In Myanmar, hundreds of thousands of hectares of land are leased to investors for rubber plantations, often in controversial circumstances. Only 8 percent of the total production is used within Myanmar, with the rest exported to China: 70 percent of which is of low quality. Japan is providing state of the art technology to process raw rubber and boost local production in a bid to find a new supply for its tyre manufacturing industry. According to an MoU between the Myanmar Rubber Planters and Producers Association and Japanese manufacturers, Japan will provide technology to produce high-quality raw rubber from plantations. Myanmar rubber is not good enough to export, even growers complain that the price of $300-400 per tonne is unfairly low, according to U Khaing Myint, Secretary of the Myanmar Rubber Planters and Producers' Association.

1. News Review of Rubber Industry in Myanmar
In Myanmar, hundreds of thousands of hectares of land are leased to investors for rubber
plantations, often in controversial circumstances. Only 8 percent of the total production is
used within Myanmar, with the rest exported to China: 70 percent of which is of low
quality.
Japan is providing state of the art technology to process raw rubber and boost local
production in a bid to find a new supply for its tyre manufacturing industry. According to an
MoU between the Myanmar Rubber Planters and Producers Association and Japanese
manufacturers, Japan will provide technology to produce high-quality raw rubber from
plantations.
Myanmar rubber is not good enough to export, even growers complain that the price
of $300-400 per tonne is unfairly low, according to U Khaing Myint, Secretary of the Myanmar
Rubber Planters and Producers’ Association. Due to growing demand in the global rubber
commodity market, Myanmar rubber can be sold at standardized prices.
Myanmar's first central rubber market will be built at Mawlamyine in Mon State as
authorities seek to help the industry amid low prices and sluggish sales. Mon State is the
country’s top rubber producer and the commodity is considered a “promising export” in
Myanmar’s National Export Strategy (NES). However, local planters have struggled to sell in the
international market, due to issues with quality and falling global prices. The NES highlights the
need for a central rubber market. The central rubber market is set to be built in a compound on
Ministry of Commerce-owned land in Mawlamyine, and will be jointly managed by the Ministry
of Commerce, the Ministry of Agriculture and Irrigation, and the Myanmar Rubber Planters and
Producers Association (MRPPA). The establishment will help rubber planters to sell their wares.
Exporters will be able to buy rubber through an auction system at the market. Planters can refuse
to sell if they are not happy with the bid, though exporters will be blacklisted if they do not buy
at their bidding price.
Mon State, Tanintharyi, Bago and Ayeyarwady regions are the major rubber
producers. However, Mon State is the first choice for a market, as it is the largest producer. If
the rubber market in Mon State is successful, the Department of Export Promotion will consider
establishing rubber markets in other states and regions. The Mon State rubber market will be
based on an MRPPA study of rubber markets in Thailand and will be built during the next
fiscal year, starting on 1 April 2016. A related law is being drafted and a regulatory body will
also need to be formed.
With help from Japan, a laboratory for testing the quality of rubber has been set up
in Yangon, and Myanmar is also applying for membership at the International Rubber
Association (IRA) in Malaysia. “It is quite difficult to get a certificate from IRA. Our
laboratory is necessary to become a member, as every product certified by the laboratory is
globally recognized,” stated the Department of Export Promotion.

2. Myanmar’s rubber growers have struggled to produce high-quality products. Out
of the four tyre factories in the country, only one – the Yangon Tyre factory – is able to
export, according to the MRPPA. Three of the country’s four tyre factories are owned by the
state, two by the Ministry of Industry and the others by the military-owned Myanmar Economic
Cooperation.
Yangon Tyre Factory, the only privately owned plant, has been exporting to
Malaysia for two years, in batches of 800, by sea. The company has earned about US$200,000
by exporting a total of 3200 tyres at $60 each. Rubber growers believe this kind of success
indicates the need for more factories capable of exporting, and promote more factories of this
kind.
References: http://www.mmtimes.com/index.php/business/17536-rubber-market-to-be-built-in-
mawlamyine.html Latest News, Foreign Companies, foreign investment, International Rubber
Association, investment, Ministry of Commerce, Myanmar Rubber Planters and Producers
Association (MRPPA), natural resources, special economic zone, tyre industry, U Htin Kyaw
Oo, Latest News , Japan’s Rubber Trade Association, Japanese manufacturers, Khine Myint,
Myanmar Rubber Planters and Producers Association, Raw Rubber, Technology, tyre
manufacturing industry, Yoshio Kanai, Latest News, Economy, export, Myanmar Rubber
Planters and Producers Association, Ribbed Smoked Sheets, RSS, Rubber, Trade, U Khaing
Myint, Latest News, Daw Theingi Myint, Kayin State, Mon State, Myanmar Rubber Planters and
Producers Association, Myanmar Times, Rubber prices, Tanintharyi Region, Tokyo, U Khin
Kyu, U Khine Myint, Zabudate rubber plantation.

3. Myanmar Rubber Plantation and Production (2014-2015 FY)
No Region/State Planted Area
(Acre)
Productive
Area (Acre)
Average Productive (Per
Year/Acre/Pound)
Production
(Pound)
1. Nay Pyi Taw
2. Kachin State 76,537 1,846 500.65 942,657
3. Kayah State 36
4. Kayin State 260,838 121,728 762.53 92,821,079
5. Chin State 9
6. Sagaing Region 12,622 283 424.12 120,025
7. Thaninthayi Region 334,051 121,773 554.20 67,486,164
8. Bago Region 115,129 39,053 619.91 24,209,202
9. Magwe Region 80
10. Mandalay Region 114
11. Mon State 489,053 313,893 730.65 229,346,381
12. Rakhine State 36,523 2,000 530.39 1,116,458
13. Yangon Region 42,233 9,688 425.17 4,109,083
14. Shan State 183,320 28,416 559.27 15,892,331
Shan State (South) 1,128 98 692.81 67,895
Shan State (North) 81,308 21,092 536.48 11,305,442
Shan State (East) 100,884 7,226 628.00 4,508,994
15. Areyarwaddy Region 33,570 700 728.73 510,837
Source: Myanmar Rubber Planters and Producers Association (MRPPA)
Myanmar Rubber Planted Area and Production

4. Source: Myanmar Rubber Planters and Producers Association (MRPPA)
Myanmar FY Year Planted Area (Acre) Productive Area (Acre) Production (MT)
2005-06 558,565 267,180 64,239
2006-07 728,329 303,907 73,355
2007-08 935,800 342,930 88,528
2008-09 1,057,395 356,437 93,207
2009-10 1,143,427 411,688 111,673
2010-11 1,246,531 460,767 127,921
2011-12 1,342,202 490,151 149,619
2012-13 1,435,931 527,693 164,425
2013-14 1,506,867 572,737 176,915
2014-15 1,584,115 639,482 198,024
2015-16 (plan) 1,611,386 734,436 227,533

5. Myanmar Rubber Export (2005-06 to 2014-2015)
Myanmar FY Year Export (MT) Export Value (Million USD)
2005-06 52,800 63.42
2006-07 46,930 76.55
2007-08 61,610 116.49
2008-09 40,070 73
2009-10 78,785 133.19
2010-11 92,677 304.41
2011-12 78,881 312.46
2012-13 86,881 265.26
2013-14 84,299 196.13
2014-15 77,018 111.85
Source: Myanmar Rubber Planters and Producers Association (MRPPA)
Myanmar Rubber Export Price (15 January 2016)
Rubber Type/Per Ton Cost (USD)
R.S.S (1) 1000-1100
R.S.S (2) 950-1050
R.S.S (3) 900-1000
R.S.S (4) 850-950
R.S.S (5) 800-900
Crepe Rubber 700-800
M.S.R (3) 1150-1250-
M.S.R (10) 900-1000
M.S.R (20) 850-950
M.S.R (50) 750-850
R.S.S: Rubber Smoke Sheet, M.S.R: Myanmar Standard Rubber
Source: Myanmar Rubber Planters and Producers Association (MRPPA)
******************

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Low rubber prices leave Myanmar rubber market in hopeless
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7. (/wp­content/uploads/2016/02/rubber­latex­3­copy.jpg)
Rubber latex is collected in a bowl. Photo: Reuters
THE Myanmar rubber market is in a hopeless position following tumble of rubber prices which continue to fall, according
to an official from the Myanmar Rubber Planters and Producers Association.
“The price of rubber at home and abroad has continued to slump year after year. Price is expected to stay low this year.
It is impossible for rubber farmers to store their products for a certain period to fetch good price as farm workers must
be paid by selling rubber at the price they are given,” said U Khaing Myint, secretary of the association.
The secretary forecast that prices will not change this year.
Rubber latex collection season in Myanmar ends in mid May annually. Although some farm owners store rubber until the
end of the rainy season it has not affected the price.
Rubber trading is at a price of US$1250 a ton for RSS­3 variety on the world market but Myanmar rubber farmers fetch
$900 a ton for the variety grown here.
It is found that growers fail to accept the concept of growing high quality rubber to fetch good prices, said the secretary
who is also a rubber farm owner.
Despite the market sending the price up and down, we never have a good price as the quality of our products does not
meet international standards, said the farm owner, stressing the need to produce quality products to get a good price.
According to rubber planters and producers, Myanmar rubber cannot meet the quality as demanded by foreign buyers.
Annual per acre yield for rubber in Myanmar is about 700 pounds while farms of neighbouring countries have outputs
from 500 to 1800 pounds an acre, they said.
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9. 6/14/2017 Myanmar: Rubber prices plummet in 2015 ­ Global Rubber Markets
https://globalrubbermarkets.com/39660/myanmar­rubber­prices­plummet­in­2015.html 1/1
Myanmar: Rubber prices plummet in 2015
Rubber prices fell drastically this year, slipping from Ks 615 (US$0.46) per pound in the first week of 2015 to Ks 570 per pound this week, according to
the Myanmar Rubber Planters and Producers Association.
“The current situation is really bad for the planters. The prices should be stable at around Ks 600­to Ks 700 per pound for the producers to reap a profit,”
said Khine Myint, the secretary of the association.
The sharp drop is thought to be connected to international market trends.
Aung Thu, a rubber planter in Thanbyuzayat, Mon State, said: “It’s hard for the planters, like me, to make ends meet this year. Paying for labour ate up
30 per cent of our profits before, but now it takes 40 per cent. The supply is high, and the demand is low. We couldn’t harvest as much as expected since
the weather is too hot.”
Rubber prices have been dropping since 2013. More than 30 per cent of rubber farms in Myanmar stopped operating in March due to losses.
Wholesale centres appraise the prices of raw rubber from the farms based on their quality.
Rubber farms were inactive from June to August due to heavy rains.
A tonne of rubber costs $1,200 in the global market as of Monday.
December 29, 2015

