Rubber Tree Plantation


Zamboanga Peninsula


J‘ àncreasing demand for rubber
J‘ Ô ailability of bud wood nurseries and bud woods in the region
J‘ Ô ailability of ast areas of land for plantation
J‘ Presence of experienced farmers

J‘ Tenurial problems
J‘ Weather
J‘ ànflation rate and poor national economic condition

 !  "#

Ôt present, the le el of rubber production would not be able to meet the surge in
demand. Ôs predicted by the Ô
Ô Rubber Conference in 2007, the total world production
capacity for rubber would only be 13.3 million metric tons in 2020.

" 
For one hectare of rubber tree plantation, an estimated capital in estment of P97, 040
already includes preparatory acti ities, planting, fertilizing, weeding and disease controlling.

    $

Ô net income of P18, 275.00 per hectare per year can be generated, with an 18.83
percent return on in estment per year.

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The project is a Rubber tree plantation. The business entity will procure rubber tree
seedlings and ast area of land for the start-up of the plantation. The rubber trees will be taken
care of properly. Upon reaching tree maturity, har esting of rubber latex can be done. Rubbers
are to be marketed as centrifuged latex, cup lumps, and crepe sheets, crump rubber and
smoked. Marketing is to be done through local and pro incial assemblers then to processors,
traders and manufacturers.

'() &   #

Rubber planters in the Philippines are predominantly smallholders. Ôn estimate of

three to ten hectares of rubber farm is attributed to each farmer enturing in this industry.
Ôbout 70 percent of rubber produced in the country is used for the tire and footwear
industries. The Philippines produced 88,000 metric tons of dry rubber in 2004 with Region à
contributing 40.58% of the total production. China and urope highly influence the growth of
the industry, and with the industrialization of Russia and àndia demand can be boosted further.

)& &   #

The study has been conducted to determine in estment opportunities for the rubber
industry in the Zamboanga Peninsula region. The data and information found in the study are
based on facts. àncluded are the product market, market condition, profitability and the cost of
doing business. The study can be used by in estors thinking of enturing into the rubber
industry.

 & &   

Opportunities
J‘ àncreasing demand for rubber
J‘ Ô ailability of bud wood nurseries and bud woods in the region
J‘ Ô ailability of ast areas of land for plantation
J‘ Presence of experienced farmers

› reats
J‘ Tenurial problems
J‘ Weather
J‘ ànflation rate and poor national economic condition

Œ
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 *
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Rubber tree seedlings were introduced in the Philippines by the Menzi Ôgricultural
Corporation in 1905 in Basilan.
e eral years later, plantations were established in Cotabato
and Zamboanga Del
ur, in addition to the plantation in Basilan. Today these pro inces are still
the major producers of rubber in the Philippines, but only about 100,000 hectares of land is
planted with rubber trees. Compared to the Philippines' neighbors, the Philippines lags behind
in rubber production. The recent and continuing rise of rubber demand and prices in the world
market just might awaken the Philippine rubber industry to see the opportunity for a brighter
future for the industry.

àn the region, cup lumps and latex rubber are marketed to local and pro incial
assemblers. These assemblers then market the products to processors, traders and
manufacturers.

 & --

atural rubber is still widely used today. àt constitutes 43.37 percent of the total rubber
consumption. The demand for natural rubber will reach 13.8 million metric tons by 2020.

  & --

The world natural rubber production is expected to reach 12.4 million metric tons in
2020. àn 2009, a total of 407,640 metric tons was produced in the Philippines. Zamboanga
Peninsula alone has an existing 57,126.77 hectares planted with 17,180,770 mature rubber
trees and a production of 164,830.11 metric tons.

    "#

ince 1995, world consumption has been increasing approximately by 208,000 metric
tons per year. àn fact, the consumption for natural rubber leaped to 9.7 million metric tons in
2007 from 7.6 million metric tons in 2006, a 27.63 percent increase. àt is expected to follow the
same trend as more countries ha e been increasing their use of the commodity.

Ôt present, the le el of rubber production would not be able to meet the surge in
demand. Ôs predicted by the Ô
Ô Rubber Conference in 2007, the total world production
capacity for rubber would only be 13.3 million metric tons in 2020.

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 * *%  .%%  

  

‘ Rubber plantations mainly consist of only one species - Î
  

a ariety of
plants of the genus He ea (uphorbiaceae Family), nati e to Brazil. Commonly known as the
rubber tree, Î
  is a tall erect tree with a straight trunk and bark which is usually
fairly smooth and grey in color.

Rubber grows best at tropical places with temperatures ranging from 20-28ºC and a well
distributed annual rainfall. àt grows on almost all types of soil pro ided that the drainage is
adequate. Mature rubber trees are usually 20-30 m high with grateful upward-extending
branches and relati ely slim trunk. Depending on conditions, the rubber tree would usually take
5-6 years to reach maturity when farmers could start tapping and collecting the latex or milky
sap from the tree. Yield is around 0.85-1.20 MT/hectare/year dry rubber.

  

The total cost required to produce one kilogram of cup lump is about P12.00 at a yield
le el of 0.85 tons of dry rubber per hectare. Bulk of the cost P8.28 per kilogram of dry rubber
goes to tapping expenses wherein a tapper is paid about P78.00 per day for 175 days or one
tapping cycle. Other payment schemes between the tapper and the owner include sharing at
50:50 or 30:70 in fa or of the owner.

Farm gate prices for rubber are currently at P100 per kilo of raw rubber and P150 per
kilo for processed rubber. For monocropped rubber, a one-hectare land can gi e around
P18, 275.00 net income per year with the cup lump priced at P33.50 per kilo.

Ôn 18.83 percent return on in estment per year can be expected.


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$# " 

0 " 1
èirst year
Clearing 2,100
Lay-outing (at P3.50 per hill) 1,750
Holing (at P4.00 per hill) 2,000
Planting 3,500
Cost of Planting materials 17, 500
Fertilizers (2 bags) 3,360
Labor for fertilization 600
Weeding (3 times a year) 4,200
Second year
Fertilizers (4 bags) 6,720
Labor for fertilization 600
Weeding (3 times a year) 4,200
› ird to fourt year
Fertilizers (6 bags per year) 30,240
Labor for fertilization (600 per hectare) 1,800
Weeding (3 times a year) 12,600
Disease control with the use of chemicals (at P1,680 per hectare) 5,040
Labor for disease control (at P280 per hectare) 840
 234 

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