Rubber farmers seek help from Thai government

[webfact]

Rubber farmers seek help from government
Jeerapong Prasertpolkrung
The Nation

BANGKOK: -- RUBBER farmers are planning to hold major protests, especially in Nakhon Si Thammarat province, today to urge Prime Minister General Prayut Chan-o-cha to implement their four demands in the wake of dropping rubber prices, the coordinator of the Alliance for the Revival of Rubber Farmers said yesterday.

Sunthorn Rakrong and 24 other representatives of rubber farmers submitted the letter along with a list of affected farmers to the PM via the Public Service Centre at the Prime Minister Office's Permanent Secretary Office.

The group wants the government to pay farmers registered with the Rubber Authority of Thailand the difference in price, so they can get Bt60 per kilogram for rubber products, Sunthorn said.

The second demand is for the government to approve the "rice fund" so they can barter their rubber for rice at state warehouses, a proposal they had made to the previous vice agriculture minister, Amnuay Patise, a year ago.

Thirdly, they want the government to review the forest land reclamation policy, which led to thousands of rubber trees being cut down, while also setting up provincial-level screening committees with farmer participation to help segregate rubber plantations set up by investors from those owned by poor people.

Lastly, they called for landless rubber farmers and tappers to be registered according to the Rubber Authority Act's Article 4.

Sunthorn added that the alliance also wants to propose that the government pay the price difference to small farmers - with less than 15 rai - instead of buying their produce and adding to government stock.

Source: http://www.nationmultimedia.com/national/Rubber-farmers-seek-help-from-government-30270919.html


-- The Nation 2015-10-15

[Thian]

The fishermen, the rubberfarmers, the ricefarmers all didn't want to work for a boss and have their own company.

Who's next in line to beg for money? Why don't they make something out of the rubber and try to sell that?

[stoneyboy]

The fishermen, the rubberfarmers, the ricefarmers all didn't want to work for a boss and have their own company.

Who's next in line to beg for money? Why don't they make something out of the rubber and try to sell that?

In case you didn't notice there is a continued global economic slowdown especially with the price of oil and commodities due to over production and reduced demand,this isn't strictly a Thai problem this is a problem for many economies at this time.

[AlexRRR]

Protection....The rubber farmers were making a killing not to long ago...its called business thats how it is...

[Thian]

The fishermen, the rubberfarmers, the ricefarmers all didn't want to work for a boss and have their own company.

Who's next in line to beg for money? Why don't they make something out of the rubber and try to sell that?

In case you didn't notice there is a continued global economic slowdown especially with the price of oil and commodities due to over production and reduced demand,this isn't strictly a Thai problem this is a problem for many economies at this time.

I know all about the crisis from last years and my government also didn't help me.

But i still had to prove the Thai embassy that i have sufficient funds or they won't let me go to my wife in Thailand.

Rubberfarming must have been very good business or there wouldn't be so many Thai doing it.

If they grew timber they could have been selling it for top$ right now, wood is very expensive in Thailand. But they all follow eachother so this is what they get.

They can mike tires from it, why good tires have to come from abroad? Who wants to have Thai tires?

Tomorrow the bed and breakfasts will beg for money, the touristguides, longtailboats, taxidrivers, scuba-instructors, fruitfarmers and so on. Where will that end?

Or will they all come to BKK and occupy the roads here?

They just have to grow up, having a business is taking a risk.

They should make good mattresses from that rubber and sell those. The only shop in thailand with decent mattresses is IKEA, all the rest is crap, i ve bought several with those springs inside. Latex mattress is what we need.

Edited October 14, 2015 by Thian

[selftaopath]

The fishermen, the rubberfarmers, the ricefarmers all didn't want to work for a boss and have their own company.

Who's next in line to beg for money? Why don't they make something out of the rubber and try to sell that?

Seems like they are "DEMANDING" rather than begging.

I don't think Thailand has ever heard of free market enterprise. More like "I'll go into business and if it fails I'll demand the government pay for my losses." The mindset here is ........ ????? wellllllllllllllllllllllllllllllllllllllll different - for sure.

[Emster23]

"The group wants the government to pay farmers registered with the Rubber Authority of Thailand the difference in price"

Difference between reality and fantasy. Blurry line here in Thailand...

Not all that different from the good ol' rice scheme, except this time down in Suthep's turf. I wonder how much pull he has with current bunch? Rice scheme helped farmers who happened to live in Red Shirt territory, so there is precedent. And no worry about army coup, either. "Ya dance with the one whut brung ya" as Ann Richards put it so nicely.

[nahkbin]

Once again some one DEMANDING something. When are they going to start requesting?

If someone working for me demanded something he/she would be looking for a new job. Requests I consider. Demands....no way.

