Farmers issue ultimatum over rubber price

[webfact]

Farmers issue ultimatum over rubber price
The Nation



BANGKOK: -- DISGRUNTLED RUBBER farmers said yesterday that they were giving the government a few more weeks to push the price of rubber up to at least Bt80 per kilogram, or they would kick off massive rallies.

The ultimatum was issued when several farmers began protesting in various provinces and the government said the price of rubber would not rise higher than Bt60 per kilo.

"The government has until the end of December to find solutions for the rubber-price problem," Sunthorn Rakrong, a coordinator for Rubber Farmers' Saviour Front, said yesterday. He said farmers would start pressuring PM Prayut Chan-ocha directly if the price of rubber did not rise.

"When the new year begins, I won't help keep angry farmers away any more if the price of rubber is still low," he said. Sunthorn led many rubber farmers to Government House yesterday to read out a statement and submit a petition to the prime minister.

Deputy Agriculture Minister Amnuay Patise was given the job of dealing with the protesters, and after emerging from a Cabinet meeting, he said it was not possible to approve the rate of Bt80 per kilo.

He said he did not expect the price to rise beyond Bt60 at around the end of this year, despite the many government measures.

Prayut separately said the government had no plan to buy rubber from farmers to boost the price but would try to ask the private sector to pay Bt60 per kilo. "The private sector is considering our request," he said.

According to Amnuay, the rubber price in neighbouring countries has also dropped. "We would heed the farmers' demand if it were possible," the deputy minister said.

He added that the Cabinet had approved a Bt10-billion budget to shore up the price of concentrated latex.

Sunthorn complained that the government had wasted a massive amount of money, because the measures it was spent on failed to help rubber farmers.

"Giving a subsidy of Bt1,000 per rai doesn't really help, because some farmers don't own the land and can't claim the subsidy," he said.

Sunthorn also lambasted Agriculture Minister Peetipong Phuengbun na Ayutthaya and Deputy Prime Minister Pridiyathorn Devakula for the authorities' failure to help the farmers.

Yesterday, rubber farmers staged protests in the provinces of Chumphon and Surat Thani, and were to hold similar protests today in Prachuap Khiri Khan and Trang provinces.

Source: http://www.nationmultimedia.com/national/Farmers-issue-ultimatum-over-rubber-price-30249500.html

-- The Nation 2014-12-10

[Chang_paarp]

This will not end well if they follow through with their threats.

I don't think they have grasped the fact that Thailand is a very small part of the world economy and the Thai government cannot control everything.

[honoluludave]

I guess these guys have already forgotten what happens when the goverment buys something for more than they can sell it.

[JeremyBowskill]

This will not end well if they follow through with their threats.

I don't think they have grasped the fact that Thailand is a very small part of the world economy and the Thai government cannot control everything.

Where as I agree Thailand does not set the worlds rubber price, it does seem there is some wiggle room on the governments offered price. http://www.indexmundi.com/commodities/?commodity=rubber

[Thailand]

So what will the unelected government do here?

Simply open threats of dissent and rallies from the farmers. Force against the grass roots of the Thai economy? Capitulation and more subsidies?

Worst case scenario.This has the potential to turn in to a major us and them confrontation which could escalate.

[robblok]

So what will the unelected government do here?

Simply open threats of dissent and rallies from the farmers. Force against the grass roots of the Thai economy? Capitulation and more subsidies?

Worst case scenario.This has the potential to turn in to a major us and them confrontation which could escalate.

I hope that the junta is not as stupid as the PTP government. Farmers should know that prices fluctuate, you did not hear them complain when prices were high. Same goes for the rice no subsidies not on rice not on rubber. Its too expensive and gives no motivation to change to other crops or to be innovative.

Farmers are far to militant all over the world and they always seem to complain. If I do something that is not profitable I don't force the government to support me I change.

Only thing I am in favor of is for all farmers to give them some money to change their ways not to permanently support them. We seen how bad that ended last time.

[worgeordie]

When you produce too much,plus when demand wains,the price drops,

simple economic facts,which the farmers cannot understand,all this is

the fault of previous governments that promoted and supplied rubber

tree seedlings,to farmers in Issan,an area that was not a natural area

for rubber production.

