Rubber plantation industry is one of the best investments one can make especially on rubber trees cultivation. About six years later after planting, the rubber trees can be tapped for its latex and they will yield up to 25 years or so with minimum maintenance. After that once these trees are no longer productive which is two decades and a half later, you can sell them as firewood, for furniture production or any other purposes.
At this current rubber market price and you have 10 hectares of yielded rubber trees, you basically can retire with $2,000 monthly income which requires very little attention from you. Looking ahead to the future, demand for natural rubber is set to rise due to emerging economy like China, India, Brazil, South Africa and Russia on improved industrial activities. This confirms that your investment on rubber plantation will offer you a secured and regular income with better return on your money.
Below is a table with yearly projected incomes after deducting 53% expenses on fertilizer, maintenance, labor and others. Because we are focusing on Cambodian rubber industry, we will use its ways of calculation. Its daily income is derived from yearly revenue per hectare then divided by 365 days which base on prices between $3,000 and $3,500 per ton.
|# of Hectares||Yearly income @ $13 per day after all expenses||Yearly income @ $14 per day after all expenses||Yearly income @ $15 per day after all expenses||Yearly income @ $16 per day after all expenses||Yearly income @ $17 per day after all expenses|
Sample Equation: For 10 hectares land with revenue of $15 per day per hectare
- $25,730 = 10 x ($15 x 365) – 53%
Yearly Expenses for harvest is around 40%
Yearly Expenses on fertilize is around 13%
550 rubber trees could be grown per hectare
A rubber tree yields about 2,000kg dried latex annually
The economic life period of rubber trees in plantations is around 32 years – up to 7 years of immature phase and about 25 years of productive phase.
The latex consists of about 35 per cent rubber.
Top 5 Rubber Producer Countries
|Country||Production 2010||Production 2004||Percent Change|
|1||Thailand||3,166,910 m/t||3,007,612 m/t||+5.296%|
|2||Indonesia||2,921,872 m/t||2,065,820 m/t||+41.439%|
|3||Malaysia||1,072,400 m/t||1,168,700 m/t||-8.24%|
|4||India||819,000 m/t||749,665 m/t||+9.249|
In case for Cambodia, in 2012 the country had produced 65,000 tons of rubber latex, up 17 percent from a year earlier and expect to produce 100,000 by 2015.
Cambodia's rubber latex has been exported to Malaysia, Vietnam, and China.
Rubber was among the top priority crops for Cambodia; it is expected to be the second leading income earner after rice paddy in the future.
Up to end of 2012, the country has 258,000 hectares of rubber plantations, most of them are young crops, which have not yet yielded, according to the statistics of the Agriculture Ministry's Rubber Department.
The ministry foresees that Cambodia could produce about 300,000 tons of rubber latex in 2020.
Applications of Rubber:
The use of rubber is widespread, ranging from household to industrial products, entering the production stream at the intermediate stage or as final products. These are raincoats and sponges, bowling balls and pillows, electrical insulation and erasers. Rubber is also used in toys, balls, rafts, elastic bandages, adhesives, paints, hoses, and a multitude of other products.Tires and tubes are the largest consumers of rubber. The remaining 44% are taken up by the general rubber goods (GRG) sector, which includes all products except tires and tubes.
Agricultural Land acquisition and price:
Agriculture land prices in Cambodia differ greatly in respect to location, remoteness, accessibility, fertilization, suitability, etc. but one can expect its cost from few to greater than ten thousands of dollars per hectare.
Land Concession - Government no longer gives out concession nowadays therefore one needs to find out existing license holders who could not perform the whole lot then work out an arrangement with them.
Another alternative is to go through with villagers who have freehold to the land but have no mean of cultivating on them. Come up with a proposal that would make both parties happy. Villagers have the land and you have capital and the know-how can be either from yours or theirs.
Below relevant websites of Rubber Industry