[sawadee1947]

as always: first the rice farmers, then the fisher men and now again the rubber farmers.......they are used to. Up to now every government gave them money. So why not? To buy votes is too easy...

[worgeordie]

Commodities are all subject to the supply and demand issues,

when things are good and demand ,prices are high,everyones

happy,thats when they need to save for the rainy day,which will always

happen,good times never last forever.do the Rice farmers,Rubber tappers,

Fishermen realize this, obviously not ,and always look to the government

to help,

regards worgeordie

[EJK]

Yes the JUNTA crashed the prices right and the farmers suffer now

[seajae]

time for them to realize that when you plant a crop and sell on the world market that its the world that determines the prices not the farmers, the only ones responsible are the ones that are growing the trees for the govts to stop being patsies for everyone and paying them money, they chose their crop, if it collapses stiff sh*t, grow something else or put money away when the prices are good instead of blowing it on new cars etc.

[Eric Loh]

The fishermen, the rubberfarmers, the ricefarmers all didn't want to work for a boss and have their own company.

Who's next in line to beg for money? Why don't they make something out of the rubber and try to sell that?

Have you heard the term "supply chain"? Rubber farmers have a role in the chain and certainly not making something out of rubber. The government has a role in the upstream manufacturing investment policies. Don't see much of that.

[thaiguzzi]

Always seems the Southern province rubber farmers/owners are up in arms with the prices. People up here in Isaan moan about current prices but just get on with it. I remember with the Yinglack government and their subsidies, the missus got 64k one year, most people were reasonably happy up here with the help. Except farmers in the South. Strange...

[FangFerang]

I simply do not understand why the government does not stop selling raw rubber and build plants to make finished products, like tires, and many other things.

It would be a win-win situation altogether.

[HenryB]

Any fool can grow rubber tress or rice plants the trick is to sell them without annoying the Government to buy their product.

I say these fools are not farmers but beggars. They should get a job instead of growing worthless junk that they can sell

I use to write books but nobody brought my books I gave that up and got a job instead I did not ask the Government to buy my books

No difference

[Eric Loh]

I simply do not understand why the government does not stop selling raw rubber and build plants to make finished products, like tires, and many other things.

It would be a win-win situation altogether.

Don't think it will be a good idea for the government to produce rubber products to compete with the 100+ private & public companies that are already making a wide range of products including tire, doormat, condom, gloves etc. The problem is that we have just too many rubber plantations in a shrinking market from synthetic substitutes. Thailand produced 4 million plus tons of which 88% is for export and balance for the manufacturers. Perhaps this shake up in the global market will knock some sense to farmers to switch to other crops. The government should not opt for the soft option of subsides and implement some policies for helping farmers switch crops like in the north.

[laocowboy2]

There are so many things wrong with this article that it is hard to know where to start. Le't therefore try Demand No.4. Registering 'landless rubber farmers and tappers'. Sorry lands - no land (and therefore no trees) you are not really a farmer. Demand No.3 - the government to stop cutting down illegally planted trees. Well apart for the illegality, this measure will actually help to cut supply and by doing so help to support prices (at the margin only however). Second demand - sounds like disguised price support (give rubber get very cheap rice) so no way. And Demand No 1 is simple 'insulate me from the world market' so no again.

My wife has rubber trees in the NE and so has seen her income drop sharply while still having to pay for tapping, fertilizers etc (so I chip in). She is however well aware that this is a global market with China being the big influence and understands (a) why the price fell and ( that it is not going back up soon. Unlike other crops, rubber has a long cycle in that trees do not produce for their first few years, then production starts and grows with the tree, later reaching a plateau before slowly declining as the tree ages before it tails off and you cut down and start again. It is therefore something that (a) requires a significant up front investment and ( that can not be turned on and off from one season to another. When p[rices were high a few years ago a LOT of new trees were planted - most of which are not yet producing. The glut is here to stay.

[bangrak]

Many here seem to forget, or not to know, that a large (the largest?) part of all the Thai land covered with rubber tree plantations today have been as a result of years' long quite aggressive promotional campaigns by 'the authorities' (Mr Thaksin's TRT and PPP 'Governments'' megalomania again, f.i.?) to convince farmers to leave their seasonal crops' cultures and go over to growing hevea, which process takes several years of care and spendings (workforce, fertilizers, chemicals, etc.), for a sapling to become a productive rubber tree, which it remains for just about a decade, and only providing the weather conditions are positive: not too dry (tapping is to e avoided not to weaken the tree), and not too wet (the sap becomes too watery with reduced density of latex asconsequence).

What is left today of all the clear official promises about high return on investment, high yearly income, and so on made to those new or expanding rubber farmers then?

This all makes it quite irritating to read some heartless and ignorant posts here!

