Rubber prices edge up at the end of the season.

November 27, 2016 10:15

(Baonghean) - The rubber market is gradually warming up, positively impacting the income of rubber farmers in the province, which has long been "frozen". Despite it being the end of the season, rubber farmers are still actively harvesting.

Ms. Hoang Thi Thanh, owner of a 1-hectare rubber plantation in Hamlet 16, Nghia Binh Commune (Nghia Dan District), is diligently collecting latex at the end of the season. In conversation, she shared: "Our family's rubber plantation was planted in 2007, but when we started harvesting in 2013, the price of latex dropped too low. The daily income was minimal, so we stopped tapping. My husband and I even considered cutting it down to plant something else, but we decided to leave it as it was."

A few months ago, her family took advantage of the opportunity to harvest rubber latex. Although the price was low, it provided enough income to cover daily expenses. For nearly a month now, the 1/5 Nghe An One-Member Limited Liability Company has been buying rubber at a higher price than last month. As a result, she dedicates one half-day each day to harvesting latex from this 1-hectare rubber plantation, yielding over 30 kg of latex. She takes it to the company to be processed and sold at 17,000 VND/kg, earning her 250,000 VND per day from the rubber plantation.

However, according to Ms. Thanh, if the rubber plantation covers 2 hectares or more, it is necessary to hire laborers for harvesting, paying them 100,000 VND per shift, which leaves the plantation owner with little income. She hopes that in the future, rubber prices will rise further so that growers can have a stable income.

Chị Hoàng Thị Thanh, xóm 16, xã Nghĩa Bình (Nghĩa Đàn) khai thác mủ cao su.
Ms. Hoang Thi Thanh, from Hamlet 16, Nghia Binh Commune (Nghia Dan District), is harvesting rubber latex.

According to Mr. Phan Tuan Cuong, Director of 1/5 Nghe An One-Member Limited Liability Company, since the beginning of November, due to many objective and subjective reasons, the price of rubber in the world has been gradually increasing, impacting rubber production in the area, thus gradually stabilizing the situation for rubber growers. At the end of 2015, the price of processed rubber was 21 million VND/ton, increased to 25 million VND/ton two months ago, and is currently 32 million VND/ton. It is predicted that the price of rubber will continue to rise in the coming time.

However, as rubber prices rose, the company's rubber plantation area decreased significantly. In fact, 220 hectares of rubber trees have been neglected or exploited in a way that prioritizes sustainable harvesting. This is because the Provincial People's Committee had previously issued a document to reclaim 220 hectares of rubber trees to hand over the land to TH Milk Company, but this has not yet been fully implemented. In addition, 300 hectares of rubber trees have been cut down and converted to other crops, leaving the company with only nearly 500 hectares of rubber trees.

Một số công ty đưa xe bồn đến vườn cao su thu mua mủ cho người trồng.Ảnh: Nguyên Sơn
Some companies send tanker trucks to rubber plantations to purchase latex from growers. Photo: Nguyen Son

At Xuan Thanh Agricultural Company Limited (Quy Hop), the price of rubber is also having a positive impact on rubber growers. Currently, the company has 453 hectares of rubber trees, of which 412 hectares are in the production stage. According to Mr. Hoang Van Minh, the company's director, the company is currently purchasing rubber latex at 6,500 VND/kg, an increase of over 1,000 VND compared to the previous month. At this price, rubber growers are earning income. A hectare of rubber trees, if well-cared for and planted at a moderate density, can yield 50 kg of latex per day; even with poorer conditions, it can still yield 30 kg per day, bringing in over 200,000 VND per day for the growers.

However, some households in the area have cut down rubber trees to switch to growing oranges. According to Mr. Minh, not all land is suitable for growing high-yield, high-quality oranges; therefore, people need to maintain their existing rubber plantations. The company prohibits households that have leased land from cutting down rubber trees to plant other crops, to avoid chasing market fluctuations and suffering losses in production.

Meanwhile, An Ngai Agricultural Company Limited (Tan Ky) has 600 hectares planned for rubber cultivation, of which 450 hectares have been planted so far. In addition, the company has 200 hectares of small-scale rubber plantations. Currently, rubber prices have increased compared to last month, from 14,000 VND to 16,000 VND/kg for raw latex and 7,200 VND/kg for liquid latex. While rubber prices have risen, this is the end of the harvest season, so farmers are not harvesting a large quantity of rubber latex.

Khai thác mủ cao su ở Nghĩa Đàn
Rubber tapping in Nghia Dan. (Archival photo)

Forecasts indicate that from 2016 onwards, global rubber prices will gradually improve, meaning rubber production will stabilize. Therefore, the Department of Agriculture and Rural Development advises people to maintain their existing rubber plantations, continue caring for them, and wait for higher rubber prices before focusing on harvesting. This is because it takes 7 years of development to grow rubber trees to maturity for latex production, and these trees have a harvesting lifespan of over 40 years.

Given the volatile nature of the rubber market, Nghe An province has planned to adjust its rubber plantation area to reflect the current situation. Accordingly, the target for 2020 is a total rubber plantation area of ​​17,000 hectares, of which 11,000 hectares will be in production; the area is expected to remain stable until 2030.


X.Hoang - Q.An

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Rubber prices edge up at the end of the season.
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