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Home » Reader question » Reader question: What do rubber trees yield in Thailand?
Reader question: What do rubber trees yield in Thailand?
Dear readers,
I need some advice. I have 900 rubber trees in the Isaan 50 km from Mukdahan.
These are now 6 years old. When I ask my girlfriend how or what (income, costs, etc.) it is 'we'll see'.
Do you know how many kg a tree (I read between 1 and 5 kg) gives per week, what is the yield?
Where can you learn something about rubber trees in Thailand?
Regards,
Marc
hello i live in phan nga and have 1200 rubber trees myself the problem with rubber is if it rehends too much then you can't east you can east 5 times a week then the tree has to rest again and it has to rain because the tree has to bleed as they say
the yield from me was about between 4500 and 5000 bath per week
then you have to apply fertilizer once a year, then you cannot go east for 1 days
I myself think that plam yields more where in isaan do you live because it rains a lot in the rain session but it is too dry between Nov and May
greetings from ronald keijenberg
ps sorry for my dutch this is very backwards to my cva and tia
Hi Ronald. The statement of 4500/5000 Baht per week is that the yield of 1200 trees per week?. Greetings rebel
I've also heard amounts of around 5 baht per tree per week, but I don't remember whether that was net or gross. It will fluctuate a lot.
I'm sorry, but I don't understand why you're settling for your girlfriend's answer, "We'll see." It's a reasonable question, isn't it? Or she does know and then she doesn't want to tell you; or she doesn't know and then she can take you to someone who does or to the Agricultural Office, located in every town and a source for all information on all aspects of agriculture. They have a lot of information material, in Thai of course.
'We'll see' is typical Thai business.
We Dutch people would first calculate what exactly is possible and what the expenses are, etc.
Most Thais will try something first, if it pays off, if not they will try something else.
Then you have the ladies with a farang partner. They are going to try something, if it doesn't work and if it only costs money, they expect their partner to still maintain them and keep their business as occupational therapy.
Especially because of the last 2 items, I no longer cooperate in my girlfriend's own business. Looked at for 1 month (you don't know without trying...) But then stopped. Luckily it didn't cost more than a few thousand baht for rent and some stuff. Very sweet girl, but she doesn't know much about business, so if she is looking for occupational therapy, she just takes a job.
If I understand the law here in Thailand correctly, you cannot have your own company and you cannot have interests in companies in industries that are crucial to the Thai economy. One of those crucial industries is agriculture. Probably that's why all information is in Thai. But I would also be careful with sentences like: I have 1200 rubber trees, I have a rice farm. Even if you have that company together with a partner (usually your wife), those are dangerous statements….. Can cost you dear….
Hi Chris. Meanwhile, 1200 trees were turned into 900 trees. However.
Explain yourself. What is so dangerous about the phrase; I have . . etc ?
As far as I know Thai law, you can indeed have your own business in Thailand, also in agriculture and even if you are not Thai. As long as you please and comply with the Thai rules.
Hello Mark. The Thais are indeed interested in the proceeds. Thai women have already calculated the profit, even before the tree is planted. I also don't quite understand your girlfriend's answer on this one. rebel
http://www.samuiforsale.com/knowledge/thai-business-law.html.
Other websites may also tell you that a foreigner cannot own a business in Thailand. You can have a minority share in a company in which you work.
There are all kinds of contrived and inventive ways to keep control of the company even though you have a minority interest. I can assure you that when you have difficulties with your Thai partner, you always get the short end of the stick.
In addition, the Thai shareholder must be able to demonstrate where he/she gets the money to start that company. If that partner is not sufficiently able to do so (eg because she has no money at all) and has received it from the foreigner, everything can be forfeited.
Thailand wouldn't be Thailand if things couldn't be arranged or bought off with cash, but legally you don't have a leg to stand on.
Hi Chris. I just assume that you don't do business in Thailand? Andes, maybe your answer turned out something different? I know the BE 2542 report from 1999. There is also a current statement of expenditure almost the same in it. You can also read the -business law- report. Because there is already an exception described on the third rule.
If what you say is true, those many many foreign companies in Thailand run an incredible risk every day?. That applies to e.g. Samsung, Toyota, Mercedes, Nippon rubber, etc. etc. Or do they have a leg to stand on?
If a foreigner gives money to a Thai partner, can everything be forfeited? I have to admit I didn't know that yet. Then I assume that the Thai partner of e.g. Samsung, Philips or ABN-AMRO in Bangkok has won the necessary starting capital in the Thai lotto. rebel
G'day rebel,
the business law report?
Where can I find that report? If I understand you correctly, it is indeed possible to start something, also in the agricultural sector?!
Would like some more information on this if possible.
Hello Freddy. Please take a look at today's blog from chris van: October 5, 2013 at 11:56 am, just above mine.
Here is the link to: http://www.samuiforsale.com/knowledge/thai-business-law.html.
That link was not mine, but Chris's. I wouldn't dare adorn myself with strange feathers. (smile). Perhaps equally important was a blog, about 10 weeks ago. There a Dutch blogger gave a detailed report on how you can set up a LEGAL business in Thailand and still remain boss in your own toko. Maybe you should check with the Thailandblog editors for that older blog?. Good luck. rebel
Just read. There are exceptions to the rule. One of those exceptions is if the company makes a substantial contribution to the economy in Thailand, employs a large number of Thai employees, at the discretion of the government. That's what the multinationals you mention do.
