Logo of Phnom Penh Post newspaper Phnom Penh Post - Rubber latex, wood exports worth over $77M in Jan-Feb

Rubber latex, wood exports worth over $77M in Jan-Feb

Content image - Phnom Penh Post
The average price of natural rubber latex during the January-February period was $1,585 per tonnes, indicating a minor decrease over the same period last year. YOUSOS APDOULRASHIM

Rubber latex, wood exports worth over $77M in Jan-Feb

Cambodia netted more than $77 million from rubber latex and wood exports in the first two months of 2022, according to data released by the Ministry of Agriculture, Forestry and Fishery’s General Directorate of Rubber.

The directorate said the total export of rubber latex in January-February was 48,509 tonnes, raking in $76.88 million. The average price of rubber during this period was $1,585 per tonnes, indicating a minor decrease over the same period last year.

During the same period, 808 cubic metres of rubber wood worth $355,946 was exported, an increase of 66 per cent by volume.

Directorate chief Him Aun told The Post on March 27 that the situation around rubber latex and wood exports showed “few positive signs” in January-February.

The average price of Cambodian latex on the international market was down around one per cent year-on-year, Aun said, although he predicted that domestic demand is set to get firmer traction and drive up market rates for the commodity.

He elaborated that the Kingdom’s two active car tyre plants – in Svay Rieng and Preah Sihanouk provinces – have yet to source local latex as planned, relying instead on imported compounded rubber, due to a lack of necessary equipment to make the raw material in-house.

Aun disclosed that both companies have vowed to install the equipment and work with the directorate to source natural rubber locally.

Men Sopheak, CEO of rubber grower and exporter Sopheak Nika Investment Agro-Industrial Plants Co Ltd, argued that a spike in demand on the international market would immediately drive up the price of Cambodian rubber, given the local market’s dependence on the global stage.

New and existing processing plants would need to expand total capacity substantially for the domestic rubber market to garner the desired strength, he stressed. “The market will only be strong if Cambodia has more rubber processing factories that can supply both the domestic and export markets,” he said.

Cambodia Chamber of Commerce (CCC) vice-president Lim Heng told The Post that in recent years, investment in rubber has shown little progress because the price of Cambodian rubber is based entirely on international markets. The Kingdom’s data is therefore by and large based on export figures. These two factors mean rubber has hardly been an attractive investment.

He opined, however, that last year’s inauguration of Cart Tire Co Ltd’s car tyre plant, chiefly geared towards exports, would lead to a gradual rise in investment.

“We expect that new investments in tyre factories and the opening of car assembly plants in Cambodia will ratchet up demand for rubber, with a corresponding increase in prices,” he said.

The directorate reports that as of 2021, the Kingdom had 404,044ha dedicated to rubber production, with 310,193ha or 76.77 per cent mature and tapped for latex. Aun remarked that the area under rubber cultivation has not seen significant changes in the past “two or three years”.

Cambodian rubber latex and wood exports topped $611,770,814 in 2021, climbing up from $482 million a year earlier.

Broken down by category, 366,300 tonnes of natural rubber latex accounted for $610,255,800, and 454 cubic metres of rubber wood clocked in at $1,515,015, the directorate reported.

MOST VIEWED

  • South Korea’s first lady brings hope to ill boy

    South Korea’s first lady Kim Keon-hee – wife of current president of the Republic of Korea, Yoon Suk Yeol – met with a 14-year-boy with congenital heart disease during her trip to the Kingdom for the ASEAN Summit. After their meeting it was announced that the

  • Hun Sen gets Covid, shuns G20, APEC summits

    Prime Minister Hun Sen said he has tested positive for Covid-19 in Indonesia, where he is slated to attend the G20 summit in his capacity of the ASEAN chair. In a social media post addressing the Cambodian public, he said: “Before leaving Cambodia, I always

  • Moody’s sets outlook rating to ‘negative’ for Cambodia

    US global rating agency Moody’s Investors Service Inc on November 15 announced that it downgraded Cambodia’s outlook from “stable” to “negative” and maintained its B2 local and foreign currency issuer ratings. “The negative outlook reflects a deteriorating external position as illustrated by the severe

  • Korean first lady paves way for ill boy’s surgery

    A 14-year-old boy with congenital heart disease who was lucky enough to meet with South Korean first lady Kim Keon-hee may get the chance of a lifetime and receive surgery and treatment at Asan Medical Center in Seoul, South Korea. After seeing his plight, many

  • Hun Sen’s Covid infection caused by ‘weakened antibody’ after summit

    Prime Minister Hun Sen said exhaustion from heavy workload before and during the recent ASEAN Summit may have led to him contracting Covid-19 due to his weakened immune system, while rejecting speculations that the infection was caused by leaders of some countries who did not

  • Kingdom’s rice crowned world’s No1

    Cambodia’s Phka Rumduol jasmine variety has been crowned the World’s Best Rice for the fifth time at the TRT (The Rice Trader) World Rice Conference in Phuket, Thailand on November 17, according to leaders of the Kingdom’s apex rice industry body. Phka Rumduol