At the seminar on "Rubber product production, opportunities and challenges for NR" jointly organized by the Rubber Authority of Thailand (RAOT) and the National Rubber Research and Development Association (IRRDB) last August showed the need to strengthen cooperation with global natural rubber (NR) users, in which ASEAN countries can revolutionize the NR industry and keep it sustainable. , to benefit both producers and consumers.
Paradox in ASEAN natural rubber producing countries
Research shows that the rate of rubber used in NR producing countries is below 20%. Most of the raw rubber produced is exported instead of used domestically to produce finished rubber products. However, those same rubber producing countries import large quantities of finished rubber products. Continuously low raw rubber prices are a major concern for manufacturers. Rubber farmers are facing difficulties due to poor profits, so many have started looking for other options.
In Malaysia, less than half of the one million hectares of rubber are exploited. Many smallholder households have replaced rubber with oil palm, and some have planted durian trees. Indonesia also has a similar situation. The recent outbreak of foliar disease Pestalotiopsis, which has significantly reduced yields, is another reason why people have abandoned rubber cultivation. In Thailand, less than half of rubber replanting subsidies are used for rubber. The rest turned to growing commercial crops, mainly durian. The Philippines alone has begun to pay serious attention to NR. They plan to increase their downstream rubber products business.
ASEAN countries account for the majority of NR producing countries in the world. Except for Brunei and Singapore, other ASEAN member countries all grow rubber. Other major producers are Sri Lanka, India, China, Côte d'Ivoire in Africa and several Latin American countries. Brazil, the original home of NR, has also begun expanding cultivation in areas free of the dangerous foliar disease SALB. India and China do not have enough rubber to produce products to meet their needs, so they have to import rubber. Even Malaysia is fast becoming a net importer. In the glove business, a field that saw Malaysian companies "bumper" during the pandemic, the rubber was centrifuged from imported sources. Therefore, even Malaysia's rubber processing business depends on latex imported from Africa to survive.
It is necessary to cooperate to promote the development of the rubber product manufacturing industry
But the challenges posed to rubber farming are considered the biggest concern. If rubber farmers continue to abandon rubber cultivation because of poor profits, it will negatively affect global supply. Unstable world supply also causes difficulties for large tire manufacturers. That's why more and more major tire brands are investing in rubber plantations.
However, ASEAN, with a population of nearly 700 million people, is the world's major market for finished rubber products. ASEAN has legitimate conditions to form a large-scale rubber products industry. At the same time, we must ensure that a reasonable portion of profits will be used to support rubber farmers. And it is necessary to develop technology to modernize the industry, attracting more cooperation. Besides, it is necessary to strengthen cooperation with global NR users so that ASEAN countries can revolutionize the NR industry for sustainable development.
NGUYEN ANH NGHIA
“The New Straits Time”
http://tapchicaosu.vn/2023/11/28/san-xuat-san-pham-cao-su-co-hoi-va-thach-thuc-tai-cac-nuoc-asean/
