High Value Crops: Rubber Industry in the Philippines

Philippine Rubber Industry Roadmap 2017-2022

The Department of Trade and Industry and the Department of Agriculture have

been since 2012 spearheading the formulation of Philippine Rubber Industry

Roadmap. In 2012, both agencies did parallel initiatives by outsourcing the

preparation of the rubber industry development plans to the University of the

Asia and the Pacific (UA&P) for the upstream sector and the University of the

Philippines – Institute for Small Scale Industries (UP-ISSI) for the downstream sector.

In the same year, the Department of Science and Technology came out with its

Rubber Research and Development Agenda manifesting the agency’s strong support

in the development of the rubber industry. The DOST’s Rubber R&D Agenda was

integrated in the annual Rubber Industry Cluster Action Plan since 2012. The two (2)

development plans were used by the Philippine Rubber Technical Working Group

(PHLRUBBER TWG) as basis in the preparation and implementation of an annual

Rubber Industry Cluster Action Plan (Rubber InCup) starting 2013 until 2015.

It was in 2013 that the PHLRUBBER decided to integrate the two (2) industry

development plans. After series of consultations and workshops, the integration was

finalized in 2015 resulting to the crafting of the Philippine Rubber Industry Roadmap

2016-2022. By consolidating the roadmaps, all agencies allied to the development of

the rubber industry are expected to work on the same vision, goals and objectives

and harmonize all programs and projects designed to improve the growth of the

industry as well as its contribution in poverty reduction most particularly among

smallholders. A one roadmap for the industry also prevents confusion among

industry stakeholders and effectively engages strong commitment from the private

sector to collaborate for the speedier growth for the industry.

The integrated roadmap required further consultation with various stakeholders.

From February 2016 to September 2017, the PHLRUBBER TWG met with various

stakeholders including Philippine Rubber Industries Association (PRIA), recently

organized Philippine Rubber Farmers Association (PRFA), local government units

(LGUs), national government agencies (NGAs), regional rubber cluster groups,

academes, financial institutions, processors, traders and exporters. The document

was likewise presented during the meeting of the Philippine Council for Agriculture

and Fisheries (PCAF) at the Department of Agriculture, Quezon City on May 25,

2016. The roadmap is now officially referred to as the Philippine Rubber Industry

Roadmap 2017-2022.

The Philippine Rubber Industry Roadmap 2017-2022 is intended to foster continuing

commitment to the collective effort of developing the Philippine rubber industry. The

document includes a narrative on the general trends, development and opportunities

in the rubber industry worldwide. It highlights the accomplishments of the joint efforts

and initiatives of all stakeholders. It reflects the agreements on the areas where the

efforts should be focused for optimal results, and likewise integrates and harmonizes

programs, projects, and activities of member-agencies supportive of the short and

long-term rubber industry development agenda.

The Philippine Rubber Industry Roadmap shall serve as a guide to all industry

stakeholders for optimal realization of the targets set for 2017-2022. A periodic

review of the roadmap by the PHLRUBBER TWG shall be undertaken to ensure that

commitment by member-agencies and institutions are effectively carried out and next

steps are instituted to sustain the initiatives and ensure the continuous development

and growth of the Philippine rubber industry ultimately realizing the industry vision.A. World Rubber Industry Outlook

With the anticipated growth in the world economy, the Association of Natural Rubber

Producing Countries (ANRPC) is optimistic on its positive impact on the natural

rubber (NR) market.

On the demand side, a major development is that the outlook has improved for China

in view of withdrawal of the US tariff on heavy commercial vehicle tires made in

China. Improved economic outlook in the US and Europe suggests possibility of

faster growth in demand for NR from these non-ANRPC regions (Mathew, 2017).

A.1 World Projected Production

Farm expansion is greatly influenced by the NR price. It is evident in 2010-2012

when there is an abrupt high price of NR, farmers expanded their rubber plantation

in large-scale as shown in the figure below. These new area planted and replanted

to rubber resulted to the increase in the world production in 2017-2019.

https://drive.google.com/file/d/10W1XCDfBqbMJcV1Ji4vBm2brSfeYzWOB/view