COMPETITIVENESS AND PROFITABILITY OF SUDANESE GUM ARABIC IN NORTH KORDOFAN STATE

Sudan is the world’s largest producer of gum Arabic. Which is a natural forest product; produced from Acacia senegal and Acacia seyal trees. Sudan is considered as a key supplier of raw gum Arabic in the world as it used to provide more than 80% of high quality gum Arabic in the world market. The product is used primarily in the food industry but has medicinal and technical uses as well. This study investigates the main reasons behind the fluctuation in Sudanese gum Arabic export, as well as specifying the main importers of Sudan's gum Arabic during (2000-2013). In addition the study investigates the competitiveness of the Sudanese gum Arabic in the world market during (2000-2013). Data were collected from different sources that relevant to the field of the study. The analysis was done using descriptive statistic and Policy Analysis Matrix (PAM). The findings of the study have shown that the major reasons behind the decline and fluctuations of the Sudanese gum Arabic the increase in the production cost. Furthermore, exporting gum Arabic is financially and economically profitable. Also Sudan has high competitive ability to export gum Arabic. The study also refers to the negative impact of taxes on gum Arabic. The study recommended that: the government should design a specific policy through reducing the taxes and fees for gum Arabic export in order to increase its comparative advantage.