Rubber Trees

[ray23]

Realizing that there is a long period of waiting before you can harvest, after that period is done, what kind of return can be expected per Ria?

What are the up keep costs?

In Issan do they require irrigation or will the rains when and if they come take care of it?

[sezzo]

My wife and her family have about 40 rai of one year old rubber trees. They have been researching this for quite some time and the figures of about 20,000 baht per rai per month were bandied around. It takes about 5 or 6 years to start producing but they are planting other crops in between the rows of trees for some money earning before then.

Once the land is prepared and trees planted the only costs so far have been fencing the plantation so the buffaloes and cattle dont eat the leaves and a bit of cleaning of weeds.

When I first arrived in Ubon 7 months ago there was nobody within 100ks radius selling rubber trees, now every 5 ks on all roads from my home have people selling trees. The government must be trying to promote the rubber plantations up here.

As to the watering of the trees. Nearby there is another plantation where the trees have not been watered since I have been here and they are still alive and growing, all but slowly. Our trees have been hand watered from a tank every week or 10 days and they are coping fine. Mind you they will take off once the rains come.

Hope this has been some help to you.

[cmmc_3]

News of rubber tree planting has been growing significantly for at least last 10 years around Isaan region. It might be worth referring to the requirements of rubber tree planting. Try http://www.agnet.org/library/article/eb354a.html

[snoophound]

I have a friend who bought a small plantation in buriram

paid about 1m baht

he reckons about 25-30k per mth nett return,not sure of the size,i will ask him next time i see him.

not a bad pension investment really.

News of rubber tree planting has been growing significantly for at least last 10 years around Isaan region. It might be worth referring to the requirements of rubber tree planting. Try http://www.agnet.org/library/article/eb354a.html

<{POST_SNAPBACK}>

[taxexile]

Rubber Trees, Can money be made?

i feel a "bouncing cheque" joke coming on.

[sezzo]

Further to my last about income from the rubber trees per rai. I mentioned that the wife's family had researched about 20k baht per rai. That should have read about 20k baht per 6 rai.

Sorry for the mistake.

[ray23]

My wife and her family have about 40 rai of one year old rubber trees.  They have been researching this for quite some time and the figures of about 20,000 baht per rai per month were bandied around.  It takes about 5 or 6 years to start producing but they are planting other crops in between the rows of trees for some money earning before then.

Once the land is prepared and trees planted the only costs so far have been fencing the plantation so the buffaloes and cattle dont eat the leaves and a bit of cleaning of weeds.

When I first arrived in Ubon 7 months ago there was nobody within 100ks radius selling rubber trees,  now every 5 ks on all roads from my home have people selling trees.  The government must be trying to promote the rubber plantations up here.

As to the watering of the trees.  Nearby there is another plantation where the trees have not been watered since I have been here and they are still alive and growing, all but slowly.  Our trees have been hand watered from a tank every week or 10 days and they are coping fine.  Mind you they will take off once the rains come.

Hope this has been some help to you.

<{POST_SNAPBACK}>

Actually this was a lot of help, I accidently ran into something just checking the cost per ria of in an area. 21 ria with the trees in about five years from production I'm told for 900K. In Udon you are paying up 500K for small lot to build on, it intrigued me as it looked as if there would be hope in the future of at least offsetting costs. But not knowing anything about the business, it was difficult to tell if I was being told the truth. It would appear that within a ten year period you could recover your investment and actually start showing some income. So I might just build a house out there. Thanks!!!!!!!!!!!

[ray23]

Further to my last about income from the rubber trees per rai.  I mentioned that the wife's family had researched about 20k baht per rai.  That should have read about 20k baht per 6 rai.

Sorry for the mistake.

<{POST_SNAPBACK}>

Even with the change of numbers per ria it still olks like a ten year plan would be realistic.

[ray23]

Further to my last about income from the rubber trees per rai.  I mentioned that the wife's family had researched about 20k baht per rai.  That should have read about 20k baht per 6 rai.

Sorry for the mistake.

<{POST_SNAPBACK}>

even with the adjustment of numbers sounds like a ten year plan would be accurate.

