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REPORT

 

 

 

 

ATTENDANCE AND PARTICIPATION

THE FIRST RUBBER MARKET AND INVESTMENT ENCOUNTER

 

 

 

 

 

 

 

HOLIDAY INN

CLARK, PAMPANGA

PHILIPPINES

 

September 18-19, 2012

 

 

 

DIGEST

The rubber summit was timely for us, and good to enhance our environmental and community relations activities. We need to adjust current expansion demand of rubber farm development where rural farmers are the target, provide them ideas on assisting financial institutions extending tree farm loan, and the Yokohama tire and rubber traders for market. The two finance institutions providing loan window for rubber development to farmers are the Land Bank of the Philippines and the Development Bank of the Philippines. 

Since we have the rubber agroforest farm technology, and we are the first mover of rubber tree farm for environment and livelihood enhancement in Mindoro, we expect that people will come to us for technical assistance and planting materials. We need to enhance our relations by responding to the current rubber sector expansion program which includes the island of Mindoro in the Rubber Sector Road Map of the Department of Agriculture and the Department of Trade and Industry.    

We will set the LEAF run from project mode to program mode. Modules of rubber and intercrop development designs shall be prepared to suit to the capability of farmers, and help them come up references for loan requirements of the banks if they opt for loan fund. Nursery shall be augmented in its design to produce clone seedlings/stems that realizes early latex harvest, as early as 3^rd or 4^th year: this needs rubber clone procurement in Mindnao and be garden grown for bud source. Since there is a rubber tree farm loan window from banks, and since our LEAF program need to sustain services with limited fund, we will treat the rubber agroforesty program as plant now pay later on seedlings. Or if they have availed loan, they pay it on nursery site cost/price to recycle nursery fund to sustain rubber seedling production. LEAF foundation or ALASKA or Intex Resources Philippines may be responsible for revenue receipt and expense releases for sustained rubber nursery production, and definitely for transparency. Our technical assistance can be extended to them free, part of the community relations objective of the company. 

For reference purposes free discussions with the farmers, the modules to be prepared with capsule proposals (with financial, economic and environmental analyses) are: a) Rubber-Coffee-Banana Falcata module, b) Rubber-Coffee-Banana-Abaca Falcata module, c) Rubber-Banana-Falcata module, d) Rubber, Banana, Gmelina, Falcata module. Rubber-Coffee-Banana-Falcata module was prepared, the one we currently implemented in the Bureau of Corrections-Sablayan Prison and Penal Farm. The other three are at the stage of write up and consolidation. 

 

 

 

 

 

 

 

 

 

 

Attending Personnel of Intex Resources Philippines Incorporated

Andy O. Pestano               Community Relations and Development Manager

Pedro P. Paqueo Jr.          Community Relations and Development Officer. License Forester, 4238

Matiniano G. Regis           Community Relations and Development Officer. Sablayan and

Mindoro Occidental Field Manager. Forestry

Ernesto L. Caranzo           Community Relations Officer, Victoria Field Manager, Agriculture

Noel C. Otero                    Community Relations Officer, Sablayan Field Officer. Forestry

Danilo Martinez                Chairman ALASKA. PO representative, Sablayan Occidental Mindoro. Farmer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACKNOWLEDGEMENT

 

 

Thanks to Atty Gamolo, and the rest of Intex Management, who instructed us to attend the rubber summit. Thanks to Boss Andy who prepared the logistics. Thanks to the organizers, facilitators and contributors of the first rubber summit lead by the Department of Trade and Industry, the Yokohama Tire, and the 40 to 100 years successful rubber LGUs of Makilala, Zamboanga Sibugay and Basilan.

 

 

 

 

 

 

 

 

 

 

 

ACRONYMS

ANRPC                Association of Natural Rubber Producing Countries

ARMM                  Autonomous Region of Muslim Mindanao

DA                         Department of Agriculture

DTI                        Department of Trade and Industry

BAS                       Bureau of Agricultural Statistics

IRSG                      International Rubber Study Group

IRPI                       Intex Resources Philippines Incorporated

LEAF                     Livelihood Income Enhancement Agroforestry  

CNRA                    China Natural Rubber Association

RRIT                      Rubber Research Institute of Thailand

AIRIA                    All India Rubber Industries Association

FAO Stat              Food and Agriculture Organization Statitistics

UNCTAD              United Nations Conference on Trade and Development

LGU                      Local Government Units

PRRDC                  Philippine Rubber Research and Development Center

PRIA                      Philippine Rubber Industries Association

NRDP                    Natural Rubber Development Program

HVCC                    High Value Commercial Crops

BOI                       Board of Investment

PEZA                     Philippine Economic Zone Authority

ASEAN                  Association of Southeast Asian Nation

DOST                    Department of Science and Technology

DPWH                  Department of Public Highways  

MIMAROPA         Mindoro, Marinduque, Romblon, Palawan

 