The same cycle is repeated over and over,the price of a product is

high and giving good return,so too many people move into it,resulting

in an over supply,which leads to price of the product dropping,growing

mono crops like rubber,rice,what ever is a big risk ,through value of crop,

diseases,and pests which can quickly wipe out a mono crop,better if small

farmers do mixed farming,with rice,fruits,vegs,fish,chickens,pigs and a cow.

that way they will always at least have food to eat,and can sell excess

to buy daily necessities,only then can they free themselves from world

market prices , big business,and the middleman will they be able to get

out of debit.

regards Worgeordie

[chainarong]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

I guess these guys have already forgotten what happens when the goverment buys something for more than they can sell it.

You could be right.

[chainarong]

One would like to spend sometime in reply but Jesus they tire you out sometime , I give up.

[robblok]

When you produce too much,plus when demand wains,the price drops,

simple economic facts,which the farmers cannot understand,all this is

the fault of previous governments that promoted and supplied rubber

tree seedlings,to farmers in Issan,an area that was not a natural area

for rubber production.

The same cycle is repeated over and over,the price of a product is

high and giving good return,so too many people move into it,resulting

in an over supply,which leads to price of the product dropping,growing

mono crops like rubber,rice,what ever is a big risk ,through value of crop,

diseases,and pests which can quickly wipe out a mono crop,better if small

farmers do mixed farming,with rice,fruits,vegs,fish,chickens,pigs and a cow.

that way they will always at least have food to eat,and can sell excess

to buy daily necessities,only then can they free themselves from world

market prices , big business,and the middleman will they be able to get

out of debit.

regards Worgeordie

That is not what farmers want.. that is sensible. Farmers want to be their own boss do what they want be self employed but when it goes bad the government and ordinary people have to pay for it. In most normal countries people who are self employed take the good with the bad.

But yes your right everyone knows about price cycles farmers are in this life for a long time they should have learned by now.

[bangkokfrog]

When you produce too much,plus when demand wains,the price drops,

simple economic facts,which the farmers cannot understand,all this is

the fault of previous governments that promoted and supplied rubber

tree seedlings,to farmers in Issan,an area that was not a natural area

for rubber production.

The same cycle is repeated over and over,the price of a product is

high and giving good return,so too many people move into it,resulting

in an over supply,which leads to price of the product dropping,growing

mono crops like rubber,rice,what ever is a big risk ,through value of crop,

diseases,and pests which can quickly wipe out a mono crop,better if small

farmers do mixed farming,with rice,fruits,vegs,fish,chickens,pigs and a cow.

that way they will always at least have food to eat,and can sell excess

to buy daily necessities,only then can they free themselves from world

market prices , big business,and the middleman will they be able to get

out of debit.

regards Worgeordie

Nice thoughts, Worgeordie. What you are suggesting for small landholders is subsistence farming, which has been a successful model in Thailand for hundreds of years. But now everyone thinks they need to own an i-phone, a pick-up and a wide screen TV in order to have "face". Thailand is changing, but is it for the better?

[robblok]

When you produce too much,plus when demand wains,the price drops,

simple economic facts,which the farmers cannot understand,all this is

the fault of previous governments that promoted and supplied rubber

tree seedlings,to farmers in Issan,an area that was not a natural area

for rubber production.

The same cycle is repeated over and over,the price of a product is

high and giving good return,so too many people move into it,resulting

in an over supply,which leads to price of the product dropping,growing

mono crops like rubber,rice,what ever is a big risk ,through value of crop,

diseases,and pests which can quickly wipe out a mono crop,better if small

farmers do mixed farming,with rice,fruits,vegs,fish,chickens,pigs and a cow.

that way they will always at least have food to eat,and can sell excess

to buy daily necessities,only then can they free themselves from world

market prices , big business,and the middleman will they be able to get

out of debit.

regards Worgeordie

Nice thoughts, Worgeordie. What you are suggesting for small landholders is subsistence farming, which has been a successful model in Thailand for hundreds of years. But now everyone thinks they need to own an i-phone, a pick-up and a wide screen TV in order to have "face". Thailand is changing, but is it for the better?

They choose that they want these things but want to have others foot the bill.

[Rumble]

I really don’t understand why there are so many ultimatums and threats in our country. “If you don’t help us we are going to do this, or that.” Sorry Guys the money tree has run dry for a while. Unless of course we up the VAT and personal income tax by 25% then perhaps we can give you some more freebies.

Edited December 12, 2014 by metisdead
Font reset to default forum font.

[pedro01]

So what will the unelected government do here?

Simply open threats of dissent and rallies from the farmers. Force against the grass roots of the Thai economy? Capitulation and more subsidies?

Worst case scenario.This has the potential to turn in to a major us and them confrontation which could escalate.

