Investor Presentaiton
Impact of the drop in rubber prices
As the price declined from Rp12,000 to Rp3,000/kg, the
government decided to cut production, suggesting that farmers
tap their trees twice rather than three times per week, which
reduced incomes still further.
Farmers in the (remote) eastern districts of West Kal were said to rely on
'rubber, rubber and rubber'. They were described as 'sinking away', and
affected psychologically. Villagers were reported to be 'struck dumb' with
the impact. 'The crisis has shaken the foundations of people's lives'
(Borneo Tribune, 3.1.09).
It was the rapidity and size of the price decline that farmers found most
shocking: they were used to fluctuations in rubber prices of 5-10%, but
not 75%!
Officials recommended a return to small-scale mixed farming, but where
was the food crop land?
Even those with rice swiddens were reported to be buying food: holdings
were very small and yields low because of lack of fertilizer and rat
problems.View entire presentation