Low price, difficult to sell, many places in Nghe An stop exploiting rubber latex

It is the peak season for rubber latex exploitation, but at this time, rubber forests in Tan Phu commune, Tan Ky district are deserted.

Mr. Van Huu in Tan Phu commune, who grows 1.2 hectares of rubber, shared: If last year the price was 23,000 VND/kg, now it has dropped to only 15,000-16,000 VND/kg. With the current selling price, rubber growers are losing money, so we have to temporarily stop exploitation to wait for the price. Observations in Tan Phu commune show that some households have liquidated rubber trees, switching to growing custard apples, sugarcane, acacia...

A representative of Song Con Agriculture Joint Stock Company said: Our unit currently has over 700 hectares of rubber, mainly concentrated in Tan Phu commune, monthly purchasing over 20-30 tons of latex for contractors. However, due to low prices, the unit currently only purchases 10-15 tons of latex/month. The main rubber consumption market is China, but now they buy "drop by drop", so we are having to find a domestic consumption market.

Due to difficulties in output, nearly 150/700 hectares of rubber have had to stop tapping latex, causing the rubber processing line to operate at a standstill. Currently, Song Con Agriculture Joint Stock Company still has about 30 tons of unsold finished rubber products.

Also in the same situation, 3/2 Agriculture Joint Stock Company, in Minh Hop Commune, Quynh Hop District, currently has 480 hectares of rubber in Minh Hop Commune, however, the output is very difficult. Every month, the unit is struggling to process and consume 70-100 tons of rubber products for contracted households and people in the surrounding area. But with the current low price, the unit is having to calculate and operate at a moderate level to wait for the price.

Mr. Nguyen Nam Thuyen - Director of 3/2 Agriculture Joint Stock Company, admitted: Because the factory's processing technology is still backward, the processed rubber products do not meet export standards. Some shipments when exported to other countries have been returned from 2-3 tons, mainly rubber with impurities. To export rubber, it is necessary to invest in technology, and the products must meet quality standards to be consumed.

Nghe An currently has over 10,000 hectares of rubber, mainly concentrated in Anh Son, Nghia Dan, Tan Ky, Que Phong districts, producing over 6,000 tons of processed rubber annually. Currently, due to the extremely low price, most rubber processing factories are operating at a standstill. Not to mention, quite a lot of rubber areas in Tan Ky, Nghia Dan, Quy Hop districts have been liquidated by people to convert to growing other crops such as acacia, sugarcane and fruit trees...

Mr. Nguyen Van Hiep - Head of the Department of Industrial Management (Department of Industry and Trade) said: Nghe An currently has no factory for deep processing of rubber products, mainly facilities for preliminary processing of rubber in the form of raw materials, so the economic value is not high. The rubber preliminary processing factories mainly still apply domestic technology. Many of the processing factories' equipment have been invested for too long, old and outdated machinery significantly affects the quality of the products.

Not to mention all the rubber areas of Nghe An, up to now, no area has achieved FSC certification. Meanwhile, the labor level and quality management of production facilities are uneven, which leads to the fact that export enterprises are always passive in the prices from partners, the risk of the industry is increasing.

The Department of Industry and Trade recommends that rubber processing enterprises must closely monitor the market situation and find proactive and flexible solutions. In addition to seeking export markets, they also need to seek more domestic markets. In the long term, for the rubber industry to develop sustainably, Nghe An needs to have rubber processing factories to ensure quality to serve both domestic demand and export to other countries.