According to the data provided by Cambodia’s Ministry of Commerce, the country’s rubber exports reached US$29 million in revenue at 29,000 tonnes during this year’s first quarter. But despite the initial rebound seen in the global rubber prices, Cambodian farmers still predict an unpromising year as profits continue to suffer even though production and exports have increased.
The total value of the country’s 2015 rubber exports amounted to US$161 million at 126,000 tonnes, but the farmers still expect this year’s production to show a near 25% decline in revenue.
Director of Sopheaknika Investment Group and deputy director of the Cambodia Rubber Association,Men Sopheak, said that there is little optimism left for this year’s earnings as prices have fallen again. He added that there is also little chance that the rubber prices will increase as in the last 10 days, the price per ton has already dropped from US$1,600 to US$1,300.
Since it is also currently the primary rubber harvesting season, the country will have more supply but will have to sell at less value. The sector might also collapse if the rubber farmers who invested in the industry are not patient.
Vice President of the Memot Family Rubber Development Association, SeangSarat, said that after the initial price increase last month, the price farmers are receiving for natural rubber has shot down from about 2,600 riel per kilo to 1,900 riel per kilo.
He also added that some farmers postponed harvesting in the hope that prices would continue its rise from last month but now, they are left with no choice but to sell rubber to Vietnam as the supply continues to build up and they can barely make a profit.
The initial optimism felt in the country’s rubber sector last month has already vanished.
Source: Phnom Penh Post