Logo of Phnom Penh Post newspaper Phnom Penh Post - Rubber exports increase 17%

Rubber exports increase 17%

Content image - Phnom Penh Post
Khuon Phalla says an increase in global demand was the main driver of the industry’s growth last month. Heng Chivoan

Rubber exports increase 17%

Cambodia exported 27,445 tonnes of rubber worth $40 million in the first month of the year, up 17 per cent compared to the same period last year, Ministry of Agriculture, Forestry and Fisheries official Khuon Phalla told The Post on Thursday.

Phalla, who is the director of the General Directorate of Rubber’s Department of Administration and Legislation under the ministry, said production also increased last month.

An increase in global demand was the main driver of the industry’s growth last month, he said, as China remains the largest market for the Kingdom’s rubber.

The average price last month was $1,433 per tonne, up $207 from December. “I expect that the price of rubber will continue to increase over the next few months,” he said.

Long Sreng International Co Ltd general manager Heng Sreng told The Post on Thursday that the rubber market demand saw a slight increase last month. His company cultivates rubber on 4,500ha in Kampong Cham,

The average price for natural rubber, he said, currently stands between $1,350 and $1,500 per tonne.

His company – which operates under the name Boeung Ket Rubber Plantation Company – exported around 7,000 tonnes to the international market last year. “I hope the rubber price will remain stable this year,” he said.

Cambodia exported 282,071 tonnes of rubber last year, a 30 per cent increase from 2018’s 217,501 tonnes, a ministry report said.

The commodity reeled in $377 million in revenue last year, up 32 per cent from 2018’s $286 million, it said.

The data also showed that a total of 406,142ha of rubber had been planted last year, with more than 247,113ha having been harvested.

Earlier this month Rubber Development Department deputy-director Kou Phally said the directorate announced a joint study on family-owned rubber plantations in three provinces to better understand how growers have responded to the sharp drop in rubber prices over the past nine years.

The study will focus on the Kingdom’s three dominant rubber-producing regions – Kampong Cham province’s Stung Trang district, Kratie province’s Snuol district and Ratanakkiri province’s Bakeo district, he said.

Meanwhile, rubber growers and exporters have expressed concern that prices will continue to fall as Thailand seeks to boost its natural rubber exports, Sopheak Nika Investment Agro-Industrial Plants Co Ltd owner and director Men Sopheak said previously.

In November, Thai Minister of Commerce Jurin Laksanawisit told a conference of reporters and rubber growers that Thailand will boost natural rubber exports to increase incomes for the latter following implementation of the four-month curb agreement, Reuters reported.

In March, the International Tripartite Rubber Council (ITRC), which comprises Thailand, Indonesia and Malaysia, agreed to reduce rubber exports by about 240,000 tonnes from late May to late September to buoy local prices.

The three Southeast Asian neighbours, which produce 70 per cent of the world’s natural rubber, ended up slashing exports by 441,648 tonnes during the period.

“We are concerned that when all the major countries increase their sales of rubber products, it will bring down the price of our rubber, as the cost of production in Cambodia is higher than in Thailand, Malaysia and Indonesia,” Sopheak said in November.

“If we look at recent global demand and supply of rubber, we see that the supply of natural rubber is increasing while demand has decreased from 1.5 million tonnes to less than one million tonnes on the global market.”

MOST VIEWED

  • NY sisters inspired by Khmer heritage

    Growing up in Brooklyn, New York, Cambodian-American sisters Edo and Eyen Chorm have always felt a deep affinity for their Cambodian heritage and roots. When the pair launched their own EdoEyen namesake jewellery brand in June, 2020, they leaned heavily into designs inspired by ancient Khmer

  • Cambodia records first Omicron community case

    The Ministry of Health on January 9 reported 30 new Covid-19 cases, 29 of which were imported and all were confirmed to be the Omicron variant. The ministry also reported 11 recoveries and no new deaths. Earlier on January 9, the ministry also announced that it had detected the Kingdom's

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • PM eyes Myanmar peace troika

    Prime Minister Hun Sen has suggested that ASEAN member states establish a tripartite committee or diplomatic troika consisting of representatives from Cambodia, Brunei and Indonesia that would be tasked with mediating a ceasefire in Myanmar. The premier also requested that Nippon Foundation chairman Yohei Sasakawa

  • Kampot tourism quay ‘90% done’

    Construction on Kampot International Tourism Port – a 4ha quay in Teuk Chhou district about 6km west of Kampot town – has fallen off track, reaching 90 per cent completion, according to a senior Ministry of Tourism official last week. The project is now planned to be finished

  • Demining rat ‘hero’ Magawa dead at 8

    A landmine-hunting rat that was awarded a gold medal for heroism for clearing ordnance from the Cambodian countryside has died, his charity said on January 11. Magawa, a giant African pouched rat originally from Tanzania, helped clear mines from about 225,000sqm of land – the equivalent of 42