High rubber prices lead to expansion of seed-producing countries

Since last year, the international natural rubber prices have been unusually high, which has stimulated the enthusiasm of plastic farmers in tapping and seeding rubber. The major rubber-producing countries in Southeast Asia have set off an upsurge of rubber cultivation that has not been seen for many years and have issued plans to increase production.

On February 15 this year, the price of natural rubber hit a record high of 43,000 yuan/ton. Although the Japanese earthquake was lowered afterwards, on March 23, the futures price of main contract RU1109 broke through 36,000 yuan/ton. Such a high price has prompted plastic farmers to generally extend the production time and improve the tapping frequency.

Natural rubber is a seasonal product, which usually enters after February. Because rubber trees produce low yields, rubber farmers often stop tapping. However, this year, the rubber farmers continued to tap rubber until the end of February, even for over-age, low-yielding rubber trees are also tapping rubber, it is expected that the actual production of natural rubber this year will be higher than the normal production capacity.

Due to the extension of tapping time by farmers, Vietnam produced 30,000 tons of natural rubber in February this year, which is 6 times more than the 4400 tons in the same period of 2010. The Natural Rubber Producing Countries Association (ANRPC) has repeatedly raised its rubber production forecast this year. In early January, the global natural rubber production in 2011 is expected to increase by 5% over the previous year. On February 28, this figure was revised to 8%, reaching 10.066 million tons. . According to ANRPC, the price increase has driven some rubber-producing countries to increase production in 2011. Malaysia plans to increase production by 11.8%, Cambodia plans to increase production by nearly 60%, Indonesia plans to increase production by 10%, Vietnam expects to increase production by 4%, and Thailand expects to increase production by 10%.

Rubber trees need to grow for more than 7 years to be able to tap rubber, the cycle is longer, the rubber price is 20,000 yuan / ton, the economic benefits are lower than the oil palm and other economic crops, the enthusiasm of farmers to plant rubber frustrated. This situation is particularly serious in Malaysia and India. There has been a phenomenon that a new generation of tapping workers has begun to shift to non-agricultural employment. Nowadays rubber prices are much higher than the cost of rubber production. In 2010, the rubber farmers made a lot of money, the enthusiasm for growing plastics was improved, and the capital for rubber expansion was also available. The rubber-producing countries have also issued plans to expand production.

The Thai government introduced a three-year rubber planting plan at the beginning of the year, increasing the planting area of ​​800,000 Lay (10,000 Lay = 14.4 hectares), of which the rubber planting area in the northeast will increase by 500,000 Lai, and the north will increase by 150,000 Lai, in the east, central and south. With an increase of 150,000 les, rubber production in 2017 is expected to increase by 220,000 tons. The Thai government will provide technical support to farmers participating in the above-mentioned plan, including cheap rubber seedlings and fertilizers for the previous three years. Indonesia plans to refurbish about 400,000 hectares of rubber trees to increase rubber productivity and increase annual production capacity from 901 kg to 1,500 kg per hectare, and strive to become the world's largest rubber producer next year. The Cambodian Rubber Enterprise Association announced in July last year that Vietnam will invest an additional US$200 million in expanding the rubber plantation area in Cambodia. There has also been an upsurge in the investment of Chinese tire companies for rubber planting in Cambodia, and several rubber projects have already been negotiated. In Malaysia, some oil palm forests have also been replanted with rubber trees, and rubber planting areas have shown an upward trend.

In Southeast Asia, there has been no expansion of rubber in many years. Although there is little impact on the supply of rubber in the short term, new rubber tree tapping after 7 years has a positive effect on the balance between supply and demand of rubber in the world. The Southeast Asian government expressed its support for rubber growers to expand seed rubber, but it is more planned and guided than in the past. Dan Long, Minister of Resources and Environment of Thailand, said that because the rubber farmers are keen to open up natural forest land and grow rubber, the deforestation and land reclamation are very serious. If the government departments do not stop them in time, natural forests will face the danger of total destruction after 10 years. Therefore, in 2011, the Thai government will reclaim some of the illicitly cultivated rubber forest land in order to change the green area, maintain the ecological balance, and guide the healthy development of rubber plantations.

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