10. 6/14/2017 Plans to Upgrade Rubber Quality for Export | Myanmar Business Today
https://www.mmbiztoday.com/articles/plans­upgrade­rubber­quality­export 2/15
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Author: Phyu Thit Lwin | 08 Dec 2013
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11. 6/14/2017 Plans to Upgrade Rubber Quality for Export | Myanmar Business Today
https://www.mmbiztoday.com/articles/plans­upgrade­rubber­quality­export 3/15
Myanmar is planning to improve the quality of its rubber in order to increase the income
from exports.

12. 6/14/2017 Plans to Upgrade Rubber Quality for Export | Myanmar Business Today
https://www.mmbiztoday.com/articles/plans­upgrade­rubber­quality­export 4/15
The production of rubber lacks quality control in Myanmar at present, making it difficult to obtain the higher
prices in the world market, according to sources from the Myanmar Rubber Planters and Producers
Association (MRPPA).
“Since the high quality rubber cannot currently be produced within Myanmar, the price it is sold for when
exported abroad is low,” said U Khaing Myint, secretary of MRPPA. He added that the amount of high­quality
rubber being produced within the country had doubled from last year and that now, an estimated 20 percent
of the rubber produced is of high quality.
He added that while the current equipment being used is sufficient to produce the high­quality rubber, many
local entrepreneurs are not trained sufficiently to bring the rubber up to the required standards.
Earlier this year, the EU lifted all remaining sanctions against Myanmar, meaning that the number of
countries Myanmar could export its rubber to increased. However, U Khaing Myint said that European
customers only purchase the international­standard rubber, so it is crucial for Myanmar to ensure better
production of the product.
Myanmar exports its RSS1, RSS3, RSS5 and MSR20 rubber materials, with the bulk of exports being sent to
China, India, Malaysia and Singapore. In the 2012­2013 fiscal year, 90,000 tonnes were exported, bringing
in $260 million, and MRPPA aims to increase the export to 950,000 for 2013­2014.

13. 6/14/2017 Rubber market to be built in Mawlamyine
http://www.mmtimes.com/index.php/business/17536­rubber­market­to­be­built­in­mawlamyine.html 1/3
Like 13 1 Tweet Share 6
Rubber market to be built in
Mawlamyine
By Chan Mya Htwe | Wednesday, 11 November 2015
Myanmar's first central rubber market will be built at Mawlamyine
in Mon State as authorities seek to help the industry amid low
prices and sluggish sales.
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14. 6/14/2017 Rubber market to be built in Mawlamyine
http://www.mmtimes.com/index.php/business/17536­rubber­market­to­be­built­in­mawlamyine.html 2/3
Sheets dry in Mawlamyine.(Kaung Htet/The Myanmar Times)
Mon State is the country’s top rubber producer and the commodity is
considered a “promising export” in Myanmar’s National Export Strategy
(NES).
However, local planters have struggled to sell internationally due to issues with
quality and falling global prices.
The NES highlights the need for a central rubber market, said U Win Myint,
director of the Department of Export Promotion under the Ministry of
Commerce.
It is set to be built in a compound on Ministry of Commerce­owned land in
Mawlamyine, and will be jointly managed by the Ministry of Commerce, the
Ministry of Agriculture and Irrigation, and the Myanmar Rubber Planters and
Producers Association (MRPPA).
“This establishment will help rubber planters to sell their wares,” said MRPPA
secretary U Khaing Myint.
Exporters will be able to buy through an auction system at the market –
planters can refuse to sell if they are not happy with the bid, though exporters
will be blacklisted if they don’t buy at their bid price, he said.
Beside Mon State, Tanintharyi, Bago and Ayeyarwady regions are also major
rubber producers.
Mon State was the first choice for a market, as it is the largest producer, U
Khaing Myint said.
“If this is successful, we will establish rubber markets in other states and
regions. But it is a long­term plan – we need to take it step­by­step.”
The new market will be based on an MRPPA study of rubber markets in
Thailand and will be built
during the next financial year. U Khaing Myint said a related law is being
drafted and a regulatory body will also need to be formed.
With help from Japan, a laboratory for testing the quality of rubber has been
set up in Yangon, and Myanmar is also applying for membership at the
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15. 6/14/2017 Rubber market to be built in Mawlamyine
http://www.mmtimes.com/index.php/business/17536­rubber­market­to­be­built­in­mawlamyine.html 3/3
set up in Yangon, and Myanmar is also applying for membership at the
International Rubber Association (IRA) in Malaysia.
“It is quite difficult to get a certificate from IRA. Our laboratory is necessary to
become a member, as every product certified by the laboratory is globally
recognised,” U Khaing Myint said.
Myanmar’s rubber growers have struggled to produce high­quality products.
Of the four tyre factories in the country, only one – the Yangon Tyre factory –
is able to export, according to the MRPPA.
Three of the country’s four tyre factories are owned by the state, two by the
Ministry of Industry and the other by military­owned Myanmar Economic
Cooperation, and their quality is not up to an international standard, the
industry body said.
Yangon Tyre Factory, the only privately owned plant, has been exporting to
Malaysia for two years, in batches of 800, by sea. The company has earned
about US$200,000 by exporting a total of 3200 tyres at $60 each, said
marketing director Htin Kyaw Oo.
Rubber growers believe this kind of success indicates the need for more
factories capable of exporting.
Association chair U Aung Myint Htoo said during a seminar in Yangon last
month, “We should have more factories of this kind”.
Translation by Emoon and Zar Zar Soe
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16. Rubber Planting Industry in Myanmar: Rubber Planting Industry in Myanmar:
Current Situation and PotentialsCurrent Situation and Potentials
HlaHla MyintMyint
Advisor, Myanmar Rubber Planters & Producers AssociationAdvisor, Myanmar Rubber Planters & Producers Association
CEO, Myanmar Plantation Management & Advisory Co., Ltd.CEO, Myanmar Plantation Management & Advisory Co., Ltd.
ASEAN PLUS 2013 RUBBER CONFERENCEASEAN PLUS 2013 RUBBER CONFERENCE
1010‐‐12 April 2013, 12 April 2013, PhuketPhuket, Thailand , Thailand

17. Content
• Introduction
• Current Situation
• Progress and Growth
• Policy and Institutions
• Opportunities
• Conclusion
2

18. INTRODUCTIONINTRODUCTION
3

19. • Hevea Rubber – introduced 130 years ago
• Commercial planting – started since 1909
• Since then, the planted areas increased
gradually, but dramatically in the last two
decades.
4

20. • Planted Area
5
YearYear Planted Area (ac)Planted Area (ac)
1909 9,900
1920 72,000
1940 115,000
1960 140,000
1970‐71 217,000
1980‐81 200,000
1990‐91 191,000
2000‐01 446,000
2010‐11 1,246,000
2011‐12 1,342,000
Source: Perennial Crops Division, DICD

21. • Projects implemented with International
Assistances
• First Rubber Project (1957‐58 to 1966‐67) (FAO TA)
• Rubber Rehabilitation Project‐ Phase 1
(1979‐80 to 1984‐85) (IDA Credit, UNDP/FAO TA)
• Rubber Rehabilitation Project‐ Phase 2
(1984‐85 to 1992‐93) (IDA Credit, UNDP/FAO TA)
• Applied Research Centre for Perennial Crops Project
(1991 to 94) (UNDP/FAO TA)
6

22. CURRENT SITUATIONCURRENT SITUATION
7

23. Rubber Planted Area, Productive Area and Rubber Planted Area, Productive Area and
Production Production (2005(2005‐‐06 to 201106 to 2011‐‐12)12)
YearYear
Planted Area Planted Area
(acre)(acre)
Productive Productive
Area (acre)Area (acre)
Production Production
(MT)(MT)
2005‐06 558,565 267,180 64,239
2006‐07 728,329 303,907 73,355
2007‐08 935,800 342,930 88,528
2008‐09 1,057,395 356,437 93,207
2009‐10 1,143,427 411,688 111,673
2010‐11 1,246,531 460,767 127,921
2011‐12 1,342,202 490,151 149,619
Source : Perennial Crops Division, DICD
8

