 866,3 Ton

'Sweden 310,1 Ton

'Switzerland 20 000 Kg

'Turkey 2 050 Kg 850 Kg

'United-Kingdom 360,3 Ton 680,3 Ton

'Mexico 8 000 Kg 2 000 Kg

'Taiwan 20 000 Kg

'Argentina 2 100 Kg

'Belgium 380 Ton 80 Ton Source: ITC (TradeMap) based on COMTRADE statistical data

Table 3: Amount of crude gum arabic exported between Q2-2008 and Q4-2008 by Chad (mirror data)

2008-Q2 2008-Q3 2008-Q4 Importers

Exported amounts Unit Exported amounts Unit Exported amounts Unit

'United States of America 2 488 568 Kg 1 527 400 Kg 340 000 Kg

'China 1 000 Kg

'Colombia 1 500 Kg

'France 2 796,7 Ton 2 753,7 Ton

'Germany 1 480 Ton 204 Ton

'Mexico 20 000 Kg

'United-Kingdom 121 Ton 160 Ton

'Argentina 1 000 Kg Source: ITC (TradeMap) based on COMTRADE statistical data Tableau 4: Amount of crude gum arabic exported between Q2-2008 and Q4-2008 by Nigeria (mirror

data) 2008-Q2 2008-Q3 2008-Q4

Importers Exported amounts Unit Exported amounts Unit Exported amounts Unit

'Japan 10 916 Kg

'Australia 10 000 Kg

'Brazil 1 000 Kg

'China 100 000 Kg 103 500 Kg

'France 243,6 Ton 615,8 Ton

'Germany 446 Ton 20,2 Ton

'Italy 0,8 Ton

'Belgium 80,2 Ton

'United-Kingdom 60 Ton

'United States of America 254 000 Kg 160 000 Kg Source: ITC (TradeMap) based on COMTRADE statistical data

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Market News Service 7 Gum Arabic

Export prices of gum arabic fluctuated but remained largely resistant and even increased for some countries during the 3rd and 4th trimesters of 2008 as illustrated in Tables 5,6, and 7. These tables display import markets and price trends for the three major African gum-producing and exporter countries.

Due to the absence of reliable statistical data on the exports, the data reported in these tables represent mirror data obtained from importer countries. During these period, Sudan developed trade relations with 20 countries, Chad with eight and Nigeria with ten.

Table 5: Importers of crude gum arabic exported by Sudan between Q3-2008 and Q4-2008 (Mirror

data) 2008-Q3 2008-Q4

Q4-2008 Importers Unit

value Unit Unit value Unit

Exported value in 2008-Q4,

million USD Exported amounts Unit

'United States of America 1,63 USD/kg 2,03 USD/kg 3 004 1 480 462 Kg

'Japan 3,46 USD/kg 3,05 USD/kg 1 465 479 675 Kg

'Norway 3,75 USD/kg 3,28 USD/kg 63 19 200 Kg

'China 3,53 USD/kg 3,72 USD/kg 54 14 500 Kg

'Brazil 3,67 USD/kg 11 3 000 Kg

'Denmark 3 075 USD/T

'Finland 2 850 USD/T

'France 1 499 USD/T

'Germany 2 857 USD/T

'Ireland 2 444 USD/T

'Italy 2 459 USD/T

'Sweden 3 138 USD/T

'Turkey 7,06 USD/kg

'United-Kingdom 2 164 USD/T

'Mexico 4 USD/kg

'Belgium 3 263 USD/T Source: ITC (TradeMap) based on COMTRADE statistical data

Table 6: Importers of crude gum arabic exported by Chad between Q3-2008 and Q4-2008 (Mirror data)

2008-Q3 2008-Q4 Q4-2008

Importers Unit value Unit Unit

value Unit

Exported value in 2008-Q4,

million USD Exported amounts Unit

'United States of America 2,57 USD/kg 2,74 USD/kg 932 340 000 Kg

'China 4 USD/kg 4 1 000 Kg

'Colombia 4,67 USD/kg

'France 1 893 USD/T

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Market News Service 8 Gum Arabic

2008-Q3 2008-Q4 Q4-2008

Importers Unit value Unit Unit

value Unit

Exported value in 2008-Q4,

million USD Exported amounts Unit

'Germany 1 784 USD/T

'Mexico 3,45 USD/kg

'United-Kingdom 1 750 USD/T Source: ITC (TradeMap) based on COMTRADE statistical data Table 7: Importers of crude gum arabic exported by Nigeria between Q3-2008 and Q4-2008 (Mirror

data) 2008-Q3 2008-Q4

Q4-2008 Importers Unit

value Unit Unit value Unit

Exported value in 2008-Q4,

million USD Exported amounts Unit

'Japan 3,48 USD/kg 38 10 916 Kg

'Australia 3,5 USD/kg 35 10 000 Kg

'Brazil 1 USD/kg 1 1 000 Kg

'China 0,53 USD/kg

'France 1 733 USD/T

'Germany 2 624 USD/T

'Belgium 1 534 USD/T

'United States of America 1,73 USD/kg Source: ITC (TradeMap) based on COMTRADE statistical data

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Market News Service 9 Gum Arabic

Global imports and price trends In addition to the African gum producing and exporting countries, other non-producer countries are also suppliers to the major importer countries. In fact, they re-export gum arabic to importer countries and achieve profit margins significantly greater than those obtained by the producer countries (cf to Table 20 and Figure 2). Having undergone complex industrial processes in the refinement process, their re-exported gum arabic is of a higher value.

As presented in the following tables, the major importer countries include France, the United States, the United Kingdom, Germany, Italy, India, Ireland, Belgium, Japan and emerging countries such as China, Argentina and Brazil. The average global prices listed are based on analyses performed on mirror and actual (available) data.

Table 8: Suppliers of gum arabic imported by France in Q3-2008

2008-Q3 Q3-2008

Exporters

Unit value Unit

Imported value in 2008-Q3,

millions USD Imported amounts Unit

'World 1 711 USD/Ton 18 045 10 543,5 Ton

'Sudan 1 499 USD/Ton 9 116 6 079,8 Ton

'Chad 1 893 USD/Ton 5 212 2 753,7 Ton

'Nigeria 1 733 USD/Ton 1 067 615,8 Ton

'Eritrea 2 615 USD/Ton 879 336,1 Ton

'Ethiopia 2 031 USD/Ton 325 160 Ton

'Niger 2 298 USD/Ton 239 104 Ton

'Mali 1 779 USD/Ton 217 122 Ton

'Italy 1 646 USD/Ton 217 131,8 Ton

'Germany 6 939 USD/Ton 170 24,5 Ton

'India 3 289 USD/Ton 125 38 Ton

'Cameroon 1 459 USD/Ton 110 75,4 Ton

'Senegal 2 643 USD/Ton 74 28 Ton

'Netherlands 3 060 USD/Ton 71 23,2 Ton

'Islamic Republic of Iran 5 800 USD/Ton 58 10 Ton

'Mauritania 2 222 USD/Ton 46 20,7 Ton

'Switzerland 5 143 USD/Ton 36 7 Ton

'Japan 47 500 USD/Ton 19 0,4 Ton

'Belgium 3 455 USD/Ton 19 5,5 Ton

'United States of America 35 000 USD/Ton 14 0,4 Ton

'Egypt 4 667 USD/Ton 14 3 Ton

'Spain 3 889 USD/Ton 7 1,8 Ton

'Bulgaria 13 333 USD/Ton 4 0,3 Ton

'United-Kingdom 1 875 USD/Ton 3 1,6 Ton

'Poland 3 333 USD/Ton 1 0,3 Ton

'Portugal 5 000 USD/Ton 1 0,2 Ton Source: ITC (TradeMap) based on EUROSTAT statistical data

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Market News Service 10 Gum Arabic

Table 9: Suppliers of gum arabic imported by the United States of America between Q3-2008 and Q4-2008

2008-Q3 2008-Q4 2008-Q4

Exporters Unit value Unit Unit

value Unit

Imported value in 2008-Q4, million USD Imported

amounts Unit

'World 2,82 USD/kg 2,87 USD/kg 8 569 2 984 839 Kg

'France 3,92 USD/kg 3,84 USD/kg 3 116 812 081 Kg

'Sudan 1,63 USD/kg 2,03 USD/kg 3 004 1 480 462 Kg

'United Kingdom 3,94 USD/kg 4,65 USD/kg 1 043 224 378 Kg

'Chad 2,57 USD/kg 2,74 USD/kg 932 340 000 Kg

'Germany 4,46 USD/kg 4,76 USD/kg 322 67 645 Kg

'Ethiopia 2,4 USD/kg 96 40 000 Kg

'Canada 3,72 USD/kg 3,02 USD/kg 27 8 933 Kg

'Italy 2,38 USD/kg 2,19 USD/kg 23 10 520 Kg

'Somalia 7,32 USD/kg 6 820 Kg

'Denmark 96 USD/kg

'Nigeria 1,73 USD/kg

'India 20 USD/kg Source: ITC (TradeMap) based on US Census Bureau statistical data

Table 10: Suppliers of gum arabic imported by the United Kingdom in Q3-2008 2008-Q3

2008-Q3 Exporters

Unit value Unit

Imported value in 2008-Q3, million

USD Imported amounts Unit

'World 3 071 USD/Ton 5 030 1 637,9 Ton

'France 3 852 USD/Ton 2 121 550,6 Ton

'Sudan 2 164 USD/Ton 1 472 680,3 Ton

'United States of America 4 048 USD/Ton 725 179,1 Ton

'Chad 1 750 USD/Ton 280 160 Ton

'China 11 733 USD/Ton 176 15 Ton

'Japan 7 680 USD/Ton 96 12,5 Ton

'Germany 5 276 USD/Ton 67 12,7 Ton

'India 3 636 USD/Ton 64 17,6 Ton

'Belgium 2 772 USD/Ton 28 10,1 Ton Source: ITC (TradeMap) based on EUROSTAT statistical data

