Logo of Phnom Penh Post newspaper Phnom Penh Post - Rubber sector nets $221.7M

Rubber sector nets $221.7M

Content image - Phnom Penh Post
Total rubber cultivation in Cambodia is currently 404,160ha, of which 292,500ha or 72 per cent are mature trees that are tapped for latex. YOUSOS APDOULRASHIM

Rubber sector nets $221.7M

Cambodia exported 132,174 tonnes of natural rubber worth $221.67 million in the first half of this year, up by 7.18 per cent and 38.12 per cent year-on-year in volume and value, according to Minister of Agriculture, Forestry and Fisheries Veng Sakhon.

The average selling price of rubber in the first half was $1,677 per tonne, up $374 or 28.72 per cent year-on-year, the minister said.

The going-rate for rubber from smallholder farmers is currently in the range of 5,850-6,500 riel ($1.44-$1.60) per kilogramme for 100 per cent dry rubber content (DRC 100%) latex, up by 209 riel month-on-month, and 2,500-3,300 riel for lump latex (DRC 50%), up by 169 riel on a monthly basis, he added.

Ministry of Agriculture, Forestry and Fisheries director-general for Rubber Him Aun told The Post on July 4 that Covid-19 vaccination campaigns and gradual economic recoveries around the world have significantly boosted global demand for rubber since the end of last year.

He said this increase in demand is a “positive sign” that has pushed up rubber prices in Cambodia, which, he noted, are entirely dependent on international markets.

“The reopening of factories around the world has increased the demand and price of rubber in Cambodia since the end of 2020. With this, the amount of rubber in cultivation in Cambodia is also on the rise,” he said.

According to Aun, Cambodian rubber is currently exported to Vietnam, Malaysia, China, Singapore and Japan, and small quantities are shipped to the EU market.

And investors seeking remunerative opportunities are not blind to the Kingdom’s burgeoning rubber industry.

A handful of plans for tyre factories looking to capitalise on the growing supply of domestic rubber were recently given the go-ahead by the Council for the Development of Cambodia.

Concerning these projects, Aun said: “We have wanted this for a long time because they will help drive up domestic rubber prices, help add value to local products and create new jobs.

“All of these points are also goals of the Cambodian government,” he said.

Men Sopheak, CEO of rubber grower and exporter Sopheak Nika Investment Agro-Industrial Plants Co Ltd, stressed that fluctuations in international demand have immediate effects on Cambodian rubber prices, due to the market’s high degree of dependence on external forces.

He said the market had traditionally been weak due to a lack of local processing.

“The current rise in rubber prices is due to the reopening of more factories and industries in emerging economies, especially China,” Sopheak said.

Total rubber cultivation in Cambodia is currently 404,160ha, of which 292,500ha or 72 per cent are mature trees that are tapped for latex, according to the ministry.

MOST VIEWED

  • Angkor lifetime pass, special Siem Reap travel offers planned

    The Ministry of Tourism plans to introduce a convenient, single lifetime pass for foreign travellers to visit Angkor Archaeological Park and potentially other areas. The move is designed to stimulate tourism to the culturally rich province of Siem Reap as the start of the “Visit

  • Pailin longan winery tries to break through to the big time

    Longan aren’t quite as glamorous as some fruits. They don’t have the star-power of mangos or generate the excitement of a pricey seasonal niche fruit like the pungent durian. Unlike bananas or oranges, which are known and loved everywhere, longan remains a decidedly

  • ASEAN Foreign Ministers’ meet commences, Taiwan issue possibly on table

    The 55th ASEAN Foreign Ministers’ Meeting (AMM) and related meetings hosted by Cambodia kicks off in Phnom Penh on August 3, with progress, challenges, and the way forward for the ASEAN Community-building on the table. Issues on Taiwan, sparked by the visit of US House Speaker

  • Recap of this year’s ASEAN FM meet and look ahead

    This year’s edition of the ASEAN Foreign Ministers’ Meeting (AMM) hosted by Cambodia comes against the backdrop of heightened global tensions and increasing rivalry between major powers that have been compared to the animosity of the Cold War era. The following is The Post’

  • Debt restructuring over, time to tackle rising NPL ratio

    The Cambodian banking system has just completed a 26-month debt restructuring exercise where scores of loan accounts were revised, classified and provisioned as the rate of non-performing loans inched up, sparking a slight credit risk unease Implemented in April 2020, the Covid-19 debt restructuring measures came

  • Koh Slaket studio resort brings culture with style

    Davitra (Cambodia) Co Ltd’s multi-million-dollar 13ha Koh Slaket studio-cum-resort just east of the capital was inaugurated in the first phase on August 6, providing national and international tourists with a new travel option and job opportunities for locals. The man-made cultural and scenic lakefront getaway