24. Rubber Planted Area, Productive Area and Production
by States and Regions (2011‐12)
No. State/Region
Planted Area
(acre)
Productive
Area (acre)
Production
(pound)
1 Kachin 61,478 1,436 768,095
2 Kayah 67 ‐ ‐
3 Kayin 189,747 44,595 28,497,142
4 Chin 85 ‐ ‐
5 Sagaing 8,451 23 11,500
6 Tanintharyi 264,106 106,419 56,184,391
7 Bago 101,121 20,346 10,744,902
8 Magway 80 ‐ ‐
9 Mandalay 381 ‐ ‐
10 Mon 464,477 286,502 214,926,118
11 Yangon 39,208 7,957 3,919,967
12 Rakhine 34,320 1,481 619,368
13A Shan (North) 68,756 16,523 10,692,218
13B Shan (East) 87,180 4,579 3,274,563
13C Shan (South) 861 92 92,688
14 Ayeyarwaddy 21,884 198 123,045
Total 1,342,202 490,151
329,853,995
(149,619 MT)
Source: Perennial Crops Division, DICD 9

25. Rubber Production and ExportRubber Production and Export
YearYear
Production Production
(MT)(MT)
Export Export
(MT)(MT)
Export Value Export Value
(Million US$)(Million US$)
2005‐06 64,239 52,800 63.42
2006‐07 73,355 46,930 76.55
2007‐08 88,528 61,610 116.49
2008‐09 93,207 40,070 73.00
2009‐10 111,673 77,790 135.37
2010‐11 127,921 91,350 302.89
2011‐12 149,619 78,884 311.11
10
Source: Perennial Crops Division, DICD, and MAPT

26. Average Productivity of Rubber
11
Year Pound/ac/year
2005‐06 530.06
2006‐07 532.13
2007‐08 569.12
2008‐09 576.50
2009‐10 598.02
2010‐11 612.00
2011‐12 672.96
Source: Perennial Crops Division, DICD

27. Composition of Private and State SectorsComposition of Private and State Sectors
(1998(1998‐‐99, 200699, 2006‐‐07, and 201007, and 2010‐‐11)11)
Share % Share %
Year
Total Planted
Acre
Total
Production
MTPrivate State Private State
1998‐99 369,403 90.4 9.6 22,943 83.4 16.2
2006‐07 728,329 94.2 5.8 73,355 94.1 5.9
2010‐11 1,246,531 97.4 2.6 127,921 97.7 2.3
12

28. Structure by Size of Holdings Structure by Size of Holdings
(2006(2006‐‐07)07)
Holdings Planted Area
Category
No. % Acre %
Below 5 acres 22,423 40.2 62,778 8.6
5 to 20 acres 28,052 50.3 242,828 33.3
20 to 50 acres 3,791 6.8 109,422 15.1
50 to 100 acres 950 1.7 59,700 8.2
100 to 500 acres 419 0.8 99,872 13.7
500 to 1000 acres 65 0.1 52,560 7.2
Above 1000 acres 31 0.1 101,169 13.9
Total 55,731 100.0 728,329 100.0
13

29. PROGRESS AND GROWTHPROGRESS AND GROWTH
14

30. Changes in Total Rubber Planted Area Changes in Total Rubber Planted Area
(1950(1950‐‐51 to 199551 to 1995‐‐96 and 200096 and 2000‐‐01 to 201101 to 2011‐‐12)12)
15

31. Annual Expansion Area Annual Expansion Area (2005(2005‐‐06 to 201106 to 2011‐‐12)12)
16
Year
Area at Yr.
Start
Expansion
Area at Yr.
End
2005‐06 502,653 55,912 558,565
2006‐07 558,565 169,764 728,329
2007‐08 728,329 207,471 935,800
2008‐09 935,800 121,595 1,057,395
2009‐10 1,057,395 86,032 1,143,427
2010‐11 1,143,427 103,104 1,246,531
2011‐12 1,246,531 95,671 1,342,202
Source: Perennial Crops Division, DICD

32. Growth in Rubber Planted Area in Traditional AreasGrowth in Rubber Planted Area in Traditional Areas
(2000(2000‐‐01 vs. 200601 vs. 2006‐‐07 and 201107 and 2011‐‐12)12)
20002000‐‐0101 20062006‐‐0707 20112011‐‐12 12
State/ State/
RegionRegion
AcreAcre AcreAcre
% increase over % increase over
20002000‐‐0101
AcreAcre
% increase over % increase over
20002000‐‐0101
Average Annual Average Annual
Growth % Growth %
(2000(2000‐‐01 to 01 to
20112011‐‐12)12)
MonMon 194,268194,268 311,251311,251 6060 464,477464,477 139139 12.612.6
TanintharryTanintharry 102,958102,958 141,326141,326 3737 264,106264,106 157157 14.214.2
KayinKayin 33,43033,430 72,15972,159 116116 189,747189,747 468468 42.542.5
BagoBago 46,78146,781 57,82257,822 2424 101,121101,121 116116 10.610.6
YangonYangon 28,33228,332 33,13233,132 1717 39,20839,208 3838 3.53.5
TotalTotal 405,769405,769 615,690615,690 5252 1,058,6591,058,659 161161 14.614.6
Source: Perennial Crops Division, DICD

33. Growth in Rubber Planted Area in NonGrowth in Rubber Planted Area in Non‐‐Traditional AreasTraditional Areas
(2000(2000‐‐01 vs. 200601 vs. 2006‐‐07 and 201107 and 2011‐‐12)12)
20002000‐‐0101 20062006‐‐0707 20112011‐‐12 12
State/ RegionState/ Region
AcreAcre AcreAcre
% increase % increase
over 2000over 2000‐‐0101
AcreAcre
% increase % increase
over 2000over 2000‐‐0101
Average Annual Average Annual
Growth % Growth %
(2000(2000‐‐01 to 01 to
20112011‐‐12) 12)
Shan (East)Shan (East) 1,6941,694 52,36552,365 29912991 87,18087,180 50465046 458.8458.8
Shan (North)Shan (North) 17,85817,858 23,89323,893 3434 68,75668,756 285285 25.925.9
KachinKachin 5,7725,772 11,52811,528 100100 61,47861,478 965965 87.787.7
YakhineYakhine 9,7179,717 14,17514,175 4646 34,32034,320 253253 23.023.0
AyeyarwaddyAyeyarwaddy 1,6131,613 7,3647,364 357357 21,88421,884 12561256 114.3114.3
TotalTotal 36,65436,654 109,325109,325 198198 273,618273,618 646646 58.858.8
Source: Perennial Crops Division, DICD

34. Changes in Total Productive Area and ProductionChanges in Total Productive Area and Production
19

35. Changes in Average ProductivityChanges in Average Productivity
20
lb/ac/yrlb/ac/yr

36. • Growth of the rubber planting industry is
fastest and accelerated during the past two
decades, after adoption of market‐oriented
economic policy since late 1988.
Growth
1990‐91 to
2000‐01
Growth
2000‐01 to
2010‐11
Planted Area 134 % 179 %
Productive Area 57 % 201 %
Production 145 % 259 %
Productivity 56 % 19 %
21

37. Main Contributing Factors for the Fast Main Contributing Factors for the Fast
and Accelerated Growthand Accelerated Growth
• Favourable Policy Environment and the
Government’s encouragement
• Institutional Reforms including emergence of
NGO like MRPPA and its active participation
• Expansion in Non‐traditional areas
• Good Rubber Prices since 2005‐06
22

38. POLICY AND INSTITUTIONSPOLICY AND INSTITUTIONS
23

39. Agriculture Sector PolicyAgriculture Sector Policy
• Market‐oriented Economic Policy since 1988
• Agriculture Sector ‐ Top Priority
• Welcomes ‐ Private Sector Investment
‐ Both local & foreign entrepreneurs
‐ Foreign Investment (100 %, JV with private
sector, JV with public sector)
• Allocation of Vacant Lands (Virgin, Fallow, Waste Lands) for
agriculture, livestock farming and aquaculture.
• No Government’s Control and Quota Purchase of Crops
produced. i.e Free Local Trading and Marketing.

40. Rubber Policy
• Top priority among Perennial/ Plantation Crops
• Encourage Private Sector involvement for
– accelerated Area Expansion
– increased Production and Export
– downstream Value‐added Products Industry
• Free Local Trading and Marketing
• No Control and Restriction on Export (since 2004‐2005)
25

41. Institutional Changes and ReformsInstitutional Changes and Reforms
• Rubber Project Office /Plantation Crops Division under
Agriculture and Rural Development Corporation / Agriculture
Corporation / Myanma Farms Enterprise (1956‐57 to May 1994).
• Myanma Perennial Crops Enterprise (MPCE)
(June 1994 to 2005‐06)
– Function ‐ Development of Plantation Crops in both
government and private sectors
(State‐owned Plantations, Marketing & Export,
Research & Training, Extension Services to private
sector).
– Main Crops ‐ Rubber, Oil Palm, Cashew.

