RM275mil for rubber replanting and planting of new trees

KUALA LUMPUR: Malaysian Rubber Board expects some RM275mil will be invested under the rubber National Key Economic Area (NKEA) mainly involving replanting and new plantings of rubber trees nationwide, said director-general Datuk Dr Salmiah Ahmad.
In
2012, she said, active replanting activities would cover about 38,000ha
per year focusing mainly on Peninsular Malaysia while new plantings
would cover about 5,000ha each in Sarawak and Sabah.
“While we
might face some shortages in planting materials next year, this is
already being addressed at our nurseries nationwide,” she told StarBiz.
[You must be registered and logged in to see this image.] The lower (rubber) yield can be attributed to lower usage of technology - MRB DIRECTOR-GENERAL SALMIAH AHMAD
Under the rubber NKEA, the rubber industry is targeted to contribute about RM90bil in gross national income by 2020.
For
the first 10 months of this year, Salmiah said the industry was
expected to contribute RM38bil in export earnings, an increase of 12%
from RM33.8bil in 2010.
Export contribution from the industry to
the national economy is expected to rise over the next few years, driven
by increasing exports of raw materials and rubber products.
In Malaysia, about 94% of the natural rubber production is contributed by smallholders and the remainder by estates.
“While
land productivity has improved over the years, productivity at the
smallholder segment was still low compared with the estate segment.
“The
lower yield in the smallholder segment can be attributed to lower usage
of technology, poor farm management practices, the presence of
low-yielding clones and under-exploitation of holdings,” added Salmiah.
The
low productivity of the smallholder segment also indicates that there
is potential for further improvement in yield through better management,
replanting with high-yielding clones and the adoption of latest
technology.
At the same time, attractive rubber prices have encouraged smallholders to tap their rubber trees this year.
[You must be registered and logged in to see this image.] A
file picture shows a man taps rubber at a plantation in Sungai Buloh,
Selangor. Under the rubber NKEA, the rubber industry is targeted to
contribute about RM9 0bil in gross national income by 2020.
At
an average FOB SMR 20 price of RM14.10 per kg and a farm-gate price of
RM11.72/kg, an owner-operated smallholding of 2.3ha and an average
productivity of 1,250 per kg per ha will earn RM2,808 per month, an
increase of almost 40% in income level from RM2,039 per month last year.
For
organised smallholders under Felda scheme owning a four-hectare
holding, they could earn a gross income of almost RM5,000 per month at a
similar farmgate price, said Salmiah.
Based on the average
10-month period, the average of land productivity has improved slightly
by 2.2% to 1,250 kg per ha from 1,223 kg per ha recorded during the same
period of 2010.
Meanwhile, another major rubber NKEA project is a joint venture between Felda Rubber Industries Sdn Bhd and Mardec Bhd
for the commercialisation of a new generation of latex grade specialty
rubbers, which include epoxidised natural rubber (EkoprenaTM) and
deproteinised natural rubber (PureprenaTM).
Both EkoprenaTM and
PureprenaTM are raw materials to support high-end rubber product
industries, especially for green tyre manufacturing.
Salmiah said the plant for the production of both raw materials was 70% completed and set to commission by February next year.
The initial capacity is about 12,000 tonnes per year, with a targeted capacity of 300,00 tonnes annually by 2020.