[Thai at Heart]

I simply do not understand why the government does not stop selling raw rubber and build plants to make finished products, like tires, and many other things.

It would be a win-win situation altogether.

Huh? All the major manufacturers have tyre manufacturing in Thailand. Sumitomo even make Dunlop tennis balls in Thailand for God sake.

You think Japanese car manufacturers want to import all the tyres when Thailand is one of the world's largest rubber producers.

[Thai at Heart]

Many here seem to forget, or not to know, that a large (the largest?) part of all the Thai land covered with rubber tree plantations today have been as a result of years' long quite aggressive promotional campaigns by 'the authorities' (Mr Thaksin's TRT and PPP 'Governments'' megalomania again, f.i.?) to convince farmers to leave their seasonal crops' cultures and go over to growing hevea, which process takes several years of care and spendings (workforce, fertilizers, chemicals, etc.), for a sapling to become a productive rubber tree, which it remains for just about a decade, and only providing the weather conditions are positive: not too dry (tapping is to e avoided not to weaken the tree), and not too wet (the sap becomes too watery with reduced density of latex asconsequence).

What is left today of all the clear official promises about high return on investment, high yearly income, and so on made to those new or expanding rubber farmers then?

This all makes it quite irritating to read some heartless and ignorant posts here!

This is a nice story but not true.

The Thai Chinese rubber processors were sitting looking at the south where plantations have been in production for decades and realised that they risked losing supply if farmers didn't replant.

They got the govt to fund moving their production away from the south to the new areas in the north east to secure their supply. Ironically, these companies were staunch Democrat supporters because they had to deal in the south. They wanted to go to the north east, the govt made it happen.

It's a paying crop, it just doesn't pay as well as 5 years ago. What can anyone do?

[Basil B]

It is not easy for rubber farmers to diversify...

If rubber farmers do up root their rubber trees then when if there is turn round in the demand for rubber there will not be enough supply.

Big question is is it up to the Thai government to keep the rubber farmers happy or those that will need rubber on on the upturn?

[selftaopath]

time for them to realize that when you plant a crop and sell on the world market that its the world that determines the prices not the farmers, the only ones responsible are the ones that are growing the trees for the govts to stop being patsies for everyone and paying them money, they chose their crop, if it collapses stiff sh*t, grow something else or put money away when the prices are good instead of blowing it on new cars etc.

I totally agree with you. I'd comment further re: what I see happening in this village/area but last time I did I was sanctioned/censured and my post was removed by overseers.

We ain't in Kansas anymore Toto. :-)

[rjcampbe]

Commodities are all subject to the supply and demand issues,

when things are good and demand ,prices are high,everyones

happy,thats when they need to save for the rainy day,which will always

happen,good times never last forever.do the Rice farmers,Rubber tappers,

Fishermen realize this, obviously not ,and always look to the government

to help,

regards worgeordie

Surely you been here long enough to know that evil western concepts like supply and demand do not apply to Thailand.

You just don't understand the Thai economy....

[shirtless]

At the rate tourism is dropping Restaurants and bars and hotels will soon be screaming for Subsidies , You cannot subsidize these industries if they cant make money they should be shut down like everyone else.

[bangrak]

Many here seem to forget, or not to know, that a large (the largest?) part of all the Thai land covered with rubber tree plantations today have been as a result of years' long quite aggressive promotional campaigns by 'the authorities' (Mr Thaksin's TRT and PPP 'Governments'' megalomania again, f.i.?) to convince farmers to leave their seasonal crops' cultures and go over to growing hevea, which process takes several years of care and spendings (workforce, fertilizers, chemicals, etc.), for a sapling to become a productive rubber tree, which it remains for just about a decade, and only providing the weather conditions are positive: not too dry (tapping is to e avoided not to weaken the tree), and not too wet (the sap becomes too watery with reduced density of latex asconsequence).

What is left today of all the clear official promises about high return on investment, high yearly income, and so on made to those new or expanding rubber farmers then?

This all makes it quite irritating to read some heartless and ignorant posts here!

This is a nice story but not true.

The Thai Chinese rubber processors were sitting looking at the south where plantations have been in production for decades and realised that they risked losing supply if farmers didn't replant.

They got the govt to fund moving their production away from the south to the new areas in the north east to secure their supply. Ironically, these companies were staunch Democrat supporters because they had to deal in the south. They wanted to go to the north east, the govt made it happen.

It's a paying crop, it just doesn't pay as well as 5 years ago. What can anyone do?

May I disagree with you? My story isn't a nice one, it's a sad one, but a true one, for many thousands of, smaller, farmers' families which went in on the governments' promotional campaigns, believing in the promised high return on investment, planted and grew hevea on their land at a high expense, and have been let down by the authorities, many facing bankrupcy today! Is it the reference to the first Thaksin's TRT and PPP Governments' involvement which possibly didn't please you?

