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Rubber Plantation Proposal for Supporting


the Islamic activities and Orphanages in Cambodia


Cambodian Muslim community and their needs to Islamic teachers

Cambodian Muslim community has a great need to the Islamic teachers. Islamic teachers play very important role in educating and teaching us and our children the tenet of Islam. Nowadays, we have two types of Islamic teachers. First, those who graduated  with Bachelor degree from oversea universities such as Saudi Arabia, Libya, Malaysia, Egypt and so many others. Second, those who obtained their Islamic knowledge through the traditional methods without any certificates. Both teams play a crucial role in imparting their knowledge to our young generation. The majority of the first group of teachers is sponsored by some foreign organizations but the sponsorship is insufficient for them to survive.


Islamic teachers, their standard of living and their needs for sponsorship


Both types of Cambodian Muslim teachers have fewer sources to finance their families and their dependents. The majority of them base on Zakat and donation of the village dwellers, foreign organizations and donors. However, what they have received is insufficient for them to survive. Some of them receive zakat or donation which is equal to $50 per month while the others receive less or more than this a little bit. Can you imagine! How they can survive.



Rubber Plantation Proposal


(a) Harvested areas and rubber producers


The development of the Cambodian rubber sector in the past two years has been noticeable, stemming from the sharp and continuous rise in prices of natural and synthetic rubber. Price acceleration has encouraged smallholders, private companies and state-run estates to expand their harvested areas. As of 2007, total rubber plantation area was 82,059 ha, largely dominated by state-owned plantations (48 percent) followed by smallholders (44 percent), private companies (6 per cent) and plantations of economic land concessions (2 per cent).


The sector’s growth was even more noticeable in 2008 in terms of ownership of rubber estates and their geographical locations. Total harvested area expanded by approximately 30 per cent from 2007. In addition, new plantations emerged outside the traditional locations, including Siem Reap, Kampong Thom, Svay Rieng, Battambang, Preah Vihear and Pursat provinces. The continuous rise in rubber prices during the year continued to be a major incentive for the expansion. As of late 2008, six of the seven state-run plantations had been privatized, resulting in a dominant share of private ownership in the sector. It should also be noted that the last state-run rubber estate was divested in early 2009, reflecting the full retreat of the public sector’s engagement in the rubber-growing industry.


Around one third of the rubber plantations only are mature enough for tapping; when immature rubber trees are ready to be tapped, Cambodia’s rubber production will expand considerably. The current total production of dry rubber as of November 2008 was some 37,050 metric tons (mt) compared with 32,975 mt in 2007, which reflected a 12 per cent growth in production. During the past six years, the sector has played an important role in creating export earnings and generating jobs, with a total annual income from natural dry rubber exports ranging from US$ 35 million to US$ 40 million. In 2007, the total number of workers on rubber estates reached 13,289, of whom 88 per cent were working for the state-run plantations (Ministry of Agriculture, Forestry and Fisheries, 2008).

However, the sector’s growth momentum appears to have slowed since the last quarter of 2008 as the current economic crisis has made its impact felt, particularly among large-scale rubber consumers such as the United States, Japan, China and India. Given the current slowdown in global demand for rubber-based products, coupled with declining petroleum prices, several large rubber-based product manufacturers have cut back their production; as a result, the natural rubber price nosedived from its peak rate of US$ 3,226/mt in July 2008 to US$ 1,397/mt in March 2009 (Malaysian Rubber Board, 2009). During the last three months of 2008 average year-on-year growth of Cambodia’s natural rubber exports contracted at around -62 per cent (Ministry of Economy and Finance, 2008). The latest estimate by the Ministry of Agriculture, Forestry and Fisheries shows that expansion of Cambodia’s rubber cultivation in 2009 is expected to slow y 61 per cent from 2008 (Phnom Penh Post, 2009).


 (b) Natural rubber collectors and traders

Collectors and traders play an important role in facilitating the flow of natural rubber from the farmgate to the rubber processing factories. The establishment of formal collecting points since June 2005 has further intensified rubber-trading activities. Traditionally, there are three types of natural rubber collectors: small-scale collectors who visit smallholders and buy cup lump and coagulum at the farmgate; formal sub-agents of private processors located in district and provincial centres; and informal sub-agents of processors acting as unofficial private collectors (Khun and others, 2008).

