Rubber production ‘expected to drop 30 per cent this year’

[snoop1130]

Rubber production ‘expected to drop 30 per cent this year’

By The Nation

 

Chalermchai Sri-on

 

Agriculture and Cooperatives Minister Chalermchai Sri-on said on Thursday (August 9) that he would discuss the problem of plummeting rubber price and find suitable solutions with the Rubber Authority of Thailand.

 

He said the ministry’s current subsidy measure is only a short-term remedy.

 

“To tackle the rubber price problem in the long-term, we need to push existing products for domestic use as much as possible,” he said. “Besides using rubber for road construction, the Agriculture Ministry will collaborate with other agencies to find ways to utilise rubber as a raw material in other projects such as playground safety tiles, traffic cones, road barriers, and multi-purpose floor mats.”

 

Chalermchai hinted that this year’s rubber production would drop by at least 30 per cent due to labour shortage and drought, which had caused rubber trees to die before yielding latex, especially in the northeastern region. “The Agriculture Ministry will survey the market’s rubber demand against available domestic stock to set a suitable price for rubber in the third and fourth quarters,” he said.

 

Next week, the minister will also discuss with private entrepreneurs, rubber exporters and processors to formulate solutions to the rubber price problem. “Most importantly, I want to find out why the five largest rubber exporters have suddenly stopped buying rubber from farmers, suspiciously citing ‘factory maintenance’ as the reason,” Chalermchai said.

 

Source: https://www.nationthailand.com/news/30374491

 

-- © Copyright The Nation Thailand 2019-08-08

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[Mavideol]

23 minutes ago, snoop1130 said:

Chalermchai hinted that this year’s rubber production would drop by at least 30 per cent due to labour shortage and drought

if that's the case my friend who has a plantation will be happy, less production higher prices

[Chang_paarp]

11 minutes ago, Mavideol said:

if that's the case my friend who has a plantation will be happy, less production higher prices

He shouldn't hold his breath, the price isn't going up any time soon, in the real world it may even continue to drop.

[Okis]

Someone someone was talking about the price going up to 45 baht per kg almost a year ago, instead it has gone down to 35 here in the south. Can never trust these liars. 

[Cadbury]

Rice exports will be down this year due to drought and now rubber is following the same path. What hope Thailand.

The junta government for the last five years has wrecked the country and yet PM Prayut appoints himself as the new economic salvation. All hope is forever gone!

[DaRoadrunner]

"rubber production would drop by at least 30 per cent" .... does that mean condoms will be 30% smaller?

 

A Malay rubber plantation owner once told me Thai rubber was comparatively poor quality as the greedy Thais over milked the trees. He explained that you have to allow the tree to live if you want more rubber next year.... Sounds typical of how Thais milk everything to death.

[Mavideol]

17 hours ago, Chang_paarp said:

He shouldn't hold his breath, the price isn't going up any time soon, in the real world it may even continue to drop.

thanks but no thanks for the (not so) good news 555

[Srikcir]

20 hours ago, snoop1130 said:

Next week, the minister will also discuss with private entrepreneurs, rubber exporters and processors to formulate solutions to the rubber price problem.

I suggest you start with the high value baht which is what ALL Thai exporters have blamed in part for lower exports. 

[Eric Loh]

17 minutes ago, Srikcir said:

I suggest you start with the high value baht which is what ALL Thai exporters have blamed in part for lower exports. 

Currency depreciation would not help the depressed rubber industry. Rubber product prices have dropped almost 40% and will continue to be depressed for the next 2-3 years. No amount of Baht depreciation can offset that huge price differentiation. Thailand has about 35% of the world supply and export almost 85% of raw materials and subject to serious fluctuation. The solution is to export less and increase more value added local manufacturing. The government must attract more international companies for downstream products. 

[geoffbezoz]

But no worries in the long term as the market will bounce back ????

[Srikcir]

On 8/8/2019 at 6:25 PM, Mavideol said:

if that's the case my friend who has a plantation will be happy, less production higher prices

Normally yes for the domestic market.

Those higher prices will come more likely through more government subsidies and artificial higher prices through government purchases for rubber use by government agencies.

But for the international market you have Malaysia and Indonesia who will hold down prices and by the continuously decrease in global demand. As Thailand historically been exporting 70%+ of its rubber production, now a large part of those exports will be sent to the domestic market.