Palm Oil And Rubber Trees

[ExpatOilWorker]

I just came across a news article stating that Malaysia have a $20 billion palm oil and $6 billion rubber export. That is pretty significant, especially compared to Thailand's $6 billion rice export.

Why are palm oil and rubber farming not big in Thailand? Soil conditions, weather/climate, political, tradition?

[jamescollister]

Thailand is the worlds biggest rubber producer. Jim

[ExpatOilWorker]

Thailand is the worlds biggest rubber producer. Jim

They sure are.

http://internationalbusiness.wikia.com/wiki/Major_Export-Rubber

Major Export-Rubber

Edit

• History

Overview

Thailand is the largest producer and exporter of natural rubber in the world. Thailand’s rubber production accounts for roughly one third of the worlds natural rubber supply.

According to the Thai Rubber Association, in 2007 alone Thailand produced 3,056,005 tons of natural rubber. Of the amount produced, 2,703, 762 tons were exported to other countries. This exportation eared the country about 200 billion baht.

Production

The heart of Thailand’s rubber production is located 500 km south of Bangkok, in the Chumpon Province.

Rubber production continues throughout the country all the way to the border of Malaysia.

Thailand’s rubber is produced from trees in the above mentioned regions. These trees must be planted every 20 to 30 years. It takes six years before the rubber trees reach the level of maturity where they are able to be tapped for rubber production.

Major Competition

Although Thailand is the world’s leading producer of rubber now, it is projected that because of better production growth, by the year 2015 Thailand will be surpassed by Indonesia.

Starting in 2008, rubber production growth in Indonesia has averaged 5 to 6% a year, while the growth rate in Tailand has only reached an average of 2 to 3%.

Originally Indonesia was projected to surpass Thailand in 2020 as the leading rubber producing country. However, because poor weather has slowed down Thailand’s rubber production, Indonesia is now projected to overtake Thailand 5 years earlier, in 2015.

Major Problem

The global market price for rubber has been on the decline over the past few years. The volume of exports has been increasing, but because of the devalued baht and low price of rubber, revenue has decreased.

The three major exporters of rubber; Thailand, Indonesia, and Malaysia, have decided to cut production this year by 700,000 tons. These countries have made this decision in an effort to stabilize the price of rubber.

References

Thailand .com (2009). Rubber. Retrieved March 21, 2009, from http://www.thailand.com/exports/html/industry_rubber.htm

The Thai Rubber Association (2009). Natural Rubber Statistics. Retrieved March 21, 2009, from http://www.thainr.com/en/index.php?detail=main

New Agriculturist Online (2006). Country profile Thailand. Retrieved March 21, 2009, from http://www.new-ag.info/06-6/countryp.html

Fernquest, J. (2008) : Indonesia's challenge to Thai dominance in world rubber production. Bangkok Post. Retrieved March 21, 2009, from http://www.readbangkokpost.com/business/agriculture/indonesias_challenge_to_thai_d.php

Abhisit supports rubber export curbs: More funds needed to expand storage. (18 December). McClatchy. Tribune Business News. Retrieved March 21, 2009, from ABI/INFORM Dateline database. (Document ID: 1614885951).

[jamescollister]

A good bit of research there, maybe I should be asking you the questions. Jim

[seekingfriends]

A good bit of research there, maybe I should be asking you the questions. Jim

well done james with the info on rubber trees .i am not a big fan of palm oil trees. after seeing what they are like in borneo /at least wth rubber trees it looks like a forest with plenty of birds and some forms of wildlife return with palm oil trees it looks like a wilderness .ps i have rubber trees in hat yai . james hat yai

[Mosha]

The Baht's devalued!

[jamescollister]

The Baht's devalued!

Against what. Jim

[Mosha]

The Baht's devalued!

Against what. Jim

Sorry Jim, from ExpatOilWorker's post

Major Problem

The global market price for rubber has been on the decline over the past few years. The volume of exports has been increasing, but because of the devalued baht and low price of rubber, revenue has decreased.

The three major exporters of rubber; Thailand, Indonesia, and Malaysia, have decided to cut production this year by 700,000 tons. These countries have made this decision in an effort to stabilize the price of rubber.

Edited November 19, 2011 by Mosha

[jamescollister]

The Baht's devalued!

Against what. Jim

Sorry Jim, from ExpatOilWorker's post

Major Problem

The global market price for rubber has been on the decline over the past few years. The volume of exports has been increasing, but because of the devalued baht and low price of rubber, revenue has decreased.

The three major exporters of rubber; Thailand, Indonesia, and Malaysia, have decided to cut production this year by 700,000 tons. These countries have made this decision in an effort to stabilize the price of rubber.

I am sure you read the same things I do and over the years I have come to the opinion that those who write the reports have the IQ of a potatoes. There will be a shortage of rubber next year. Rubber bought this tear is for next year factory's. The floods and rain will have dropped output and looking at the weather, Indo is in for more of the same. It's all to do with the markets, not reality, as Margie Thatcher said, the markets will decide. The world just doesn't know if there will be a capitalist world next year. We will just have to wait and see. Jim