ERJ Archives: British, Dutch dominance in 1920s NR market

This cartoon was published on 3 Oct 1925 with an article bemoaning the lack of progress by US companies in entering natural rubber production industry of South East Asia - and warning of the likely consequences.

American companies were “ astonishingly short” on achievement in rubber industry with a few possible exceptions, such as a Firestone programme in Liberia, the report stated.

By contrast, the article referred to the strong position of British and Dutch rubber companies, which are already earning good dividends from plantations. These companies, it noted, were therefore better able to decide where and when to invest in new production that new entrants from the US.

“The present heavy capital cost per acre of opening new land in rubber is certainly a deterrent considering the long waiting period before a capital return,” said the report.

The article concluded with a warning that the continued dominance of the British and Dutch would lead to global shortages in the supply of natural rubber after 1930.