Growth of Natural Rubber Production: Implications for Farmers from Global Experience

Authors

  • Jayadevan CM CSU, Australia

Keywords:

Growth, variance, production, yield, area, elasticity

Abstract

Production of natural rubber has substantially increased in all major natural rubber producing countries. Increased farming of natural rubber and  increased manufacturing of synthetic rubber  have created excess supply of rubber which gave the manaufacturers of rubber products an opportunity to exploit the buyers’ market. This has tempted manufacturers of rubber products to make use of  price fixing which  gave rise to glut in the  rubber market. Consequently,price of natural rubber has fallen below the average variable cost which has resulted in unprofitable subsistence farming for many thousands of small farmers in many countries. This has forced many farmers to exit from the rubber farming. The present paper is concerned with the  study of  the nature of growth and variance of natural rubber production in major natural rubber producing countries during the period 1961 to 2013 and its implications for farmers.

References

Fisher, B.S. and Tanner, C,“The Formulation of price expectations: an empirical test of theoretical modelsâ€, American Journal of Agricultural Economics,Vol 60, no. 2, pp245-248, 1978.

Galbraith, J,Kenneth, 1979, The nature of Mass Poverty, Harvard University Press, pp1-20, 1979

FAO, FAOSTAT, 2015

González,Sergio. and Foster,William, “Region-level yield and area price elasticities for Chilean wheat incorporating climate variableâ€,Ciencia e Investigación Agraria, vol 37, no. 3, pp.48-49,2010

Hazell,Peter, B.R. and Norton, Roger,D, Mathematical Programming for Economic Analysis in Agriculture,Macmillan,Newyork, pp.1-20, 1988.

Morales, L. and Foster,W,“Modelo de corrección de errores en funciones de oferta de trigo a nivel regional en Chileâ€, Ciencia e Investigación Agraria, vol.29, no.2, pp.101-114, 2002.

Nerlove, M, “Estimates of the elasticities of supply of selected agricultural commoditiesâ€, Journal of Farm Economics, vol.38, no.2, pp.496-509, 1956.

Malaysian Rubber Board, http://www.lgm.gov.my/nrstat/nrstats.pdf, Natural Rubber Statistics, pp.1, 2014

Downloads

Published

2015-08-15

How to Cite

CM, J. (2015). Growth of Natural Rubber Production: Implications for Farmers from Global Experience. Asian Journal of Business and Management, 3(4). Retrieved from https://ajouronline.com/index.php/AJBM/article/view/2918

Issue

Section

Articles