Well - at some point, some government needs to take a stand against farmers making threats like this.

Or any group for that matter.

So hopefully, the reaction will be swift and not too brutal.

[robblok]

So what will the unelected government do here?

Simply open threats of dissent and rallies from the farmers. Force against the grass roots of the Thai economy? Capitulation and more subsidies?

Worst case scenario.This has the potential to turn in to a major us and them confrontation which could escalate.

Well - at some point, some government needs to take a stand against farmers making threats like this.

Or any group for that matter.

So hopefully, the reaction will be swift and not too brutal.

I hope so because if no stand is taken this goes on forever.

[jaltsc]

"DISGRUNTLED RUBBER farmers said yesterday that they were giving the government a few more weeks to push the price of rubber up to at least Bt80 per kilogram, or they would kick off massive rallies."

In a culture where ignoring the laws often results in little consequence, the farmers think they can ignore the law of supply and demand and not pay the price.

[allan michaud]

The economies of SE Asia are going to suffer badly over rubber. Thailand possibly less so than their neighbors as rubber is not a big here as in Cambodia and Vietnam. The problem is that the US and Europe are developing new ways to become more self sufficient that will probably start to impact rubber prices towards the end of the decade. It’s a way off yet but this new method of taking latex from dandelions is said to be half the cost of producing rubber from trees and has a much shorter start up time. Time to change crops.

As for subsidies, they seem the only real short term solution. What gets me with subsidies here is that governments seem to ignore the problem of others taking advantage, as with rice, where fertilizer and pesticide prices jumped as did land rental prices. Thai governments of all hues are quick to jump in and tell food vendors to keep prices low, yet they do nothing to stop this gouging by large agro traders and landowners.

[impulse]

"DISGRUNTLED RUBBER farmers said yesterday that they were giving the government a few more weeks to push the price of rubber up to at least Bt80 per kilogram, or they would kick off massive rallies."

In a culture where ignoring the laws often results in little consequence, the farmers think they can ignore the law of supply and demand and not pay the price.

Rubber is a 30 year product. It's not like corn (or rice) where you plant and harvest in the same season, and can rapidly change crops when prices fall.

The government has for many years encouraged farmers to grow more rubber trees. Probably too many. Now that they're all reaching the age when the rubber can be harvested, there's a glut. A glut that is largely a result of government intervention.

If the government creates a glut, they should mitigate the consequences. And then learn their lesson and not create the next glut.

No easy answers here, but I have quite a bit of sympathy for the farmers who counted on the advice and programs of the government, and ended up here.

Edited December 10, 2014 by impulse

[NeverSure]

-snip-

No easy answers here, but I have quite a bit of sympathy for the farmers who counted on the advice and programs of the government, and ended up here.

As in the old joke: "I'm from the government and I'm here to help you." ??

[aussieinthailand]

So the cabinet has approved a 10 BILLION Baht sure up for the rubber farmers, and counting............................

YOU PLANTED THE RUBBER TREES BOY'S so now do what the rest of us do wait for the world price to rise or do something els,

OR you could do what you did last time and get your hero the masquerading monk Suthep to protest and collect bag's of money in your name and that will magically disappear also, GOOD LUCK WITH THAT SUCKERS

[robblok]

So the cabinet has approved a 10 BILLION Baht sure up for the rubber farmers, and counting............................

YOU PLANTED THE RUBBER TREES BOY'S so now do what the rest of us do wait for the world price to rise or do something els,

OR you could do what you did last time and get your hero the masquerading monk Suthep to protest and collect bag's of money in your name and that will magically disappear also, GOOD LUCK WITH THAT SUCKERS

10 billion.. a drip compared to the rice scam.. believe they gave the rice farmers also 1000 baht per rai (this goverment). I ihad hoped they would stop the handouts to farmers. Rubber farmers included.

Edited December 10, 2014 by robblok

[impulse]

-snip-

No easy answers here, but I have quite a bit of sympathy for the farmers who counted on the advice and programs of the government, and ended up here.

As in the old joke: "I'm from the government and I'm here to help you." ??

My butt cheeks clenched just reading that.

[Commerce]

"The government has until the end of December to find solutions for the rubber-price problem," Sunthorn Rakrong, a coordinator for Rubber Farmers' Saviour Front, said yesterday. He said farmers would start pressuring PM Prayut Chan-ocha directly if the price of rubber did not rise."

Rubber Farmer's Saviour Front?

Me feels somebody being taken in to learn about re-adjustment methods, in the requirement to adhere to the current leader's abilities, haves and have nots.

