Rubber Journal Asia Country Focus
Myanmar maps out its global rubber market road closer to the port, according to the Malaysia External Trade Development Corporation (MATRADE) during its latest trade and investment promotion visit to the country.
Myanmar, currently ranked seventh in natural rubber (NR) production in Southeast Asia, behind Thailand, Indonesia, Malaysia, Laos, Cambodia and the Philippines, by
A laid-back rubber frontier he country still utilises traditional farming the International Rubber Research and techniques, according to Myat Thu, Senior Development (IRRDB), may be an underrated Staff Officer, Department of Industrial Crops Development (DICD), (an agency under the MOAI), rubber producing country in the region. speaking at CMT’s seminar in Yangon. He was Nevertheless, it is endowed with all the speaking on the current rubber plantation and cultivation situation in the country and said that 90% right fixtures to align with the league of key of the smallholders use the traditional and manual rubber producers and exporters, according to processing techniques for rubber cultivation. Myat also added that the MOAI has been actively participants and speakers at Singapore-based promoting the building up of knowledge amongst Centre for Management Technology (CMT)’s the growers by providing training programmes to recent RubberPlant Summit in Yangon, says upgrade their farming techniques. But in spite of the regular trainings conducted, Myat said, the actual Angelica Buan in this article. tapping practices are still way off the recommended practices. Meanwhile, only 36% of the total rubber growing areas in Myanmar are productive. The remaining 66% require the application of recommended he Myanmar Rubber Plants and Producers approaches such as implementation of best farming Association (MRPPA) cited that the country’s techniques – from input applications to latex rubber production was more than 100,000 tonnes in the harvesting that will improve the quality and yield, fiscal year 2011-2012. In the preceding three years, it Myat adds. is expected to have an output of 200,000 tonnes/year, He also reiterated that there is a misconception going up to 330,000 tonnes/ amongst growers/planters year by 2020. upgrading their “……90% of the smallholders that Rubber is the main know-how will not make a agricultural export in several use the traditional and manual difference considering that states and is planted on a they are producing good processing techniques for total area of 450,000 acres, quality rubber. according to data from the The MOAI has also been rubber cultivation…” Ministry of Agriculture and encouraging more local Irrigation (MOAI). and foreign investors to The country’s suitable agro-climatic conditions and set up processing factories in the country and is vast areas for farming are encouraging investments keen on acquiring as much good planting materials into the sector, which has gradually seen rubber and modern latex exploitation technology, as well plantations becoming more commercialised. as making inroads in the downstream industries. Moreover, a recent move by the government to The Ministry has also recommended the setting loosen up its foreign investment policies for industries up of a tapping training centre, in traditional such as rubber has started drawing investors from and non-traditional rubber areas, to enhance the rubber producing countries such as Thailand, Malaysia, tapping skills of workers. It is also pushing for China and Vietnam, to seek investment opportunities the establishment of rubber purchasing centres in the country. and structuring rules and regulations, not only to Malaysia has been eyeing the country and intends improve the quality of rubber but also to allow the to set up a joint venture rubber plantation, in the availability of good quality clones. southern part of the country. Malaysia is also working Dr Yu Sein, Chairman, Dawei Rubber Planters on setting up an oil palm plantation and a refinery and Producers Association; U Aye Pe, Director,
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Rubber Journal Asia Country Focus DICD; and U Than Htik, Assistant Director, DICD, has intensified promotion of its rubber, which is in their presentation on Developing Rubber on a comparably lower priced than what is offered in Commercial Scale in Dawei, expounded that there is other Southeast Asian markets. still 1.2 million ha of land available for plantations. The country’s best-quality rubber sells for With this respect, the government is leasing land US$3,000/tonne, which is approximately US$350 to locals and foreigners to invest in the planting of less than the best-quality rubber in Thailand, the rubber or oil palm. world’s top rubber producer. Stressing the need for Having entirely an upgrade in rubber depended on exports to “….they also recommend the production techniques, China last year, the country the experts pointed to setting up of a central rubber is looking at exporting socio-economic conditions, more of its rubber to market and quality control old seedling trees, nonSouth Korea, Vietnam systematic planting, poor and Singapore. It is also laboratories….” field maintenance, low building up interests quality fertilisers and from Germany, Austria, poor tapping systems. They said all of these factors Denmark and New Zealand. contribute to low yields. Further, they recommend Currently, the country has increased its exports that rubber replanting funds are needed to support by a third to 82,000 tonnes from the previous 78,000 the smallholders (who manage between 1-100 acretonnes. But earnings dropped to US$239 million sized plantations). compared to the previous 2011-2012 fiscal year Marketing in plantation areas such as Dawei, at US$320 million, having been affected by lower capital city of Tanintharyi region and a strategic global rubber prices, according to the Myanmar location for economic activity through its deep Rubber Planters and Producers Association sea port and the special economic zone, employ (MRRPA). traditional streams. The produce is collected by Khine Myint, Secretary of the MRRPA, stated villagers who sell to town buying centres. The traders that China, Singapore and Malaysia are the largest then dispatch the rubber to companies in Yangon that importers of Myanmar’s rubber, whilst Indonesia, export to Malaysia and Singapore or to Mandalay for South Korea, Vietnam, India and Thailand are export to China. also engaged in rubber trading with the country. Apart from this, plantation areas such as Dawei However, due to the lack of advanced technology, are also encumbered with logistics challenges; skilled Myanmar only exports raw rubber and no rubber labour for rubber tapping; limited land for planting products. and the lack of planting material and aid funds. Furthermore, Myanmar’s industry has no connection Myanmar needs to catch up in rubber market hile the global rubber market is already with international rubber boards that are able to moving to developing alternatives to natural control rubber prices to maintain price stability; rubber, Myanmar is still a nd there are no measures contending with improving in place to prevent an international crisis. Plus, “…the country has intensified its natural rubber capacities. the sector is dogged with promotion of its rubber, In his RubberPlant lack of availability of Summit presentation, commercial contractors which is comparably lower John McClure, Business for agri-investors, such as priced….” Development Manager at planting material producers HK-headquartered LMC and other necessary field International, pointed out that there are already work. “threats to natural rubber”. The agricultural This, said presenters Yu, Aye and Than, need “threats”, he said, are guayule (desert plant grown immediate action. They also recommend the setting in the US) and the Russian dandelion, while the up of a central rubber market and quality control synthetic “threats” are polyisoprene and biolaboratories as well as joint ventures with local isoprene. leaders. These, he said, are strong signals that the global rubber industry is evolving and countries Intent on going global evertheless, Myanmar’s will to position itself in like Myanmar need to fast track technology the international market place is apparent in its efforts to keep up with the pace or get left various courses of actions. For example, the country behind.
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