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Rubber, a top agro-commodity, is being groomed as a key contributor to the nat ional economic development of the Philippines, says Angelica Buan.
Ranked among the world’s top ten rubber producing countries, the Philippines accounted for nearly 1% of the world’s total dry rubber production of 11.8 million tonnes in 2014. The Department of Trade and Industry (DTI) and Board of Investments (BOI) cites that in 2014 natural rubber exports were valued at US$79 million from US$75 million the previous year; while value of rubber manufacture imports increased to US$311 million in 2014, an increase of US$10 million from the previous year.
The rubber industry also has its technical working group (TWG) launching activities to boost rubber growth, including Integrating upstream and downstream rubber roadmaps and a research project to increase the local rubber content in motorcycle tyres, setting up a testing facility in Region XII, and a plan to build a manufacturing facility for latex-dipped rubber products.
The Philippines has vast tracts of lands especially in the southern major island of Mindanao that are suitable for rubber planting. Nonetheless, studies are being undertaken to identify other areas in the two major islands of Luzon and Visayas that are also feasible for cultivating rubber. The country had about 185,476 ha of rubber plantations, based on 2013 industry data.
Aid against price woes
The prevailing rubber price slump in Asia has inundated Philippine rubber farmers, who are predominantly smallholders of 2 to 3 ha farms, according to data from the Department of Agriculture (DA).
This year, the Philippine rubber supply is placed at 250,000 tonnes, with 217,000 ha planted with rubber seedlings, which is above the target of 200,000 ha. Nonetheless, this has barely alleviated the plight of small rubber holders.
Rhodora Medalla, President of the Philippine Rubber Industry Association (PRIA), stated that from 2012 the price of dried rubber plunged to US$1.4/kg from US$3.7 to US$3.9/kg in 2010 and 2011, with the highest price for rubber noted in 2010 and 2011. She added that the economic state of supply and demand, crude oil prices, and the price of synthetic rubber are factors for the fluctuating rubber prices.
Nonetheless, the local industry has agreed on a clonesharing system with Asia’s major rubber producers who are also actively developing their rubber production with new technologies.
The exchange of 49 rubber clone varieties was concluded at a conference held late last year between PRIA, DTI and the DA, as well as other Asian rubber industry delegates including Sheela Thomas, Secretary-General of the Association of Natural Rubber Producing Countries (ANRPC).
Dr Abdul Aziz bin S.A. Kadir, Secretary-General of the International Rubber Research & Development Board (IRRDB) said that a rubber clone gives a higher yield at a faster production turnaround. Although not all rubber clones are created equal, Aziz reminds that small farmers need to know clones that are good to grow rubber from to ensure quality output.
The Philippines has also been delving on R&D for clone varieties, with the University of Southern Mindanao (USM) able to develop the high-yield USM 1 clone.
To upgrade the quality that complies with industry regulations and market requirements, PRIA has partnered with the Department of Science and Technology (DOST) and also set up a rubber testing laboratory in Zamboanga City. Currently, Mindanao has three rubber testing laboratories.
Boost for local enterprises
PRIA’s Medalla recommends setting up a village processing facility for rubber products to assist the growth of the industry.
Thus, a US$322,000 programme, backed by the Investments in Rural Enterprises and Agriculture and Fisheries Productivity of the Philippine Rural Development Project (PRDP), will allow farmers to engage in processing and marketing their produce, and not just confined to selling rubber lumps which fetch low price locally than latex rubber; as well as involve in natural resources preservation.
The PRDP said the programme targets to benefit about 300 local small rubber growers. It will be managed by a tripeople farmer cooperative and help rubber farmers increase their income to US$84 from US$52/month, while tappers may expect earnings of US$47/month.
Demand up for tyres
The rising vehicle sales in the country also provide opportunity for the rubber sector. Based on TechSci Research’s report, the Philippine tyre market is projected to reach over US$900 million by 2021. The main factors that influence demand for tyres in the Philippines include rapid infrastructure development, implementation of favourable policies by the government as well as growing disposable income of vehicle owners.
been in the country since 1996, has started to increase its rubber sourcing from the Philippines from 6% in 2012 to 32% in August 2015, amid the improving quality of local rubber. Yokohama’s tyre facility will be able to produce 60,000 tyres/day by 2017.
Thus, the Philippine rubber industry can tap on opportunities from tyre demand.