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Market News Service 11 Gum Arabic

Table 11: Suppliers of gum arabic imported by Germany in Q3-2008

2008-Q3 2008-Q3

Exporters Unit value Unit

Imported value in 2008-Q3, million USD Imported

amounts Unit

'World 3 638 USD/Ton 4 477 1 230,5 Ton

'France 5 658 USD/Ton 2 240 395,9 Ton

'Sudan 2 857 USD/Ton 1 297 454 Ton

'Chad 1 784 USD/Ton 364 204 Ton

'United Kingdom 3 595 USD/Ton 298 82,9 Ton

'Netherlands 4 819 USD/Ton 80 16,6 Ton

'Japan 8 000 USD/Ton 72 9 Ton

'Nigeria 2 624 USD/Ton 53 20,2 Ton

'Ethiopia 1 650 USD/Ton 33 20 Ton

'Italy 4 583 USD/Ton 22 4,8 Ton

'Mali 609 USD/Ton 14 23 Ton

'United States of America 30 000 USD/Ton 3 0,1 Ton Source: ITC (TradeMap) based on EUROSTAT statistical data

Tableau 12: Suppliers of gum arabic imported by Italy in Q3-2008 2008-Q3

2008-Q3 Exporters

Unit value Unit

Imported value in 2008-Q3, million

USD Imported amounts Unit

'World 2 829 USD/Ton 3 619 1 279,4 Ton

'Sudan 2 459 USD/Ton 2 130 866,3 Ton

'France 3 552 USD/Ton 1 291 363,5 Ton

'United Kingdom 3 962 USD/Ton 103 26 Ton

'Germany 4 872 USD/Ton 76 15,6 Ton

'Belgium 2 500 USD/Ton 20 8 Ton Source: ITC (TradeMap) based on EUROSTAT statistical data Tableau 13 : Suppliers of gum arabic imported between Q3-2008 and Q4-2008 by Japan

Source: ITC (TradeMap) based on statistical data from the Japanese Ministry of Finance

2008-Q3 2008-Q4 2008-Q4

Exporters Unit value Unit Unit

value Unit

Imported value in 2008-Q4,

million USD Imported amounts Unit

'World 3,67 USD/kg 3,89 USD/kg 3 448 886 145 Kg

'Sudan 3,46 USD/kg 3,05 USD/kg 1 465 479 675 Kg

'United States of America 4,85 USD/kg 4,68 USD/kg 907 193 794 Kg

'France 4,66 USD/kg 4,97 USD/kg 737 148 210 Kg

'Germany 5,41 USD/kg 5,39 USD/kg 256 47 500 Kg

'United Kingdom 6,83 USD/kg 7,27 USD/kg 44 6 050 Kg

'Nigeria 3,48 USD/kg 38 10 916 Kg

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Market News Service 12 Gum Arabic

Table 14 : Suppliers of gum arabic imported in Q3-2008 by Belgium 2008-Q3

Q3-2008 Exporters Unit

value Unit

Imported value in 2008-Q3, million

USD Imported amounts Unit

'World 2 970 USD/Tons 877 295,3 Ton

'Sudan 3 263 USD/Tons 261 80 Ton

'United Kingdom 4 074 USD/Tons 165 40,5 Ton

'France 3 705 USD/Tons 153 41,3 Ton

'Nigeria 1 534 USD/Tons 123 80,2 Ton

'India 5 735 USD/Tons 78 13,6 Ton

'Germany 2 007 USD/Tons 54 26,9 Ton

'Netherlands 4 118 USD/Tons 28 6,8 Ton

'Indonesia 2 500 USD/Tons 15 6 Ton Source: ITC (TradeMap) based on EUROSTAT statistical data

Table 15 : Suppliers of gum arabic imported by India between Q3-2008 and Q4-2008 2008-Q3 2008-Q4

2008-Q4 Exporters Unit

value Unit Unit value Unit

Imported value in 2008-Q4, million

USD Imported amounts Unit

'Switzerland 8,48 USD/kg 7,5 USD/kg 3 400 Kg

'France 4 969 USD/T

'Germany 5 000 USD/T

'Japan 48 USD/kg

'United Kingdom 6 125 USD/T Source: ITC (TradeMap) based on COMTRADE statistical data

Table 16 : Suppliers of gum arabic imported in 2008-Q3 by Ireland

Source: ITC (TradeMap) based on EUROSTAT statistical data

2008-Q3 2008-Q3

Exporters Unit value Unit

Imported value in 2008-Q3, million

USD Imported amounts Unit

'World 4 387 USD/Ton 2 825 644 Ton

'France 5 591 USD/Ton 1 560 279 Ton

'United Kingdom 4 532 USD/Ton 659 145,4 Ton

'Sudan 2 444 USD/Ton 440 180 Ton

'Belgium 3 616 USD/Ton 81 22,4 Ton

'Luxemburg 4 333 USD/Ton 52 12 Ton

'United States of America 6 944 USD/Ton 25 3,6 Ton

'Germany 5 833 USD/Ton 7 1,2 Ton

'Egypt 7 500 USD/Ton 3 0,4 Ton

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Market News Service 13 Gum Arabic

Table 17 : Suppliers of gum arabic imported by China between Q3-2008 and Q4-2008 2008-Q3 2008-Q4

2008-Q4 Exporters Unit

value Unit Unit value Unit

Imported value in 2008-Q4, million USD Imported

amounts Unit

'Monde 4,06 USD/kg 4,09 USD/kg 2 091 510 798 Kg

'France 4,73 USD/kg 4,06 USD/kg 900 221 650 Kg

'United States of America 3,73 USD/kg 3,90 USD/kg 415 106 470 Kg

'Germany 3,92 USD/kg 4,04 USD/kg 205 50 801 Kg

'Japan 10 USD/kg 5,74 USD/kg 171 29 772 Kg

'United Kingdom 4,29 USD/kg 3,65 USD/kg 128 35 100 Kg

'Belgium 7,1 USD/kg 5,95 USD/kg 119 20 000 Kg

'Sudan 3,53 USD/kg 3,72 USD/kg 54 14 500 Kg

'Eritrea 2,6 USD/kg 52 20 000 Kg

'Republic of Korea 6,5 USD/kg 3,14 USD/kg 22 7 000 Kg

'India 4 USD/kg 8 2 000 Kg

'Thailand 3,5 USD/kg 7 2 000 Kg

'Chad 4 USD/kg 4 1 000 Kg

'Italy 13 USD/kg 7,5 USD/kg 3 400 Kg

'Taiwan 15 USD/kg 19 USD/kg 2 105 Kg

'Nigeria 0,53 USD/kg Source: ITC (TradeMap) based on statistical data obtained from the General Administration of Chinese Customs

Table 18 : Suppliers of gum arabic imported by Brazil between Q3-2008 and Q4-2008 2008-Q3 2008-Q4

2008-Q4 Exporters Unit

value Unit Unit value Unit

Imported value in 2008-Q4, million USD Imported

amounts Unit

'World 4,75 USD/kg 4,65 USD/kg 2 559 549 791 Kg

'France 4,43 USD/kg 4,54 USD/kg 1 641 361 200 Kg

'Germany 13 USD/kg 3,82 USD/kg 361 94 476 Kg

'United States of America 5,78 USD/kg 5,49 USD/kg 309 56 265 Kg

'Senegal 10 USD/kg 176 17 600 Kg

'United Kingdom 5,18 USD/kg 4,5 USD/kg 27 6 000 Kg

'Argentina 2,09 USD/kg 2,66 USD/kg 23 8 650 Kg

'Sudan 3,67 USD/kg 11 3 000 Kg

'Italy 6,54 USD/kg 6,25 USD/kg 10 1 600 Kg

'Nigeria 1 USD/kg 1 1 000 Kg Source: (ITC TradeMap) based on statistical data obtained from Scavage, Database of statistical data on External Trade

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Market News Service 14 Gum Arabic

Table 19 : Unit values for gum arabic imported by the major countries (all grades combined, in USD/ton)

Pays Q2-08 Q3-08 Q4-08 France 1766 1711 2110 USA 2780 2820 2870 United Kingdom 2833 3071 - Germany 2569 3638 - Italy 2871 2829 - Japan 3770 3670 3890 Belgium 3292 2970 - Ireland 5405 4387 - China 3560 4060 4090 Brazil 5220 4750 4650

Source: ITC (TradeMap) based on various statistical data

0

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UnitedKingdomGermany

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Figure 1: Changes in the unit price of gum arabic imported by major countries (in USD/ton) (re-work) Global unit import prices for gum Arabic increased slightly between Q2-2008 and Q4-2008 for France, the United Kingdom and China, but increased significantly for Germany. Figure 1 reveals a decrease in unit import price for Ireland, Brazil and Belgium whereas unit import price remained stable for the United States and Italy. France, the United States, the United Kingdom and Italy import gum arabic at a rate generally above 3000 USD/ton. These countries source their gum Arabic, primarily crude gum, from African suppliers.

France, to date, remains the country which obtains the best prices for its gum arabic imports (a little over 2000 USD/T in Q4-2008), followed by the United States and Italy. The higher prices for other importer countries is the result of the fact that they consume mostly processed gum arabic and only minor amounts of crude gum arabic.

