This year has been different from many previous years. Since mid-June, which marks the beginning of the rubber tapping season, traders have been offering prices above VND 38 million per ton, exciting farmers as the price nears the peak of VND 39 million from six years ago (2018), according to Báo Bình Thuận.
Mr. Nguyen Tuyen, who owns over 10 hectares of rubber trees in Tanh Linh, Binh Thuan, shared that the trees had just recovered from the intense heat when they were affected by the recent tropical depression and continuous rain. As a result, the tapping process has been inconsistent, with some days of tapping followed by days of rain. The high rubber price has encouraged many farmers to fertilize their trees to increase tapping, but the weather is impacting the quality of the latex.
Also located in Binh Thuan, Mr. Nguyen Son shared: “It’s rare to see such high prices for rubber at the beginning of the season. Last year, the initial prices were low, ranging from VND 23-24 million per ton, so many large gardens with substantial rubber areas only fertilized sparingly. Tapping the trees would not have covered the costs of hiring labor and management.”
Rubber latex prices reach a new peak after a decade of lows.
“For small-scale farmers, tapping rubber trees is a labor-intensive endeavor. This year, right from the start of the season, traders offered VND 38 million per ton, and just a week ago, prices fluctuated between VND 40-41 million per ton, so rubber growers have been focusing on fertilizing their trees to take advantage of the high prices,” Mr. Nguyen Son continued.
Rubber latex prices ranging from VND 40-41 million per ton are considered a “new peak” as, for over a decade, initial season prices have not been this high. With the high prices, rubber plantations are investing significantly in extraction during the tapping season.
Similarly, in the past two months, the unexpected surge in rubber prices has delighted rubber growers in Thanh Hoa. Many previously abandoned or underutilized rubber areas are now being reclaimed and cared for, according to Báo Đại Đoàn Kết.
Rubber Latex Prices Soar, but Harvest Falls Short of Expectations
Mr. Duong Van Luong shared with Báo Đại Đoàn Kết that his family owns 4 hectares of rubber trees in the harvesting stage. Since the beginning of the year, the farmgate price of rubber latex has ranged from VND 18,000-22,000 per kg, a significant increase of VND 8,000-10,000 per kg compared to the same period last year. With the current prices, Mr. Luong’s 4-hectare farm is estimated to produce over 10 tons of latex, valuing more than VND 200 million.
“Since the beginning of June 2024, the price of rubber latex has unexpectedly surged, exciting rubber growers. Compared to last year, the price has nearly doubled, and traders are buying the latex as soon as it’s harvested. If prices remain stable until the end of the year, each hectare of rubber trees could generate a monthly income of VND 5-7 million,” Mr. Luong happily shared.
Many households previously abandoned rubber trees due to low prices.
Mr. Phan Canh Hung, Deputy Director of Bai Tranh Farm (under the Thanh Hoa Rubber Joint Stock Company), stated that the farm has 1,017 hectares of large-field rubber and 174 hectares of small-field rubber.
Currently, the farm is purchasing rubber latex water at VND 18,000-19,000 per kg. Despite the high prices this year, the farm has only harvested 30% of its planned latex production due to unpredictable weather patterns of rain and shine.
“In the past years, when rubber prices were low, many families were less enthusiastic about caring for and harvesting the trees. As a result, the district directed the localities to propagate and encourage people to maintain their rubber areas and not cut them down to switch to other crops,” said Mr. Le Tien Dat, Head of the Agriculture and Rural Development Department of Nhu Xuan, Thanh Hoa.
Mr. Tien Dat added: “In the future, if rubber prices remain stable, the district will continue to instruct rubber growers to care for and harvest the trees properly to ensure the long-term profitability of this industrial crop.”
