RUBBER INDUSTRY

Industry Background/Situationer

Rubber is a versatile material with varied industrial, technological and household uses. The rubber tree, scientifically known as hevea brasiliensis, is a robust and perennial crop. Today, about 50,000 different articles and products are made from rubber. These includes tires, conveyor belts, linings in tanks, flexible pipes and hose, adhesives, and abrasives, tubing’s, rubber foam, artificial limbs and organs, garments, shoes, gloves, bags, upholstery, cushions, sports equipment, and highly sophisticated/specialized products in surgery. The major rubber users are the tire and footwear industries, for the tire industry alone, (70%) is used for outer and inner tubes. New products and new uses continue to be fashioned as natural rubber become indispensable in the modern world. It is one of the most profitable agri-industrial ventures, with a very high export potential. The Philippines ranks 6th in world rubber production.

The total plantation area of more than 80 thousand hectares is located in Mindanao. The present level of rubber production supplies only 40% of the average domestic consumption. The present domestic consumption of rubber is 160,000-180,000 tons and is expected to increase to 250,000 tons in 2010. Demand is increasing by 15%-20% annually. It is projected that due to the slow rate of replanting and new planting programs, the Philippines will experience shortage of about 20,000-30,000 tons of natural rubber annually.

Rubber production in Davao Oriental is a very promising industry in which external considerations such as soil and climatic conditions is ideal for mass propagation and development. As of the first quarter of 2008, a total of 250.0hectares are planted to rubber directly benefiting 200 rubber planters. These planted areas are distributed in the seven (7) municipalities as follows: Baganga – 160.5 hectares with126 planters, Cateel – 15.0 hectares with 12 planters, Manay-20.0 hectares with 15 planters, Lupon– 35.5 hectares with31 planters and Governor Generoso – 19.0 hectares with 16 planters. Of these, only 50 hectares are productive.

The rubber planters specifically in Baganga have generally produced rubber cuplumps for sometime now and markets them to local traders in Davao City. However, with the neverending interventions of the government, technology on crepe paper processing was transferred, which will definitely result to futher employment and income opportunities for local farmers.In support to the industry, the Provincial Government of Davao Oriental and the respective Local Government Units provincewide are seriously promoting the extensive production of rubber tree . Apart from its economic value and friendly chemistry as intercrop to abaca, rubber planting supports the reforestration program to restore balance of mother earth.

Existing Players
• Rubber Planters
• Rubber Tappers
• Local Traders
• Rubber Crepe Producers

Existing Facilities
• Skills on Rubber Crepe Processing
• Rubber Sheet Processing Machine

Market Potentials
Owing to its product versatility, rubber has a vast market potential, both domestic and export.

Investment Potentials

The rubber industry offers a wide-range of potential investments considering its fast growing demand both in the domestic and export markets. Among these are:

• Expansion of plantation areas
• Rubber sheet/crepe rubber and other product processing
• Warehousing and Trucking Services
• Tire Processing Plant
• Paint Processing Plant

 QUICK FACTS
Total Land area 516,446.00 has.
 Total Agricultural Land Area  238,680.00 has.
 Area Planted to Rubber  300 has
Tapped Area 100 has
Protential Area for Expansion 50, 000 has

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