Introduction
Overview
Industry Structure
Industry Status
World Data
DA Support Program

Introduction

•Rubber tree, scientifically known as Hevea brasiliensis is a robust, perennial crop and the source of natural rubber. The international tire manufacturing companies started the commercial production of rubber  in the Philippines in the early  20^th century.

•Natural rubber is a raw material used in the manufacture of industrial products (conveyor belts, rubber   rollers, etc.), automotive products (fan belts, radiator hoses, etc.), latex products (rubber gloves, toys hygienic products, etc.) and adhesives.  The major users of natural rubber are the tire and footwear industries.

Overview

•Production area of natural rubber in Mindanao is about 92,000 hectares of which 36,000 hectares are due for replanting because the trees have reached or near maximum productive years.  With this situation, a replanting program should be in placed, otherwise, it is projected that the Philippines will be a net importer of rubber in the next 10 years.

•The Bureau of Soils and Water Management (BSWM) of the Department of Agriculture estimated that about 1.2 million hectares in Mindanao can be planted to rubber and other industrial crops.

•The capacity of existing processing facilities was placed at 8,185 tons drc/mo. vis-à-vis  actual production of 5,436 ton drc/mo.  It was estimated that capacity utilization of the 49 processors is 66%.

Industry Structure

1. Natural Rubber
Plantation area devoted to rubber is about 92,067 hectares   distributed as follows:

Region	Hectares	% Share
Western Mindanao	47,625	51.73
Central Mindanao	22,194	24.10
CARAGA	10,547	11.46
Southern Mindanao	6,492	7.05
Northern Mindanao	4,789	5.20
ARMM	420	.46
TOTAL	92,067	100

•More than 50% of the rubber production area is in Western Mindanao followed by Central Mindanao with 24% share.

•There are about 31,215 rubber growers classified as small or large scale growers.

•Of the reported 49 processors, employment  generated was estimated at 60,176.

•Industry sales was recorded at P4.5B in 1995.

2. Rubber Products
•There are about 160 rubber products manufactures with a total   employment of 14,700.

•Industry sales of rubber products in 1995 was P 9B.

Industry Status

1. Production
•Grew by an average of 3.3%/annum (1985-1995); form 145,900 tons to 199,600 tons of raw latex

•Planted area increased by 1.4% (1985-1995); from 80,700 has in 1985 to 92,000 has.  in 1995 because of limited replanting

•Average yield grew at 2% from 1810 kilos/ha. in 1985  to 2170 kilos of raw latex/ha. in 1995

•Annual sales of rubber products manufactured rose by an average of 16.5% (1991-1995); from P 5.1B  to P 9B.

2. Export/Import
•The industry exports about 40% of its natural rubber production. Exports increased from US$ 10 million in 1986 to US$ 34 million in 1996. Malaysia, China and Singapore are the country's major markets.

•Philippine imports of natural rubber is minimal recorded at 572 tons in 1996.  Imports could increase in coming years with the decline in domestic rubber production and establishment of new rubber factories.

•Philippine exports are as follows:

Year	Natural Rubber (US$)	Rubber Products (US$)
1996	12,049,793	61,481,873
1995	9,345,614	20,414,389
1994	33,815,737	82,444,620
1993	27,817,530	67,051,419
1992	13,598,517	60,286,306

•Demand and Supply Pattern
  a. Consumption of natural rubber grew by an average of 3% annually (1985-1995)
  ; In 1997 the  estimated natural rubber consumption was 35,000 tons with vehicle tires consuming
  41%. Followed by the footwear
  sector with 32%, and the motorcycle/bicycle tires with 15%

World Data

•The world rubber production in 1997 was recorded at 6.42 million metric tons

•Production, consumption and export of natural rubber in some ASEAN countries in 1997 are as follows:

Country	Production ('000 tons)	Consumption ('000 tons)	Export ('000 tons)
Thailand	2,025	185	1,837
Indonesia	1,505	141	1,404
Malaysia	971	327	1,018
Vietnam	201	43	81
Sri Lanka	106	44	62
Philippines	65	32	-

DA Support Program

•The Department of Agriculture  has implemented  the Rubber Development Program (RDP) as a component of the High Value Commercial Crops Program (HVCCP).

•The RDP's goal is to develop a globally competitive    rubber industry and empower the small farmers and smallholders, the plantation owners and cooperatives as well as entrepreneurs and investors.

•The program's  objectives are:
 a. To increase investment in rubber industry   through policy reforms and advocacy, access   to
     financing and cost-effective incentives;
 b. To expand income opportunities for farmers and other entrepreneurs from production and value
     adding activities;
 c. To improve the state of technologies  towards meeting world standards     for competitiveness,
     increased productivity and product quality;
 d. To increase access to modern and sustainable agricultural technologies and production schemes
     through improved government   technical and support services;
 e. To improve access to markets, both local and export;
 f. To reduce transport costs through improvement of rural infrastructure and distribution system.

•The program's targets are to:
 a. Create a policy and investment environment conducive for replanting 10,000 hectares annually of
     senile rubber trees and 10,000 hectares new planting and upgrading existing processing plants for
     improved quality, greater value adding and increased capacity (if warranted); and
  b. Facilitate public investment in research and development, training and extension, infrastructure
     development and human resources development

•The program in support of rubber growers/processors has

 a. Identified superior clones  for  use in new planting and replanting program
 b. Got the commitment of the governors to support the program and agreed to counterparting
     arrangement (e.g. N. Cotabato – 5M, Davao del Sur – 3M and Palawan – 5M)
 c. Through Quedancor, the program has allocated an initial P 25 million to support   the financial need
     of rubber farmer-producers and processors.
 d. Potential areas for rubber production was identified for possible investment program for the industry. 
     Interested investors were provided  with information on incentive packages and  site specific  rubber
     areas as well available support and facilities (i.e. infrastructure, LGUs support, etc.)
 e. Established linkages with various government agencies, academe, research and development
     institutions and private sector in order  to accelerate   the development of the rubber industry.the
     footwear sector with 32%, and the motorcycle/bicycle tires with 15%

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