“Mobilization and capacity-building for small and medium-scale enterprises involved in the non-wood forest products value chains in Central Africa” This policy brief assesses the potential and production of natural stands of gum Arabic trees and presents the socio-economic context of the species’ value chain in the North and Far-North regions of Cameroon, carried out by Dr Mama Ntoupka and Dr Charles Njomaha of IRA under the supervision of SNV. It analyzes the production, marketing and consumption of gum Arabic in order to assess its existing potential and importance for households. Policy Brief No. 4 (January 2010) Recommendations 1- Organise the gum value chain so that exports should be handled by Cameroonian actors to avoid lost earnings when exports are handled by Nigerians; 2- Support the drafting and application for approval of a community forest management agreement by the population living around large natural plant concentrations; 3- Put in place community forests and integrate gum Arabic in food cropping systems. 4- Promote research and educate the population on improved planting and harvesting techniques; 5- Organise collectors in common initiative groups (CIG) or associations to resolve common problems and develop local processing or semi-processing plants; 6- Consider establishing plantations on marginal lands (dune soils) and reflect on the land allocation system; 1. Introduction The strong presence of gum Arabic trees in the SudanoSahelian zone of Cameroon means that the development and best value of gum Arabic – an exudate considered as a NWFP obtained from this species – should become a priority in the North and Far-North Regions of Cameroon. In fact, gum-related activities carried out by women represent up to 38-40% of the net global income derived from their activities which ranges from CFAF 64,000 to CFAF 158,500. On the other hand, the financial margin obtained from gum-gathering by men represents 31-48% of the net income of their overall activities which ranges between CFAF 126,500 to CFAF 365,500. From the combined incomes of men and women, it appears that this activity, which generates a financial margin of between CFAF 87,000 to 177,000, represents 33 to 45% of net household incomes estimated at between CFAF 190,500 and 524,000. The gum Arabic value chain in North Cameroon employs 3,000 to 3,500 persons in activities ranging from the planting of Acacia senegal, to the gathering, collection, sorting and exporting of gum. These people include nursery growers/producers of Acacia senegal plants, planters of Acacia senegal, gatherers and collectors. The gross global value of production at export is estimated at CFAF 365 million, broken down into the Cameroonian circuit estimated at CFAF 145.6 million and the Nigerian circuit at CFAF 218.4 million. Since 60 to 70% of gatherers are rural women from the poorest social classes, it becomes apparent that gum-related activity provides them with CFAF 50 to 60 million per crop season (January-June), which is a significant contribution to poverty reduction. There is prime quality hard gum on the world market produced mainly by Acacia senegal and on a smaller scale by A. polyacantha and A. laeta, as well as second grade friable gum produced primarily by A. seyal and to a lesser extent by A. sieberiana. This product is used in agro-food (60-80%), pharmaceutical (5-10%) and chemical (10-15%) industries. The harvest of this exudate must have begun in the Waza sub-division since 1935 under the auspices of Nigerians. It is of great socio-economic importance given its added value. 2. Gum production The gum producing zone has about 2,500,000 stems, from all four species. The most represented species is the Acacia seyal with a total of about 2,000,000 stems. The Mayo Kani site has the greatest number of stems of all species, followed by Diamare and Mayo Sava. The Diamaré-Mayo Kani-Mayo Danay Basin has 1,458,400 gum trees, the Logone and Chari North-Mayo Sava Basin 489,200 stems, the Bénoué North Basin 319,600 stems, and the Mayo Tsanaga-Mayo Louti Basin 209,600. On the whole, all these gum species are today considered as key species in their environment, proof that pedological disturbances are absent for the moment. The world production of gum Arabic is between 40,000 and 45,000 tons yearly. The main producers in the world are in sub-Saharan Africa with Sudan in the lead (80% of production), followed by Chad and Nigeria which total nearly 90% of exports to the world market The leading importers are France and Great Britain (in Europe), the United States of America, India and Japan. The Acacia senegal plant has 3 types of producers: State-owned producer institutions, private producer institutions and individual producers. It is estimated that a male gatherer harvests 5 to 6 measures of 2.5kg of gum per day while a female gatherer harvests 3 to 4 measures of 2.5kg. The quantities drop during the months of March to May because of the intense heat. Harvesting is therefore done mainly from January to June. The Acacia senegal plantations yield 5 to 10 kg of gum per hectare yearly. A few rare plantations located in Mindif and Dadjamka stand out with exceptional yields of 80 to 100 kg/ha/year, whereas the expected theoretical yield is 156 kg/ha/year, or 205 g of gum per tree per year. In the large natural plant concentrations of the Waza National Park (WNP), a gatherer can harvest up to 75 kg of gum of all species per week from January to February and 50 kg/week from March to June, making a The GCP/RAF/408/EC Project "Mobilization and capacity-building for small and medium-scale enterprises involved in non-wood forest products value chains in Central Africa", financed by the European Union seeks to boost the earnings of small and medium-scale enterprises involved in the non-wood forest products value chains and to sustainably manage forest resources for present and future generations. This policy brief was prepared by FAO and SNV in collaboration with the NWFP Sub-Department (SDNL) in Cameroon’s Ministry of Forestry and Wildlife (MINFOF). total of 700 to 1,000 Kg per year. Female gatherers may harvest up to 50 Kg from January to February and 18.75 kg from March to June, or a total of 500 to 700 kg per year. 3. Threats to the gum resource Except for the Logone and Chari North and Logone and Chari South sites where pruning is mostly practised, stress crack is mostly practiced in the other sites. The practices which jeopardize the resource are shifting cultivation with burning, the search for firewood, and the practice of pruning or clearing to enable air to reach crops. Population growth also has a direct influence on natural resource management practices because the habitual farmlands have increased, fallow periods have been shortened and the natural forest land has shrunk. 