Since 2014, the price of rubber has been drastically down resulting in the Vietnam Rubber Group and farmers facing hardship. Yet, this year, the price of the tree is showing a hike bringing new hope for farmers.
To overcome the difficulties, many farmers have cut down the tree to grow other trees such as pepper and cassava.
In the end of May, 2016 was in the harvesting season to collect raw latex and at that time the prices were stable in the South East region and slightly higher than last year. As per the Department of Agriculture and Rural Development in the Southern province of Binh Phuoc, from the middle of May, raw latex fetched VND8,700 a kilogram in Dong Phu District meanwhile it was sold at VND8,700 per kilogram in Hon Quang District.
In the southern province of Binh Duong’s Dau Tieng District, its price was at VND8,800-8,900 a kilogram; at VND8,600-8,700 per kilogram at Bau Bang District. The current prices are 40 percent higher than the fourth quarter in 2015.
However, the farmers in the South East region said that the current prices do not assure them. Farmer Tran Van Duc, owning a 3-hectare rubber garden in Tan Hung Commune in the southern province of Binh Phuoc’s Dong Phu District said that rubber prices this time are merely higher than last year. He added that the price of latex is usually high in the early harvesting time yet it will leap in the middle and end.
Consequently, the farmers are not really excited though the rubber prices are higher than last year. To earn more profit, Duc's family members themselves take raw latex instead of hiring others. At this time, the rubber companies have had no enough rubber to sell as they signed contracts with customers.
According to the Vietnam Rubber Association, the latex prices increase because of drought.
Additionally, Thailand, one of leading country to produce rubber, announced rubber productivity reduced half. The announcement resulted in hike in price in the Southeast Asian countries. Another reason is that consumption of rubber tire in the world showed an upward trend. Furthermore, petroleum price leap also pushed the rubber prices.
