Published on December 22, 2008
INVESTMENT : INVESTMENT OPPORTUNITIES IN RUBBER FOR MINDANAO BEN D. SANTANDER FARMER/ECONOMIC PLANNING UNIT HEAD Zamboanga Sibugaay DOLE Region 11 R.U.B.B.E.R. Project Consultant. Rubber in Mindanao...... : Rubber in Mindanao...... Introduced in 1905 by Multinational Tire Manufacturing companies who were also responsible for technology transfer in Production, Processing and marketing. ( CARP-Labour Unions & Cooperatives spelt the demise of these pioneering Corp. ) Stagnated development, Tech-Transfer and expansion. (while Malaysia, Indonesia, Thailand, even Vietnam developed further...millions of has. ) Influence of Crude Oil on the Rubber market. (NR & SR) Effect of Industrializing Asian Giant economies on Rubber production, supply and demand. Mindanao’s self propelled rubber industry development and the Rubber National Strategic Plan. ( 100k.has. To 1m. Has.) 2005 CROP PRODUCTION IN MILLION MT. and AREA PLANTED IN MILLION HECTARES. ( DA-BAS) : 2005 CROP PRODUCTION IN MILLION MT. and AREA PLANTED IN MILLION HECTARES. ( DA-BAS) Global Industry Forecast : Global Industry Forecast From the present production of 9m. MMT. on 11 m. Has. Planted world wide. Demand for rubber will rise to 12m. MMT by 2023 3.4 m.MMT shortfall needs 3-4m. Has. New plantation worldwide. Who will meet the demand? DA-HVCC The DA - HVCC : The DA - HVCC National Rubber Strategic Plan....... Develop 1m. Hectares by 2025 (16 years) That would mean; 1. 500,000,000 planting Materials. 2. Scores of Bud wood Gardens. 3. Hundreds of Budings production Nurseries. R&D - CLONES, PRODUCTION TECHNOLGY, PROCESSING TECHNOLOGY & MARKETING SYSTEM. ( Lowland , Upland & Highland. Old Clones, Improved clones & Latest New Clones.) 1 M. NEW PLANTATION : 1 M. NEW PLANTATION Varieties of high yielding clones?? : Varieties of high yielding clones?? LTC – RRIM – 908, 911, 921, 936, PB - 260, 350, 355,and 359. LC - RRIM – 901, 937, 938, 940, PB - 280, 366, and PM 10 New clones??** : New clones??** Consists of 40 clones, 13 from RRIM 900 series and 27 from 2000 series LTC – RRIM – 928,929,*2001,*2002, 2008,2009,2014,2015,2016,2020, *2023,*2024,*2025,*2026 and *2027. LC – RRIM – 924,926,927,930,931,932 933,934,935,942,943,2003,2004, 2005,2006,2007,2010,2011,2012,2013,2017,2018,2019,2021 and 2022. ** source: Agriculture Nov. 2007 and DA-HVCC National Rubber Strategic Plan Slide 11: The DOLE R.U.B.B.E.R. INITIATIVE Region 11 Both the National Manpower Summit in 2006 and the National Human Resource Conference in 2007 identified agriculture and agribusiness as Key Employment Generators, Responsible for creating 2.4 million jobs, with crops to produce 1.6 million jobs from 2005-2010. WHY : WHY RUBBER Why DOLE? DOLE R.U.B.B.E.R...... : DOLE R.U.B.B.E.R...... Doesn’t cost much to create permanent well paid jobs Plant once......Harvest for 25 to 30 years Sustainable daily farm family income? Develop Trade & Industries.......more jobs Eco-friendly, enhances Environment and Natural Resources Eradicate poverty, promotes peace & harmony Peso investment.......Dollar return Geography : Geography The Philippine archipelago does not have.......... The big freshwater bodies or rivers of mainland Asian countries like; 1. India – Ganges 2. Myanmar – Irrawady 3. Thailand – Menam Chao Phraya 4. Laos, Cambodia and Vietnam – Mekong 5. China – Yangtze Flood Plains Sustainable Agriculture economy Composed of small islands with more hills than flood plains, the Philippine landscape are more of undulating lowlands, uplands and highlands. More suited to the plantation of perennial crops that doesn’t rely on irrigation, to produce crop surpluses for export and dollar revenue. ‘the highland farmer’s green bank’. Slide 15: TYPICAL PHILIPPINE UPLAND SCENERY Slide 16: TYPICAL PHILIPPINE UPLAND SCENERY Climate : Climate Tropical Mindanao lies just below the typhoon belt, and receives adequate though not excessive precipitation, without heavy winds. This is ideal condition for rubber. Mindanao is also one of the two biggest islands in the country. Rubber Price Trends. USD/100kg. : Rubber Price Trends. USD/100kg. Year RSS 3 RSS 3 RSS 3 Bangkok Singapore India 2001 56.97 57.92 65.88 2002 76.05 77.20 74.54 2003 106.91 108.10 103.53 2004 128.40 129.56 122.93 2005 149.47 151.01 137.32 2006 210.31 210.37 193.63 2007 227.07 227.39 218.54 Source: Jom Jacobs – ANRPC – ARC Manila- 6/7/’ 80 Rubber price trends. USD/100kg. : Rubber price trends. USD/100kg. Year SIR 20 STR 20 SMR 20 Jakarta Bangkok Kuala Lumpur 2001 51.6 53.62 54.09 2002 73.7 75.32 75.26 2003 99.66 100.02 99.73 2004 121.9 122.32 121.56 2005 139.8 140.39 138.01 2006 196.7 199.37 193.71 2007 217.41 217.24 214.01 Source; Jom Jacob, ANRPC Senior Economist. ARC-Manila 6/7/’08. investment : investment opportunities Production Subsystem : Production Subsystem Supply of new High yield clones –multiplication/bud wood gardens. Nurseries for production, distribution of quality planting materials. Plantation Development PESO INVESTMENT : PESO INVESTMENT DOLLAR DIVIDEND “A HIGHLAND FARMER’S GREEN BANK” Processing Subsystem : Processing Subsystem Village - type post harvest processing, the production of RSS or Crepe Rubber Milling Plants for Crumb Rubber Downstream Processing- Rubber based manufacturing – Export. POST HARVEST VILLAGE TYPE PROCESSING : POST HARVEST VILLAGE TYPE PROCESSING AIR DRIED RIBBED SHEETS : AIR DRIED RIBBED SHEETS Slide 27: CREPE RUBBER MILLING Marketing Subsystem : Marketing Subsystem Rubber quality testing laboratories Trading ( latex – coagulum – semi processed ) Freight & handling Export Rubber in Mindanao.... : Rubber in Mindanao.... Could make the country the next giant in rubber production after Thailand, Indonesia and Malaysia, which is in the forefront of research and development. Have much to be desired in the fields of R&D for better high yield rubber clones, that would greatly enhance the development of the rubber industry. Is a crop that has proven to be dependable in developing the rural areas, improve the economy , promote peace and harmony. Truly, a highland farmer’s green bank. Thank You and God bless ! : Thank You and God bless !