Comments on: Smallholder rubber profits http://asiapacific.anu.edu.au/newmandala/2008/09/30/smallholder-rubber-profits/ New perspectives on mainland Southeast Asia Mon, 23 Nov 2009 15:28:26 +1100 http://wordpress.org/?v=2.8.4 hourly 1 By: patiwat http://asiapacific.anu.edu.au/newmandala/2008/09/30/smallholder-rubber-profits/comment-page-1/#comment-562991 patiwat Thu, 02 Oct 2008 18:07:18 +0000 http://asiapacific.anu.edu.au/newmandala/?p=3103#comment-562991 Rubber prices are higher now than they have ever been in over a generation. This is largely due to the steady rise on oil prices since 2001 (natural latex is a substitute for some petro pruducts in industry). Who knows how long this will last. Rubber prices are higher now than they have ever been in over a generation. This is largely due to the steady rise on oil prices since 2001 (natural latex is a substitute for some petro pruducts in industry). Who knows how long this will last.

]]> By: Nick Nostitz http://asiapacific.anu.edu.au/newmandala/2008/09/30/smallholder-rubber-profits/comment-page-1/#comment-561965 Nick Nostitz Tue, 30 Sep 2008 05:27:13 +0000 http://asiapacific.anu.edu.au/newmandala/?p=3103#comment-561965 I am extremely doubtful about small holder rubber in non traditional rubber producing areas. 8 Years ago we have bought 33 Rai of land in Phitsanulok province to build a small farm. At the time very few people have planted rubber there. The ones who have planted rubber at the time, have mostly been unsuccessful. Bad saplings, lack of knowledge and the wrong plots of land have resulted in the trees still not being able to produce. We have refused the social pressure to plant rubber, and instead have planted as cash crops first maize, and now tapioca, in addition to rice for consumption, veggies and fruit. And one brief excursion into sunflowers where we were duped into by one GM-crop company (which we learned too late that it was), but their representatives had to leave very quickly because people got rather pissed off with them when their crops failed...) . We have done very well with this strategy of staying with what we know. In those 8 years many newcomers from South Thailand have bought up most available land, driving land prices up almost threefold, and planting rubber. They appear to be a bit more successful. But it is suspected that many of them are just place holders for larger entrepreneurs. They have though the necessary cash, which the original inhabitants do not have. There are also slight tensions developing - some rubber plantations were burned down. And one Southerner was murdered over a conflict with an original inhabitant. On the other hand they do provide much needed possibilities for additional day labor to locals for very good wages. I do not see the state taking full responsibility over the rubber experiments here, or being able to. At best, this would mean 7 years of cost for fertilizer, a price guarantee for the produce (how can that be done here where we don't know how the government looks like next month?), and the necessary training courses for local farmers. One problem i see is also educational standards of many small scale farmers. Such a rubber venture needs very good skills in budgeting. The global rubber market has highly fluctuating prices. Demand is driven by China and India (as far as i understand), but China has also started to increasingly plant rubber. All in all, i feel that rubber is a high risk venture. Small scale farmers that survive here on very little profits cannot take such risks without the state guaranteeing to cover possible losses. And i just can't see most states in the region being able to do that. That is why we will continue staying away from rubber, and plant the crops my wife's family is competent to plant, able to budget for, and which are not a high risk. I am extremely doubtful about small holder rubber in non traditional rubber producing areas.
8 Years ago we have bought 33 Rai of land in Phitsanulok province to build a small farm. At the time very few people have planted rubber there. The ones who have planted rubber at the time, have mostly been unsuccessful. Bad saplings, lack of knowledge and the wrong plots of land have resulted in the trees still not being able to produce.
We have refused the social pressure to plant rubber, and instead have planted as cash crops first maize, and now tapioca, in addition to rice for consumption, veggies and fruit. And one brief excursion into sunflowers where we were duped into by one GM-crop company (which we learned too late that it was), but their representatives had to leave very quickly because people got rather pissed off with them when their crops failed…) .
We have done very well with this strategy of staying with what we know.

In those 8 years many newcomers from South Thailand have bought up most available land, driving land prices up almost threefold, and planting rubber. They appear to be a bit more successful. But it is suspected that many of them are just place holders for larger entrepreneurs.
They have though the necessary cash, which the original inhabitants do not have.
There are also slight tensions developing – some rubber plantations were burned down. And one Southerner was murdered over a conflict with an original inhabitant.
On the other hand they do provide much needed possibilities for additional day labor to locals for very good wages.

I do not see the state taking full responsibility over the rubber experiments here, or being able to. At best, this would mean 7 years of cost for fertilizer, a price guarantee for the produce (how can that be done here where we don’t know how the government looks like next month?), and the necessary training courses for local farmers.
One problem i see is also educational standards of many small scale farmers. Such a rubber venture needs very good skills in budgeting.

The global rubber market has highly fluctuating prices. Demand is driven by China and India (as far as i understand), but China has also started to increasingly plant rubber.

All in all, i feel that rubber is a high risk venture. Small scale farmers that survive here on very little profits cannot take such risks without the state guaranteeing to cover possible losses. And i just can’t see most states in the region being able to do that.

That is why we will continue staying away from rubber, and plant the crops my wife’s family is competent to plant, able to budget for, and which are not a high risk.

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