Also, I didn't want to 'polarize' the question, opposing north-east and south, but you are right when you write there was (yet another) populist scheme by those Thaksin's governments (again not free from fraud and corruption: just remember the millions(!) of bad quality dying/dead saplings which were then bought at a high price, another part of the bought saplings vanishing in thin air...), also with the added 'political' dimension of attempting to transfer wealth from the DP voting south to the TRT, later PPP, north-eastern bastion, and an ill scheme it was (again), wasting the taxpayers' money (again) because many of those areas in the north-east don't have a suiting climate (too dry, too large temperature differences) for the profitable growth of hevea... So thank you for pointing at another costly failure of 'thaksinomics', which was, alas, never investigated by NACC, DSI, ..., and largely forgotten by the media!

[Thai at Heart]

Many here seem to forget, or not to know, that a large (the largest?) part of all the Thai land covered with rubber tree plantations today have been as a result of years' long quite aggressive promotional campaigns by 'the authorities' (Mr Thaksin's TRT and PPP 'Governments'' megalomania again, f.i.?) to convince farmers to leave their seasonal crops' cultures and go over to growing hevea, which process takes several years of care and spendings (workforce, fertilizers, chemicals, etc.), for a sapling to become a productive rubber tree, which it remains for just about a decade, and only providing the weather conditions are positive: not too dry (tapping is to e avoided not to weaken the tree), and not too wet (the sap becomes too watery with reduced density of latex asconsequence).

What is left today of all the clear official promises about high return on investment, high yearly income, and so on made to those new or expanding rubber farmers then?

This all makes it quite irritating to read some heartless and ignorant posts here!

This is a nice story but not true.

The Thai Chinese rubber processors were sitting looking at the south where plantations have been in production for decades and realised that they risked losing supply if farmers didn't replant.

They got the govt to fund moving their production away from the south to the new areas in the north east to secure their supply. Ironically, these companies were staunch Democrat supporters because they had to deal in the south. They wanted to go to the north east, the govt made it happen.

It's a paying crop, it just doesn't pay as well as 5 years ago. What can anyone do?

May I disagree with you? My story isn't a nice one, it's a sad one, but a true one, for many thousands of, smaller, farmers' families which went in on the governments' promotional campaigns, believing in the promised high return on investment, planted and grew hevea on their land at a high expense, and have been let down by the authorities, many facing bankrupcy today! Is it the reference to the first Thaksin's TRT and PPP Governments' involvement which possibly didn't please you?

Also, I didn't want to 'polarize' the question, opposing north-east and south, but you are right when you write there was (yet another) populist scheme by those Thaksin's governments (again not free from fraud and corruption: just remember the millions(!) of bad quality dying/dead saplings which were then bought at a high price, another part of the bought saplings vanishing in thin air...), also with the added 'political' dimension of attempting to transfer wealth from the DP voting south to the TRT, later PPP, north-eastern bastion, and an ill scheme it was (again), wasting the taxpayers' money (again) because many of those areas in the north-east don't have a suiting climate (too dry, too large temperature differences) for the profitable growth of hevea... So thank you for pointing at another costly failure of 'thaksinomics', which was, alas, never investigated by NACC, DSI, ..., and largely forgotten by the media!

My point was, the plan wasn't hatched by trt, but the rubber industry itself...the industry wanted the north east opened up, the govt facilitated it.

The processors don't care, they make a grand margin either way.

[Mosha]

You guys are treating it as a local issue. The thing is non traditional areas are now tapping. eg W. Africa. Scientists are looking at extracting latex from dandelions. Once that happens. SE Asia is screwed.

Edited October 16, 2015 by Mosha

[Thai at Heart]

You guys are treating it as a local issue. The thing is non traditional areas are now tapping. eg W. Africa. Scientists are looking at extracting latex from dandelions. Once that happens. SE Asia is screwed.

Production is up all over Asia for the last 3 years. Demand is down. What is anyone to do?

It's a 25 year crop with 7 years upfront of investment. Actual quite risky and costly to get out of if prices stay low. Of course it's nice to invest when prices are high, but 7 years is a long time.

[Mosha]

You guys are treating it as a local issue. The thing is non traditional areas are now tapping. eg W. Africa. Scientists are looking at extracting latex from dandelions. Once that happens. SE Asia is screwed.

Production is up all over Asia for the last 3 years. Demand is down. What is anyone to do?

It's a 25 year crop with 7 years upfront of investment. Actual quite risky and costly to get out of if prices stay low. Of course it's nice to invest when prices are high, but 7 years is a long time.

If only I'd had a Crystal ball 11 years ago.