 

 

 

 

 

 

 

THE RUBBER SUMMIT

FIRST PHILIPPINE RUBBER INVESTMENT AND MARKET ENCOUNTER

 

 

I.                 INTRODUCTION

II.               OBJECTIVE

III.              THE SUMMIT

IV.              THE PRESENTATION

V.               CONCLUSION

VI.              ANNEXES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.                 INTRODUCTION

 

The forum was a great one. We come to realize that much are needed 5, 10, 20, to 50 years from now.

 

The rubber summit was attended by the people from the Community Relations and Development Department of the Intex Resources Philippines Incorporated at the instruction of Atty Leo Cleto A. Gamolo, our Executive Vice President.  

 

The rubber summit was conducted in Holiday Inn in Clark Pampanga on September 18-19, 2012.  We call it as the First Philippine Rubber Investment and Market Encounter. It was facilitated by the Department of Trade and Industry and attended/participated by the Yokohama Tire Phils Inc, the rubber successful Local Government Units (Municipality of Makilala, Provinces of Zamboanga Sibugay and Basilan, and the Autonomous Region of Muslim Mindanao, ARMM).

 

The other participating and support institutions were the Department of Agriculture (DA), the Department of Agrarian Reform (DAR), the Land Bank of the Philippines (LBP), and the Development Bank of the Philippines (DBP). Others who composed the majority of the attendance were common rubber farmers, traders and assemblers in Mindanao mostly from the provinces of Zamboanga Sibugay, Zamboanga del Sur, Zamboanga del Norte, Cotabato, Basilan, the CARAGA region. Other regions of the Philippines were represented by the DA regional Offices that include DA region IV, MIMAROPA.

 

II.               OBJECTIVE

 

The objective of the summit was to assemble all development and trade players of rubber in the Philippines, make a road map and create a national policy to sustainably develop and expand the full potential of rubber in the Philippines in order to compete with the neighbors in Asia and the globe and enhance the economic lot of the rural populations. The summit wants to see the Philippines as one of the major natural rubber producer and processor in Asia.

 

For the Intex Resources Philippines Incorporated (IRPI), our objective is to gather information relevant to the expansion of Livelihood Enhancement Agroforestry (LEAF) significant in projecting the economic-environmental sustainability of mining community (on and after mining), install an advance working model (physical simulation) of rehabilitation of the mined out areas (as the IRPI proceeds to mining operations), or productive revegetation of much barren lands in Mindoro. Our vision of sustainable economy after mining is anchored to the IRPI adherence to the corporate social responsibility (CSR). 

 

LEAF is a rubber, banana, coffee, falcata Agroforestry/alley cropping project supported by the IRPI on reasons of its high significance in the sustainable development of mining communities after mining, environmental protection and immediate rehabilitation of mined out areas.

 

IRPI hoped to make the project move to program mode. IRPI is banking in advance on the most advantageous measures in mining rehabilitation, environmental protection and sustainable economic development of mining communities, hence, the participation for the rubber summit.

 

LEAF, currently a project, is implemented by virtue of Memorandum of Agreement (MOA) signed on June 2012, with the administration of the Bureau of Corrections-Sablayan Prison and Penal Farm at Malisbong, Sablayan Occidental Mindoro.

 

The IRPI management, its socio-environmental workers and foresters rationally propose the rubber, banana, coffee, falcata agroforestry as the most fitted cropping system in Mindoro unproductive land and marginally productive lateritic ecologies. Rubber originates from the lateritic soil of Brazil. Banana and falcata are successful growing plants in the laterite soil of Surigao and Mindoro. Coffee needs 50% shading and the nitrogenous leaves of falcata. Falcata in strategic locations of the LEAF farm, provides nitrogenous falcate leaves via wind distribution to the rubber, banana, coffee minimizing the input of commercial fertilizer. The nitrogenous falcate leaves when decays (with a little input of sea salt or alkali elements from the soil) help in the making and availability of soda nitrate (NaO3) and potassium nitrate (KNO3) ions, both important in enhancing the latex production of rubber, the fruiting of banana and coffee.  

 

Coffee produce waxy and crumbly leaves that decays longer months than other leaves important in the long retention of soil water in the dry sloping lands of Mindoro (comparable to the agroforestry area experiences in Davao Norte, Claver Surigao del Norte in Mindanao).

