Rubber-growers in South expand plantations

Both small- and large-scale growers are focusing on increasing plantation area to generate more income. They see rubber as an increasingly important crop in terms of stable income generation, as demand is growing worldwide.

Somboon Chanpakdi, 45, a small-scale rubber-grower in Nakhon Si Thammarat, said the rising global demand had prompted him to expand his plantation, which is now only 10 rai in size.

The current reference price of Bt100 per kilogram reflects a supply shortage, he said, adding that the drought that has directly affected production elsewhere has not had an impact in the South.

Farmers in the South have seen incomes rise from Bt200,000 per rai in 2008 to Bt300,000 last year, and expect to generate Bt570,000 per rai this year.

They are hoping the average reference price will remain at Bt90-Bt100 per kg. Satun rubber-grower Surak Thinsakul, 49, said farmers are seeing a good return on investment.

He expects his 50-rai farm will generate income of Bt100,000 per rai.

"Rising production costs will not affect rubber-growers, since the price is increasing to between Bt80-Bt100 per kg," said Surak, noting that the price is unlikely to fall below Bt80 due to high demand from Chinese tyre producers.

The high price has encouraged farmers to buy existing rubber plantations from businessmen, rather than starting new crops, to shorten the growing period, Surak said.

This way, they can move to rubber production immediately.

At present, using this "express" strategy typically involves purchasing a minimum of 16 rai at an initial cost of Bt1.6 million, he said.