It is NOT possible as a foreigner to have a business in rice cultivation and in the cultivation of some crops mentioned in the law. Rubber is not included, but orchids and livestock are. Always with a minority interest. I am quite sure that when the AEC comes into effect this will be much more closely watched because they want to prevent foreign companies from becoming too strong compared to Thai companies.
Wanted to start my own business in Thailand but decided against it. Too link. Lawyers advised against this. Look before you leap. A number of foreigners in Thailand have already lost a lot of money. And every foreigner is one too many. That's my opinion.
Moderator: You are chatting.
Moderator: You are chatting.
Sorry Marc. I forgot to post. There is a Rubber Forum. Have a look here:
http://thailand.forumotion.com/t1449-rubberboom
Maybe it will help you further. Greetings. rebel
Dear Marc ea,
Have a look at this site of an Englishman in Ban Dung, Udon Thani.
Everything calculated, very interesting.
http://www.bandunglife.info/local-economy/rubber-farming/rubber-tree-economics/
Regards Joy
Thank you for your info. I was planning to buy 2000 more which already give rubber this year,
but since the yield is low, I'll give it up anyway. Try something else
to search.
MVG
Marc Vliet
Dear Marc,
From about 1200 trees of eight years (so wait another two years) you can
you can expect around 10,000 Baht per week.
But, there are some hooks and eyes attached to this.
1 Fertilize twice a year (but good quality).
2 You have to have people who can cut very well.
3 The price of the rubber (fluctuates a lot and is currently low).
4 The climate (rain).
5 The people who do all the work for you want 50/50 these days
and no more 60/40 (everything becomes more expensive).
So at the end of the story you do nothing yourself and keep about
5000 baht per week left.
Another tip until last, make sure you're there yourself and have people around you who support you
you can trust as much as possible.
Hopefully this is of some use to you.
Yours faithfully,
Erwin
PS if you do it right you can use it for 30 years.
Good day Erwin. Thank you for the excellent summary. I agree with you. As you said; a big problem is the trustworthiness (or not) of the people around you. You won't notice it until it's too late. If it is your in-laws who cheated on you, you have a much bigger problem. Your wife (girlfriend) then stands between the culprit(s) and you. As a Thai, she has to choose for her family.
It is also great that you invest thousands of Euros and someone else takes 50% of it. Not to bad for working 3-4 hours per 3 days per week (approx. 30 rai).
That's why I leave my fingers off rubber trees. That is what the Thai government says. You cannot control the price fluctuation, which also applies to palm oil.
The wood industry (eukaliptus) trees (for paper) do not have that problem. A contracted price for felling per ton of wood. So you know what you're getting into. Besides, that is not as work intensive as that other trade - speak less cost. Fertilize only 1x / year. And that 50/50% does not exist there - it is not necessary at all. Martin
Dear Martin,
If you're strong, you just pay them by the hour.
they immediately see money and try everything to get into your gold mine.
It is also my family who would like to do the work.
I'm still thinking about it, but money drives people crazy.
Sometimes you have to give and take but it shouldn't get too crazy.
Regards, Erwin
That would be good. But it has become established that Rubber pays in percentages. At Eukalipt it is different. There it goes per hour or if the work is done per rai. That is also much better and controllable. Martin
The yield of a rubber tree varies between 200 and 400 kg per rai per year. According to the Thai Agriculture Department, the average is 276 kg of rubber per rai per year. If you want to stay on the conservative side, count half a kilogram (rubber mat) per month per rubber tree. The price for rubber mat is between 40 and 90 bath per kg.
Moderator: We'll make it a reader's question.
Dear Marc,
Planting something and watching it grow up can satisfy a person with great pleasure, also with rubber trees, Planting rubber trees is fun, .. only you can only get " some " rubber from " YOU " trees years later, ... and what the yield can / may are !! Let your girlfriend surprise you,…MAI PEN DRAI,..and in the meantime eat in Mukdahan, a portion of those tasty little oliebollen in the morning, or enjoy a delicious meal in one of the beautiful restaurants near the Friendship bridge, on the Mekong river.
My in-laws (father) have been in rubber for over 50 years. This in South Thailand (nakhon Si Thamarrat).
What I know and what he has told me and that I have also been discussed here depends a lot on the weather. You can only harvest in dry weather.
Furthermore, according to my father-in-law, the climate and the soil towards the Isaan are not good for the rubber trees.
My father-in-law has something like 300 rai and he also has proceeds from others where he has planted trees (plantations) on third party land.
In Nakhon si Thammarat the 60/40 rule still applies and from the planted fields he draws 15%.
The yield from own land is about 300 kg/rai. This according to him.
It must be said that the whole family and the region are in the rubber here. Gives a monotonous landscape. Work is done on the field only in the morning from about 4.30 to 10 am. After which the collected rubber is processed into mats. and hung to dry.
My in-laws make the mats themselves and store them themselves and wait for the price to reach a certain level.
People also transport a lot from here even to Malaysia where there are contacts with, among others. a factory that processes it into medical gloves, etc.
The quality of the rubber plays a major role in this because the amount of protein seems to determine the quality. They are not wanted for medical applications because of allergies. So then low protein percentages yield more.
Dear Rori, my parents-in-law have also been in rubber their whole lives. Also in southern Thailand. ( Nakhon Si Thamarrat Tha Sala ). I think it's a nice thing to be able to help them make those rubber mats. In January I will go back to Thailand, with wife and in-laws. May I ask the moderator for Rori's e-mail address, of course if Rori agrees. It would be great to meet him in Nakhon Si Thamarrat during my stay there. Regards Dre