 

 

III.              THE SUMMIT

 

1.      Facilitator

 

The summit was facilitated by the Department of Trade and Industry (DTI). It invited presenters from the rubber successful Local Government Units (LGUs), from the Yokohama Philippines, from the Land Bank of the Philippines and the development Bank of the Philippines. 

 

2.      The rubber successful LGUs have century history of rubber development, investment and production in Mindanao: 

a.      the provincial government of Sibugay with the Governor Rommel Jalosjos and his RAJTREE rubber team.

b.      The Municipal Mayor of Makilala.

c.      Yokohama tire maker established at the 16 hectare Tire Industrial Plant more than a decade ago in Clark. It is the potential market of Philippine rubber. Aims to expand its tire production from current of 7 Mtire/year to 17 Mtire/year by 2017.

 

Land Bank of the Philippines and the Development Bank of the Philippines presented information on the loan window for rubber development (the potential financers of more rubber plantations).

 

The rubber farmers pose to produce quality rubber comparable to neighboring asian rubber producers.

Rubber farmers are also the source of the rubber seeds and source of clones producing high latex important in the production of planting materials that grow and be tapped as early as 3.5 years with high latex production. Rubber trees from seeds provide high volume latex on year 8, the year when the bark is thicker and comparable to the budded/clone planting materials. But in the typhoon prone areas, rubber with original seed stem is most fitted. Foresters, in free idea exchange with farmer pax, however, suggested that land depressions, with its gullies, protect the cloned tree from strong wind and of typhoon.  Foresters also suggested wind break of nitrogen fixing species (i.e., narra, falcata, ipil-ipil, kakawate) to be incorporated in the planting design in the windy and typhoon areas. Natural vegetations (pioneer, residual, and climax forest) if present are also good wind break belts.      

 

The Department of Agriculture presented development information and technology for high latex clone planting materials production.

 

The Department of Agrarian Reform (DAR) may work for the famers favorable tenurial instruments acceptable to the financial institutions.

 

   

IV.             THE PRESENTATION

 

Day 1

1.      The Rubber Industry: An Overview

Engr Merly M. Cruz U

ndersecretary DTI-RODG

2.      The Global Market for Natural Rubber:

Dr. Lekshmi Nair

Senior Economist, RISG.

3.       Expanding Market Opportunities:

Mr. Tetsuya Kuze

President, CEO, YTPI

Mr. Christopher L. Chan

4.       Industry Challenges: Competitive Edge

Mr. Christopher L. Chan

President PRIA Inc.

5.      Opportunities for the Rubber Industry under the National Greening Program

Ramon J. Paje

Secretary DENR

6.      Book Launching – Rubber Study Report

DTI

 

Day 2

7.      Makilala Rubber Development Initiative

Hon. Rudy S. Caoagdan

Mayor North Cotabato

8.      The RAJTREE Program: Rubber Industry Development Model

Hon. Rommel A. Jalosjos

Governor, Zamboanga Sibugay

9.      ARMM and the rubber Industry

Hon. Mijiv Hataman

Regional Governor ARMM

10.   Rubber Industry Non Traditional Areas

Mr. Gerry S. Muriao

CEO, JDM 88 Agro Ventures

11.   The Philippine Rubber Industry Road Map

Ms. Jenifer Remoquillo

Director, DA HVCDP

12.   Investment Policies and Incentives, Financing the Rubber Industry:  Agricultural Credit Support Program

a.      Land Bank of the Philippines (LBP)

b.      Development Bank of the Philippines (DBP)

13.    Signing of the Joint Statement of Commitment

-        Philippine Rubber Industries Association of the Philippines

-        Yokohama Tire Philippines

-        Rubber Coops Representative

-        Small Holders Representative

-        Department of Trade and Industry

-        Department of Agriculture

-        Department of Agrarian Reform

-        Department of Environment and Natural Resources

-        Department of Science and Technology

-        Land Bank of the Philippines

-        Development Bank of the Philippines

 

V.               CONCLUSION

 

In this first rubber summit, there are much things to be done to compete with the ~3,414,000 hectares rubber farm of Indonesia, the ~2,343,000 ha rubber farm in Thailand, the ~1,248,000 ha rubber farm in Malaysia, the ~635,000 hectares rubber farm of India and 550,000 ha rubber farm in Vietnam.  