Table 20: Unit values for gum arabic re-exports by the major countries (all grades combined, in

USD/ton) Pays Q2-08 Q3-08 Q4-08

France 4157 3936 3676 USA 3950 4160 4080 United Kingdom 4621 4474 - Germany 5143 4993 - Italy 3255 2481 - Belgium 4719 3754 - Ireland 12409 10792 -

Sources: ITC (TradeMap) based on EUROSTAT and US Census Bureau statistical data

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Market News Service 15 Gum Arabic

Figure 2 shows that Ireland obtains the best unit value for its re-exportation of gum Arabic, showing a notable decline in the third quarter of 2008. Incidentally, Ireland generally imports its gum at high prices. Germany and the United Kingdom also obtain favourable unit prices for

their re-exportation of gum Arabic, followed by the United States, France and Belgium. The most evident fact in Figure 2 is the downward trend in unit prices at re-exportation, which is certainly a reflection of the financial and economic crises.

0

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Figure 2 :Changes in the unit values for gum arabic re-exported by the major countries (USD/ton)

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Market News Service 16 Gum Arabic

Factors affecting the global market Climatic conditions Climate change is certain to affect the agricultural, wildlife and silvicultural (care and cultivation of forest trees) yield of African countries whose economies rely heavily on the primary sector. The harmful effects of climate change are already evident: low pluviometry, degradation of natural resources, a decline in agricultural productivity and output, excessive deforestation to satisfy needs which are growing significantly (forage for cattle, wood used as fuel for townspeople, etc…) The gum plantations are located father and farther away from households, rendering the production of gum arabic difficult. One would have to consider reforestation activities in order to recuperate the land around villages, which is now degraded. The populations of gum-producing regions are now aware of the importance of gum arabic and appreciate the necessity of planting and maintaining gum trees in order to increase productivity and production. However, despite this realisation, the absence of reliable markets and other constraints are sizable barriers/challenges. The gum sector is in need of practical assistance to carry out work activities (wheelbarrows, rakes, equipment for gum collection); financial support for production activities within the sector and in other sectors; and logistical support for producers (creation of union groups for producers, construction of storage facilities in gum-producing regions) as well as for the sector in general (trade opportunities, tackling competition, global price management, etc…) Any support provided to gum-producers would have to take into account these various aspects. In order to gain the support of local populations for the development of the gum sector, one would have to envisage interventions affecting the entire sector, but other sectors as well, in a way that addresses

their basic needs. Only through such an approach is an increase in gum production and a better protection of the environment, possible. In order to address the negative effects of climate change, the Global Mechanism of the United Nations Convention to Combat Desertification (UNCCD) developed an approach for the sustainable management of lands. Within a global perspective and in the quest for sustainable development, the approach focuses on preserving natural resources and ecosystems while addressing the most essential needs of the communities involved. The strategy also details mechanisms to both reduce and adjust to the effects of climate change. The good amounts of rainfall recorded in 2008 permitted satisfactory yield of food production in the Sahel. It also favoured a good yield of gum Arabic, which unfortunately did not find markets due to low demand, as a result of the financial crisis. This overproduction, which is already superior to the level obtained last year at the same period, is poorly managed due to a lack of storage facilities. Had the adaptation mechanisms to climate change been applied, the surplus gum Arabic would have been stored as a precautionary measure for dealing with future supply shortages. Fortunately, gum arabic can be successfully stored for several years without degradation. The absence of viable alternatives and prospects for the management of stocks will result in a loss of income for peasants who often rely on the prices from previous harvests as a guide for their purchases. The reduced trade of gum arabic will have negative consequences on next year’s harvest if measures are not taken to support gum producers and harvesters.

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Market News Service 17 Gum Arabic

Legal aspects Within the context of gum arabic production, land conflicts frequently emerge between nomads and peasants, and sometimes between peasants themselves. This is a major problem for producers. Access to land is currently accorded to whoever has the right to fell trees. According to this right, the land belongs (theoretically) to the community and is managed by local traditional authorities who may either grant or deny access or use it themselves. Often, however, these very authorities, their relatives and friends are the ones who carve out the largest share for themselves thus marginalising the least fortunate. Some people (politicians, businessmen), not always members of the community take advantage of their social status to buy or access land portions for their own personal needs. These current access mechanisms are somewhat exclusionary, as they do not allow for rural populations to gather the amounts necessary to gain access. The risk, in the long term, is that these mechanisms reduce this fraction of the population to mere agricultural workers. Role of women and gum production After sectoral investigations related to the environment and the efforts against desertification in relevant countries, strategic decisions were taken. These include, among others, a revision of current land tenure system as well as a transfer the management of natural resources to rural communities. However, these measures have some drawbacks. In the reorganised structure proposed, the gender component was not sufficiently taken into account. Although until recently, women played a significant role in the harvesting of gum Arabic, the role of women has progressively decreased in parallel to the increasing economic interest surrounding gum arabic. The current land acquisition process allows men to inherit land from their fathers, often alienating women. Today, in order to carry

out the activities of their associations, women are obliged to buy their gum supplies from the market. Even when certain women associations rent land to plant gum trees, they are unable to farm comfortably because of the ever-present threat of the land being re-confiscated the moment it begins to bear fruit. Gum production, a still non-industrialised process In the majority of gum-producing countries, the gum arabic sector is far from being properly managed by the local population. Even though local populations master cultivation techniques, the mobilisation of producers and other difficulties surrounding the clearing of stocks are still major problems. The current production of gum involves some very basic tools. In fact, the standard of the equipment (tools, storage facilities) need to be revised in order for exported gum to meet quality norms. Gum production also has its requirements: constant monitoring, the construction of protective hedges against stray animals, and other pests (especially migratory birds) who settle on the crops and destroy them. As a result, local populations are increasingly reluctant to carry out agro-forestry in gum-producing regions. Another difficulty linked to gum production is the fact that one must wait four years after the plantation of a gum tree in order to collect the gum. This is a significant problem for populations following subsistence farming. Although, gum farming favours dry, arid soils (requiring only 250-400mm of water), a prolonged absence of water can have very detrimental effects. In fact, the droughts of 1970 and 1980 had very negative effects on the production of gum arabic. In addition, another paradox is linked to the production of gum arabic: when gum arabic is collected excessively in order to increase the yield, this process does not meet standards, producing undesirable effects in the long-run.

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Market News Service 18 Gum Arabic

The global financial crisis At the onset of the global financial crisis, the African continent was relatively spared by the crisis. Today, Africa is at the top of the agenda, prompting the International Monetary Fund (IMF) to organise a meeting drawing together, in Dar-es-Salaam (Tanzania), the continent’s leaders and decision-makers to find defense mechanisms against any crisis in future. Initially preserved by its marginal implication in the global financial system, Africa’s economy is increasingly threatened in the short term. This is likely to have disastrous effects at the individual and social levels, on a continent, which is the least prosperous on the globe. At the start of March 2009, while presenting a study’s result on the subject in Washington, D.C. the Director General of the IMF, Dominique Strauss Khan, stated that after having first affected developed countries, and then emerging countries, a third wave of the financial crisis is now severely affecting the poorest and most vulnerable countries. Before the crisis, the growth rates demonstrated by African countries were among the highest in the world. In fact, in its 2009 predictions, the IMF has already announced a decline in growth rates for the continent as a whole, dropping from 5% on average in 2008 to 3% in 2009. The decline in global trade threatens directly those economies that rely heavily on their raw material exports, noted M. Strauss Khan. He noted also a 20% decline in foreign direct investment on the continent. In order to lessen the impact, M.Strauss Khan estimates that the African continent will require additional financial support totalling to USD11 million, over the next five years. According to the World Bank (WB), the needs

of developing countries as a whole are much more. In a document published at the beginning of March 2009, the financing deficit of these countries will range between USD 270-700 million for the year 2009 alone. The WB also worries that only a quarter of developing countries possess the necessary capacities to finance measures limiting the impact of the crisis. The IMF DG hoped that the Dar-es-Salaam conference would allow him to assess the best way to defend the interests of developing countries at the G-20 summit, scheduled for April 2nd 2009 in London. Instead, he was faced with a different analysis of the situation. Actually, the Ugandan Finance Minister suggested an immediate injection of capital, arguing that international financial institutions need to increase financial aid, on the short-term. Most countries supported this approach, desiring also that the IMF rethink its terms surrounding loans in light of the situation. Already in February 2009, African leaders shared their concerns during the African Union (AU) summit in Addis Abeba. At the time, Jean Ping (AU president) had already highlighted the gravity of a financial crisis, which would divert international attention towards the bailout of banks and financial institutions and away from financing development efforts. He noted that African populations would bear the full effects of crises that they were not responsible for. According to the above evaluation, African economies belatedly experiencing the negative effects of the economic crisis and will certainly not be spared. Hopefully, the crisis will not last long and fragile African countries, heavily dependent on the trade of raw materials, will readily progress out of it.

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Market News Service Gum Arabic 19

Conclusion At the end of the year 2008, the supply of gum Arabic by producer countries was markedly low causing an increase in the import price for consumer countries. This increase is the simple result of supply and demand mechanisms because at the end of the year, stocks usually run out. Also, gum Arabic is a seasonal product, and for a very long time now, the major gum Arabic producers and exporters have not majorly influenced the market. Despite the financial crisis, the global market for gum arabic was favourable for African producer and exporter countries. Only after 2009 data is made available will one be able to assess the capacity of the gum arabic sector to resist to the international crisis.

Due to a good rainy season, the 2008-2009 gum arabic season of was good for producer countries, as predicted in the last report. This, however, is not reflected in the preliminary export data available for the first quarter of 2009. Yet, this situation will lead to a loss in income for peasants and harvesters involved in gum production and as well as harvesters, who lack reliable storage options given the lack of infrastructure. Consumers and re-exporters of gum are now experiencing the effects of the crisis given the decline in trade. Most of these countries have entered into recession, forcing their trade partners to adjust accordingly in order to cope with the consequences of the global crisis.

