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iconTurn the crisis into opportunity with falling rubber price [   July  2016 ]

 

Rubber price condition in 2016 is expected to track the global slowing economy especially that of China, Europe, Russia, Japan and emerging markets, coupled with Brexit or the withdrawal of the United Kingdom from the European Union in June. IMF cut forecast of world economic growth in 2016 to 3.1% and 3.4% next year. With the price drop of oil and commodities, rubber price has suffered the protracted downturn. Some of rubber growers made a decision to chop down trees and resorted to other more lucrative source of income.

However, the rubber price crisis has turned out to be an opportunity for profit making. I would like to take this opportunity to promote rubber consumption for value-added products. This is the change and adaptation for livelihood, turning the crisis into opportunity and ultimately for sustainability. One of the approaches to domestic consumption is utilizing rubber as material for road building - increase of domestic use. The Rubber Authority of Thailand assured that rubberized road has better quality than asphalt pavement or cement road in spite of higher cost. Rubber has quality to blend various polymers, resulting in smooth and even road surface, providing a durable skid-resistance surface and tyre groove resistance. It helps in drive safety and prolong lifetime of tyre. In addition, the government should attract foreign direct investment to Thai tire industry. This will increase the use of rubber in large quantities, reducing dependence on external markets and increase bargaining power for rubber price. It is the government policy to bring sustainability to rubber industries.

The government has a policy to promote rubber processing into value-added products for smallholders. This has been proved as alternative income and stimulus for domestic consumption. The project “One provincial chamber of commerce – One agricultural cooperative” is the government‘s initiative among various ‘civil state’ projects through the cooperation of public and private sector for the realization of ideas and plans. The project has generated jobs and income to community. Currently, agricultural institutes, cooperatives and community enterprises have shown interest in producing rubber pillows and cushions from latex to meet the demand of the market, especially Chinese market. To meet consumer health awareness, rubber pillow is made from 100% natural rubber. The quality of rubber pillow is soft, highly flexible, ventilation and therefore good for sleep and health.

In addition, a number of rubber growers change perspectives and give way to intercropping or multicropping, integrated crop and animal farming, for example crayfish, cricket, frog, banana, gnemon, lentil, lemon ,etc. to compensate income from rubber in sustainable manner with low cost but high return.

Signature
Mr. Chaiyos Sincharoenkul
President

 

 
 
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