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How To Make Huge Profit Supplying Gum Arabic To Local Industries In Nigeria.

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How To Make Huge Profit Supplying Gum Arabic To Local Industries In Nigeria.

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Gum Arabic is a natural gum that oozes out from Acacia trees  and dries to form tears / nodules. There are more than 1,000 Acacia species worldwide but acacia Senegal and Acacia Seyal are the most prized commercially .

Product Description

Gum Arabic is an ancient ingredient that has been used since 4000 BC. The use of gum arabic thus dates back almost 6000 years and is the oldest and best known of all the natural gums. The uses of Gum Arabic have evolved over time to include uses in confectionery, flavours, pharmaceuticals, bakery, beverages, inks , pigments etc. Due to the demand by health conscious consumers for natural ingredients, Gum Arabic usage has seen considerable increase in food related industries.

Nigeria has comparative advantage in the production of Gum Arabic in Africa over her counterparts due to the large arable land available for production and the conducive climatic condition.

Presently Nigeria is the second largest producer of Gum Arabic in the world and Foraminifera Market Research seeks to expose the investment opportunity in the sales of gum arabic to local industries in Nigeria.

Though the second leading exporting nation for Gum Arabic in the world, Nigeria is yet to take advantage of the vast opportunity that exists in value addition of Gum Arabic.

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;

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.

Gum Arabic is used as thickeners, suspender, emulsifier, stabilizer, flavour carrier, binder and encapsulating material.
Features % percentage
Purity 98%min
Moisture 10-12%max
Total Ash 4-6%
Acid Insoluble residue 0.4% max
Starch Negative
Tannin Bearing Gums Negative
Salmonella Negative
E. Coli Negative

Gum Arabic is used as thickeners, suspender, emulsifier, stabilizer, flavour carrier, binder and encapsulating material and there is constant need for the product.

The return on investment on the sales of Gum Arabic is estimated between 10%- 15%.

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Table of Content

1. Introduction
1.1 Executive Summary
1.2 Business Opportunity
1.3 Country Background

2. Technical Analysis
2.1 The Project
2.2 Product Description
2.3 Product Location and Distribution
2.4 Legal Considerations

3. Opportunity

3.1 Market Overview
3.2 Demand and Supply
3.3 Customer Profile
3.4 Primary Competition

4. Socio- Economic and SWOT Analysis of the Project
4.1.1 Generation of Employment
4.1.2 Source of Government Revenue
4.1.3 Foreign Exchange Generation
4.2 SWOT Analysis

5. Risk Identification and Mitigation Strategy
5.2 Critical Success Factor

6. Financial Analysis

Report Details

Report Type: Feasibility Report
Language: English
Release date: September, 2013; Updated Every 3- Months
Number of pages: 15 pages
Format of Delivery: MS WORD
Product Code: FORA/2013/GUMARABICLOCAL/00943523
Delivery time: Within 24– 48 hours of payment confirmation