Nghe An: Struggling due to falling rubber prices

Rubber forest in Nghia Dan district. Photo: Van Truong

Although it is the rubber tapping season at this time, walking along many rubber growing areas in Nghia Dan district, Thai Hoa town, etc., it is easy to see that many rubber gardens are deserted.

Mr. Tran Van Tinh in Nghia Tho commune (Nghia Dan), a rubber farmer shared: His family grows 1.5 hectares of rubber, the price of latex fluctuates very low, if last year the price was 20,000 - 22,000 VND/kg (fresh latex through rolling), now it has dropped to only 17,500 VND/kg fresh latex through rolling. This is the time when latex prices are at their lowest in the past 3 years. With the current selling price, rubber growers only have enough to cover the costs of care and exploitation.

Mr. Nguyen Van Thuat - Chairman of the Board of Directors of 1/5 LLC (Nghia Dan) said: Currently, the company only has over 70 hectares of rubber in Nghia Tho and Nghia Phu communes (Nghia Dan). Every year, the company purchases over 1,000 tons of rubber latex in Nghe An and Thanh Hoa. However, since the beginning of 2022, rubber prices have continuously dropped, from over 39,000 VND/kg of dry latex to now less than 30,000 VND/kg.

Rubber prices continue to fall. Photo: Van Truong

Currently, the company still has over 100 tons of latex in stock.rubberstill not sold. The reason why rubber latex is difficult to sell is that currently the Chinese market does not consume it, the unit mainly has to consume the domestic market.

Also in the same situation, Nghe An Coffee - Rubber Company Limited (Thai Hoa town) is currently in dire straits because of falling rubber prices. A representative of this unit said: Our unit currently has over 2,000 hectares of rubber (over 4,000 rubber growing households) concentrated in Thai Hoa town and Nghia Dan district, purchasing over 100 tons of latex per month for contractors. However, due to falling prices, the unit is currently only purchasing 25 - 30 tons of latex per month.

The representative of the above unit added: No matter how cheap the processed rubber latex is, it must be sold early because if left for a long time, the rubber latex will be damaged and degraded, and it will be very difficult to sell it. Currently, because the Chinese market is closed, we have to sell it at a loss to the domestic market at a price of less than 29,000 VND/kg.

For Nghe An Rubber Investment and Development Joint Stock Company, there are 4,300 hectares of rubber, concentrated in Thanh Chuong, Anh Son, and Que Phong districts, of which 2,000 hectares are ready for exploitation, reaching 1,800 tons of latex/year. This unit must transport raw rubber latex to rubber processing factories in Quang Nam province for processing and finding consumption markets in European countries.

Research shows that the low price of rubber latex and the decrease in income have pushed rubber growers into an even more difficult situation. Some rubber growers in Nghia Dan district shared: If the low price of latex continues, it will be difficult for people to invest in care and reproduction, leading to a decrease in the quality of rubber latex.

Mr. Ngo Hoang Khanh - Head of the Department of Technical and Scientific Management (Department of Agriculture and Rural Development) said: Nghe An currently has over 10,000 hectares of rubber, mainly concentrated in the districts of Anh Son, Nghia Dan, Tan Ky, Que Phong... Mainly enterprises, agricultural and forestry units, schools, LLCs - One Member Limited Liability Companies manage rubber areas, assigning contracts to households for care and exploitation, the above units are in charge of purchasing rubber latex.

Workers take care of rubber trees in Thanh Chuong district. Photo: Phu Huong

Recently the market has fluctuated, latex pricesrubber down lowcausing great difficulties for rubber growers and businesses. The Department will coordinate with local authorities to organize propaganda and instruct farmers to take good care of rubber trees while waiting for prices to increase.

Nghe An is a province with potential for rubber trees. In the long term, it is necessary to pay early attention and invest in building deep processing factories and rubber products to serve domestic demand and export to European markets, in order to ensure stable output for rubber latex in a sustainable direction.