42. • Perennial Crops Department, Perennial Crops and Farms
Division under Myanma Industrial Crops Development
Enterprise (MICDE) (2006‐07 to 2011‐12)
– Function ‐ Development of Plantation Crops exclusively
for private sector
(Research & Training, Extension Services to
Private Sector)
– Main Crops ‐ Rubber, Oil Palm, Cashew

43. • With effect from 1st April 2012, reorganized under new
name with same functions
– Perennial Crops Educational and Technical
Development Division under Department of Industrial
Crops Development (DICD)
28

44. Myanmar Rubber Planters and Producers
Association (MRPPA)
• NGO formed in March 2005. Affiliated Association of Union
of Myanmar Federation of Chamber of Commerce and
Industry (UMFCCI). Member of IRRDB since 2007.
• Main Objectives
To accelerate the development of Myanmar rubber planting
and production industry, quantitatively as well as qualitatively,
as a whole.
To increase the export of rubber and foreign exchange
earnings.
To promote the local rubber manufacturing industries.
To improve the income and living standard of the people
involved in rubber planting and production industry.
To contribute to the overall economy of the country.

45. • Main Functions
Disseminate up‐to‐date information on natural rubber
development (technologies, market information and prices,
etc.)
Liaise with concerned agencies to have necessary
assistances.
Organize to have more rubber planters and investors.
Cooperate with Dept. of Trade for fair export price.
Participate in trade fairs to promote Myanmar rubber.
Give suggestions to concerned ministries and govt.
organizations for promotion and development of natural
rubber planting.

46. OPPORTUNITIESOPPORTUNITIES
31

47. Opportunities exist in Opportunities exist in ‐‐
• Planting and Production of NR (Upstream)
• Midstream Products
• Downstream Products
32

48. Planting and Production of NRPlanting and Production of NR
• Abundant vacant land (virgin, fallow, waste
land) are still available.
• Opportunities exist for further
expansion/planting and NR production
33

49. 34
Type of LandType of Land
Hectare Hectare
(mil)(mil)
%%
Net Sown AreaNet Sown Area 12.0212.02 17.7717.77
Fallow landFallow land 0.230.23 0.340.34
Culturable Waste LandCulturable Waste Land 5.405.40 7.987.98
Reserved ForestsReserved Forests 17.9117.91 26.4726.47
Other ForestsOther Forests 15.6315.63 23.1023.10
Other landOther land 16.4716.47 24.3424.34
TotalTotal 67.6667.66 100.00100.00
Land Utilization in Myanmar (2010Land Utilization in Myanmar (2010‐‐11)11)
Source: Ministry of Agriculture and Irrigation

50. Midstream ProductsMidstream Products
• Rubber currently produced are of the types RSS
(about 90%) and TSR (about 10%). Concentrated
Latex is not produced yet.
• Opportunities exist for high‐value midstream
products (TSR, Concentrated Latex, Compound
Rubber, etc.)
35

51. Downstream Products
• Local consumption of NR estimated around
15,000 MT is very low. Accordingly downstream
products industry has yet to develop.
• Most local industries are small and medium
cottage industries.
• Development of manufacturing industry and
modernization is government’s top economic
objective.
36

52. • NR production will increase in immediate near
future.
2015‐16 ‐ 200,000 to 220,000 MT
2020‐21 ‐ 320,000 to 330,000 MT
• Huge potential for downstream products
(tyres, auto parts, engine parts, belts, gloves,
condoms, medical goods, sport goods, etc.)
37

53. CONCLUSIONCONCLUSION
38

54. • Rubber planting industry in Myanmar has been
surviving and developing under various economic
policies under different political regimes, since
commercially planted about a century ago.
• Growth of the industry is seen after two decades
under market‐oriented economic policy adopted since
late 1988, with dramatic increases in planted area and
production.
39

55. • Further growth is also anticipated, due to favourable
policy environment and available land resources.
• Huge potential exists also for development of
midstream products and value‐added downstream
products.
40

56. THANK YOUTHANK YOU
41

57. The export market of rubber is stable in spite of the current high price, which resulted from the rise in
the global rubber price, businessmen said. Over 80 per cent of rubber production in Myanmar is
slated for export to China. Local rubber consumption is below 10 per cent. However, the rubber
demand in the domestic market has risen because of increase in tyre production.
The export volume of rubber will rise only if the production rate from rubber farms is boosted. Most
rubber farm owners sell the latex once it is produced. Only some of them store the rubber while
waiting for the price goes up.
Over 80,000 tonnes of rubber are exported yearly and this year, export volume is expected to hit
nearly 100,000 tonnes, according to the Myanmar Rubber Planters and Producers Association.
The price of raw rubber price is Ks840 per pound, which is about Ks140 higher than the price from
the same period of last year, it is learnt from rubber entrepreneurs.
Source: The Global New Light of Myanmar

58. 6/14/2017 Villages, Residents Stand in Way of Rubber Farm in Southern Myanmar
https://www.irrawaddy.com/news/burma/villages­residents­stand­way­dawei­rubber­farm.html 1/11
Burma
Villages, Residents Stand in Way of Dawei
Rubber Farm

59. 6/14/2017 Villages, Residents Stand in Way of Rubber Farm in Southern Myanmar
https://www.irrawaddy.com/news/burma/villages­residents­stand­way­dawei­rubber­farm.html 2/11
By SAW YAN NAING 14 January 2015
Sixteen villages inhabited largely by indigenous ethnic Karen people in Dawei district,
where a major special economic zone in southern Burma is planned, will be leveled to
make way for a large-scale rubber plantation, according to local residents.
The 50,000-acre plantation in southernmost Tenasserim Division will be operated by
Myanmar Mahar Dahna Co. Ltd. in the Thein Baw Oo village tract of Tenasserim
Township. The first phase of the project will cover 5,000 acres across an area in which
six villages are currently sited, local inhabitants say.

Sixteen villages inhabited largely by indigenous ethnic Karen people in southern Burma’s Dawei district will be leveled to make way for a large-scale rubber
plantation.

60. 6/14/2017 Villages, Residents Stand in Way of Rubber Farm in Southern Myanmar
https://www.irrawaddy.com/news/burma/villages­residents­stand­way­dawei­rubber­farm.html 3/11
Paw Say Wah, a rights advocate from the Candle Light Group, a community-based
organization in Dawei district, told The Irrawaddy that local villagers and organizations
are against the project because of its anticipated effects on local inhabitants of the six
villages and surrounding farmlands.
“The government granted 5,000 acres to them [Myanmar Mahar Dahna]. But now
villagers are against the project. They don’t want to lose their lands and villages. We
are trying to speak out against it in advance, before the company brings their machines
and destroys everything,” said Paw Say Wah.
Locals say there are about 500 villagers living in the six villages that will initially be
affected by the rubber plantation.
According to documents obtained by The Irrawaddy, the office of the Tenasserim
Division government granted permission to Myanmar Mahar Dahna Co. Ltd. to cultivate
5,000 acres of rubber trees in the project’s preliminary phase.
A senior official at Myanmar Mahar Dahna on Wednesday confirmed that local
authorities had granted permission to begin developing the 5,000-acre plot. He added
that the company was ready to start clearing land, but has not yet started the work due
to local opposition to the project.
“We stand with civilians. We planned to establish the business in order to help local
people. Most of them are ethnic Karen and they are very poor. We will provide work
skills for free. When the project happens, we will even provide them with jobs and
salaries,” said the senior company official, who asked for anonymity.
“We are ready to start the project, but we still have to deal with local people to manage
their opposition to our project. So, we are holding off on the project,” said the official.

61. 6/14/2017 Villages, Residents Stand in Way of Rubber Farm in Southern Myanmar
https://www.irrawaddy.com/news/burma/villages­residents­stand­way­dawei­rubber­farm.html 4/11
He denied local villagers’ assertion that there are six villages located within the 5,000
acres of the project’s first phase.
“There are no villages there. It is virgin land. … We will discuss it with local villagers,”
said the official, adding that Myanmar Mahar Dahna was not like other companies that
conduct their business operations without considering the will of local people.
The official also said that the company planned to operate the rubber plantation with
the aim to support Burmese refugees and internally displaced people (IDPs), should
they decide to return to the area amid ongoing negotiations between the government
and ethnic Karen rebels. A significant portion of the populations in Burma’s ethnic
regions have been displaced over the course of decades of civil war.
Myanmar Mahar Dahna applied for the 50,000-acre concession in Tenasserim Division
and signed a joint venture agreement with Thai Hua Rubber Holdings, a company that
operates rubber plantations and manufactures rubber-based products in Thailand.
According to the ethnic media outlet Karen News, Myanmar Mahar Dahna also plans to
construct an antimony processing plant in southern Karen State’s Hlaing Bwe Township.
As economic and political reforms have opened Burma up to unprecedented domestic
and foreign investment, development projects have mushroomed across the country,
often resulting in land disputes.
Both the Thai and Burmese governments have ambitious plans for Tenasserim Division,
where the multi-billion dollar Dawei special economic zone (SEZ) is envisioned. The
project, which will include a deep-sea port and industrial park, would better link
Thailand and Burma, but has struggled to attract investment.

62. 6/14/2017 Villages, Residents Stand in Way of Rubber Farm in Southern Myanmar
https://www.irrawaddy.com/news/burma/villages­residents­stand­way­dawei­rubber­farm.html 5/11
Topics: Agriculture, Development, More
Saw Yan Naing
The Irrawaddy
Saw Yan Naing is Senior Reporter at the English edition of The
Irrawaddy.
Burma
Burma’s Frontier Appeal Lures Shadowy Oil
Firms
By WILLIAM BOOT 9 May 2015
While the major non-American Western oil companies adopt and wait-and-see policy
and US firms remain barred by Washington’s sanctions, shadowy oil enterprises are
gaining footholds in Burma.
Among firms which have recently won licenses to explore for oil and gas are little-
known businesses based in Panama, Nigeria and Azerbaijan—countries where
corporate accountability can be murky.
Not only does the bidding process remain opaque, the pedigree of some of the
participants is too.