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Market News Service 20 Gum Arabic

Overview of Gum Resins This second part focuses on other tree and shrub species that produce other types of gums and resins. The industrial utilisation of gums and resins has undergone a major boom in recent years. These goods are utilised by a wide range of industries: paper, textiles, oil, pharmaceuticals and cosmetics, food products, varnish, paint and soaps.

Although many plants produce gum, industrial gum production is limited to the Leguminous, Sterculiaceae, Combretaceae and Burseraceae plant family. Of the various gum resin types, the most profitable are incense, myrrh, and the Combretaceae and Sterculiaceae gums.

The Products : Incense, myrrh and opoponax “Myrrh draws its name from ‘Myrrha’, daughter of Cyprus king Cynyras, who according to Greek mythology, was converted into a tree by the gods, following an incestuous act, and whose tears constituted myrrh.”

Overview and utilisations Incense, myrrh and opoponax are hare hardened resinous exudates, obtained from certain Boswellia and Commiphora tree species. Incense resins are usually used in their original states to obtain perfumes and subtle scents. Some essential oils and extracts may also be obtained after the distillation process. The terms ‘Incense’ and ‘Oliban’ are often used interchangeably in the trade context, with a greater use of the term, Oliban. These terms are also used, sometimes vaguely, to refer to resins obtained from species other than Boswellia or Commiphora. This is, for example, the case in Indonesia where the term ‘Incense’ is wrongly used to refer to gum benzoin. Among these three main resin types, incense is the most traded and available in the widest range of varieties. The appearance can range anywhere from pale small pieces or tear-shaped smaller pieces a few centimetres wide; in the form of a powder; or in the form of large aggregated masses (red, brown or black) formed from the combination of various types of resins during industrial handling and processing. Myrhh and opoponax are traded in small quantities, pale, are less clean, and provide less grade options to choose from.

All the resins have a distinct scent because of the presence of essential oils, a factor that explains their economic appeal. Such is the case whether they remain in their crude state (non processed and used as incense) or whether they undergo distillation or extraction processes. Myrrh is usually heavier but has a more subtle scent than incense. The exact usage of resins in perfumes or other scented products depends on the chemical composition of the oil they contain, the characteristic which gives the resin its smell. The non-volatile components of resins certainly also contribute to their biological properties and would warrant further investigation as they may potentially have some medical applications. The volatile essential oils are composed of mono-, sesqui- and diterpenoids of which the exact composition varies depending on the type of resin and the species of the tree from which it was collected. Incense essential oils generally have higher proportions of monoterpenes and are available at low boiling points compared to myrrh, which must be dissolved in oil, complicating its extraction through distillation.

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Market News Service 21 Gum Arabic

The non-volatile components are composed of numerous Lupane triterpenoids and of oleanolic and ursolic acids, whether they exist as such or bound to acetyl esters or ketones. Incense resins contain α- and β boswellic acids: 3α-hydroxy-olean-12-en-24-oic acid and 3α-hydroxy-urs-12-en-24-oic acid respectively. These resins are mainly utilised in the following three sectors:

- Perfumery, especially in the form of incense often used in religious ceremonies or around the house

- Flavouring, mainly in the form of a chewable substance known as ‘maidi’; but extracted oils are often used as flavouring agents

- Pharmaceuticals, where they are used in both allopathic and traditional Chinese medicine. In allopathic

medicine, myrrh-based concoctions are used in dyes, mouthwashes and to treat inflammation in the mouth and pharynx; traditional Chinese medicine incorporates Xiang Ru (incense) and Mo Yao (myrrh).

Incense and myrrh are also used in a variety of skin care products, whether in tonifying lotions, or as is the case for incense, in moisturizing anti-wrinkle creams. The ‘Eritrean’ type of incense is the most frequently used and most purchased type of incense, notably by orthodox and Roman catholic churches. Resin usage is on the rise in China although a rising proportion of resin imports are used to manufacture incense sticks, rather than in traditional concoctions. The usage of opoponax is seemingly negligible.

Incense The tree that produces incense (Boswellia sacra) is a tree of the Burseraceae family (synonym: Boswellia carteri, Birdwood). Other species in the Boswellia genus yield different resin types including B. bhau-dajiana (Birdw.); B. neglecta S. Moore in Somalia; B. papyrifera (Hochst.) in Ethiopia and ‘Eritrean type incense’ in Sudan. Indian incenses (Salai guggul) come from B. serrata Roxb. Description These Boswellia species are small trees with deciduous leaves, ranging between 2 and 8m in height and with one or more trunks. The bark with its paper texture peels easily; its leaves, composite and imparipinnate (odd number of leaflets), are joined together in a tuft at the end of the branch. Yellowish-white in colour, its small flowers come out in the form of cluster, at the root of the leaf. They are made up of 5 petals, 10 stamens and one 5-teethed calyx.

The fruit is capsular-shaped, about 1cm long and its twigs are slightly hairy. Some trees grow on steep inclines and develop a cushion-shaped bulge at the base of the trunk which secure and stabilise the tree to the underlying rocks. Range The tree that produces incense is located in Somalia, Ethiopia, Yemen and Oman. Some authors consider the somalian variety to be distinct from the B. carteri species. Habitat This tree grows in the northeastern region of Africa and in the southern Arabian peninsula. It can survive in open conditions and is often located in rocky cliffs and ravines, up to an altitude of 1200m. It grows preferentially in calcareous soils.

Myrrh and Opoponax These resins are produced by tree species of the Commiphora genus, of which the most important is known as the ‘myrrh tree’ or ‘balsam tree’ (Commiphora myrrha, Nees). It is part of the Burseraceae family which is often located in East Africa and the Arabian peninsula. Myrrh is referred to by a variety of

terms, namely Balsamodendrum myrrha Nees, Commiphora molmol Engl., Commiphora myrrha var. molmol Engl., Commiphora africana (A. rich.) Engl. (Senegalese myrrh).

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Market News Service 22 Gum Arabic

Opoponax derives its name from the tree from which it was originally sourced, Opopanax chironium. However, today, Opoponax is produced majoritarily from Commiphora spp. C. guidottii, C. erythraea (Ehrenb.), (syn. C. erythraea var. glabrescens) and C. kataf (Forsk.), which represent the main sources in numerous regions south of Arabia, Somalia, eastern Ethiopia and Kenya. Opoponax is sometimes known as ‘soft myrrh’ or ‘bisabol myrrh’ Description Commiphora trees are usually shrubs, about 3m tall, with numerous scaly, knotty or thorny branches.

The small, deciduous, oval-shaped leaves are composed of three unequal leaflets. At the end of the summer, the shrub is covered with orange-red flowers while the trunk becomes swollen with knots. It is out of these knots that, in the form of small, yellow, tear-shaped solids, the myrrh is extracted once it has dried. Range The tree that produces myrrh grows in the arid regions of northeast Africa (Djibouti, Ethiopia, Sudan, Somalia, Kenya) and the Arabian Peninsula (South of Arabia, Yemen and Oman).

Combretaceae gums Several species from this plant family are capable of producing gum. The most important ones belong to the Combretum sp. ; Anogeissus sp. ; Terminalia sp genuses. “Combretum” gum is produced essentially by Combretum nigricans Lepr. Ex. Guill. and Perrott. (synonyms : Combretum elliotii Engl. and Diels ; Combretum lecananthum Engl. And Diels). Description Often crooked, it is a small tree or shrub, 10m tall, with a short trunk. The bark is beige, with reddish and brown tints and has a warty (covered with small rounded outgrowths) surface. The leaves follow an opposite arrangement, are variable, and the young branches and leaves are slightly hairy. Hairy tufts are located in the creases of the plant nerves and small glands, yellow in colour, are located under the tree branches. The white flowers, with yellow-green tints appear in auxiliary clusters. The fruits are reddish, four-winged and smooth, scaly or sticky at the core. Of variable sizes, the fruits have about 2.5cm in diameter and the surface is fine and scaly. Range and habitat The range is very wide, readily available and locally abaundant and ranges from Senegal, through Cameroon to Sudan. The species favours the savannahs and dry forests of Guinea and Sudan, thriving in clay, silty, rocky, sandy and sandstone soils.

Utilisation The tree provides a range of uses for the local populations: for firewood, in local medicine; some parts of the tree are used against diarrhea, mental disorders, stomach pains, intestinal problems, rheumatism, neuralgias, asthma, etc… The gum produced is edible and is considered a substitute for gum Arabic, even though it is of low quality. Analyses have shown that Combretum gum has a negative optical rotation, like gum Arabic. However, Combretum gum is not authorised as a food additive. Characterisation by nuclear magnetic spectroscopy (NMR) have illustrated that the rhamnose and uronic acid contained in Combretum gum are located in the inner chains of the polysaccharides. This characteristic explains the absence of emulsifying properties and distinguishes it from gum arabic. The rhamnose and uronic acid groups in gum arabic are located on terminal chains. Combretum gum is also highly hygroscopic (absorbing moisture from the air) and is characterised commercially by its tendency to aggregate in blocks during transit and storage. (Anderson DM, Millar JR, Weiping W). The gum has major adhesive properties and is used for tanning, in ink manufacturing and also as starch for boubous.

