Thailand stands as one of the world during the first half of the year, the highest export of ‘Para rubber’, occupying 49% of the Chinese market with 6 proactive measures.

Alongkorn reveals the first half of the year Thailand stands as the world champion in rubber exports, occupying 49% of the Chinese market with 6 proactive measures.

On August 12, at Ratsada Meeting Room, Building 2, 2nd Floor, Rubber Authority of Thailand Alongkorn Phonbut Adviser to the Minister of Agriculture and Cooperatives and Deputy Leader of the Democratic Party (PDP) as chairman of the committee to monitor and propose measures to solve rubber price problems and stabilize rubber prices of the Ministry of Agriculture and Cooperatives which was revealed after the chairman of the company’s committee meeting No. 4/2565 through the online meeting system Zoom Cloud Meeting said that the meeting had received a report on the economic situation and the state of the rubber market. Including views and recommendations from the Agricultural Advisory Office of Thailand in all regions of the world. and the report of the Rubber Authority of Thailand on the market situation And the exports of the second half of 2022 still occupy the position of the world’s number 1 rubber exporter with 2,190,065 tons of natural rubber and exports of rubber products, especially “China”, which imports Thai rubber, is the number 1, which’ n occupy 49% of the market share.

Mr. Alongkorn said Of the progress report of rubber price stabilization measures by RAOT for considering and deciding on preparation and support measures to solve the problem of rubber price volatility affected by the coronavirus crisis and the Russian-Ukrainian war. that is still a long time Both positively and negatively affect the cost of production. logistics system inflation situation Interest rates and market conditions make the price fluctuate Short and long term mechanisms and measures need to be increased to create opportunities in the crisis by emphasizing the integration of work from many sectors, including the government, the private sector , the academic sector, the farmer sector. Farmer organizations under 5 agricultural reform strategy Mr. Chalermchai Sri-on, Minister of Agriculture and Cooperatives and General Secretary of the Democratic Party, which is the market strategy led by production. Agricultural Technology 4.0 Strategy A proactive strategy that integrates all sectors The Strategic Agriculture Framework, Security, Agricultural Security, Sustainable Agriculture (3S: Security Security Sustainability) and the Sustainable Agriculture Strategy based on the King’s Science are the frameworks on for establishing measures. and management to increase the potential and competitiveness of Thai rubber

Alongkorn said that So the meeting decided to approve the Principles for establishing the Thai Rubber Network Platform as a cooperative organization of all rubber related sectors from upstream to downstream with a partnership approach (Head of Partnership) to strengthen Thailand’s position as the world’s number one rubber exporter. This is the same organization as the Japan FKII Cooperation Network Platform with over 4,200 member organizations. And assigned the Rubber Authority of Thailand (RAOT) to coordinate with the Thai Agricultural Advisory Office in Japan. Prepare the structure and platform system of the Thai rubber network to be proposed at the next meeting. And by presenting reports and recommendations from agricultural ambassadors in every region around the world, we can see new gaps in the market. and the new policies of the partner countries Therefore, six new proactive measures have been added, namely:

1. Proactive public relations communication measures such as digital media production for distribution in foreign markets

2. Proactive market measures focus on the demand for rubber products by product and by trading partner countries (based on Product and country), such as increased demand for bicycle tires and bus tires in EU countries and rubber products that the EU banned. Goods from Russia Or rubber products that Russia is blocking imports from the EU. Cause a gap that Thailand can export to replace

3. Measures to increase competitiveness, facilitate action before competing countries by using sustainable agriculture Sustainable rubber plantation and tracking system (Tracability) responding to market trends such as environmental issues. Climate Change, FSC and Deforestation, etc.

4. Quarterly short term measures for management according to the annual production season calendar by assigning RAOT, the private sector and the farmers sector to discuss together to draw up measures.

5. Measures for product development towards high value rubber, focusing on research and development, innovation and rubber products to increase the income of rubber farmers. Rubber organization and entrepreneurs by allowing RAOT to coordinate with the Agricultural Technology and Innovation Center (AIC Center), which has research and development results in many innovations and rubber products such as construction materials for houses and buildings. medical products transport equipment

6. Measure a market mechanism such as Market Intervention RAOT has implemented a rubber price stabilization project by occasionally intervening in the market during the last period. Therefore, additional market-mechanistic measures such as supply and demand management should be established. The future market mechanism actually delivers. And the online tire auction system is an open system to increase buyers. domestic and foreign customers to solve the pricing problem. from a few buyers

Alongkorn Phonbutr

Alongkorn said, in addition, a forum to update the situation of the world rubber market every 2 months by RAOT and the Office of Foreign Agriculture of the Ministry of Agriculture of Thailand has also been organized to provide comprehensive information to farmers and entrepreneurs in a timely manner. world has the latest information about the online system alongside the meetings of this committee. and also assigned the Agricultural Advisory Office in Brussels to coordinate with RAOT, the Rubber Farmers Organization and the Thai private sector in driving to cope with EU moves on the Deforestation issue including assigning RAOT to gather information from the Malaysian Rubber Council (MRC ) and Malaysian rubber research policy to all committees. study, compare and present at the next meeting

