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Davao Oriental plans to develop 500 ha into rubber plantations


DAVAO CITY, Philippines — Davao Oriental will develop at least 500 hectares of agricultural land into rubber plantations this year, notwithstanding reports of dropping rubber farmgate prices in Western and Central Mindanao. Marizon S. Loreto, regional Trade and Industry director, said the development plan is part of a resolution forged among local governments, national agencies and the private sector during the first Mindanao Investment Conference held here in November last year. Rubber plantation development is Compostela Valley’s contribution to the Comprehensive Livelihood Emergency Employment Program the National Government drew up to help cushion workers from the impact of the deepening global economic crisis. Based on recent feedback from major rubber producing provinces, however, farm-gate price of natural rubber has gone down to as low as P19 per kilogram from about P80/kg in the third quarter of 2008. Agriculture officials attributed this drop to weakening demand from industrial end-users like tire manufacturers. But Ms. Loreto said prospects are good in the coming years, especially when the market recovers and new plantations are ready to produce rubber for exports. Rubber trees need about six years to be productive. Data from provincial Trade and Industry office showed Davao Oriental has 200 hectares of existing rubber plantations, and only about 25% of this area is productive. "We can’t deny the fact that rubber has transformed the rural economies of Malaysia and Thailand into two of the most vibrant in Southeast Asia," Ms. Loreto said. "If they have done that, why can’t we? The Philippines has vast idle and unproductive lands which can be utilized as rubber plantation," she added. Moreover, a hectare of rubber plantation employs five workers, compared to only two in banana plantations. - BusinessWorld
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