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Market News Service 23 Gum Arabic

Sterculiaceae gums The gums produced by the species that constitute this plant family is known as Karaya gum in India and M’Bepp in Senegal. It is essentially produced by three species: Sterculia setigera Del. (synonyms : Sterculia cinerea A. Rich ; Sterculia tomentosa Guill. and Perrott.) in Africa and Sterculia urens and Cochlospermum gossypium in India. Karaya gum (E416) oozes from dried vegetable sap. Karaya gum is made up essentially of acetylated polysaccharides with high molecular mass based mostly on D-galactose, L-rhamnose, D-galacturonic acid and a little D-glucuronic acid. In the trade context, gum usually has the appearance of small tear-dropped shapes, shapes of various sizes or in a grey (sometimes pink-brown) powder. It has a characteristic acetic acid and a viscuous and acid flavor. Description The trees are of average height, 16m tall, with a trunk thick at the base and have deciduous leaves. In Sudanese and Guinean regions, it goes as high as 35m. From a distance, the trunk is light-grey in colour. The tree is, in fact, a light grey-violet colour and breaks off in the form of thin, large pieces. Under the surface is a smooth, shiny, light-yellow layer interspersed with light rolled films, purple-brown in colour. The tree is not very branched and forms a large tree-top which is very open. It is pink-red in appearance when sawed and yields white gum because of its aqueous. The roots are small with very solid foundations and the young branches have a smooth texture. The leaves are simple, measuring 6-20cm in length and in width and have 3-5 triangular

lobes. They are covered with shiny hairs on both sides, especially on the bottom. The flowers are unisexual and emerge, in clusters, on the edge of a year old twig. The one-metre long calyx is composed of five lance-shaped sepals, hairy on the exterior and green with red streaks. The flowers are 12mm in diameter and grow out of the previous year’s shoots. Range and habitat Tree species of the sterculia genus are predominantly located in the Sudanese-sahelian and Sudanese guinean regions of tropical Africa. The natural distribution ranges from Senegal through Cameroon in west and central Africa, through Sudan and Somalia in eastern Africa and Angola in the south. The tree grows in Savannah vegetation, on a variety of soils, on hills and rocky terrain. Uses The tree produces one of the most insoluble gums utilised in numerous industries: oil, natural gas, textile, paper and paper pulp, pharmaceutical and medicinal products and numerous other products (Gautami & Bhat, 1992). Its commercial use requires either the removal of the tree bark, sterilisation with a flame or in making somewhat deep cuts at the base of the tree trunk with an axe. These methods often result in the destruction of the trees which the gums have been extracted. As a result of overexploitation and abusive gum extraction methods, the Karaya tree population has significantly decreased. Given their absence from regular plantations, there is a significant possibility of extinction for these tree species.

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Market News Service 24 Gum Arabic

The Global Gum Resin Market Just as for gum Arabic, the global market is divided between African and Asian producer and exporter countries on the one hand and importer and consumer countries on the other. A major difficulty remains that information is not readily available as specific trade statistical data is not always recorded, except for a few countries. Following the third revision of the UN harmonised system classification, now in application since January 2007, the international trade of products under the code, HS code 13 0190 Other gums, resins, balsams, natural gems and saps links together a variety of sub codes for certain products, which are not always used in the countries. Resin imports and exports are coded under specific HS codes by certain countries. China, Saudi Arabia and the USA use HS code 13019020 for Oliban, myrrh and “dragon blood” imports. Saudi Arabia also uses specifically HS 13019070 for incense and HS 13019050 for myrrh. India uses HS

code 13019031 for myrrh and HS code 13019032 for Oliban and incense. For gums, resins, gum resins and balms (except for gum Arabic, putty and gum lac) imported by European Union countries are coded as HS 130190. Sub-categories such as HS code 13019090 are used for natural gums, resins, gum-resins, balms and other natural oleoresins (except for gum Arabic putty and putty from trees of the Pistacia lentiscus species.) US imports are also coded under the HS code 1301909090 for the category of other gums, resins, gum-resins but excluding gum Arabic, gum lac, balms, karaya and traganthus. Karaya and Combretum gum imports and exports are not always specifically coded. Most certainly, the data available on imports and exports under this code includes products other than gums and resins. Consequently, it is impossible to isolate data on gum resins without referring to general trade statistics from importer and exporter countries where available.

Exports Myrrh, incense or Oliban exports from India, China and Saudi Arabia fall under a specific code. The following table details the exports of these countries between 2003 and 2007.

Table 21: Specific myrrh, incense, Olibanum, and dragon’s blood exports 2003 2004 2005 2006 2007

Exporters Exported amounts,

Kg

Exported amounts,

Kg

Exported amounts,

Kg

Exported amounts,

Kg

Exported amounts,

Kg

Olibanum and Frankincense

7989 - - 17 669 40 219 'India

Myrrh 11 865 - - 1000 6983

'China (Olibanum, Myrrh and Dragon’s blood) - - 32 951 39 928 38 383

Frankincense 29 891 - 15 200 22 520 20 760 Saudi Arabia Myrrh - - - 16 500 3490

Total 49 745 - 48 151 97 617 109 835 Source: ITC (TradeMap) based on COMTRADE statistical data

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Market News Service 25 Gum Arabic

Notably, the amounts of resins exported by these countries is evidently weak, reflecting the fact that these countries are large consumers, just like the United States, as we will cover in the import section. Table 22 lists the countries the export data available under HS code 130190. It is impossible to determine what specific product is exported by each country and in which cases the data reported refers to re-exports.

For the majority of countries, HS code 130190 is either used directly or sub-divided into sub-units appearing under HS code 13019090 for natural gums, resins, gum resins, balms and other natural oleoresins (except for gum Arabic putty and putty from trees of the Pistacia lentiscus); and under HS 13019000 for natural gums, reins, gum resins, balms and other natural oleoresins (excluding gum Arabic).

Table 22 : World exports for gum resins by major countries (all grades combined, in tons)

2003 2004 2005 2006 2007 Exporters Exported

QuantityExported Quantity

Exported Quantity

Exported Quantity

Exported Quantity

'World 130 727 122 719 114 771 98611 95 363

'Indonesia 24 639 25 184 27 840 26 547 21 040

'Thailand 5 309 6 626 6 482 6 324 11 560

'Brazil 12 736 8 609 7 472 7 346 8 576

'Singapore 4 636 5 020 4 304 5 102 6 502

'United States of America 5 348 5 786 6 484 7 943 5 808

'Pakistan 25 623 26 208 21 962 8 008 5 579

'India 13 769 8 999 6 313 4 215 3 797

'Ethiopia 2 339 2 648 3 404 3 875 3 577

'Popular Democratic Republic of Lao 2 941 3 613 3 482 3 298 2 382

'Chinese Taipei 4 680 4 910 3 355 3 362 2 148

'Kenya 970 1 855 1 517 1 814 2 017

'Germany 1 177 1 094 1 194 1 286 2 001

'Somalia 663 987 1 428 1 197 1 774

'Vietnam 645 0 0 0 1 662

'Sri lanka 2 304 2 304 2 047 1 782 1 471

'Italy 363 335 131 204 1 407

'Senegal 927 900 863 1 029 1 396

'Cam bodge 0 0 390 473 1 257

'Islamic Republic of Iran 1 744 1 852 1 214 1 756 996

'France 906 954 866 962 981

'New Zealand 779 577 448 677 786

'Argentina 3 1 634 1 353 781

'Hong-Kong (RASC) 700 151 106 509 741

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'Afghanistan 775 802 437 551 614

'Philippines 436 486 382 396 448

'United Kingdom 1 178 1 046 608 379 375

'Saudi Arabia 341 982 673 205 370

'Canada 46 47 48 92 356

'Portugal 103 296 521 1 205 348

'South Africa 3 486 908 135 659 312

'Yemen 149 280 356 298

'Spain 111 228 417 261 294

'Malaysia 70 41 772 206 288

'Sudan 378 601 293 122 278

'Venezuela 1 1 1 0 270

'Cuba 919 544 458 441 259

'Honduras 204 78 26 284 205

'Switzerland 29 21 19 88 203

'Guatemala 38 59 68 90 154

'Netherlands 256 171 107 29 145

'United Republic of Tanzania 0 0 0 0 143

'Belgium 60 52 146 153 126

'Greece 63 89 110 105 121

'Egypt 223 149 203 77 115

'Nigeria 0 303 8 104

'Australia 269 2 262 3 604 2 138 103

'Belarus 205 290 210 298 98

'Djibouti 307 303 100 367 84

'Mali 0 80 54 26 84

'Chine 191 243 245 62 74

'Mexico 37 110 152 158 70

'El Salvador 70 70 71 88 67

'Chile 0 0 7 14 66

'United Arab Emirates 0 0 1 062 0 60

'Costa Rica 12 12 11 13 55

'Japan 8 11 5 6 55

'Eritrea 98 35 108 54

'Bangladesh 8 8 47 62 52

'Nepal 10 114 78 68 47

'Myanmar 8 79 44 31 46

'Tunisia 72 85 46 21 35

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'Peru 182 108 25 104 27

'Dominican Republic 4 15 22

'Morocco 17 13 20 37 19

'Equator 2 0 0 0 17

'Denmark 6 6 3 60 11

Republic of Korea 548 560 66 18 11

'Sweden 77 11 0 0 11 Source: ITC (TradeMap) based on COMTRADE statistical data Overall, global resin exports declined steadily between 2003 and 2007, dropping from 130 727 tons to 95 363 tons. The major exporters, in decreasing order, are Indonesia, Thailand, Brazil, Singapore, USA, Pakistan and India who exported more than 5000 tons of resin between 2003 and 2007. It was not feasible to distinguish between the different resins exported by these countries. The first place occupied by Indonesia appears to be a result of enormous palm gum exports, that are abundantly available in the country. The first African country, namely Ethiopia, comes up around the 8th place among world exporters with more than 3000 tons exported during the same period. Unlike the 7 previous countries, the quantities exported by Ethiopia are predominantly myrrh and incense. The previous table suggests that the exported quantities listed for countries like France, Germany, the United Kingdom and Italy are actually exports given that these

countries traditionally import and re-export gum. On the other hand, it appears that exports listed by countries such as Brazil, Indonesia, Thailand and a few other countries refer to products other than the gum resins covered in this report. Not surprisingly, these countries do not come up as major importers when the focus is on exports from major African producer and exporter countries. The export data for African countries, in value and in quantity, give an idea of the significance of gum resin trade but does not allow for this information to be broken down according to the different products mentioned in this section. Table 23 lists the African suppliers of gum resins, based on direct data, mirror data and a collection of the two between 2003 and 2007.