Nobody coordinates the current PM apart from the PM himself, and his new PR experts who set up new exercises to promulgate superlative leadership.

[noitom]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

So what will the unelected government do here?

Simply open threats of dissent and rallies from the farmers. Force against the grass roots of the Thai economy? Capitulation and more subsidies?

Worst case scenario.This has the potential to turn in to a major us and them confrontation which could escalate.

He will piece meal out handouts.

[slapout]

The commitment of past Thai governments to stimulate/increase rubber production was a foregone failure for the farmers from the get go. The stock to plant rubber plantations was sold/furnished by politicans at the tme. Advertised/furnished graft stock were actually grown from seed, the latest high production trees were not delivered. Then throw in the huge amounts of National land that was encroached upon to plant the 10,000's of rai were illegally obtained prior to this one, of many scams.

The solution to this problem is start at the top, not the middle men/family of the distribution, pricing, from start to storage of rubber produced in Thailand. These are the ones who are stealiny 80% of the difference between farm gate price and the 100 baht/kilo paid out of government coffers. Another little corruption fire, just one of the millions burning within this country, that require a real hard arse approach to stamp out.

[Thailand]

Interesting to see some posters are OK with the military using force against the farmers. Quite amazing.

[jaltsc]

"DISGRUNTLED RUBBER farmers said yesterday that they were giving the government a few more weeks to push the price of rubber up to at least Bt80 per kilogram, or they would kick off massive rallies."

In a culture where ignoring the laws often results in little consequence, the farmers think they can ignore the law of supply and demand and not pay the price.

Rubber is a 30 year product. It's not like corn (or rice) where you plant and harvest in the same season, and can rapidly change crops when prices fall.

The government has for many years encouraged farmers to grow more rubber trees. Probably too many. Now that they're all reaching the age when the rubber can be harvested, there's a glut. A glut that is largely a result of government intervention.

If the government creates a glut, they should mitigate the consequences. And then learn their lesson and not create the next glut.

No easy answers here, but I have quite a bit of sympathy for the farmers who counted on the advice and programs of the government, and ended up here.

However, that is the nature of farming worldwide. They buy all their equipment and materials retail and sell their products wholesale. The only ones who can look forward to a decent profit are the conglomerates, such as Monsanto, who monopolize a particular market, .Governments make empty promises to gain votes during elections, but in the end wind up pandering to the large corporations, since they are the ones who contribute the money to support their quest for power.

[seajae]

really have to wonder when thais will actually start accepting responsibility for what they do, seems they find it easier to blame everyone else but themselves. They chose their crop then whinge when the world price drops then want the public to support them and pay them more than it is worth so they can make a profit. Govt needs to tell them to shut up and lock the mongrels up if they cause any problems, this is absolute bullsh*t but typical of thai farmers, rice, rubber, oil palm, they are all the same

[impulse]

Rubber is a 30 year product. It's not like corn (or rice) where you plant and harvest in the same season, and can rapidly change crops when prices fall.

The government has for many years encouraged farmers to grow more rubber trees. Probably too many. Now that they're all reaching the age when the rubber can be harvested, there's a glut. A glut that is largely a result of government intervention.

If the government creates a glut, they should mitigate the consequences. And then learn their lesson and not create the next glut.

No easy answers here, but I have quite a bit of sympathy for the farmers who counted on the advice and programs of the government, and ended up here.

However, that is the nature of farming worldwide. They buy all their equipment and materials retail and sell their products wholesale. The only ones who can look forward to a decent profit are the conglomerates, such as Monsanto, who monopolize a particular market, .Governments make empty promises to gain votes during elections, but in the end wind up pandering to the large corporations, since they are the ones who contribute the money to support their quest for power.

It's well within the government's capabilities to go to (or create) a futures market and lock in a long term contract price for rubber for the next few years, so their promises aren't so empty. The price may not be what people want to hear, but it will let them know whether they should be planting rubber trees today that won't be ready for years to come. And if the promised price for 2018 is 60 baht, the farmers can't blame anyone but themselves if they can't make money at 60 baht. They had 4 years to swap crops.

No, it's not as simple as I've made it sound, but it is doable- especially in a country like Thailand where the government can dictate prices at the farm.

[robblok]

Interesting to see some posters are OK with the military using force against the farmers. Quite amazing.

Why not.. what is the difference between rice farmers holding the country hostage or rubber farmers ? Both should learn its time to stop subsidizing them. Else this can go on forever.