A report from the Cambodian Ministry of Agriculture, Forestry and Fisheries shows that Cambodia’s rubber export increased 10% in the first quarter of 2020 compared to 2019.
In 2019, Cambodia exported 282,071 tonnes of dry rubber (worth $377 million) representing an increase of 30% from 217,501 tonnes compared to 2018.
The Ministry also said the price of the rubber showed a decrease. Cambodia exported 53,057 tonnes of rubber between January and March 2020 with an average price of $1,397 per tonne (a 1.2% decrease). Around $74 million in revenue was generated in Q1 2020.
However, the Phnom Penh Post reports that the rubber prices have dropped from $1,300 to $1,100 per tonne this year. They paint a more difficult situation and the difficulties of exporters trying to move exports in the current economic climate.
The trade disruption, caused by the restriction of cross-border trade activities in response to COVID-19, started to show a dip in revenue in March so Q2 will be interesting to asses.
China is one of the biggest importers of Cambodian rubber and the demand has been reduced to the COVID-19 restrictions. China is in fact the world’s largest rubber consumer, accounting for 41%t of global total output. Other key export markets for Cambodia include Malaysia, Vietnam and Singapore.
The PP Post added that latex prices will “continue to decline until next year” according to a report by Research and Markets.
In total, the Kingdom of Cambodia has 405,485 hectares of rubber plantations, with 250,750 hectares considered “cash crops”.