 

1.      The Road Map for rubber is to approach 200,000 ha of rubber by 2016 from the current 136,000 and approach the 50% increase of the current hectarage by 2020. This can be done moving at 10,000 hectares annual plantation development. Making this propose change, the commitment was signed by the rubber institutions and stakeholder representatives for policy and development support, including the Yokohama Tire of Clark, the Rubber farmer producer representatives, and the Rubber local commercial traders/aggregators and the local rubber semi product processors, the government and finance institutions.

2.      Expand productive plantations in non-traditional rubber areas in regions of Luzon and Visayas.

3.      Mindanao, representing as the rubber producing center in the Philippines, only has closer to 138,000 hectares planted and producing rubber latex. Basilan, Zamboanga Sibugay, Zamboanga del Sur and Zamboanga del Norte of region nine are the prime producer of latex, seeds and cloned/budded planting materials.

4.      Current Plantations in CARAGA region reaches only 1000 ha.

5.      Other regions in the Philippines have 1 to 20 hectares rubber farm.

The IRPI attendees, we conclude:

1.      Yokohama located in Clark is a near market destination of rubber of the LEAF and IRPI stakeholders.

2.      Proceed the LEAF rubber, banana, coffee, falcata agroforestry, from project mode to program mode with following components:

a)             Expand Current LEAF farm from 10 ha to 50 or 100 hectares in five years to provide area for studies in latex production, seed collection and source of good buds and clones. Expansion however has some mode of return or sharing with the pax to recycle development fund to other interested stakeholders, or the return fund shall be treated as counterpart with the financing institutions for bigger area development in Sablayan Mining/tenement Barangays and adjacent barangays.

 

The program area, for multipurpose function, can be viewed as rationed from the tenement size of the IRPI. The LEAF program area can best explain what economically productive and environmentally significant vegetative rehabilitation mode can be seen on mining and after mining, answering directly the questions and doubts of economic and environmental uncertainties on and after mining. The current stand is that no mining companies have ever done good in the social-environmental-economic concerns of mining, and that’s base on the past. Our great work is to erase that image and Mindoro can proceed to its industrialization. The advance model and simulation of the LEAF may give light on actual mining rehabilitation in advance.     

 

b)             Establish Rubber Budding/Clone Nursery, to produce options of planting materials good for open windy areas, lowland areas, slope areas and depression/gully areas. Clone/budded seedlings with exact nutrients produce latex as early as 3.5 years. However the prime stem to be budded grows in nursery for 1 year, and the budded stem shall be attended in the nursery for another 2 years before outplanting. The Cost of budded seedling is 35 to 60 pesos depending on maturity of buds and size of the clone stem. The 3 feet clone stem is 40 pesos, the 5 feet clone stem is 60 pesos. The seedling from seeds however is only 20 pesos at 3 feet height and ballpen size stem at one year old. The idea of the clone or bud seedling production can be made by Intex or the LEAF Foundation for we have the base technology. However, with limited corporate fund, we need to treat the seedlings at plant now pay later and recycle the same, to sustainably produce the clone seedlings. The opportunity from the Land Bank and Development Bank offers the pay for the rubber seedlings and intercrops and allows clone seedling fund recycling and seedling production sustainability.

 

This necessitates us to buy 100 plantable rubber bud wood stock from Cotabato or Zamboanga.        

 

c)             Expand the production of rubber seedling stem nursery (seed base) to produce stem stocks to be budded, and rubber seedlings (non clone) for windy locations.

d)             Create, organize the Rubber farm training center and team as preparation for mining rehabilitation and measures in environmental commitments of the nickel mining and processing plant. It shall cater rubber production training alongside with food security, forest and agroforesT (LEAF) training for environmental protection, rehabilitation and sustainable development of mine areas on and beyond mine life. Other barren lands can be treated for revegetation.

e)             Relative to items 1 and 2a-2d, Modules of LEAF Proposals, Work and Financial Plan, Cash Flow shall be prepared to provide farmers their development and management preference 300/300/20 stem ratio of rubber/banana/falcata, 700/400/20 stem ratio of rubber/banana/falcata. Coffee may be an add on stems by the farmers.    

 

 

 

 

VI.             ANNEXES

(PDF files of Presentation can be accessed only full in CD storage since large data)            

 

Day 1

Dr. Lekshmi, IRSG PRIME

Final JDM PRIME 2012

PRIME 20122 – Usec MMM

YTPI-1st Phil Rubber Investment &..

Day 2

 7 LBP ACSP   (Comparable Mode)

BOI Harvst Incentives

DA – Philippine Rubber Benchmarking PRIME 2012

DBP TPPFP Presentation

Final DAR PRIME Presentation

Makilala Urban and Rural Development

Rubber Industry ARMM Presentation

Rubber R&D Agenda, Draft for    PRIME

10k final