Gum Arabic Value Chain and the Share of Stakeholders under the Applied Free- Trade Policy, Sudan
Mohammed O. Hassan
Institute of Gum Arabic Research and Desertification Studies, University of Kordofan, Sudan.
Ali A. Salih
Faculty of Agriculture, University of Khartoum, Sudan.
Muneer E. S. Eltahir *
Institute of Gum Arabic Research and Desertification Studies, University of Kordofan, Sudan.
Faisal I. Musa
College of Scientific Research and Post Graduate Studies, University of Kordofan, Sudan.
*Author to whom correspondence should be addressed.
Abstract
The research was comparatively analyzed gum Arabic Value Chain and the share of Stakeholders under the Applied free-trade Policy in Sudan. Data was collected in 2015, using a structured questionnaire and direct interviews with a stratified sample of 100 gum Arabic producers (10%), 60 traders (5%) and 11 exporters (15%).Data was analyzed using, the value chain framework to analyze the respective share of the gum Arabic actors in production and marketing cost and revenues including taxes and Zakat, and the descriptive statistical analysis to investigate the socio-economic characteristics of the stakeholders. The value chain analysis results showed an increase in the respective share of the producer up to 49% during the free-trade period. Reduction in number of taxes and fees on gum Arabic from 35 down to 21 resulted in decrease of fees and taxes from 40% of free on board (FOB) export price down to 5%.The study recommended that producers should practice collective marketing of gum Arabic to surpass some mediators. It also recommended involving private sector to provide credit to the gum Arabic producers to increase their gum gardens and to develop smart partnership between the producers and exporter firms to maximize the producers' revenues.
Keywords: Gum Arabic, value chain, non wood forest products, gum producers, FOB, revenues.
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References
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