How many workman do think you will need to accomplish your needs?

Is there a harvesting cycle or is it pretty much a contant activity once the trees mature?

Pension plan yes I think so and with the age difference between my wife and myself 21 years an income beyond her V.A. benefit. So I believe with the right approach it would give me something to do on occassion adn protect the family a well. Sounding more like a win win all the time

[bannork]

I'd be careful about estimating exact profits because the price of rubber can vary considerably, I remember it falling to less than 18 baht a kilo, now it's around 40 baht I believe. The rapid rise of the Chinese economy has led to rapid demand and price increase and I guess there's no sign of a slowdown but 20 years down the road?

Even 3 or 4 years ago I remember there was a quota per quarter in our village which meant no tapping at times, plus when it rains,(a rare occurence in Issan), you can't tap. Still, it's all the rage now, saplings for sale on the roadside everywhere,no fun as a job mind, getting up at 2 or 3 am to notch the trees and then going back at 11 am to collect the latex, still, if you employ someone you can maintain your beauty sleep.

bannork

[ray23]

I'd be careful about estimating exact profits because the price of rubber can vary considerably, I remember it falling to less than 18 baht a kilo, now it's around 40 baht I believe. The rapid rise of the Chinese economy has led to rapid demand  and price increase and I guess there's no sign of a slowdown but 20 years down the road?

Even 3 or 4 years ago I remember there was a quota per quarter in our village which meant no tapping at times, plus when it rains,(a rare occurence in Issan), you can't tap. Still, it's all the rage now, saplings for sale on the roadside everywhere,no fun as a job mind, getting up at 2 or 3 am to notch the trees and then going back at 11 am to collect the latex, still, if you employ someone you can maintain your beauty sleep.

bannork

<{POST_SNAPBACK}>

I noticed the fluctuation on one of the sites that was listed in the thread, they looked for about seven good years, that leaves me two. I was asking the cost of labor as I have no intention of working I am retired and I like it that way. Tinkering maybe but not working I'm fortunate enough that my retirement carries us very well, I truly thinking about the wife more then I for money.

I keep seeing that Thia government is really promoting this, is that only as to low costs loans. Which is something that I really don't want. Do they offer a service to assist in management of the project such as checking the soil and making recommendation. sounds like you have a lot of experience in this.

Does the product have to be processed on site after gathering, where is the loacl market for sale and do you need to transport to that loaction?

I know some of these things seem like really dumb questions but I really have no idea

[aletta]

Is it not the government's latest plan to dig up the rubber plantations and stick in oil palms?

[Diggerbasher]

I was under the impression that rubber trees need year round water to thrive and that it was all the plantations are in the South.

In Isaan you would have to have a huge lake to supply a large plantation.

[Im Luvvinit]

"I guess there's no sign of a slowdown but 20 years down the road?"

<{POST_SNAPBACK}>

20 years down the road on rubber tyres = worn out tyres = demand for rubber

[bannork]

I was under the impression that rubber trees need year round water to thrive and that it was all the plantations are in the South.

In Isaan you would have to have a huge lake to supply a large plantation.

<{POST_SNAPBACK}>

There's plenty of plantations on hillsides near us in Bandung, Udon Thani province.

In the south you always see the latex lying in balls by the roadside; later after pressing, it's hung out to dry on fences, looking like saddles for horses,the smell is rather unpleasant.

However I've never seen this in Udon, I think they take it straight to the co-operative where it's processed.

bannork.

[sezzo]

There's plenty of plantations on hillsides near us in Bandung, Udon Thani province.

In the south you always see the latex lying in balls by the roadside; later after pressing, it's hung out to dry on fences, looking like saddles for horses,the smell is rather unpleasant.

However I've never seen this in Udon, I think they take it straight to the co-operative where it's processed.

bannork.

<{POST_SNAPBACK}>

Travelling to Khong chiam thru the hills from Khemmarat I saw some small rubber plantations and they had the latex hung out to dry like down south.

No idea where the co-op or factory is in Ubon though

[Diggerbasher]

There are some rubber trees here in Sisaket but they sure don't look healthy.My thoughts were that they cannot produce as quickly as in the South and thus the rate of return must be far lower.