63. What Future for the
Rubber Industry in Myanmar?
The global demand
for land
The world is currently witnessing the
fastest-growing commercial pressure
on land in history. The past decade
has seen at least 49 million hectares
of land in developing countries
leased out by global investors1
and agriculture is leading the way,
accounting for approximately 79 per
cent of targeted investments.2
In a
world experiencing food insecurity
and unprecedented resource scarcity,
this interest in farmland is set to rise.
This is especially true for developing
countries in which land deals are
often done under the guise of
‘national development’. The impacts
on the ground, however, have been
millions of people pushed off their
land and deeper into poverty and
the mass destruction of some of the
world’s last intact forests. This is
causing widespread loss of livelihoods
and food insecurity among rural
communities, as well as irreversible
environmental devastation.
In South East Asia, large-scale
rubber plantations are one of the
main drivers of ‘land grabs’ and
deforestation. Land deals don’t
need to happen this way – there is
significant evidence to show that
investing and supporting smallholder
farmers brings lasting economic,
social and environmental benefits.
Smallholder farming by its very nature
means that there is less potential for
land conversion and therefore greater
maintenance of agricultural and wild
biodiversity. Studies have consistently
found that where smallholder farms
adopt integrated cropping systems
that promote biodiversity, both
livelihoods and the environment
benefit from a more resilient and
organically regulated system.3
Leaders across the world face a
choice in how their countries develop,
including the Myanmar government.
This paper aims to place Myanmar in
the wider context of this global ‘land
grab’. It focuses on the development
of the country’s rubber production
and makes recommendations for
how the sector could progress
differently to bring greater benefits.Latex being collected from a rubber tree, also known as ‘tapping’. © Global Witness
March 2014

64. What Future for the Rubber Industry in Myanmar?
Background to political
reform in Myanmar and
the impact on foreign
direct investment
Myanmar is currently going through a
political reform process which has the
opportunity to chart a new course for
the country after more than 60 years
of civil war. Political and economic
policy changes have increased
foreign investment and private sector
involvement in the country.
Officially, poverty reduction has
been at the core of Myanmar’s
economic reform package. In
particular, stimulating massive foreign
investment in agriculture is one of
the government’s main strategies to
achieve poverty reduction.4
The last ten years has seen domestic
companies in Myanmar investing
heavily in land.5
However, as the
country becomes more locked-in to
global markets, intensification of
agricultural investment promoted
on such a large-scale could lead to a
surge of foreign investment in land,
bringing the same negative impacts
to Myanmar that it has elsewhere.
This could not only destroy one
The majority of Myanmar’s population rely on land and forests for its livelihoods. © iStock
of the most important remaining
ecosystems in the world but harm an
already vulnerable population.
Areas with valuable natural resources,
such as minerals, hydropower, oil
and gas, have been targeted by both
state and private investors.6
Now land
itself is increasingly the commodity
of choice for investors. As the peace
process continues and new rounds
of ceasefire agreements are signed
between the government and armed
ethnic opposition groups, more
resource-rich areas will be opened
up to resource extraction fuelled by
foreign investment.
The negative risks that large-scale
land investments pose are great. The
majority of people in Myanmar live
in rural areas and rely on farmland
and forests for their daily needs and
livelihoods – they make up nearly
three-quarters of the population, or
around 40 million people.7
Poverty
is around twice as high in rural
than urban areas, accounting for
almost 85 per cent of total poverty
nationwide.8
Agriculture contributes
around one third of the country’s
GDP and 15 per cent of total export
earnings.9
It also employs over 60 per
cent of the nation’s labour force.10
Myanmar is also one of the world’s
most ethnically diverse countries
– ethnic minorities make up an
estimated 30-40 per cent of the
total population and ethnic states
constitute 57 per cent of the total
land area.11
Most of the people
living in these areas are subsistence
farmers practicing taungya – a form
of shifting cultivation practiced by
smallholder farmers predominantly
in the uplands.12
Due to a host of
reasons, primarily related to on-
going civil war, it is estimated that
at least one-quarter of all farmers
in government-controlled areas
in Myanmar are now landless.13
2

65. What Future for the Rubber Industry in Myanmar?
In addition to this, about half of
the household farms which do
exist in these areas are less than
5 acres, which is below minimum
subsistence levels.14
Landlessness
is therefore already a serious and
growing problem throughout
Myanmar.15
Now the threats to
land tenure, forests and ecosystems
could increase because of the
Myanmar government’s policies to
expand agribusiness in which rubber
cultivation is central.
Asia’s natural rubber
boom: is Myanmar the
‘final frontier’?
South East Asia has experienced
a rapid growth in the production
of natural rubber over the past
decade, with Myanmar no exception.
Demand is likely to increase, with the
International Rubber Study Group
(IRSG) predicting that by 2020,
global demand for natural rubber will
outpace supply by as much as 1.4
million tonnes – equivalent to a 10
per cent gap.16
Rubber has been cultivated in
Myanmar since the early 1900s,
primarily in Mon State.17
Such
‘traditional’ rubber growing areas
mostly comprise smallholder rubber
farms which have provided sustainable
livelihoods to local communities.
These smallholders have been able to
make a lucrative living from rubber-
tapping all year round for several
reasons. Firstly, is the fact that these
small farms are owned and operated
by families themselves, providing
self-employment but resulting in
low labour costs. Secondly, rubber
plantations are profitable, even when
international prices are relatively low
because they entail such low costs and
workloads during the tapping phase.18
The income earned from selling the
latex in turn contributes to both food
security and poverty reduction. Finally,
the resilience of rubber trees, their
long life-span (30-40 years) and year-
round tapping ensure a long-term
stable income for farmers.19
However, two patterns of expansion
in Myanmar have emerged. Over the
past decade, a new ‘non-traditional’
frontier area is being targeted for
plantation development. This has
been led by the government which
has helped expand the country’s
rubber sector through partial
agricultural liberalisation. Official
policy has shifted from relying on
small-scale farmers to reach national
agricultural production quotas to
using private companies to achieve
national targets.20
As such, rubber
has now expanded into northern
Myanmar in Kachin State and
northern and eastern Shan State.
Large-scale plantations are sweeping
across the hills in areas that were
formerly taungya fields.21
Secondly,
in the past few years, new areas
are being targeted by large-scale
rubber concessions, this time near
to where smallholder rubber farms
already exist, reducing their access
to land and natural resources. This
can already be seen in areas such as
Rakhine State, Mon State, Kayin State
and northern Tanintharyi Region.22
In both models of expansion, these
concessions are allocated in areas
that the government has defined as
‘wastelands’, often in the uplands.
But far from being wastelands, the
areas, in fact, are often farmed by
local households as taungya plots.
As a result, large-scale rubber
concessions are threatening the
livelihoods of local farmers by
undermining food security and access
to natural resources in forests and
farmland.23
With the suspension of
sanctions and Myanmar opening up
for the first time to global investors,
far from bringing progress this
agricultural investment model risks
exacerbating poverty levels and
increasing deforestation.
Total rubber acreage in Myanmar has
now reached 1.43 million acres24
and
Myanmar ranks ninth in the world,
according to the Myanmar Rubber
Planters and Producers Association
(MRPPA), in terms of rubber
production. The majority of exports
go to China. According to MRPPA,
nearly two-thirds of the total rubber
cultivated comes from Mon State.25
But production levels of rubber across
the country are low considering the
area of rubber planted. This is partly
due to the poor quality of the rubber
trees and tree management which
has resulted in low productivity. It is
also due to agricultural concessions
often being a significant source
of ‘conversion timber’ which may
result in some companies simply
abandoning the concession following
forest clearance.26
Across South East Asia, latex is known as
‘white gold’. © iStock
3

