How Bad Are The Prices For Rubber,coconut,palm Oil

[jingjoe8]

I live in southern thailand and was driving towards hua hin on tuesday.The police had a roadblock on the highway and detoured the traffic through the map ammarit turn off.As we were re approaching the highway from the detour the traffic came to a standstill,so we doubled back and were stopped in traffic by farmers protesting.They had blocked the intersection,the police were there but apparently aren't allowed to break it up,has to be some government person from the amphur that has the power to clear the disruption.

We and every one else, buses,trucks,cars were jammed there for 4hours!

Anyway they were protesting about the prices of rubber,palmoil but mainly coconuts been too low,they wanted the govt to fix the problem.

Are the prices too low? and can the govt help them or is it more of a case of supply and demand

[Mosha]

The government in part are the problem as far as rubber goes. A deal to sell to China at 100 Baht/kg.

We sold Sheets yesterday to the local private buyer at 75 Baht/kg. We don't sell to the government buyers. Con men.

Palm oil Fresh Fruit Bunch is about 4.2 Baht/kg. Coconuts are being sold for about 1 Baht/nut. Haven't seen a buyer in months.

[Michael Hare]

I was talking about this yesterday with my researchers. Protests in the south but not in the northeast. Are the northeast rubber growers happy to accept prices of around 100 baht/kg or less? Southerns want 120 baht/kg.

[Mosha]

From the Issan based guys reaction in the Rubber Trees thread, I'd say no they aren't happy. This weather in the South is making the price a bit academic anyway. 3 tapping days in the past 4 weeks.

ps haven't seen 100 Baht/kg for quite some time

Edited September 15, 2012 by Mosha

[Bosse137]

Regarding the price of rubber,there seems to be different opinions,and I will not voice mine.But when it comes to occupying airports,roads or whatever,I guess the people who do this want to get attention to a problem,real or immaginary,want other people to care about them and their situation.So,how about them selves and their care for others...?Obviously does not exist! They don`t give a dam_n,that their selfish action hurts a lot of people.So.sorry,no symphaty from me!

[Mosha]

Leaving out the airports and sticking to farming issues. A lot of these people are farming plots of 10 rai or less, and it maybe their only source of income. They are desperate enough to take these "selfish" acts. Or would you rather they take the route so many Indian farmers take, and top themselves? In the south they may have had no rubber harvested for weeks. Yet they still have to eat.

[Bosse137]

Yes,it is the rainseason now,and has been for quite some time,Where I live,we also have not been able to tap our trees often.Does thar give me the right to go out and block some mainroad?? I know,that many thais think,that is the Thai government who decides the price of rubber on the world market,who controls demand and output. Output,yes,to some small degree,since it now,together with two other rubberproducing countries has decided,to withhold 300000 tons from the market,but I don`t think it can decide how much China,EU and others want to buy! The government has already put in 15 billion Baht,and plans to add another 30 billion.Do some small farmers have problem? Sure,no doubt about that! Do many other groups of people in Thailand also have economic problems? Certainly! They also have to eat.Even if they do not even get the promised 300 baht minimum wage....Perhaps they also should block some roads.! Coming to think of it,perhaps we all should join in and block roads,that would solve the problems once and for all,wouldn`t it?! At least we would have something to do while the rain is pouring. Seriously though,I think all this is more of a "social security" issue! And how to take care of that is too extensive a task,to even try to go into here!

[IsaanAussie]

Excuse the intrusion as a non rubber/palm/coconut man, but I have a question. Has anyone thought of value adding to the materials during times when prices are low? For instance, expel the oil on farm and process the fruit bunches into compost or char. Perhaps turn the coconuts into feed meal and use the coir and nut for fertiliser and gardening products.

Jim has a factory to process his rubber. Perhaps others collectively or individuals might do the same. Join or establish a consortium of some kind to maximise throughput and ROI. Just a thought...

Edited September 16, 2012 by IsaanAussie

[Mosha]

The coconuts we have we use ourselves and the rest of the family nearby, for our own coconut milk for cooking and Khnom. The husks make good orchid planters

[jamescollister]

On the protesting, not different from Spain, Greece etc. When people's incomes are hit they want to blame someone.

All though the prices are not controlled by the Thai Government, the Government has to take some responsibility for the plight of the farmers. They the Government promoted these cash crops, then allowed easy credit for the farmers to buy goods, cars etc. When you are not getting the return from your farm, how to you meet your repayments.

Bad enough in the west, where people have been brought up in a credit society, but these farmers have no idea of how the system works, sign here and here is your new pickup or wide screen TV.

