1 April 2014
The government and industry insiders are worried
about the steady decline of rubber prices over the last three years, during
which the area it is cultivated in has grown. Farmers and investors raised
concern over the trend of the market and the price of natural rubber, which has
fallen from more than $4,500 per ton on average in 2011 to between $1,800 and
$2,000 per ton in 2013.
Minister of Agriculture said that the rubber
industry in almost all of Cambodia’s provinces is expanding, and the
cultivation area has increased by 17% last year when compared to 2012. The total
harvested land reached 78,000 hectares in 2013 – an area 32% larger than in
2012 and capable of producing 90,000 tons of processed rubber for sale abroad.
Cambodia exports mostly natural rubber as well as
smaller amounts of semi-processed rubber, and declining prices are making
themselves felt. For Cambodia, rubber, like rice, is a valued commodity. In
2013, the country exported a total of 74,198 tons with a total value of $170
million. Minister said in a report earlier this year that the total projected
cultivation area for rubber may reach 450,000 hectares by 2020.
An independent economic analyst said that the
price of natural rubber, which is taken directly from the tree, will continue
to fall in coming years if the value of processed rubber also declines. He said
that Cambodia needs to diversify its export markets and focus on quality and
low-cost production.
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