A Change of Guard

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Tuesday, 6 July 2010

Cambodian Rubber Exports Slide Sharply In First Five Months Of 2010


15:38 , Jul 06, 2010
Capital Market
Source: IIFL

As per the latest updates from Association of Natural Rubber Producing Countries, Cambodian rubber exports dropped more than 34 percent in the first five months of this year compared with the same period in 2009, according to official figures from the Cambodia Import, Export, Inspection and Fraud Repression Department. Data released on Friday (July 2) show a 34.19 percent drop in exported rubber, from 13,057 tonnes to 9,730 tonnes, and growers blame harsh weather for reducing production during the first five months of the year. The official added that Cambodia had missed out on benefits from high prices because it exported most of its rubber to Vietnam.

The price of the highest-quality rubber, classified as grade 1 of 10, hit US$3,687.50 per tonne last week on the Malaysian Rubber Exchange. Grade 10 rubber reached $2,868.

In a bid to raise rubber production to 150,000 hectares by 2015, Cambodia inked a memorandum of understanding with Vietnam in September last year, offering 100,000 hectares in land concessions to 14 Vietnamese companies operating in Mondulkiri, Ratanakkiri, Kampong Thom Kratie and Preah Vihear provinces.

Vietnamese companies grew rubber on 10,000 hectares of land in Cambodia last year and planed to add 20,000 more by the end of 2010, some 30,000 hectares in 2011 and 40,000 hectares in 2012, according to the memorandum.

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