66. What Future for the Rubber Industry in Myanmar?
Law
Responsible
Government Agency Aim Area requiring clarification
Vacant, Fallow
and Virgin Lands
Management Law
(VFV Law) 201230
Government’s Central
Land Management
Committee (LMC) chaired
by the Minister of
Agriculture and Irrigation
(MOAI)31
To convert ‘vacant, fallow
and virgin land’ into
agricultural industrial
estates (Chapter 3,
Article 4.)32
• As very few farmers have official land title certificates, most
farmers have no formal land use rights under the VFV Law. Those
without title are thereby classified as ‘squatters’, leaving them
vulnerable to losing their land to concessions.33
This is due to the
fact that under the VFV law, the LMC can allocate land used by
smallholders (both upland taungya land and lowlands with no
official land title) to domestic and foreign investors.34
Farmland Law
201235
Farmland Management
Body (FMB), a line agency
within the MOAI and
chaired by the Minister of
the MOAI36
To secure rural land
tenure through a land
use certificate and
registration system
(Chapter 5, Articles 15a.
and b.)37
• Land can be legally bought, sold and transferred on a land market
but the process is problematic as it only applies to those with land
use titles – which accounts for only a minority of the population.
It therefore leaves those who don’t have an official land use title
without legal rights or protection, meaning their land can easily be
sold-off to investors.38
• Land use certificates can be issued to farmers by Farmland
Administration Bodies (FAB) but the process for this is unclear, as
are the government bodies responsible.39
Decisions made by the
FAB are outside judicial processes. This removes farmers’ right
to appeal.40
It can therefore be argued that any project deemed
to be in the ‘national interest’ can be pushed forward without
question.41
Foreign
Investment Law
201242
Myanmar Investment
Committee (MIC) under
the Ministry of National
Planning and Economic
Development (NPED)43
Provides framework for
and guides foreign direct
investment into Myanmar
(Chapter 6, Articles 11 a.
and b.)44
• Has deemed the agriculture sector ‘restricted’ for large-scale
(private) investments, along with other sectors such as toxic waste,
livestock and fisheries. These ‘restricted’ sectors carry additional
but ambiguous environmental and social precautions.45
This
ambiguity around the restrictions creates a potential loophole for
damaging activities to be approved. What’s more, if a project is
deemed ‘beneficial’ to citizens then it may gain approval from the
Myanmar government and therefore override these restrictions.46
• Land use rights for concessionaires can last for up to seventy
years47
which, if for agricultural investments, contradicts with
the former VFV law. Under that, the total acreage that can be
leased for industrial crops is 50,000 acres for a 30 year period.48
Longer leases can be obtained under the FIL if the investor
gains permission from the Myanmar Government.49
This further
exacerbates the inequalities surrounding land tenure in Myanmar.
Tenure security provided under
Myanmar law is weak. This is partly
because the Government retains
ultimate ownership of all land, and
can rescind land use rights if the
conditions of use are not met.27
It
also results from the fact that, unlike
some other countries, collective and
customary tenure rights are not
fully recognised in law.28
Over the
last few years, several key laws have
been passed as part of the agrarian
transformation from rural subsistence
farming to an industrial cash-crop
economy. However, these new laws
have been criticised for potentially
undermining land rights in the ways
outlined in the table below.29
Latex being stored prior to processing, Cambodia 2013. © Global Witness
4

67. What Future for the Rubber Industry in Myanmar?
As a consequence of the above, there
are serious concerns that these new
laws governing land concessions
could put communities under real
threat. Ethnic communities living
on the uplands are particularly at
risk. The targeting of their land for
rubber plantations could exacerbate
insecurity of land tenure and
access to food for the majority
of Myanmar’s population who
rely on their land and forests for
their livelihoods. Consequently,
the new laws could be interpreted
as benefiting the private sector,
particularly large foreign investors,
at the expense of the country’s
smallholder farmers.
The Ministry of Agriculture and
Irrigation (MOAI) has produced a 30-
year Master Plan for the Agriculture
Sector (2000-01 to 2030-31). The
development plan lacks detail but
states that the government aims to
convert 10 million acres of ‘wasteland’
for private industrial agricultural
production.50
However, no official
national land-planning process has
been produced to help form decisions
around land use. In addition, the
government also has a 30-year plan
in the same timeframe to obtain
1.5 million acres of planted area of
rubber in the country, and the capacity
to produce nearly 300,000 metric
tonnes (MT) per annum.51
This target
is expected to be reached earlier than
expected: the area planted has already
reached 1.4 million acres and the
production target is predicted to be
met in 2025.52
Myanmar is not alone in this
surge of investments into rubber
plantations. Smallholder rubber
farmers have taken a central role in
global production historically, but the
last few years has seen a new wave
of rubber investors acquiring large
swathes of land in the neighbouring
‘frontier’ countries of Cambodia and
Lao P.D.R. These investments have
had devastating consequences for
both countries’ people and forests.
The negative impacts that both
countries are experiencing should
act as a grave warning of what
happens when governments ignore
social, environmental and governance
safeguards. In this respect, what
lessons can Myanmar learn from
Cambodia and Laos?
Cambodia and Laos:
What lessons can
Myanmar learn?
Cambodia and Laos are in the middle
of a land-grabbing crisis.53
Vast tracts
of land are being leased out by both
governments for rubber plantations
with disastrous consequences
for local communities and the
environment. The negative impacts
are hard to overstate: often the
first people know about a company
being given their land is when the
bulldozers arrive. Families affected
are impoverished, face food and
water shortages and get little or no
compensation. Indigenous minority
peoples’ spirit forests and burial
grounds have been destroyed. When
they attempt to complain or resist,
communities face violence, arrest and
detention. In both Cambodia and
Laos, land investments are governed
by legal safeguards intended to
ensure national economic benefits
and prevent negative environmental
and social impacts. As in Myanmar,
the majority of the population in
both countries are rural subsistence
farmers and agricultural investment
is urgently needed to tackle
poverty levels. But instead of their
governments promoting investments
in small holders, corruption and
vested interests have meant that
communities’ needs have been
consistently neglected in favour of
leasing out huge tracts of land to the
private sector.
In Laos, no official government
statistics are available for the total
land acquired by domestic or foreign
investors. A recent government
estimate stated approximately
2.7 million acres has been given
out in land concessions alone.54
This is equivalent to 5 per cent of
national territory or 18 per cent
more than the total arable land in
Laos.55
It is estimated that rubber
accounts for 34 per cent of total
Community land cleared for a rubber plantation in Cambodia. © Global Witness
5

68. What Future for the Rubber Industry in Myanmar?
to ensure more equitable and
sustainable use of its natural
resources and to protect the rights of
smallholders and indigenous peoples
to access land and forest resources.61
However, the implementation of
these laws is weak and completely
undermined by Cambodia’s corrupt
political and business elite. Land
has become the latest example of
how Cambodia’s valuable natural
resources have been captured by
those in power growing spectacularly
rich while one third of the population
lives on less than US$0.61 a day.62
The problem is exacerbated by the
fact that millions of Cambodians do
not have secure titles to their land.
The consequences have been the loss
of significant areas of land for local
communities across the country due
to an expanding encroachment of
rubber and other land concessions,
with an estimated 700,000
Cambodians adversely affected.63
Protests against the rapid rise in land
concessions have become increasingly
common and violent: in 2012 the
Government of Cambodia arrested
twice as many people during housing
and land disputes as in 2011.64
Furthermore, land disputes factored
highly in the 2013 general election
allocated concessions.56
However, the
expansion of an existing but small
rubber industry in Laos has happened
only in the last decade. The
promotion of rubber was intended to
act as a modest supplemental cash
crop to enhance livelihoods of upland
farmers.57
In reality, it has grown into
a rapidly expanding agro-industry
that is becoming tainted by mounting
concern over a lack of government
regulation and controls.58
Due
to the immature nature of the
industry, government officials in
Laos have relied on external inputs
of knowledge and investments from
state and private entrepreneurs from
neighbouring countries, particularly
Vietnam and China. This has
triggered a huge and sudden increase
in rubber planting with little planning
or monitoring taking place.59
In Cambodia, rubber plantations
cover 2.9 million acres and make
up 80 per cent of total land
concessions.60
Since 2001, the
Royal Government of Cambodia
has introduced new laws governing
land and forest resources, as well
as specific legislation for land
concessions, community forest
management and registering
indigenous peoples’ collective
titles. These measures are intended
and subsequent protests against
the ruling Cambodian People’s
Party.65
These demonstrations have
continued into 2014 and were met
with excessive use of force by the
authorities, resulting in the deaths of
several civilians.66
A shroud of secrecy also plagues the
allocation process, which involves
an almost total lack of community
consultation and varying degrees
of coercion. Local communities
are offered wholly inadequate
compensation for loss of land and
resources and more often than not
receive nothing. The government’s
land concession model has attracted
significant international criticism, as
illustrated by a statement from the
United Nations Special Rapporteur
on the situation of human rights
related to economic and other land
concessions in Cambodia, Professor
Surya Subedi
“The current climate of development
(in Cambodia) is characterized
by low transparency and uneven
access to information, inadequate
consultation, and participation which
is not inclusive, and, in my view, is
unsustainable and likely to hamper
future economic growth.”67
In addition to the devastating
negative social and environmental
impacts, such investments carry
significant corporate risks for
companies. Due to escalating land
disputes, on 7 May 2012, the
Cambodian Prime Minister Hun Sen
announced a moratorium on the
granting of new land concessions
and a review of those already in
existence. The stated intention of
this programme was to issue over
700,000 land titles to communities
on more than 2.4 million acres of
land before the July 2013 general
election.68
By January 2013, 617,000
acres of land had reportedly been
Cambodians protesting in Phnom Penh against a ‘land grab’ are met with force by the authorities. © Global Witness
6