I shall go and ask the locals at what age they can tap here in Isaan,i'm sure its not five years.

[Wash]

Further to my last about income from the rubber trees per rai.  I mentioned that the wife's family had researched about 20k baht per rai.  That should have read about 20k baht per 6 rai.

<{POST_SNAPBACK}>

Even with the change of numbers per ria it still olks like a ten year plan would be realistic.

<{POST_SNAPBACK}>

Pardon my silly question but is that 20k baht per 6 Rai, per month or per year?

[sezzo]

Further to my last about income from the rubber trees per rai.  I mentioned that the wife's family had researched about 20k baht per rai.  That should have read about 20k baht per 6 rai.

<{POST_SNAPBACK}>

Even with the change of numbers per ria it still olks like a ten year plan would be realistic.

<{POST_SNAPBACK}>

Pardon my silly question but is that 20k baht per 6 Rai, per month or per year?

<{POST_SNAPBACK}>

Those figures were quoted to me as being a monthly figure. Just have to wait and see if it materialises.

[ray23]

Is it not the government's latest plan to dig up the rubber plantations and stick in oil palms? 

<{POST_SNAPBACK}>

Thought this was very interesting

Thailand races to compete with Asian palm oil giants

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25/06/2004 - After years of Malaysian domination the international palm oil industry is set to become far more competitive,writes Simon Pitman.It is common knowledge that the Indonesian palm oil industry is gearing up for increased production, but now Thailand is joining the competition after its agricultural ministry announced plans to develop vast tracts of land previously devoted to rubber plantations.

According to a report in the Thai newspaper Bangkok Post the Agriculture ministry is going back on its original plans to develop rubber plantations in the country, and is now refocusing on the growing palm oil sector. The government says that it wants to increase palm cultivation from two to 10 million rai (1 to 5 million acres) within the course of the next 25 years.

In recent months the Thai government has spent THB1.4 billion (€28.4m) buying up some 90 million rubber tree seedlings, but contrary to that plan Agricultural minister Somsak Thepsuthin has called on rubber farmers to help the government in its short-term plans to increase palm plantations to 3.6 million rai in the course of the next five years.

As an incentive the government says it will pay rubber farmers who switch to palm oil production an average of THB6,800 per rai. The ministry wants to increase production to meet domestic demands for bio diesel, but the longer term plan is to become a bigger player in the international market, where it would have more scope as a supplier to the food industry.

Palm oil more profitable and healthier

Somsak said that planting palm trees would prove more profitable than cultivating rubber in the long term, as it would meet growing world demands for the crop. In particular the food industry is showing a marked sign towards switching to palm oil. In recent years supplies of other edible oils – soy bean in particular – have proved volatile after being hit by rising demand and poor crop yields. Palm oil on the other hand is easy to grow and crop yields are generally very steady.

Palm oil is also said to be low in trans fatty acids. With trans fatty acids increasingly being blamed for the rise in global obesity many leading multinationals food companies are starting to switch over to palm oil in the race to reduce the content in processed foods.

Thailand set to become major player?

In a recent interview with the Malaysian Palm Oil Promotion Council, Zainuddin Hassan told ap-foodtechnology.com that the biggest threat to Malaysia's leading position on the global palm oil market was Indonesia. However, as Thailand ramps up its production it is now expected to elevate its position as one of the world’s leading suppliers.

In the Asia-Pacific region Thailand is currently the third biggest palm oil producer, but is still way behind leading producers Malaysia and Indonesia in terms of output. In the course of the past ten years, the country has managed to more than double annual production to around 6 million tons, representing an annual growth rate of 9.5 per cent which has largely been bought about by rubber plant farmers in the south of the country switching over to palm oil production.

In Indonesia growth over the past ten years has averaged 10.7 per cent, representing an annual production of around 90 million tons, compared to Indonesia where growth has averaged 6.4 per cent to currently stand at 120 million tons. Although Thailand’s production figures look relatively feeble in comparison, with total palm oil plantation coverage set to increase five-fold and many other plantations coming into full production in the course of the next few years, growth looks set to be massive.

