Feb
20
2009

How Natural Rubber Farming Works

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Demand and Supply Projections :

  • The growth of the industry is greatly influenced by the Industrialization of China, Russia and India as well as demand from Europe.
  • World consumption of natural rubber is projected to increase at 3-5%/year up to 2015 due to the price of oil. Natural Rubber prices is expected to continue to increase up to 2015. There is a level of uncertainty now however with the economic crisis bringing the price of oil back to 2005 levels.
  • However natural rubber production is projected to increase because of the expansion in Indonesia and Vietnam
  • Rubber processors are inclined to convert to natural from synthetic due to the increase in petroleum prices.

Correlation of Oil and Rubber Prices :

Looking at the comparisson of oil vs rubber prices in the graphs below, you will notice an almost 1:1 correlation. Meaning that it will most generally follow that the price of natural rubber will trend with the price of oil. This is most probably because oil is also used as the raw material of synthetic rubber. When the price of oil shoots up, those who create rubber products will shift to natural rubber in order to remain competitive.
Cup Lump Historical Prices Php/Kg vs World Rubber Prices

Cup Lump Historical Prices Php/Kg vs Petroleum Prices<br />

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Category : How it Works, How to, Agriculture

2 Reactions :

  • leo damole : March 24th, 2009 3:59 pm

    I planted rubber tree about 5 hectares of my agri-land, I only need to know where do I send somebody for training on how to take care my trees and everything needed to know about this job

  • admin : March 24th, 2009 6:23 pm

    The department of agriculture would be the best place to ask. If you are from Mindanao, you can try the municipal agri office of the LGU in Makilala in Cotobato. They had a pilot farm there on rubber trees where they offer seminars. Not sure if it is still up though.

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