Welcome to the big bad world, buy now pay later, but to most rural Thais it's live now and you can not eat rubber or palm oil. Jim

[jamescollister]

Excuse the intrusion as a non rubber/palm/coconut man, but I have a question. Has anyone thought of value adding to the materials during times when prices are low? For instance, expel the oil on farm and process the fruit bunches into compost or char. Perhaps turn the coconuts into feed meal and use the coir and nut for fertiliser and gardening products.

Jim has a factory to process his rubber. Perhaps others collectively or individuals might do the same. Join or establish a consortium of some kind to maximise throughput and ROI. Just a thought...

If I had some money I would be going into the coconut husk charcoal making business. You buy the nut and sell it and the husks are free. Charcoal round here is 150 Baht a bag, long term viable business.

Anyone with money and interested, I'm all ears. Jim

[Bosse137]

IsaanAussie,nice of you to try to help with some ideas! When it comes to rubber,there really isn`t much you can do in terms of rationalisation.There is obviously no fruit or oil to use,you can not cut anything from the tree.Should be how you "manufacture" it.But many farmers sell "cup lump",which I found is the far best way (Jim does not agree,I know..)Doing that,you do not need any machinery and it is easy and quick to harvest,so you do not need much,or any,labour,except you self.Especially since the cost of labour is,COMPARED TO OTHER WORK,extremely high (100 plus/hour),most small time farmers do the work within the family.And if you still want to "process" it,the machinery is not that much;anyone who wants it,has it already.Unless you a new to the business.What actually can be done,is to try to protect the trees from the rain,which isn`t easy.Although there a ways,not perfect,but we have managed to get extensively more that way.Takes time and effort,but gives better result than blocking roads! By the way,for 1-2 years,we had record high prices on rubber.What did people do,did they save for worse times to come? Nope,they made downpay on new cars,bought MC:s for their small children and so on.So,when the times are good,consume like crazy and when they are bad,close roads and demand others to help you out!

[glennb6]

this is a perfect example of what the 'west' has stepped into and is going downhill because of. Lesson for banks: don't get greedy and lend with abandon because people are quite stupid. Lesson for the stupid: well, never mind that because you can't teach stupid people, so see lesson to banks.

[Bosse137]

Meaning..?????? Or perhaps I am one of them (stupid)

[David006]

Excuse the intrusion as a non rubber/palm/coconut man, but I have a question. Has anyone thought of value adding to the materials during times when prices are low? For instance, expel the oil on farm and process the fruit bunches into compost or char. Perhaps turn the coconuts into feed meal and use the coir and nut for fertiliser and gardening products.

Jim has a factory to process his rubber. Perhaps others collectively or individuals might do the same. Join or establish a consortium of some kind to maximise throughput and ROI. Just a thought...

If I had some money I would be going into the coconut husk charcoal making business. You buy the nut and sell it and the husks are free. Charcoal round here is 150 Baht a bag, long term viable business.

Anyone with money and interested, I'm all ears. Jim

assume you mean the shell? Lots of uses for the coir as mats and stuffing etc.

Always thought there must be a good use for the shell apart from decorative stuff.....hard as nails and don't seem to rot...

The price of coconuts is sky rocketing ( something about decimating diseases I think I read?), so maybe a good long term secondary crop.

We planted about a 20 sprouting nuts of various types a few years back...looks like I may not see nuts in my lifetime though..they are only nice two or three meter deco palms now.

[jamescollister]

Excuse the intrusion as a non rubber/palm/coconut man, but I have a question. Has anyone thought of value adding to the materials during times when prices are low? For instance, expel the oil on farm and process the fruit bunches into compost or char. Perhaps turn the coconuts into feed meal and use the coir and nut for fertiliser and gardening products.

Jim has a factory to process his rubber. Perhaps others collectively or individuals might do the same. Join or establish a consortium of some kind to maximise throughput and ROI. Just a thought...

If I had some money I would be going into the coconut husk charcoal making business. You buy the nut and sell it and the husks are free. Charcoal round here is 150 Baht a bag, long term viable business.

Anyone with money and interested, I'm all ears. Jim

assume you mean the shell? Lots of uses for the coir as mats and stuffing etc.

Always thought there must be a good use for the shell apart from decorative stuff.....hard as nails and don't seem to rot...

The price of coconuts is sky rocketing ( something about decimating diseases I think I read?), so maybe a good long term secondary crop.

We planted about a 20 sprouting nuts of various types a few years back...looks like I may not see nuts in my lifetime though..they are only nice two or three meter deco palms now.

No mean the fibrous husk, although it it used for other things, it is mostly just dumped or burnt. No diseases out here and no coconut buyers. Jim

[IsaanAussie]

Hammer mill is on the way mate. A large pyrolosis burner would produce the char. That is simple enough. Good idea, something that would really get your nuts cracking.

[Mosha]

In the other paper. Coconut farmers are saying Thailand should stop importing coconuts. Reported in the News Forum