Meeting processing demands bought about by this growth is major palm oil producer Thai Palm Oil Company, which, in conjunction with the Thai government’s announcement to expand production this week, confirmed that it is set to double production capacity to meet increasing domestic and export demand.

The company said that currently domestic demand for palm oil was growing at up to 10 per cent a year, growth that is expected to be sustained in the coming years. In view of this the company has decided to build a new palm oil refinery at a cost of THB420 million, which is expected to boost production capacity from 300 tons a day to 600 tons a day once the facility is up and running at the end of 2005.

[aletta]

The production increase and decrease by the season due to the geographical condition of the producing district. Production is increased during the rainy season from May to July and November to January. Production is reduced during the dry season from February to April, and August to October. Particularly, since February to April is the falling leaves season, the reduction is the largest throughout the year.

Found this quote on a Japanese commodity web-site,seems as though you get six months of good production.

[udon]

It reads as though Thailand is going to go for more mono-culture, further screwing the land.

[aletta]

It reads as though Thailand is going to go for more mono-culture, further screwing the land.

Yes,not good putting all ones eggs in one basket.

[ray23]

It reads as though Thailand is going to go for more mono-culture, further screwing the land.

Yes,not good putting all ones eggs in one basket.

<{POST_SNAPBACK}>

Well I finally got to check my site out today, not even a click out off the village, good road though about a 100 metters of gravel. I would be looking at bringing in sufficient electricity for a farrang style house the cost in the area of a 120K. Of course the cost of the 21 ria is now 950,000 but I think it would go back down to 900,000. Not much fill needed for the contruction site if any. Trees looked like they were planted this year. There are several areas allready culitivated and producing adjacent to the property. The Thia in the area are making money on them. The labor seems to work a guy works the crop for half the sales of rubber.

Seems to be a good supply of well water, not far from the Mekong about one Km, wells are producing at 20 feet, my friend sunk his three hundred and has drinkable water

Farrang shopping would be a bit difficult since it's a 120Km from Udon.

What I saw didn't look bad, still a lot to think about though.

[aletta]

If you've got a water supply there then you're laughing.

[aletta]

A friend who's in-laws farm rubber on the Cambodian border are getting about a kilo per tree per year which at current rates is about 50 baht.

[ray23]

If you've got a water supply there then you're laughing.

<{POST_SNAPBACK}>

well not only a water supply, but the cost amazed me, the friend went three hundred feet deep, for 19000 Baht. Including the pump. This is looking more and more attractive, here in Udon a lot to build on that 48 ft x 48 Ft. is running 500K. The down side is the shopping about 30 Mins to Nong Kia where there is a lotus, or an hour or so to Udon. But the entire trip is taken on good roads. I just want to really think things through as I have tendency to jump to soon

[aletta]

Found some interesting facts on this Sri Lankan web-site:-Sri Lankan rubber yields

Ray,the Sri Lankans get 1.4 kilos per tree per year,with 80 trees per rai optimum planting.That means on 21 rai you could get 21x80x1.4x50 baht per annum which is 117,600 baht.However you would give half to the labour giving you potentially 58,800 baht per annum for up to fifty years.

That would mean the rubber would pay for the land in about 16 years.

[ray23]

Found some interesting facts on this Sri Lankan web-site:-Sri Lankan rubber yields

Ray,the Sri Lankans get 1.4 kilos per tree per year,with 80 trees per rai optimum planting.That means on 21 rai you could get 21x80x1.4x50 baht per annum which is 117,600 baht.However you would give half to the labour giving you potentially 58,800 baht per annum for up to fifty years.

That would mean the rubber would pay for the land in about 16 years.

<{POST_SNAPBACK}>

I probably wouldn't see that at my age, but my wife would be set for her life and that is what I'm really trying to get done. Thats certainly a better return then jut buidling a hosue. Thanks for equation.

[aletta]

It's certainly a long term investment but great for the next generation to have.

You are also going to benefit hugely if oil prices continue to climb which seems a no brainer to me.The differential between rubber prices and synthetic rubber from oil is now seven hundred dollars a ton.You effectively have a very small oil field in your back yard.