“The meeting received a report on the economic situation of the rubber market in key trading partners from the point of view of the agricultural ambassador. The Office of the Foreign Agricultural Adviser in every region around the world by agricultural ambassadors from the European Union (Brussels Office) Italy (Rome Office) USA and South America (Washington DC and Los Angeles Office), Australia, Russia, China, Japan, ASEAN (Jakarta office), which reports on the production, trade and competition situation of rubber and rubber products worldwide during the high school month C.-June. 2022, China’s import value of natural rubber and synthetic rubber from Thailand number one The amount of para rubber imported from Thailand amounted to 1,426,305 tons, an increase of 5.37% compared to the same period last year. from situation analysis The Chinese economy is likely to expand better than during the first half of the year. Measures to stimulate the economy in the financial and fiscal sectors have been determined. There is a policy to promote electric vehicles to support the recovery of car production and distribution.

“The situation of the epidemic of COVID-19 in China in a good direction. Enterprises increase productivity. Lists of natural rubber in key sources are low. Crude oil prices are high. As a result, the use of natural rubber instead of synthetic rubber increased. Italy is the third largest importer of rubber and Thai products after Germany and the Netherlands. Worth more than 31,340 million baht, while the European Union is moving forward with the EU Green Deal strategy, focusing on promoting the environmentally friendly rubber industry. So it is a challenge that the Thai government and the private sectors must work together. Prepare to deal with European Green Deal policies and measures, including draft legislation. EU deforestation-free product which prohibits the sale of products with a risk of deforestation. Goods within the EU and goods imported for sale in the EU will begin to apply to six types of goods (beef, soya, palm oil, cocoa, timber, coffee) and it is likely that rubber on the list of controlled goods. in the future,” Alongkorn said.

Alongkorn said that on the rubber economy The Rubber Authority of Thailand has reported that the volume of rubber production in 2022 is 4.799 million tons, an increase of 0.88% from the previous year, and the volume of natural rubber exports in 2022 is 4.275 million tons, which is an increase of 3.41% from the previous year. Export of rubber and products during January-June 2022 worth 167,213 million baht and the amount of natural rubber exports to foreign countries in 2022 (January-June 2022) worth 70,502. million baht, an increase of 0.24% compared to the same period last year. Which is the number 1 in the world, with the largest number of exports to China, accounting for 49%, followed by Malaysia 10%, USA 7%, Japan 6%, South Korea 4%, and others 25% .

Alongkorn said that The meeting also recognized the progress as follows: 1. The results of the project to slow down the sale of rubber by the Rubber Farmers’ Organization to stabilize rubber prices. to slow down the amount of para rubber entering the market Reduce tire price volatility The Rubber Farmers’ Organization has financial liquidity while waiting to sell the product. In which 207 rubber farmers associations participated in the project of the implementation of the project in the financial year 2022 benefiting rubber farmers. The farmers’ organizations slowed down the sale of rubber during the low rubber price. and wait to sell tires when the price increases The average price difference in 2022 is 3.37 baht / kg, worth 87.98 million baht, with working capital for rubber collection activities by farmers. Help improve financial liquidity for rubber farmers who are members of the Farmers’ Organisation. Helps reduce pollution from the smell of wet cup rubber causing a good image for the career of the rubber plantation as well as encouraging rubber farmers to develop their status as a legal person

“2. The progress of the rubber price stabilization project and the performance of the rubber price stabilization project from marketing action RAOT has made a price guarantee by controlling the production to meet the market demand Intervening to create prices in the auction market for raw rubber sheets and rubber sheets smoke Offer on the smoke sheet rubber futures market (Advance price guarantee) Announcement of negotiated price with fresh latex RAOT boosted the market Fresh latex was bought to support the market price. to create a positive psychology for the market

“Data: RAOT purchased fresh latex between June 22 – July 14, 2022, a total of 5,239,980 kg, dry rubber 1,720,921.68 kg, for 91,037,470 baht, with an average purchase of 52.90 baht per kilogram, stabilizing latex prices downstream where each company sets latex prices downstream. price to buy fresh latex 45 baht per kg (in June 65) can set the price and come back to increase the price of latex from 49 baht to 51-52 baht at the end of June April-July 65, a total of 24 days. ‘compared to the amount of fresh latex throughout the country, about 30,000,000 kilograms per day (fresh latex) 10,000,000 kilograms (dry rubber) will create an additional price of 3-5 baht / kilogram (a sum of 24 days) for 720 million baht. ,” said Alongkorn.

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