The Thai Rubber Association organized the annual dinner on April 29, 2016 at Dusit Thani Pattaya and also organized a golf tournament at Pattaya Country Club in Chonburi. In addition, TRA was highly honoured by International Rubber Tripartite Council (ITRC) to host a soft - launching ceremony for Regional Rubber Market in conjunction with the annual dinner. TRA also hosted a discussion on the current low NR prices and market outlook on 30 April 2016.
The annual dinner was attended by over 900 guests, including delegates from various government agencies, private organizations, dignitaries and rubber businessmen in the country and from abroad. It was our great honour to invite Dr. Titus Suksaard, Governor of Rubber Authority of Thailand to participate and deliver an open speech. The key address is 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 2015, Thailand produced 4.4 million tons of natural rubber. We exported 3.7 million tons, creating export revenue of 170 billion Baht. Exports in the form of finished products generated revenue of 230 billion Baht. In 2015, Thailand covers the tapping area of 2.89 million hectares.
Since October 2011, NR prices have fallen sharply and reached its lowest level of 41.70 Baht per kilogram in February 2016. This was seen to be due to the slow global economic growth, especially China, which is the world’s biggest rubber consumer, coupled with constantly declining crude oil prices.
The Thai government sought to solve the problem of falling rubber price to relieve livelihood hardship of farmers. The cabinet approved following projects: supporting and relieving farmers, reduction of rubber plantation area, promotion of domestic consumption of rubber, supply management and export control, setting-up of rubber and tire testing center for ASEAN, loan for rubber product manufacturers and entrepreneurs, etc.
Another significant step towards accelerated movement is that Thai government established Rubber Authority of Thailand (RAOT) to administer the rubber industry development in Thailand. RAOT is the merger of Rubber Research Institute of Thailand, the Office of Rubber Replanting Aid Fund and Rubber Estate Organization to work as one entity.
Under the framework of International Tripartite Rubber Council (ITRC), Thailand, Indonesia and Malaysia agreed to reduce export quantity of 615,000 tons for the period of 6 months from 1 March 2016 to 31 August 2016 so as to reduce supply of rubber globally. In addition, the 3 countries agreed to establish the Regional Rubber Market to provide a new platform for better price discovery. The platform is anticipated to be operational by June 2016.
TRA Annual Dinner 2016 received a huge success contributed by cooperation from government sector and both domestic and foreign private sectors, especially cooperation and spirit of TRA executive committee members and tra staff. On behalf of the Thai Rubber Association, I wish to thank everybody concerned. I consider this special occasion a big step towards closer relation in the rubber industry among the producing and the consuming countries.
TRA Annual Dinner 2016