Table 23 : Gum resin exports by major producer and exporter countries between 2003 and

2007 (all categories combined, in tons) 2003 2004 2005 2006 2007

Exporters Exported Quantity

Exported Quantity

Exported Quantity

Exported Quantity

Exported Quantity

'World 130 727 122 719 114 771 98 611 95 363

'Africa Aggregate 13 436 9 090 8 139 9378 10 011

'Ethiopia 2 339 2 648 3 404 3 875 3 577

'Kenya 970 1 855 1 517 1 814 2 017

'Somalia 663 987 1 428 1 197 1 774

'Senegal 927 900 863 1 029 1 396

'South Africa 3 486 908 135 659 312

'Sudan 378 601 293 122 278

'United Republic of Tanzania 0 0 0 0 143

'Egypt 223 149 203 77 115

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'Nigeria 0 303 8 104

'Mali 0 80 54 26 84

'Djibouti 307 303 100 367 84

'Eritrea 98 35 108 54

'Tunisia 72 85 46 21 35

'Morocco 17 13 20 37 19

'Burkina Faso 0 0 10 Source: ITC (TradeMap) based on COMTRADE statistical data Table 23 illustrates that the major African exporter countries are Ethiopia, Kenya and Somalia for incense and myrrh and Senegal for karaya gum. These four countries represent more than 70% of African exports between 2004 and 2007. In 2003, South Africa was the lead African exporter of gum resins however, data on the exact composition of the exported amounts is unavailable. The amounts of gum resin exported by all the African producer and exporter countries

between 2003 and 2007 represent barely 10% of the global exported quantities. This explains the difficulty in determining the exact proportions that the gums and resins in this report, constitute of the global total. Between 2003 and 2007, the export total for all the african countries decreased significantly, at a rate of about 25%. The unit values for gum resins exports for the major African countries are listed in the following table:

Table 24: Unit values for gum resin exports by major African producer and exporter

countries (USD / T) 2003 2004 2005 2006 2007

Exporters Unit Value (exports)

Unit Value (exports)

Unit Value (exports)

Unit Value (exports)

Unit Value (exports)

'World 1 550 2 091 2 030 - 2 378

'Africa Aggregate 764 1 379 1 545 1 440 1 480

'Ethiopia 1 505 1 376 1 469 1 462 1 498

'Senegal 2 290 2 481 2 079 2 769 3 318

'Somalia 1 371 1 291 1 078 1 414 823

'Kenya 275 288 365 362 682

'Sudan 3 540 879 1 369 1 131 1 856

'Nigeria - 597 - 2 500 1 385

'Djibouti 840 756 1 220 583 833

'Eritrea 1 102 2 143 - 944 944

'Mali - 100 111 77 321 Source: ITC (TradeMap) based on COMTRADE statistical data The above table reveals that among the producer countries, Ethiopia and Somalia obtain the best export price for incense and myrrh. The unit value listed for Senegal are mostly the result of Sterculia gum which mirrors the global price trend for Karaya gum, whose situation improves when hard gum is in difficulty.

Notably, Sudan also achieves a high unit value export price probably as a result of the availability of quality processing techniques and local expertise gained from the processing of Karaya gum and gum Arabic, both of which Sudan also produces. Combretum gum is not easily exported from

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Mali, as indicated by the low export value recorded on the global market. Unlike

Nigeria, which borders the Atlantic Ocean, Mali lacks a coastal region.

Imports and global trends in consumption As with exports, imports for resins and other gums are difficult to estimate. China, India, the United States and Saudi Arabia have a specific code for all resin imports. Moreover, while China groups together Myrrh, Oliban and ‘dragon blood’ in one category, India and

Saudi Arabia records them in separate categories. For all other importer countries, the referencing system is similar to that of exports. Table 25 lists the imported quantities for myrrh, incense and Oliban between 2003 and 2007, for specific countries.

Table 25: Countries for which myrrh and incense imports are referenced separately

Source: ITC (TradeMap) based on COMTRADE statistical data The fact that the imported amounts are significantly greater than the exports suggests that these countries represent the major global resin consumers. Table 25 shows that imported amounts have declined over the last few years, after having peaked at more than 8 000 tons in 2005,

notably as a result of massive imports by the USA. As for imports in the rest of the world, Table 26 lists the top 22 global gum resin importers between 2003 and 2007. For simplification purposes, the table is limited to countries whose imports were at least 1000 tons in 2007.

Table 26: Main gum resin importer countries in the rest of the world (all categories combined, in tons)

2003 2004 2005 2006 2007

Importers Imported Quantity (Tons)

Imported Quantity (Tons)

Imported Quantity (Tons)

Imported Quantity (Tons)

Imported Quantity (Tons)

'World 108 636 131 691 116 585 112 296 133 897

'Netherlands 911 25 293 12 067 7 257 21 785

'India 19 026 19 820 18 684 17 239 17 327

‘ United States of America 7 252 3 740 3 809 4 661 9 536

' Saudi Arabia 2 879 2 740 3 360 3 851 7 213

'Thailand 3 700 4 543 4 444 4 960 5 425

2003 2004 2005 2006 2007

Importers Imported Amounts, Kg

Imported Amounts, Kg

Imported Amounts, Kg

Imported Amounts, Kg

Imported Amounts, Kg

‘ China 1 730 054 2 790 650 2 056 934 2 268 783 1 814 869

‘ United States of America - - 6 556 906 2 758 109 1 581 017

' Saudi Arabia 77 682 0 138 310 88 562 100 350

‘ India 23 450 - - 66 670 73 900

Total 1 831 186 2 790 650 8 752 150 5 182 124 3 570 136

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2003 2004 2005 2006 2007

Importers Imported Quantity (Tons)

Imported Quantity (Tons)

Imported Quantity (Tons)

Imported Quantity (Tons)

Imported Quantity (Tons)

'Portugal 5 983 5 774 5 551 5 896 5 088

'Italy 3 450 3 727 4 025 4 124 4 726

'Russian Federation 2 687 3 344 3 828 3 309 4 573

'Germany 2 583 2 607 2 153 2 629 4 341

'Singapore 4 168 4 582 4 062 3 837 4 106

'Chine 3 627 4 068 3 336 3 394 3 814

'Argentine 8 379 7 305 6 528 6 141 3 050

'France 2 918 3 132 3 288 3 144 2 962

'United Kingdom 4 117 2 517 2 634 2 320 2 831

'Philippines 4 359 4 699 4 517 4 033 2 559

'Malaysia 2 255 3 669 2 313 2 478 2 362

'United Arab Emirates 0 0 2 938 0 2 264

'Spain 4 067 3 614 1 692 1 892 2 252

'Pakistan 1 489 1 260 1 612 1 516 1 980

'Bangladesh 2 845 5 470 3 182 2 341 1 886

'Brazil 681 896 1 511 2 085 1 684

'Yemen 482 470 887 1 106Source: ITC (TradeMap) based on COMTRADE statistical data Global gum resin imports fluctuated between 2003 and 2007. Netherlands occupies the first place among importers in 2007, followed by the main importers of myrrh and incense, namely India, the United States and Saudi Arabia. If, however, total imports over the five years are analysed, India emerges as the lead importer topping the Netherlands’ imports by about 25000 tons. Combretum gum and other gum resins originating from Africa, Asia and other industrialized countries make up, most certainly, the majority of Indian and Saudi imports. This same observation probably applies to the majority of the other countries listed in the table because the aggregated amount of

African exports alone for all resin categories combined barely amounted to 10 000 tons in 2007. This seems insufficient to exclusively meet the demand in these countries. An analysis of the consumption of myrrh, incense and Oliban resins reveals that the imported amounts are almost identical to the consumption amounts especially for the four countries that that listed their trade statistics for these products. This assessment is supported by the low re-exportation values reported. Table 27 presents the global consumption patterns for gum resins for the top importer and exporter countries. These consumption figures were determined for all resin categories combined, by jointly examining imports and export or re-export figures.

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Table 27 : Global consumption of gum resins by major countries between 2003 and 2007 (all categories combined, in tons)

2003 2004 2005 2006 2007 Countries Amounts

ConsumedAmounts

ConsumedAmounts

ConsumedAmounts

Consumed Amounts

Consumed'World -22091 8972 1814 13685 38534'Netherlands 655 25122 11960 7228 21640'India 5257 10821 12371 13024 13530'Saudi Arabia 2538 1758 2687 3646 6843'Portugal 5880 5478 5030 4691 4740'Russian Federation 2687 3344 3825 3309 4573'China 3436 3825 3091 3332 3740'United States of 'America 1904 3740 3809 4661 3728'Italy 3087 3392 3894 3920 3319'United Kingdom 2939 1471 2026 1941 2456'Germany 1406 1513 959 1343 2340'Argentina 8376 7304 5894 4788 2269'United Arab Emirates 0 0 1876 0 2204'Philippines 3923 4213 4135 3637 2111'Malaysia 2185 3628 1541 2272 2074'France 2012 2178 2422 2182 1981'Spain 3956 3386 1275 1631 1958'Bangladesh 2837 5462 3135 2279 1834'South Africa -2551 -314 354 1078 1655'Ireland 21 172 311 592 853'Austria 133 272 295 512 839'Japan 396 406 462 428 818'Yemen 0 333 190 531 808Source: ITC (TradeMap) based on COMTRADE statistical data Consumption patterns in 2007, as presented in Table 27 is almost identical to the global imports (Table 26). Netherlands is in the lead position, consuming almost all its 2007 imports. The countries who specifically import myrrh and incense are India, Saudi Arabia, the United States and China who are ranked among the seven top global consumers, with India and Saudi Arabia occupying the second and third places respectively. China appears

in the 6th position and the United States in the 7th position among global consumers of gum resins. Notably, South Africa is increasingly becoming a consumer country in light of its gum resin consumption figures since 2005. It is following a general global trend towards increased gum resin consumption; however, the information available does not determine the quality of the products consumed.

