The Thai Rubber Association organized the annual dinner Centara Grand Hotel, CentralWorld, Bangkok on Friday, 11 May 2018 as well as a golf tournament at Bangkok Golf Club, Pathum Thani. In addition, TRA also hosted the 21st Technical Committee on Contract Matter Meeting under the framework of ASEAN Rubber Business Council on 12 May 2018. The annual dinner was numerously attended by over 1,000 guests, including delegates from various government agencies, private organizations, dignitaries and industry players in the country and from abroad. It was our great honour to invite Mr. Grisada Boonrach, Minister of Agriculture and Cooperatives to participate and deliver an opening address of which the key matters are as follows.

Natural Rubber is one of the most important agricultural products of Thailand and the world. Thailand became the world’s biggest producer and exporter in 1991. In 2017, Thailand produced 4.42 million tons of natural rubber. We exported 4.09 million tons, generating export revenue of 8.49 billion US$.

Last year has been the most challenging time for rubber industry. Rubber price dropped sharply in November 2017 to 44.49 Baht per kilogram in line with strengthening baht but moved in the opposite direction to the global economy which recovered significantly and expanded considerably. Ministry of Agriculture and Cooperatives carried out major projects through Rubber Authority of Thailand to solve the problem of falling rubber price, namely promotion of rubber consumption in government sector to absorb rubber output in the market and credit support scheme for value-added rubber processing.

In response to NR falling prices, Thailand, Indonesia and Malaysia under the framework of International Tripartite Rubber Council (ITRC) had a meeting in March 2018 in which Thai government discussed cooperation on rubber stabilization, rubber farming development and sustainable rubber industry. Among important matters is the follow-up of the Agreed Export Tonnage Schema (AETS) implemented by exporters in Thailand, Indonesia and Malaysia. During the recent ambassadorial meeting of ITRC and Vietnam, the Ministry proposed the following 5 measures:

1. Thailand is in the process of establishing a joint venture between Rubber Authority of Thailand and Federation of Nationwide Rubber Farmers to collect and distribute Ribbed Smoked Sheets, block rubber, compound rubber and concentrated latex.

2. Production management: Thai government attempts to cut rubber trees in improper areas to plant other crops;

3. Intercropping of rubber and other plants of economic importance; and Promotion for domestic consumption of rubber in government sector in the form of ponds, flooring and road construction;

4. Tapping holiday plan with two tentative measures to reduce rubber output:

1) 3-month tapping holiday from May - July 2018 in the area of 480,000 hectares;

2) 1-year tapping holiday all over the country each every fortnight (tap for 15 days and stop for 15 days);

5. Production and price control: Rubber has recently been declared a controlled product, and rubber price is now monitored by Ministry of Commerce.

To achieve all those, concrete and close cooperation among us will bring about our mutual goal, that is to say, fair and stable price.