69. What Future for the Rubber Industry in Myanmar?
removed from private investors’
economic land concessions and
returned to local people, thereby
undermining Cambodia’s legitimacy
as an investment destination.69
Deforestation is also a major problem
in both Cambodia and Laos. Investors
appear to have deliberately targeted
protected areas, with over 70 per
cent of the concessions given out in
2012 in Cambodia situated inside
national parks, wildlife sanctuaries
and protected forests.70
According to
recent data, forest cover in Cambodia
fell from around 72 per cent in 1973
to only 46 per cent in 201371
and
satellite imagery demonstrates that
land concessions have significantly
contributed to the loss of intact
forest.72
In Laos, forest cover has
also declined rapidly. Despite the law
allowing only ‘degraded’ forest to
be allocated as concessions, across
the country intact forest is giving
way to industrial-scale plantations
at an unprecedented rate.73
Forest
cover has fallen from 70 per cent to
just 40 per cent of total land mass
over the last 50 years, according to
official statistics.74
This rapid forest
loss has dire longer terms impacts on
soil erosion and watersheds, loss of
biodiversity and ecosystem services.
The corporate risks associated with
investing in land where tenure rights are
unclear are very real. A 2012 report by
The Munden Project analysed the financial
costs associated with ignoring the issue
of tenure in land investments.75
The report
demonstrated that the financial risks posed
are numerous and range from unexpected
cash flow loss due to suspensions, to
seizure of assets following the loss of
insurance coverage.76
The escalation of risk
can be extremely rapid and irreversible. The
report concluded that the average global
operating costs of a three-year investment
of around USD$10 million could be as
much as 29 times higher if the project was
forced to stop its activities because of local
opposition.77
The Munden Project published a further
assessment in 2013 of ‘land tenure risk’ as
a specific threat to corporate investments.78
Using geospatial data from 12 emerging
market economies, including Cambodia,
the analysis highlights the problem of
overlapping land claims diminishing the value
and viability of industrial concessions.79
The
study concludes that “industrial concessions
on public lands representing 31% of the
total hectares sampled had some overlap
with a demarcated local territory”.80
This
demonstrates to investors that such risks are
already being realised and highlights the
need for feasibility studies and consultation
with local communities prior to securing a
land acquisition.
This matches Global Witness’ own
experience. In May 2013, Vietnam’s
largest rubber company, Hoang Anh
Gia Lai (HAGL), was exposed by Global
Witness for a range of environmental and
human rights abuses in the company’s
plantations in Cambodia and Laos in the
report, ‘Rubber Barons: How Vietnamese
companies and international financiers are
driving a land grabbing crisis in Cambodia
and Laos’.81
Within 48 hours of the release
of the report, HAGL’s share price dropped
by 6 per cent, attributed by some media
reports to the exposé.82
The company has
since experienced consistent pressure
from investors to bring its operations
in line with the law, work directly with
local communities to solve disputes and
settle compensation claims, and publicly
disclose details of its concessions. Some
investors withdrew their funds from HAGL
altogether due to the associated risks with
the company.83
At the time of writing,
communities affected by HAGL’s operations
in Cambodia had submitted a complaint
against the company to the International
Finance Corporation, which invests in HAGL
through a Vietnamese equity fund.84
The financial risks to governments and investors of large-scale rubber concessions
Satellite imagery showing deforestation between 1973 and 2013, including in areas protected by Cambodian law. Cambodia has the fifth highest
deforestation rate in the world. © Open Development Cambodia
7

70. What Future for the Rubber Industry in Myanmar?
Small-scale agriculture provides a stable
livelihood for many Burmese farmers. © iStock
Investment in land and agriculture
provides an opportunity to tackle
poverty and boost national economic
development. But these can only
be achieved if governments and
companies stop prioritising large-scale
private investments that lock them
into weak relationships with volatile
international markets, over investment
in local sustainable livelihoods
which leads to genuine national
development. For investments in a
high-risk sector such as land, several
sets of international guidelines exist
to help governments and companies
invest in an environmentally and
socially responsible way:
• Directly responding to the social
problems that such investments can
cause, in 2011, the United Nations
Human Rights Council endorsed the
‘Guiding Principles for Business
and Human Rights’.85
These
emphasise the responsibility to protect
and respect human rights of both
companies and governments, and
include extra-territorial obligations on
those operating across borders.86
• The following year, the Voluntary
Guidelines on the Responsible
Governance of Tenure of
Land, Fisheries and Forests
in the Context of National
Food Security were adopted
by the UN Committee on Food
Security (CFS).87
This is the first
international standard defining
best practice for the way in which
human rights, land and natural
resources inter-relate. They include
strong provisions on consultation,
customary rights, land reform and
how investment in agriculture must
prioritise smallholder production.
Since adopting the Voluntary
Guidelines, the CFS is now working
on an aligned set of principles for
responsible agricultural investments.
Guidelines are also being formed
for the global rubber industry with
the establishment of a ‘Sustainable
Rubber Initiative’ which, although
still at its early stages, was endorsed
by the rubber industry at the World
Rubber Summit in Singapore in May
2013. Recognising the potential social
and environmental impacts of rubber
plantations, the aim of the initiative
is to define a set of sustainability
standards for rubber production which
will be implemented by all industry
stakeholders along the supply chain.
Additionally, some tyre companies such
as Michelin have also recognised the
need to minimise the risks associated
with sourcing natural resources,
including natural rubber, and have
independently developed company
sourcing policies which are applied
throughout their supply chain.88
8

71. What Future for the Rubber Industry in Myanmar?
Thailand is the largest producer of
natural rubber in the world, producing
3.5 million metric tonnes, nearly a third
of total global output during 2012.89
The country only consumes 10 per cent
of its natural rubber domestically, with
90 per cent of production for export.90
The vast majority of Thailand’s rubber
is produced by smallholdings, which
accounts for almost 90 per cent of rubber
production and provides a livelihood for
thousands of households.91
For the last
decade, the government of Thailand has
promoted Rubber Integrated Livelihood
Systems (RILS), a programme through
which smallholders have diversified to
combine rubber farming with livestock,
fruit, fisheries, rice and other crops.92
RILS
provides higher household incomes than
that of rubber monocrop systems alone,
whilst also ensuring the sustainability
and resilience of household livelihoods.93
Given that in rubber cultivation, the costs
of production are not necessarily reduced
through investment in bigger plantations,
RILS guarantees economic security for
farmers, dynamic production for markets,
and less industrialized exploitation of the
natural environment.
The Thai government also provides subsidies
for local farmers who, as a result, are able
to produce high quality rubber. Almost 50
per cent of Thailand’s natural rubber is of a
quality high enough to meet the domestic
certification standard.94
This is predominantly
used to make car tires and is therefore able
to serve the export market. The remaining
half of Thai rubber produced is used for
lower quality products. Although ongoing
political unrest has recently impacted upon
the country’s rubber sector over the longer
term,95
Thailand’s production of natural
rubber is expected to increase.96
Case Study one for sustainable rubber: Thailand
Sustainable agriculture,
sustainable rubber
The commercial rush for land in
recent years has pushed forward
an often polarised debate around
small-scale versus large-scale
agriculture, particularly in the wider
context of food security.97
Some
have stated that large farms are
more efficient and benefit from
easy access to markets.98
Two
recent reports by the UN, however,
have concluded that a shift to
supporting smallholder farmers, as
well as a more holistic approach to
agriculture, is the only way to tackle
food security, sustainable land use
and climate change.99
In practice, subsidies and tax systems
often favour large-scale, export-
dependent farms and have locked
countries into serving fluctuating
international markets.100
In some
cases this has been at the price
of small farms and the families
supported by them. Smallholders
have often been ruined by industrial
commodity producers who have
banked big profits and left taxpayers
to pick up the tab for a degraded
environment.101
However, small-
scale farming is an efficient and
resilient mode of production. Small
farms are often more productive
than their larger counterparts: due
to the fact they are often directly
run by the owners themselves,
they are able to self-manage their
labour, consequently leading
to a higher output per hectare
than large farms.102
Overall, it is
estimated that approximately 450
million smallholders feed around
2 billion people worldwide.103
In
contrast, although large commercial
agribusiness companies tend to have
greater success in market integration,
they often do not involve local
farmers.104
In addition, their tendency
to focus on specific crops – often
large-scale monocultures – and
dependency on specific economic
conditions means they have difficulty
in adapting to changing markets and
prices.105
Studies have also shown
that a more equitable distribution
of land leads to higher rates of
economic growth and helps to
ensure that growth is more beneficial
to the poor, due to communal
labour opportunities provided by
small-scale farming in rural areas.106
What’s more, smallholder income
can be between two and ten times
higher than the income from wage
employment.107
Large-scale monocrop plantations
also impact on biodiversity and
result in the loss of environmental
services such as carbon storage,
forest products, water sources and
soil fertility.108
Furthermore, the
lack of biodiversity and associated
vulnerability to disease and pests
makes necessary the input of large
quantities of chemical pesticides
within the concession. Pesticide-use
can have damaging effects on both
human health and can poison both
wildlife and water sources used by
local communities.109
To conclude, there is little evidence to
suggest that large-scale plantations
are needed to improve or ‘modernise’
agriculture. There is, however, a
wealth of evidence demonstrating
the benefits of small-scale agricultural
production, including rubber.
9