Opportunities, threats and factors affecting the gum resin market The demand for myrrh and incense has never faced any difficulties whatsoever because in the advent of a shortage, these products are easily replaced by synthetic substitutes. A report published by the Network for Natural Gums and Resins in Africa (NGARA) observed notable changes in the demand for gum resins in the pharmaceutical and

cosmetic sectors; a decline in demand is reported for perfumery sector. The possibility of new uses for gum resins emerging in the future is slim; worse yet, emerging information on their negative effects on health could have a negative impact on its future demand. For example,

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burning incense could be dangerous for health. The fumes are said to contain polycyclic aromatic hydrocarbons (PAH), made up of carcinogenic chemicals. Taiwanese researchers compared the composition of air in a poorly ventilated Buddhist temple to the air in a house of smokers. The results revealed that the rate of benzopyrene, a compound known to cause lung cancer in smokers, was 45 times more concentrated in the temple. When considering PAHs overall, incense apparently generates a pollution count 19 times greater within the temple and a count slightly higher than the value recorded in a busy roundabout. The research scientists also evaluated the concentration of suspension particles, source of pollution generally emitted by transport services, cremations and industrial and domestic heating. There again, the air in the temple was three times more polluted than a busy traffic site and eleven times more polluted than the air outside the temple. However, in a recent study (March 17, 2009) published in the British online journal BioMed Central, Complementary and Alternative Medicine, other researchers established that the use of incense has positive effects on bladder cancer. While, it is too early to determine the potentially positive effects of this study on the demand of incense, this information may bring renewed hope to producer countries or at least, reassure consumers who may be concerned that incense can potentially lead to cancer or other diseases. The demand for Combretum gum is not high and generates interest only when difficulties arise for the supply of gum Arabic, although Combretum is lower in value. At present, Combretum gum has not been sufficiently

studied because an improvement of its quality through industrial processing could provide new opportunities in the future. Karaya gum has maintained a good reputation notably because of its utilization in the pharmaceutical sector. It is often in competition, in Senegal for example, where the use of gum arabic is significantly widespread. The greatest threat for resins is not external, but rather internal to producer countries. In fact, due to the low demand of these products, local residents in search of additional revenue resort to cutting down the trees to meet the wood and coal needs of the urban region. Another threat is the expansion of the desert due to climate change conditions. To cope with the increasing rare and fluctuating rainfalls, peasants are constantly searching for farmable lands and pastures to further their production, at the expense of primary forests which are damaged in the process. In order to reverse this trend, rehabilitation and re-planting programs need to be initiated by the producer countries in line with other countries where public and private initiatives were devised for gum arabic. Moreover, another important problem not just specific to gum resins is the mixing of products during exportation. A widespread practice in several African countries, this could reduce the quality of products and jeopardize trade. This raises the problem of labeling in the agriculture and forestry sectors where labels are a determining factor for the quality and traceability of products.

Conclusion Although there is potential for some gum resins, compared to gum arabic, the production and demand of gum resins is low. However, the amount produced meets easily the current global gum resin demands that so far have remained stable. The impact of the global financial crisis on was analysed in the first section suggesting that the sector will be negatively affected in

the coming months. In theory, gum resins may be more severely affected by the negative consequences of this crisis. In fact, in times of crisis, sectors such as fashion, arts and culture, specializing in non-essential products are the first to suffer from economic fluctuations and re-adjustments of budget/expense items. Resins such as

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incense and myrrh fall in this category, unlike gum Arabic which addresses practical needs. The increase in African consumption of myrrh and incense may be a welcome trend in light of decreased resin demand around the rest of the world. In fact, the market situation for these products may be improved if inter-African trade was promoted. In Mali alone, for example, almost every house uses incense. Although no reliable data is available to evaluate the exact quantity, nature and origin

of the African myrrh and incense imports, it is a near certainty that they get their supplies in the Middle East and in Asia. However, the prospect of intra-African trade is hindered by the problem surrounding statistical data on the African continent. The lack of reliable statistical data and the virtual inexistence of intra-African trade, especially in raw materials, is deplorable.

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Fairs and Exhibitions

These events are the venue of most economic actors associated with gum arabic, including food applications generally outweigh the technical or pharmaceutical applications.

Month Date Exhibition Venue Website

15 – 16 Health ingredients South America Summit 2009

Sao Paulo, Brazil

http://www.hijapan.info/en/

June

23-25 Fi Asia-China, Hi China and Ni China 2009,

Shanghai, China

http://asiachina2008.fi-events.com

September 9-11 Food Ingredients Asia, 2009

Bangkok, Thailand

http://asia2008.fi-events.com/

14-16 Health Ingredients Japan 2009 Tokyo, Japan

http://www.hijapan.info/en/

October 23-24 Food Ingredients India

2009 Mumbai, India http://india2008.fi-events.com/

2009

November 17-19

Food Ingredients Europe 2009

Frankfurt, Germany

http://europe2009.fi-events.com/

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ANNEXES

Part I: Gum Arabic

Abbreviations WB: World Bank ITC: International Trade Centre FAO: Food and Agriculture Organization FDA: Food and Drug Administration IMF: International Monetary Fund GRAS: Generally Recognized As Safe JECFA: Joint FAO/WHO Expert Committee on Food Additives AU: African Union USD/T: Dollar of the United States of America per Ton USD/Kg: Dollar of the United States of America Kg Q2: 2nd quarter Q3: 3rd quarter Q4: 4th quarter WHO: World Health Organization

Useful Addresses AIPG, Association for International Promotion of Gums E-mail: [email protected] - Site: www.treegums.org AIDGUM, Association Internationale pour le Développement des Gommes Naturelles 129, Chemin de Croisset BP 4151 76723 ROUEN CEDEX Tel.: + 33 232 831 818 Fax: + 33 232 831 919 NGARA, Natural Gum and Resins in Africa Nairobi, Kenya Tel: +254 720 811 411 Fax : +254 20 4444 841 E-mail: [email protected] - Site: www.NGARA.org Exporters This list, not limited to exporters, is drawn from various sources such as the list published in July 2003 by the AIPG or as members of NGARA.

NIGERIA DANSA FOOD Processing Co. Ltd. Industrial Estate lot 2 - KANO Tel.: + 234 64 31 41 42; E-mail: [email protected] GACON Ltd. 1st Floor 8 Market Street P.O. Box 50134 Falomo Ikoyi – LAGOS Tel: + 234 1 266 54 50 Fax: + 234 1 266 78 01 E-mail: [email protected] VICTORIA AGRO EXPORTS Ltd. 270 Ozumba Mbadiwe street – Victoria Island – LAGOS Tel: + 234 1 262 13 24 Fax: + 234 1 61 84 51 E-mail: [email protected] SUDAN THE GUM ARABIC COMPANY P.O. Box 857 KHARTOUM Tel: + 249 11 46 10 61 Fax: + 249 11 47 13 36 E-mail: [email protected]

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THE KHARTOUM GUM ARABIC PROCESSING Co. Ltd. P.O. Box 12034 KHARTOUM Tel: + 249 11 78 56 66 Fax: + 249 11 77 46 32 E-mail: [email protected] CHAD ABHS Aboul-Hassanein B.P. 3061 N’DJAMENA Tel: + 235 51 00 76 Fax: + 235 51 06 86 E-mail: [email protected] SANIMEX B.P. 492 N’DJAMENA Tel.: + 235 51 49 69 Fax: + 235 51 40 40 E-mail: [email protected] SCCL B.P. 1110 N’DJAMENA Tel.: + 235 51 79 61 Fax: + 235 51 06 86 E-mail: [email protected] or [email protected] SETEX Acacia B.P. 744 N’DJAMENA Tel.: + 235 51 29 07 Fax: + 235 51 59 97 E-mail: [email protected] SODEC B.P. 877 N’DJAMENA Tel.: + 235 51 29 26 Fax: + 235 51 79 27 E-mail: [email protected] Importers This list, non-exhaustive list of importers, is drawn from various sources such as the latest "Market Brief" ITC or the list published in July 2003 by the AIPG. FRANCE ALLAND & ROBERT 9, rue de Saintonge - 75003 PARIS Tel.: + 33 144 592 130 Fax: + 33 142 725 438 Telex: 210963 F E-mail: [email protected] C.N.I., COLLOIDES NATURELS INTERNATIONAL 129, chemin de Croisset BP 4151 - 76723 ROUEN Cedex Tel.: + 33 232 831 818 Fax: + 33 232 831 919 Telex: 180921 F E-mail: [email protected]