4. Consumption and socio-economic characteristics Gum gatherers are in majority women (60 to 70%), aged above 40 years, most of whom never attended school (90 to 95%) and who care for quite large families. In addition to gathering, they engage in farming and petty trading and sell firewood. Locally (North Cameroon), gum Arabic is consumed fresh by children and used in the manufacture of writing ink for Koranic schools. It also gives rigidity to caps and is used traditionally to treat gastritis and abdominal pains. It costs between CFAF 100 and 200 to wash a cap depending on its worth and 0.5kg of gum can be used for 50 caps. A quantity of 1 kg of gum can be used to make ink for a group of 20 to 25 pupils per month. The two types of consumers take up on average 15 kg of gum yearly in the whole region. The profitability of an Acacia plantation must pay due regard to the improvement of fertility engendered, the yields from intercropping practised during the first three years, the production of gum Arabic, the possible production of fodder in areas with weeds as from the fourth year, and the production of wood in case where the plantation is felled. Low-yield plantations (10 kg of gum/yearly) with subsidized plants present net negative incomes which increase further as from the fourth to the sixth year. For plantations producing 100 kg of gum/ha/year, net income becomes positive as from the fourth year for the option in which plants are subsidized. If plants are not subsidized, the farmer will wait until the eighth year to start having a net positive income. For a plantation that produces 156 kg of gum/ha/year, the planter fetches a global net positive income as from the fourth and fifth year respectively for the options with and without plant subsidies. 5. Marketing Collectors scour small villages during the week to buy gum, which is then transported to the town in which they reside. At the start of the season (December-January), they pay gatherers in advance to enable them buy foodstuffs and the clothing necessary for their activities. Such advance payments fluctuate a lot (CFAF 10,000 to 30 000) and no formal written contract is signed. The two parties rely on mutual trust as the only guarantee. At each supply of gum to the collector, any advance payments made previously are deducted from the amount paid to the gatherer. An informal micro-finance mini-service has developed between collectors and gatherers. The gatherers of localities situated between Waza and Dabanga also sell their gum (in bowls) along the roadside. The main exporter in Cameroon is CEXPRO, which operates also by pre-financing collectors to the tune of CFAF 50 000 on average per individual. These collectors attain between five and eight tons of gum per season and sometimes 15 tons at Guirvidig and Hinalé. Gum from small acacia natural plant concentrations are harvested mostly by women and children. They sell (CFAF 50 to 100/kg) their entire production to traders, parents or the Koranic school officials and cap washers. The quantities exported by CEXPRO were 280, 289 and 356 tons respectively in 2005, 2006, and 2007. The hard gum obtained from Acacia senegal is quite valued on the international market today. Unfortunately, Cameroon’s production is quite marginal. Furthermore, second grade gums face stiff competition on the market from synthetic products, which brings down their selling prices. At village level, gum prices range from CFAF 100 to 150/kg for friable gum and to CFAF 600 for hard gum. The selling price at CEXPRO or in the market to Nigerian buyers varies between CFAF175 and 300/kg for friable gum and from CFAF 600 to 800 /kg for hard gum. The FOB price in Douala varies from CFAF 455/kg for friable gum to CFAF 1,820/kg for hard gum. The gross margins obtained from the sale of friable gum are from around CFAF 108 to 133/kg for the exporter against CFAF 81 to 103/kg for gatherers and CFAF 14.7 to 17 /kg for collectors. The financial margin obtained from the sale of Acacia polyacantha per gatherer is CFAF 206 to 228/kg, or 43.4% of FOB (Free-On-Board) price. This means that better quality gum fetches a higher price. The average price of adulterated gum at the Nigerian border is CFAF 225/kg. 6. Conclusion The North and Far North regions of Cameroon display an ecological diversity that is an asset for the selection of gum-producing acacia strains adapted to the different ecological sites of the zone. There are vast stretches of marginal lands, which could be dedicated to the creation of new plantations, with the support of financial partners already identified and encouraged by the existence of a national plan to fight desertification, drafted by the government, and that prioritises actions in the SudanoSahelian zone. The gum Arabic value chain can continue to contribute to the improvement of stakeholders’ income as well as to the resolution of the problems of land fertilization and other social problems. To that end, it will be necessary to lift constraints linked to the current low yield of Acacia senegal plantations, the difficult access to landed property which is one of the prerequisites to the opening of a plantation, and the lack of equity and transparency in relations and transactions between various stakeholders of the value chain. Contact : Ousseynou Ndoye : Regional Coordinator and National Coordinator in Cameroon P.O. Box 281, Yaounde, Cameroon Tel : +237 22 20 24 72, +237 75 29 70 67, Fax : +237 22 20 48 11 Email : Ousseynou.Ndoye@fao.org / ousseynou_ndoye@yahoo.fr Sophie Grouwels: Lead Technical Officer in Rome FAO, Rome, Italy Tel : +39 06 570 55299, Cell : +39 346 240 1970 Sale of gum in production sites