News Review of Rubber Industry in Myanmar

News Review of Rubber Industry in Myanmar

8 มี.ค. 2559

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News Review of Rubber Industry in Myanmar

 

In Myanmar, hundreds of thousands of hectares of land are leased to investors for rubber plantations, often in controversial circumstances. Only 8 percent of the total production is used within Myanmar, with the rest exported to China: 70 percent of which is of low quality.

Japan is providing state of the art technology to process raw rubber and boost local production in a bid to find a new supply for its tyre manufacturing industry. According to an MoU between the Myanmar Rubber Planters and Producers Association and Japanese manufacturers, Japan will provide technology to produce high-quality raw rubber from plantations.

Myanmar rubber is not good enough to export, even growers complain that the price of $300-400 per tonne is unfairly low, according to U Khaing Myint, Secretary of the Myanmar Rubber Planters and Producers’ Association. Due to growing demand in the global rubber commodity market, Myanmar rubber can be sold at standardized prices.

Myanmar's first central rubber market will be built at Mawlamyine in Mon State as authorities seek to help the industry amid low prices and sluggish sales. Mon State is the country’s top rubber producer and the commodity is considered a “promising export” in Myanmar’s National Export Strategy (NES). However, local planters have struggled to sell in the international market, due to issues with quality and falling global prices. The NES highlights the need for a central rubber market. The central rubber market is set to be built in a compound on Ministry of Commerce-owned land in Mawlamyine, and will be jointly managed by the Ministry of Commerce, the Ministry of Agriculture and Irrigation, and the Myanmar Rubber Planters and Producers Association (MRPPA). The establishment will help rubber planters to sell their wares. Exporters will be able to buy rubber through an auction system at the market. Planters can refuse to sell if they are not happy with the bid, though exporters will be blacklisted if they do not buy at their bidding price.

Mon State, Tanintharyi, Bago and Ayeyarwady regions are the major rubber producers. However, Mon State is the first choice for a market, as it is the largest producer. If the rubber market in Mon State is successful, the Department of Export Promotion will consider establishing rubber markets in other states and regions. The Mon State rubber market will be based on an MRPPA study of rubber markets in Thailand and will be built during the next fiscal year, starting on 1 April 2016. A related law is being drafted and a regulatory body will also need to be formed.

With help from Japan, a laboratory for testing the quality of rubber has been set up in Yangon, and Myanmar is also applying for membership at the International Rubber Association (IRA) in Malaysia. “It is quite difficult to get a certificate from IRA. Our laboratory is necessary to become a member, as every product certified by the laboratory is globally recognized,” stated the Department of Export Promotion.

Myanmar’s rubber growers have struggled to produce high-quality products. Out of the four tyre factories in the country, only one – the Yangon Tyre factory – is able to export, according to the MRPPA. Three of the country’s four tyre factories are owned by the state, two by the Ministry of Industry and the others by the military-owned Myanmar Economic Cooperation.

Yangon Tyre Factory, the only privately owned plant, has been exporting to Malaysia for two years, in batches of 800, by sea. The company has earned about US$200,000 by exporting a total of 3200 tyres at $60 each. Rubber growers believe this kind of success indicates the need for more factories capable of exporting, and promote more factories of this kind.

 References: http://www.mmtimes.com/index.php/business/17536-rubber-market-to-be-built-in-mawlamyine.html Latest News, Foreign Companies, foreign investment, International Rubber Association, investment, Ministry of Commerce, Myanmar Rubber Planters and Producers Association (MRPPA), natural resources, special economic zone, tyre industry, U Htin Kyaw Oo, Latest News , Japan’s Rubber Trade Association, Japanese manufacturers, Khine Myint, Myanmar Rubber Planters and Producers Association, Raw Rubber, Technology, tyre manufacturing industry, Yoshio Kanai, Latest News, Economy, export, Myanmar Rubber Planters and Producers Association, Ribbed Smoked Sheets, RSS, Rubber, Trade, U Khaing Myint, Latest News, Daw Theingi Myint, Kayin State, Mon State, Myanmar Rubber Planters and Producers Association, Myanmar Times, Rubber prices, Tanintharyi Region, Tokyo, U Khin Kyu, U Khine Myint, Zabudate rubber plantation.

 

 

 

 

 

 

 

 

 

 

 

Myanmar Rubber Plantation and Production (2014-2015 FY)

No

Region/State

Planted Area (Acre)

Productive Area (Acre)

Average Productive (Per Year/Acre/Pound)

Production (Pound)

1.       

Nay Pyi Taw

 

 

 

 

2.       

Kachin State

76,537

1,846

500.65

942,657

3.       

Kayah State

36

 

 

 

4.       

Kayin State

260,838

121,728

762.53

92,821,079

5.       

Chin State

9

 

 

 

6.       

Sagaing Region

12,622

283

424.12

120,025

7.       

Thaninthayi Region

334,051

121,773

554.20

67,486,164

8.       

Bago Region

115,129

39,053

619.91

24,209,202

9.       

Magwe Region

80

 

 

 

10.   

Mandalay Region

114

 

 

 

11.   

Mon State

489,053

313,893

730.65

229,346,381

12.   

Rakhine State

36,523

2,000

530.39

1,116,458

13.   

Yangon Region

42,233

9,688

425.17

4,109,083

14.   

Shan State

183,320

28,416

559.27

15,892,331

 

Shan State (South)

1,128

98

692.81

67,895

 

Shan State (North)

81,308

21,092

536.48

11,305,442

 

Shan State (East)

100,884

7,226

628.00

4,508,994

15.

Areyarwaddy Region

33,570

700

728.73

510,837

Source: Myanmar Rubber Planters and Producers Association (MRPPA)

 

Myanmar Rubber Planted Area and Production

Myanmar FY Year

Planted Area (Acre)

Productive Area (Acre)

Production (MT)

2005-06

558,565

267,180

64,239

2006-07

728,329

303,907

73,355

2007-08

935,800

342,930

88,528

2008-09

1,057,395

356,437

93,207

2009-10

1,143,427

411,688

111,673

2010-11

1,246,531

460,767

127,921

2011-12

1,342,202

490,151

149,619

2012-13

1,435,931

527,693

164,425

2013-14

1,506,867

572,737

176,915

2014-15

1,584,115

639,482

198,024

2015-16 (plan)

1,611,386

734,436

227,533

 

Source: Myanmar Rubber Planters and Producers Association (MRPPA)

 

 

 

 

 

 

 

 

 

 

Myanmar Rubber Export (2005-06 to 2014-2015)

Myanmar FY Year

Export (MT)

Export Value (Million USD)

2005-06

52,800

63.42

2006-07

46,930

76.55

2007-08

61,610

116.49

2008-09

40,070

73

2009-10

78,785

133.19

2010-11

92,677

304.41

2011-12

78,881

312.46

2012-13

86,881

265.26

2013-14

84,299

196.13

2014-15

77,018

111.85

Source: Myanmar Rubber Planters and Producers Association (MRPPA)

Myanmar Rubber Export Price (15 January 2016)

Rubber Type/Per Ton

Cost (USD)

R.S.S (1)

1000-1100

R.S.S (2)

950-1050

R.S.S (3)

900-1000

R.S.S (4)

850-950

R.S.S (5)

800-900

Crepe Rubber

700-800

M.S.R (3)

1150-1250-

M.S.R (10)

900-1000

M.S.R (20)

850-950

M.S.R (50)

750-850

R.S.S: Rubber Smoke Sheet, M.S.R: Myanmar Standard Rubber                                          Source: Myanmar Rubber Planters and Producers Association (MRPPA)

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