NR production decline continues into June

ERJ staff report (DS)

Kuala Liumpur -- The global decline in natural rubber production is continuing into June, according to the latest data from the ANRPC (Association of Natural Rubber Producing Countries)

Data for the 12 months ended June revealed a 4.5 percent drop in 2009, the steepest since 1952.

According to ANRPC, More than 93% of the global supply of NR comes from seven countries - Thailand, Indonesia, Malaysia, India, Vietnam, China and Sri Lanka. Total production in these seven countries in the 12 months ended June 2009 dipped to 8703 thousand tonnes from 9116 thousand tonnes in 2008 (January to December).

NR production in Thailand fell by annualised 18.0 percent or 230 thousand tonnes in the first five months of 2009, according to preliminary estimates of the Rubber Research Institute of Thailand.

In Indonesia, NR output contracted 6.0%

in the first half of this year from a year

earlier due to shrinkage in tappable area by

76 thousand hectare, weather factors, fall

in export, reduced harvesting intensity and

a decline in average yield.

Production of NR in Malaysia dropped

25.4% year-to-year during the first half of

this year as the tappable area shrank

20,000 ha and export dropped 32.0%.

In Vietnam, the production fell 7.2% in the

first half of 2009 from a year earlier due to

the ongoing replanting programme which

reduced the tappable area by 16 thousand

hectare.

The production in China rose annualized

78.0% in the first half of 2009, as per

preliminary estimates of the China Rubber

Research Institute in Hainan. The sharp

rise largely reflects the previous year's

drastic fall in output due to adverse

weather.

In Sri Lanka, the production rose 5.4%

year-to-year in the first half of this year, as

per provisional estimates of the Rubber

Development Department.

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July 2009 Bulletin from ANRPC