Sustainability and Competitiveness in Thai Rubber Industries

Abstract

This article assesses the economic, legal and environmental conditions that Thai rubber farmers face and evaluates actions they can take to increase incomes.Statistical analyses determine relationships between prices of oil, natural and synthetic rubber. Pearson correlation tests found a strong positive relationship (r = 0.887) between the price of Brent crude and Thai ribbed smoked sheets, and a moderate positive relationship between price changes in Brent and synthetic rubber (r = 0.648). Regression analysis showed Brent oil price is a good predictor of natural rubber price. Moderate to strong positive relationships were also found between natural rubber price and the gross domestic products of Japan, China and the United States. Criminal antitrust behaviour in the rubber industries appeared to interfere with normal pricing in rubber markets. No significant bivariate correlation was found between rainfall in Thailand and natural rubber price, production or export, although fl ooding and other environmental issues clearly affected rubber farms. A survey of options showed that Thai rubber farmers can best improve their livelihoods through the collective purchase and use of new technologies and by integrating into downstream supplychain industries. At the very least, farmers are urged to abandon monocrop methods and supplement their incomes with fruit, fi sh, livestock or pigs.