Southeast Asia's rubber producers brace for new EU rules

Discussion in 'Commodity Futures' started by lx008, Dec 18, 2023.

  1. lx008

    lx008

    The European Union (EU)'s rules aimed at stopping deforestation threaten widespread disruption for Southeast Asia's rubber sector, from Cambodia's 30,000 small farmers to major exporters in Thailand and Malaysia.

    The European Union (EU)'s rules aimed at stopping deforestation threaten widespread disruption for Southeast Asia's rubber sector, from Cambodia's 30,000 small farmers to major exporters in Thailand and Malaysia.

    The EU's deforestation regulation (EUDR) aims to ban imports of seven commodities, including cattle, cocoa, coffee, palm oil, rubber, soy and wood items, if they come from land that was deforested after December 31, 2020.

    Accordingly, companies dealing in such imports will have to provide "conclusive and verifiable information" mapping their supply chains, including geolocation data for where products were grown, to ensure products are compliant.

    Compliance will become mandatory in December 2024 for larger companies and in June 2025 for smaller enterprises.

    Critics said the concern for Southeast Asia is that these requirements will disproportionately hurt small farmers while failing to adequately address rubber's role in deforestation.

    Thailand, the world's biggest rubber producer and exporter, is attempting to get out ahead of the new rules. Regulators there have set up a national platform to help the country's more than 5 million farmers meet the impending traceability requirements.

    Producers in Thailand are also grappling with increased costs as sustainability becomes more of a concern for buyers and a legal requirement in more jurisdictions.

    Thai Rubber Latex Group Chairman Vorathep Wongsasuthikul said building a system to allow customers to trace their products' provenance would push production costs up by 10%.
     
  2. Peter8519

    Peter8519

    During the British colonial time in Malaya, Dunlop, Sime Darby and Guthrie were the big plantation owners. They did much of the clearing back then.
     
  3. maxinger

    maxinger

    Trivial and very poorly written news.

    China is the biggest importer of rubber.

    It is known there has been deforestation in Southeast Asia countries because farmers wanted to grow mainly palm trees.

    Rubber Supply is mostly more than demand.
    In such a case, the farmers will not bother to tap the rubber.
    And when there is sufficient demand, farmers will tap it.
    And farmers are wary of planting new rubber trees.
    They prefer to plant palm trees.



    The article is poorly written with lots of vital information missing.
    No wonder the writer doesn't dare to disclose his name!!!!
    Not all writers are the Subject Matter Experts.
    Is the OP the writer ?!?!?!?!
     
    Last edited: Dec 18, 2023
  4. lx008

    lx008


    the EUDR rules will be applied on palm trees as well,

    so maybe there could be some extra cost added to those tropical commodities.

    And yes, China doesn't like this EUDR idea as it could increase the cost of import goods
     
  5. d08

    d08

    The amount of clearing done then is nothing compared to what's going on now with modern methods.
    Also, UK isn't even part of the EU.
     
  6. mervyn

    mervyn

    this is where the sentence "f*k EU" made sense.
     
  7. d08

    d08

    Yes, let's chop everything down, start with the rainforests. Who needs them anyway...
     
  8. mervyn

    mervyn

    there are hundreds of thousands, if not millions in rubber industry. what's the substitution, two legs? i wouldn't give a rat's ass of what eu said.
     
  9. d08

    d08

    Irrelevant to the discussion. EU wants to avoid virgin forests being destroyed for plantations and it makes perfect sense.
     
    KCOJ likes this.
  10. mervyn

    mervyn

    kill auto industry first, start with vw.
     
    #10     Dec 19, 2023