Monday, December 7, 2009

Export Product Profile: Gum Arabic


Description: Gum Arabic (Acacia Senegal) Gum Acacia, also known as Gum Arabic, is a natural gum harvested from the exterior of Acacia trees in the form of dry, hard nodules up to 50 mm in diameter, and ranging from almost colourless to brown. Its unique properties endow it with a wide range of uses in food, beverage, pharmaceutical and industrial applications. There are over 1,100 Acacia species worldwide. However Acacia Senegal and Acacia Seyal are the most commercially exploited species. 
Nigeria has three grades of Gum Arabic namely: 
Acacia Senegal (grade 1) 
Acacia seyal (Grade 2)and 
Combretum (Grade 3).

The major Acacia utilized for commercial Gum Arabic production in Nigeria are Acacia Senegal and Acacia seyal. Nigeria is the 2nd largest producer of the crop in the world after Sudan with average production of 20,000 metric tonnes of all grades of Gum Arabic. In the year 2004, world production of Gum Arabic was put at 70,000 metric tonnes while Nigeria's production amounted to 18,935 metric tonnes with export earnings of US$88.08 million.

 Harvest: Gum Arabic is harvested during the dry season because during the rainy season, no gum is formed since the trees are in full bloom. The dry season lasts from October to June and the gum is collected every 10 days during this period. After collection, the gum is brought from the farms and stands to villages from there it’s transported to market

Locations: Gum Arabic is produced in about 14 States of the Federation namely Borno, Yobe, Jigawa, Bauchi, Gombe, Taraba, Plateau, Adamawa, Sokoto, Kebbi, Katsina, Zamfara, Nasarawa and Niger with an estimated population of 4 million Nigerians engaged in its cultivation and trade.

 Specifications:

Features
% percentage
Purity
98%min
Moisture
10-12%max
Total Ash
4-6% max
Acid Insoluble residue
0.4% max
Starch
Negative
Tannin Bearing Gums
Negative
Salmonella
Negative
E. Coli
Negative

 Uses: Gum Arabic is used as thickener, suspender, emulsifier, stabilizer, flavour carrier, binder and encapsulating material. In addition, it is used in confectionaries, food, beverages, pharmaceuticals and chemical industries.

Export market: The major markets for the product are: Belgium, China, USA, U.K and Japan.

Export Price    
Grades
FOB price /MT
Grade I
USD2,800-3,200
Grade II
USD1,850-2,200
Grade III
USD900-1,100

Local price: The local price of gum Arabic grade I ranges from about N170,000 to 180,000/MT in Kano. Delivery to Lagos will increase the unit price per MT by 10,000 to 20,000.



21 comments:

  1. the price you stated here, is it per metric ton or what, and what is the local cost of purchase.

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  2. Thanks so much for this observation, the amendments have been made

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  3. Thank you Dele. Your piece is so educative. How do i get a contract with good payment terms/ i.e LC etc. That has been a major problem.

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  4. Thank you Dele. Your piece is so educative. How do i get a contract with good payment terms/ i.e LC etc. That has been a major problem.

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  5. Thanks for your question. Getting a Contract with LC terms is difficult for a starter because there is no track record of performance.
    It is therefore advisable to first work on a contract with open account mode of payment for few containers and then later negotiate an LC with the buyers.

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  6. hello very educative and informative, I some capital for gum arabic and some potential buyers but lack a good supplier, can you link me up with a supplier

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  7. i am a supplier in chad, do export only to international companies. you can refer any serious client to me. they can get in touch throu info@gumtchad.com

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  8. I have sent the contact details of some gum Arabic buyers in Europe to yor mail box.

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  9. You have produced a very useful insight into this business. I would like to follow up on your write up by actually doing business. I need local contacts to procure the products as well as info on overseas buyers and would appreciate your assistance in this regard.
    Also, I am looking to export certain other products from the country and would like to open account with your bank. Please let me have your contact information for follow up purposes. Thanks

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  10. This is a very insightful write up on the gum arabic business. Can you possibly provide me with information on
    a) where exactly to buy the products in Nigeria
    b) who can assist me in determining the grades and provide quality control service
    c) overseas buyers

    Also I want to export some other products out of the country and would like to use your bank. Please provide me with your contact information so I can follow up with you.
    Thank you.

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  11. My contact details include the following:
    Email:bayemibo@gmail.com
    Tel:+2348036522946
    Blog:http://exportnigeria.blogspot.com/

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  12. Hello there,

    can anyone advice how much is the FOB current prices of arabic gum grades one and two for delivery April or May 2010? Thanks

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  13. Please use the prices below as a guide in your negotiation
    Grade I- USD2,800-3,200
    Grade II - USD1,850-2,200
    Grade III - USD900-1,100

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  14. hi
    pls can you give me your latest quotation on your gum in grade 3?
    tks
    lee

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  15. hi
    pls can you give me your latest quotation on your gum in grade 3?
    tks
    lee

    ReplyDelete
  16. hi
    pls can you give me your latest quotation on your gum in grade 3?
    tks
    lee

    ReplyDelete
  17. hi sir,i leave in plateau state.i'm involved in commodity trade from here to lagos,maiduguri.would like to know when next u will be having ur next seminar.thank(lauvx@yahoo.com)

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  18. Hi everyone i do have Arabic Gum for sale too , for all those interested just kindly email me at deportextractltd@hotmail.com

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  19. Sir, I will like to find out the current export price for gum arabic for grades 1, 2, & 3.
    I also need the contacts of buyers abroad.
    My email is idowu.elewa@yahoo.com

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  20. I have sent the response to you email box

    ReplyDelete