72. What Future for the Rubber Industry in Myanmar?
India is the fourth largest producer of
natural rubber globally.110
The rubber
sector in India is dominated by small
holdings which account for 92 per cent
of production and 89 per cent of the area
of rubber in the country.111
In the 1960s,
the Rubber Board of India helped support
the organisation of district-level rubber
cooperatives through both organisational
and financial support.112
For example,
in Kerala, these cooperatives helped to
improve the efficiency and productivity of
rubber smallholder systems, enabling them
to achieve a lower cost of production and
better prices for their products compared
to non-members.113
Furthermore, rubber
growers adopting a group approach were
able to produce superior grades of rubber
due to training from the Board and the
provision of facilities for processing good
quality rubber.114
Growers were also more
likely to adopt new technologies due to
financial support from the Rubber Board
as well as the strengthened bargaining
power that comes from being part of a
co-operative.115
Rubber production in India has stayed
stable for the last decade, in part reflecting
the strength of the country’s production
model. Although trade data is not
commonly available, the general trend is
for the majority of rubber produced to be
consumed domestically by India’s growing
car industry, only exporting natural rubber
when the price on the international market
is higher than the domestic.116
The case of India shows that rubber
cooperatives can have a significant positive
impact on the costs of inputs, processing
and marketing when compared to farmers
who do not engage with the cooperative
model. This highlights the importance of
rubber cooperatives receiving institutional
support from the government; helping
to overcome the challenge of increasing
the economic performance of members,
whilst maintaining their own financial
solvency. Such results can be achieved
through efforts to professionalise
cooperatives, providing sound legal
frameworks around cooperatives and
through providing enough autonomy such
that cooperatives are able to decide their
own organizational structure.117
The benefits of
smallholder rubber
In the main rubber producing
countries, smallholder production
dominates the natural rubber
industry: smallholder produce 93 per
cent of rubber in Malaysia, 90 per
cent in Thailand, 92 per cent in India
and 85 per cent in Indonesia.118
An
historically successful smallholder
cash crop, rubber carries potential for
smallholder farmers for a number of
important reasons:
1. Economic resilience and food
security: Natural rubber can easily
be planted with other cash crops
providing a more diverse source of
income for farmers. Rubber can also
play an important role in a wider
agro-forestry system – also known
as ‘jungle rubber’119
– which has
emerged as a resilient system in
the traditional rubber-producing
countries, both environmentally and
economically.120
Integrating rubber
into such wider farming systems can
both increase household incomes and
provide resilience to market volatility.
In one research project in Indonesia,
agroforestry was perceived by local
farmers as the most important use of
land compared to both monoculture
and simpler rubber crop systems as
it could provide a range of sources
of income and food.121
Further
research in Indonesia showed that
smallholders in the country combine
rice and rubber production with
rubber meeting the need for market
goods whilst rice meets subsistence
needs. This provides smallholders
with flexibility: farmers tend to
abandon rice cultivation when rubber
prices are high but return to it during
economic downturns.122
2. Increased growth and
productivity: Inter-cropping of
certain crops with rubber canRubber tapper in Kerala. © iStock
Case Study two for sustainable rubber: India
10

73. What Future for the Rubber Industry in Myanmar?
improve the performance of rubber
trees. This is due to nitrogen inputs to
the soil from particular crops which
help boost the growth of the trees.123
One study in China also shows that
rubber trees actually yield more when
grown with other crops than on its
own in a monoculture plantation.124
This is because fertile topsoil can be
lost due to erosion because of mono-
cropping, leading to lower yields
overall and over time.125
3. Poverty alleviation: If given the
right technical and financial support,
smallholder rubber, and particularly
rubber agroforestry, can provide a
stable livelihood for local farmers.
Smallholder income is greater than
the wages earned by farmers working
as labourers in a concession model.
In addition, planting rubber with
other crops can provide food and fuel
for domestic consumption, as well as
other cash commodities on a shorter
term basis.126
4. Environmental and biodiversity
protection: In South East Asia,
large areas of rich biodiversity have
been put under great pressure from
the establishment of plantations,
including rubber.127
Monoculture
plantations have a particularly
detrimental effects on species
diversity and ecosystems – a shift
to small-scale and more diverse
rubber systems could reduce these
impacts. Species diversity is higher
in agroforestry rubber systems than
monocultures and studies have
concluded that agroforestry systems
can play an important role in the
conservation of primary
forest species.128
Rubber plantations have recently
been brought into the debate
around carbon sequestration and the
incorporation of rubber into carbon
markets.129
It should go without
saying that rubber, or indeed any
other plantation, cannot be deemed
as ‘carbon positive’ – that is a
sequester of carbon – if it is replacing
intact natural forest. In addition,
recent studies in one paper have
looked at the relationship between
the replacement of taungya fields
with rubber in terms of carbon
sequestration in the context of global
REDD (Reducing Emissions from
Deforestation and Degradation)
policies. This is in part due to the
fact that taungya fields are often
perceived to be degraded and
inefficient with regards to carbon
sequestration.130
The authors of the
paper found that taungya in some
cases may be carbon-neutral or even
carbon positive, compared with some
other types of land-use systems.131
The study concluded by highlighting
the uncertainties surrounding carbon
stocks in various forms of land-use
and stated that it is ‘impossible to
predict accurately the extent that
REDD policies involving swidden-
rubber transitions will ultimately
increase carbon sequestration’.132
Thailand
Malaysia Malaysia
Indonesia
India
Burmese Shrike Lanius collurioides. Habitat protection is crucial for the survival of Myanmar’s unique
flora and fauna. © iStock
Key
Natural rubber produced by
smallholders domestically
Natural rubber produced by
large-scale plantations domestically
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
10093% 92%
7% 8% 15%
Malaysia India Indonesia Thailand
10%
85% 90%
11

74. What Future for the Rubber Industry in Myanmar?
however, merely go to show what
happens when vested interests are
prioritised over genuine national
development.
Drawing upon the experiences of
Thailand and India, it is clear that
smallholder rubber production is a
viable and effective model to move
households and communities out of
poverty. Farmers can better manage
their lands productively if their tenure
and user rights are legally recognised
and they are given the right technical
and financial support.135
On the
other hand, externally-imposed,
large-scale policies such as the
commercial estates being established
in Cambodia and Laos negatively
affect smallholders and the country
overall.136
Even when laws and
policies have been drafted that
could assist smallholders to maintain
control of their land and invest in
commercial crops, lack of capacity
and conflicting vested interests from
government officials in both countries
Conclusion and
recommendations
The governments of the largest
rubber producing countries globally
(Thailand, Indonesia, Malaysia and
India) have all deliberately introduced
policies to support smallholder rubber
production.133
As outlined above,
the reasons for this include on-going
progressive land reform policies in
the different countries, interest from
smallholders in establishing rubber,
and the interest of governments to
better control smallholder farms and
their production.134
Experts from the
main rubber producing countries
continue to push for investments
in smallholders in order to boost
both the livelihoods of local farmers
and productivity in order to meet
global demand. It is therefore well
recognised by successful producer
countries that the future of global
rubber production continues to
lie with smallholder farmers. The
examples of Cambodia and Laos,
have prevented these measures from
being implemented effectively.137
Consequently, in many communities
farmers are struggling to maintain
community land and forests in
the face of growing pressure
from investors and government
institutions to impose concession
arrangements.138
The international community is
poised to invest in Myanmar’s rich
natural assets. The government
currently stands at a crossroads with
regards to how it takes advantage of
such foreign investor interest. There
is growing demand, predominantly
from China, for natural rubber, and in
Myanmar this will continue to drive
a transition from traditional farming
systems to a landscape dominated
by cash crops, including rubber.
The future of smallholders is not yet
clear, but the decisions the Myanmar
Government makes now will impact
significantly on its people and
environment for many years to come.
Rubber plantation in Kerala. © Global Witness
12

75. What Future for the Rubber Industry in Myanmar?
On rubber production:
1. Promote and protect smallholder rubber
production. Support smallholder farmers through
technology and knowledge transfer, access to
processing points and other extension services.
Support and strengthen farmers groups in order
to help boost the productivity and quality of
Myanmar’s rubber sector;
2. Provide institutional support for rubber
co-operatives in order to improve the efficiency
and productivity of smallholders and, in turn,
secure greater commercial and economic benefits
for farmers;
On governance of large-scale land concessions
and land reform policy:
The following recommendations apply to all land
concessions, including rubber concessions. This
includes the Opium Crop Substitution Programme
(OCSP) and other programmes under which rubber
concessions are allocated and managed:
3. Establish an overarching national land policy which
serves the needs and rights of smallholder farmers
and guides, strengthens and aligns current laws
governing land concessions. The land policy should:
a. Reform and align the Vacant, Fallow and Virgin
Lands Management Law, the Farmland Law and
the Foreign Investment Law which govern rubber
and other agricultural concessions to ensure
that smallholder farmers, in particular ethnic
minorities, are protected and prioritised over
large private investors; and establish legal clarity
including definitions of key articles in the law;
b. Recognise and legally protect legitimate collective
and customary land tenure and user rights,
including taungya, across all laws. Adequate
safeguards should be put in place to ensure land
conflicts do not increase in the future;
c. Adopt and implement the Voluntary Guidelines on
the Responsible Governance of Tenure of Land,
Fisheries and Forests and to make these standards
legally binding;
d. Adopt the standard of Free, Prior and Informed
Consent as defined in the UN Declaration on the
Rights of Indigenous Peoples – to which Myanmar
is a signatory – for all communities potentially
affected by rubber and other agricultural
investments.
4. Undertake a participatory national land-use
planning process in line with national land policy in
order to develop a formal framework that guides
decisions about existing and future land allocation,
use, management and protection. This needs to
include recognition of collective and customary
land and user rights and identification of the areas
most agronomically and economically feasible for
rubber and other commodity production. Draft
land use plans should be made available for review
and comment by smallholder farmers, civil society,
government representatives, and the private
sector. Finalized land use plans should be made
freely accessible to the public and government
authorities, in all relevant languages;
5. Ensure that Environmental and Social Impact
Assessments are undertaken for all land
investments prior to contracts being secured
in order to prevent deforestation and other
environmental impacts, and prevent forced
evictions. Ensure such assessments are sufficiently
rigorous to prevent projects from going forward if
the negative impacts are too great. Harmonise such
assessments with existing environmental laws and
related regulation and ensure the results of such
assessments are made public;
6. Establish legal and judicial recourse for the
protection of land and user rights in order that
socially unjust decisions around the use of land may
be challenged by affected communities;
7. End all land acquisitions that do not offer
compensation to affected communities in line with
international standards;
Establish and enforce a moratorium on any
further large-scale land concessions until the
above actions have been taken.
Recommended actions for the Government of Myanmar
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