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Gum Arabic Value Chain Analysis in East Darfur, Sudan

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Gum Arabic Value Chain Analysis in East Darfur, Sudan Gum Talha (Acacia seyal) Value Chain Analysis in East Darfur, Sudan EAST DARFUR STATE February 2016 Table of Contents Acknowledgements ................................................................................................................ 3 Acronyms .............................................................................................................................. 1 Executive summary ................................................................................................................ 2 1. Introduction ....................................................................................................................... 3 1.1 Background ............................................................................................................................ 3 1.2 Objectives of the analysis ...................................................................................................... 5 2. Definitions and theoretical framework ................................................................................ 6 2.1 Value chain ............................................................................................................................. 6 2.2 Value chain analysis .............................................................................................................. 6 2.3 Value chain mapping .............................................................................................................. 6 2.4 Value chain development ....................................................................................................... 6 2.5 Access theory ......................................................................................................................... 7 2.6 Conceptual framework ........................................................................................................... 7 3. Method .............................................................................................................................. 8 3.1 Study area ............................................................................................................................... 8 3.2 Research design ..................................................................................................................... 8 3.3. Data collection ....................................................................................................................... 9 3.4. Triangulation ....................................................................................................................... 11 3.5 Data analysis ........................................................................................................................ 11 3.6 Data presentation ................................................................................................................. 12 4. Results ............................................................................................................................ 13 4.1 Overview of Gum Arabic production in East Darfur ............................................................. 13 4.2 Structure of the Gum Arabic value chain ............................................................................. 15 4.3 Distribution of benefits and access analysis ...................................................................... 24 4.4 Constraints and bottlenecks ................................................................................................ 30 5. Conclusions and recommendations .................................................................................. 33 5.1 Conclusions .......................................................................................................................... 33 5.2. Recommendations .............................................................................................................. 34 References ........................................................................................................................... 36 1 List of Tables Table 1: Types of actors, genders and locations Table 2: Gum Arabic value chain actors and their activities Table 3: Socioeconomic characteristics of the surveyed actors in the Gum Talha value chain Table 4: Estimates of Gum Talha production in the surveyed localities (2016) Table 5: Taxes and duty fees on gum Talha for 2013 and 2016, and beneficiaries Table 6: Gum producers’ average yields, costs and profits (n꞊130) Table 7: Village trader's average prices, costs and profits (n꞊50) Table 8: Town trader's average prices, costs, profit (n꞊15) Table 9: Mechanisms for maintaining and controlling benefits Table 10: Constraints and bottlenecks, as identified by producers Table 11: Recommended interventions in response to particular constraints and bottlenecks List of Photos Photo 1: Group discussion with gum producers in Um Sigayi weekly market Photo 2a: A producer holding an axe Photo 2b: A wound on a Talha tree Photos 3a and 3b: Sticky gum from the Talha tree Photo 4: Natural stands of Talha (A. seyal) in Gemayzia, Abu Jabra locality Photo 5: A taya in the forest Photo 6: An agent at Sinaidira in El-firdos locality Photo 7: An old A. senegal tree (Hashab) Photo 8: A female gum producer selling gum to a village trader in Boro market 2 List of Figures Figure 1. The conceptual framework Figure 2: The area covered by the study Figure 3: The sales channels for Gum Talha from East Darfur Figure 4: Gum production costs (%) Acknowledgements The author, Dr. Yahia Omar Adam, is very grateful for the cooperation and support of the staff of the United Nations Environment Programme (UN Environment) and the Forests National Corporation (FNC) in Ed Daein who facilitated the field survey and accompanied me to the sites of the 'Natural Resource Management for Sustainable Livelihoods' project in East Darfur. The consultant also extends his gratitude to the UN Environment team in Khartoum. Thanks also go the enumerators for their intense commitment over long hours in difficult conditions. In particular, thanks are extended to Mr. Adam Ibrahim, Mr. Mohamed Abuelgasim, Samia Madibo and Salma Abdulrahman from the FNC. Special thanks go to the drivers (Yosif and Mohamed) who ensured the field travel was on schedule. Appreciation is also extended to Mr. Abdalla Adam Osman (the Director of the FNC East Darfur) and Mr. Abdalla Hemidan (Project Manager, UNOPS) for their diligence and assistance during the data collection. Very special thanks are also extended to all of the traditional leaders who accompanied and introduced us to the local people in the visited areas. My thanks also go to all the actors who deal with Gum Talha activities in the study areas for their welcoming reception and their provision of the required data. 3 Gum Talha (Acacia seyal) Value Chain Analysis in East Darfur, Sudan Acronyms o C degrees centigrade FNC Forests National Corporation GAC Gum Arabic Company MT metric tons NGO non-governmental organization NTFP non-timber forest product SDG Sudan ginah (USD 1 = 6.4 SDG) UNEP United Nations Environment Programme USD United States dollar VCD value chain development WFP World Food Programme 1 Gum Talha (Acacia seyal) Value Chain Analysis in East Darfur, Sudan Executive summary This report describes the findings of a comprehensive and detailed value chain analysis for gum Talha, which sought to: i) identify the product chain, the actors involved, their activities and framework conditions; ii) determine the economic benefits and their distribution among the actors and how these benefits are maintained and controlled; iii) identify key constraints and bottlenecks and propose potential market-based solutions to develop the market chain of gum Talha; and iv) suggest interventions and a framework to develop the gum Talha value chain so as to increase benefits for the producers and the other actors. The study, conducted in February 2016, used snowball sampling to select 197 study participants (130 producers, 50 village traders, 15 town traders/agents and two companies/exporters) along the value chain. Primary data was collected using semi-structured interviews, key informant interviews, group discussions and direct observations. The quantitative data was analyzed using SPSS version 20 and Excel 2010, while qualitative data was analyzed using text analysis. The actors in the Gum Talha value chain include producers, village traders, town traders/agents, companies/exporters and consumers in international markets. The study found that the profit margin for the rural collectors was 48.76 per cent, while that for village traders was 54.94 per cent, and that for town traders was 6.4 per cent. The main cost items for the rural producers include food (45 per cent), labour (22 per cent), drinking water (18 per cent), gum transportation (9 per cent), medication (4 per cent) and tapping tools (2 per cent). The study identified the major constraints and bottlenecks at the local level as: low gum prices, lack of market information, lack of producers' organizations, lack of financial credit, lack of training on gum cleaning and drying, lack of drinking water, low regeneration capacity of Hashab trees and poor tree management. The report concluded that the Gum Talha market chain profits mainly the processors and exporters. In view of the study findings, the following interventions are recommended: establish drinking water points; build the capacity of gum producers; develop a market information system; facilitate access to financial credit and establish Talha
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