Green forest fire notification in Sudan

Supply-chain Risk Briefing: Sudan Wildfires

1) Summary Medium-scale wildfires occurred in Sudan for approximately one week from April 7-13. Historic acacia forest areas are suffering severe damage due to indiscriminate logging caused by the ongoing civil war combined with the fires. While the fires have ended, the continuing conflict situation is acting as an additional threat factor to forest resources.

2) Supply-chain impact

• Gum Arabic production risk: Sudan accounts for over 70% of global Gum Arabic supply, and production of this acacia tree-based raw material faces potential double impact from fires and war
• Agricultural productivity decline: Soil degradation and water source contamination from wildfires expected to have medium-to-long-term adverse effects on production of Sudan's major agricultural products (sesame, peanuts, cotton)
• Regional logistics network instability: Civil war situation combined with fire damage creates additional constraints on transportation infrastructure and agricultural export routes within Sudan
• Food processing raw material procurement disruptions: Global food, beverage, and pharmaceutical industries requiring Gum Arabic face increased raw material procurement costs and growing pressure to seek alternatives

3) Watch points

• International Gum Arabic price trends: Need to track price volatility and inventory level changes in major importing countries (US, Germany, France) over the next 2-3 months
• Sudan Ministry of Agriculture fire damage assessment results: Monitor whether accurate forest damage scale and acacia plantation recovery plans are announced
• Alternative supply source activation: Observe production increase plans from neighboring Gum Arabic producing countries like Chad and Nigeria, and global buyers' supply diversification movements