University of Khartoum

Revitalizing gum Arabic Production and Marketing under Different Governmental Policies - North and West Kordofan States - Sudan

Revitalizing gum Arabic Production and Marketing under Different Governmental Policies - North and West Kordofan States - Sudan

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Title: Revitalizing gum Arabic Production and Marketing under Different Governmental Policies - North and West Kordofan States - Sudan
Author: Ibrahim, Mohammed Osman Hassan
Abstract: The aim of the study was to do a comparative analysis of the impact of the concession and free-trade policies on revitalizing gum Arabic production and marketing in North and West Kordofan States. Primary data was collected in 2015, using a structured questionnaire and direct interviews with a stratified sample of 100 gum Arabic producers, about 10% of the population of the study, 60 traders, about 5% and 11 exporters, about 15%.Secondary data was collected from related official documents. Primary data was analyzed using, maximum-likelihood parameters of stochastic frontier cost function to estimate the level of efficiency of the gum producers, 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 results of the socio-economic analysis indicated that about 74% of the gum producers were economically active including the young. This indicated continuing of preserving indigenous knowledge technique of gum Arabic production across generations. The comparative analysis results indicated the positive effect of the free-trade system in providing incentives to gum producers and traders. Almost all the producers and 87% of the traders preferred free-trade policy as it gives more price incentives. The free- trade policy reduced the number of taxes and fees on gum Arabic from 35 down to 21 resulting in the decrease of the fees and taxes from 40% of the free on board (FOB) export price down to 5%. Thus the new policy encouraged gum producers to increase their cost efficiency up to 80%-100%, as verified by the maximum likelihood analysis results with 99% confidence level, and encouraging the producers to conserve and reforest instead of cutting Hashab trees. The annual average supplies of gum Arabic to Elobied auction market increased from 6,000 metric tons pre-free-trade up to 8,000 metric tons post free-trade period. The free-trade was able to revitalize the exports of gum Arabic, both Hashab and the newly increased world demanded Talh gum, from 35,000 tons during the last years of the concession years to 63,450 tons by 2015. The value chain analysis results showed an increase in the respective share of the producer from 4%-18% of the FOB price during concession to 49% during the free-trade period. The study recommended continuing the free- trade policy in production and marketing of gum Arabic, involving the private sector to provide credit to the gum Arabic producers to increase their gum production area and avoid cutting Talh trees to produce firewood and charcoal.
Description: 155 Pages
URI: http://khartoumspace.uofk.edu/123456789/26721


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