EMIGA Zone Industrielle Avon, Lot 152 - 13120 GARDANNE Tel.: + 33 442 512 828 Fax: + 33 442 512 533 Telex: 400547 F E-mail: [email protected] SPINDAL – AEB group Zone Industrielle 3/5 rue Ampère - 77220 GRETZ-ARMAINVILLIERS Tel.: + 33 164 078 000 Fax: + 33 164 075 920 E-mail: [email protected] VALMAR Zone Industrielle de Saint Mitre - 13400 AUBAGNE Tel.: + 33 442 849 292 Fax: + 33 442 841 079 E-mail: [email protected] UNITED KINGDOM AGRISALES LIMITED – AGRIPRODUCT group Royal Oak House - 45A Porchester road - LONDON W2 5DP Tel.: + 44 207 221 1275 Fax: + 44 207 792 9014 ARTHUR BRANWELL & Co LIMITED Bonte House, 58-62 High street - EPPING, ESSEX CM16 4AE Tel.: + 44 1 992 577 333 Fax: + 44 1 992 561 138 Telex: 817158 BRANWL G E-mail: [email protected] RED CARNATION GUMS LIMITED Unit 11 Westmayne Industrial Park - Bramston way, Laindon, Essex, SS15 6TP Tel.: + 44 1 268 412 020 Fax: + 44 1 268 410 040 Telex: 99238 EMULS G E-mail: [email protected] A.F. SUTER and Co Ltd Thames House – 18 Park street – LONDON SE1 9EQ Tel.: + 44 207 403 6555 Fax: + 44 207 378 8582 E-mail: [email protected] TOYOTA TSUSHO UK Ltd. 140 London wall, LONDON EC2Y 5DN Tel.: + 44 2 077 762 778 Fax: + 44 2 077 762 795 E-mail: [email protected]

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U.S.A. AEP Colloids Inc. 393 Church street – P.O. Box 3425 SARATOGA SPRINGS, NY 12866 Tel.: + 1 518 584 4105 Fax: + 1 518 580 8577 ; E-mail: [email protected] ISC Importers Service Corporation 233 Suydam avenue – JERSEY CITY, NJ 07304-3399 Tel.: + 1 201 332 6970 Fax: + 1 201 332 4152 ; E-mail: [email protected] PAUL THOMAS & Co INC 119 Headquarters Plaza - MORRISTOWN, NJ 07960 Tel.: + 1 973 984 0900 Fax: + 1 973 984 5666 Telex: 219805 SPGM UR E-mail: [email protected] TIC GUMS INC 4609-T Richlynn Drive P.O. Box 369 - BELCAMP, MD 21017-0369 Tel.: + 1 410 273 7300 Fax: + 1 410 273 6469 ; Site: www.ticgums.com GERMANY Willy BENECKE GmbH Hoverstrasse 41 - 20539 HAMBURG Tel.: + 49 407 804 440 Fax: + 49 40 780 44 433 E-mail: [email protected] Johannes BASSEN GmbH Kaiser-Wilhelmstasse 115 – 20355 HAMBURG Tel.: + 49 40 355 47 913 Fax: + 49 40 355 47 918 E-mail: [email protected] C.E. ROEPER GmbH Hans Duncker strasse 13 - 21035 HAMBURG Tel.: + 49 40 734 10 317 Fax: + 49 40 734 10 381 Telex: 217811 E-mail: [email protected] Ernst H. SINGELMANN GmbH Hopfensack 20 – 20457 HAMBURG Tel.: + 49 40 350 257 Fax: + 49 40 331 642; E-mail: [email protected]

Alfred WOLFF GmbH Sudanhaus – Grosse Backerstasse 13 – P.O. Box 106620 20044 HAMBURG Tel.: + 49 40 376 76 121 Fax: + 49 40 376 76 100 Telex: 211778 E-mail: [email protected] BELGIUM CLADIC Belgium N.V. Terlochtweg 1 – 2620 HEMISKSEM; Tel.: + 32 3 870 48 11 Fax : + 32 3 870 48 99 E-mail: [email protected] INDIA DRYTECH B-16 Ginkunz Industrial Estate – Off Mahakali Caves road – Andheri East MUMBAI 400093 Tel.: + 91 22 268 753 61 Fax : + 91 22 268 752 21 E-mail: [email protected] IRELAND KERRY Ingredients 3 Eldred terrace – Douglas road - CORK Tel.: + 353 214 313 172 ; E-Mail: [email protected] ISRAEL FRUTAROM Industries Ltd. P.O. Box 10067 – HAIFA Tel.: + 972 846 2442 Fax: + 972 872 2517 E-mail: [email protected] ITALY RATHGEB Rose-Marie Viale Belisario 20145 MILANO Tel.: + 39 024 813 424 Fax: + 39 024 819 5518 E-mail: [email protected] JAPAN SAN-EI YAKUHIN BOEKI K.K. c/o Morii Bidg 4-10 Awajimachi 1 – Chome Chuo-Ku OSAKA Tel.: + 81 662 028 524 Fax: + 81 662 027 204 E-mail: [email protected]

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References and Information Sources

• ITC websites at Geneva : http://www.intracen.org/ ;

• NGARA publication 3rd series, September 2005 ;

• British Journal of Nutrition, December 2008, Vol. 100, Issue 6, Pages 1269-1275, “Gum arabic establishes prebiotic functionality in healthy human volunteers in a dose-

dependent manner”.

• Food Navigator: http://www.foodnavigator-usa.com);

• Nutra Ingredients: http://www.nutraingredients.com). •

Part II: Gum Resins

Useful Addresses AIPG, Association for International Promotion of Gums E-mail: [email protected] - Site: www.treegums.org AIDGUM, Association Internationale pour le Développement des Gommes Naturelles 129, Chemin de Croisset BP 4151 76723 ROUEN CEDEX Tel.: + 33 232 831 818 Fax: + 33 232 831 919 NGARA, Natural Gums and Resins in Africa Nairobi, Kenya Tel: +254 720 811 411 Fax: +254 20 4444 841 E-mail: [email protected] - Site: www.NGARA.org GARA, Gums and Resins Association of Kenya, an organization registered under the societies Act in 1997. The organization brings together institutions of public and private sectors and civil society. Exporters Ethiopia ABBEBAYE C.C. PLC Tel.: + 251 01 53 07 75; Fax: +251 01513965 P.O. Box: 5304 Addis Ababa

GENALE MIGS TRADING P.L.C. Tel.: + 251 01 56 03 52; Fax: + 251 01 51 39 65 P.O. Box: 2259 Addis Ababa DARUELA NESREDIN Tel.: + 251 01 75 25 72; Fax: + 251 01 75 62 61 P.O. Box: 12 672 Addis Ababa GUNA TRADING HOUSES P.L.C. Tel.: + 251 01 65 22 88; Fax: + 251 01 65 46 32 Addis Ababa NGPME Tel.: + 251 01 51 88 13/ 15 99 32; Fax: + 251 01 51 81 18 P.O. Box: 62 322 Addis Ababa AMBASSEL TRADING HOUSE Tel.: + 251 01 53 35 02/ 52 56 95; Fax: + 251 01 51 53 15/ 50 58 40 P.O. Box: 12 617 Addis Ababa BWAP EXPORT PLC P.O. Box: 5304 Addis Ababa YAHIYA SEID OMAR Tel. /Fax: + 251 01 75 12 96; P.O. Box: 4202 Addis Ababa

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Market News Service 39 Gum Arabic

Kenya ELEGANT TRADING COMPANY LTD Tel.: 0 722 718 290; Contact: M. QURESH E-mail: [email protected] GUMS AND RESINS KENYA Tel.: 0 722 491 379 ; Contact: M. Abdi Kadir Hassan Phoenix House, 3rd floor, Kenyatta Avenue E-mail: [email protected] SAM IMPEX KENYA LTD Tel.: 552 392/652436; Lunga lunga Road ARIDS LANDS RESSOURCES LTD Tel.: 0 722 817 492 ; Contact: M. Dennis Leete Village Market, Isiolo E-mail: [email protected] VETOCHEM Tel.: 0 733 720 068; Contact: M. Sadqa HAQ Lunga lunga Road E-mail: [email protected] MUNAISSAR ENTERPRISES Tel.: 20-797669; Contact: M. MUNAISSAR Dandora, Nairobi HASSAN HASSINE Tel.: 020-536053-64; Contact: M. Hassan Hassine P.O. Box: 458605, Nairobi Eritrea AZIEB INTERNATIONAL Tél.: 291-1121462/117343 ; Fax: 291-1-121 462 175.9 Acss N°2, P.O.BOX: 2- Lorenzo Taezaz Asmara

SACIF (ERITREA) PVT. LTD.CO Tel.: 291-1-120747; Fax: 291-1-120354 Nakfa Street Number 175, House N°10, P.O.BOX: 521 Asmara Importers United Kingdom FRUTAROM (UK) LTD Belassis Avenue, Bellingham Cleveland TS 231 LQ Contact: Dr. John Heffernan, Research Manager UK TRADE & INVESTMENT (formerly Export Market Information Centre) Kings gate House 66-74 Victoria Street London SWIE 65 W Germany CE ROEPER (Gmbh & Co) Hans – Dunaker-Str.13 D-21035 Hamburg Contact: Mr. Ruediger Dreyer, Director ERNST H SINGELMANN Hopfensack 20 D-20457 Hamburg Contact: Mr. Carsten Singelmann, Director WILLY BENECKE Hovestr.41 D-20539 Hamburg Contact: Mr. Thorsten Hauser, Director ALFRED L. WOLFF Gr. Bäckerstr.13 D-20095 Hamburg Contact: Mr. Aw Duve, Director

References and Information Sources

• NGARA publications, 5th edition, march 2006 ; • FAO – Harvesting of non-wood forest products, 2003, pp 432;

• Bulletin of Environmental Contamination and Toxicology, 2001, vol. 67, pp.332 - 338;

• ITC websites at Geneva : http://www.intracen.org/

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HANDBOOKVer. 5.3

The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations.

Street addressInternational Trade Centre54-56 Rue de Montbrillant1202 Geneva, Switzerland

P: +41 22 730 0111F: +41 22 733 4439E: [email protected]

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