Across the marketing chain, small-scale collectors mostly sell rubber to the informal sub-agents of processors. The spot market rate is used as the base for purchasing rubber from smallholders. Smallholders enter a contract with collectors to supply rubber; however, collectors tend to be disadvantaged by smallholders’ defaulting once the market price reaches between 5 per cent and 10 per cent higher than that stated in the contract. This poses a substantial risk for collectors of any type as farmers are inclined to use the contract price as a price floor (Khun and others, 2008).


 (c) Rubber processors

 The seven state-run rubber plantations, all of which have been privatized since early 2009, have their own rubber-processing plants, the capacities of which vary from one plan to another. The average producing capacity of the seven plants is between 1 mt and 2 mt per hour. SOFRECO and CEDAC (2005) estimated that the potential production capacity of the industry could reach approximately 100,000 mt annually (around 384 mt daily). The remarkable surge in the number of smallholders and private plantations in 2008, coupled with the acceleration in world rubber demand and consumption could go some way to providing incentive for the private sector to establish rubber-processing plants. However, there are no clear statistics on the current number of processing factories in the sector. Khun and others (2008) confirmed that the number of private processing plants had increased from one in 2004 to 17 in late 2006.


  3. Rubber production and processing costs


a) Natural rubber yield

Being endowed with fertile basaltic red earth in the north-east as well as the application of new and better rubber clones, Cambodia’s rubber industry has the potential to improve its currently low natural rubber yield relative to other countries in the region.


(b) Cost of growing and harvesting

 Growing rubber trees is a high-cost and long-term investment as it takes five to six years for the rubber trees to become mature and ready for tapping the natural latex. Rubber trees can be tapped from year six to their maximum life span of 25 or 30 years, when the trees must be felled and replanted. It is worth noting that the real daily wage of laborers rose by almost 50 per cent from Riels 6,632.2 in 2006 to Riels 9,938.5 in 2008.Rising prices of natural rubber and commonly consumed food items between 2007 and 2008, together with the rapid expansion of private rubber estates and smallholder plantations, appeared to be the underlying factor in the wage increase. A sharp rise in the real daily wage was the key factor to the jump in estimated investment costs and the cost of tapping per hectare. EIC (Economic Institute of Cambodia) study in 2007 estimated that the total five-year investment cost per hectare was US$ 1,624 in 2006, which was as about half of the investment cost of US$ 3,086 in 2008. The first-year tapping cost per hectare rose by 49 percent from US$ 104.15 in 2006 to in US$ 155.35 2008.


 (c) Cost of processing

 Fundamentally, electricity and diesel fuel are vital to the processing of natural rubber latex in Cambodia as well as other countries in the region. High electricity and energy costs put Cambodian rubber processors in a weaker position than those in other countries in the region. The cost of electricity in Cambodia is many times higher than in the other ASEAN member countries. Likewise, petrol and diesel prices in Cambodia are high compared with those of neighbouring Thailand and Viet Nam. This is due to the cost of fuel imports as well as distributors’ gross profits in Cambodia being higher than in Thailand and Viet Nam.

 Consideration to Technology and Costs of Rubber Tree Plantation

 Development of Rubber Plantation


 Scion Garden

 Scion garden is to be developed with cuttings of superior clone to collect scion for grafting. In order to produce appropriate scion for grafting, an appropriate scion garden shall be developed 1 or 2 years before the actual plantation. 10,000 of cuttings shall be made in 1ha with a plantation space of 1x1m. In 1ha of scion garden, for approximately 2ha of seedling field can be collected. In Cambodia, four representative clones, namely GT1,RPIM600, PB260, and IRCA18 are used for scion garden.


 Seedling Field

 Seedling field is where seedling grafted with scion collected from scion garden is

Performed. The condition for seedling field is 1) Fertile soil and water detention 2) Being close to a riverhead for the irrigation reason.



 At the time of planting, the site is to be adjusted beforehand: bush and weeding as land preparations, and tilling under some circumstances, are to be performed. These works should be done during the dry season before the rainy season begins when plantation shall commence. Plantation is performed during the rainy season from the middle of May to the end of July. Plantation is performed by seedling with twigs cut off and roots cut in order. Replantation is supposed to take place at least in 2 to 3 weeks after plantation; however, it is desirable that replantation continues for two years after that with the same kind and age of clone seedling still left in seedling field.



 Immediately after plantation, surface of soil is apt to be impoverished by exposure to the sun, and flow-out of surface soil to take place. At the same time, as weeds sprout and absorb nourishment, weeding shall be paid special attention. Fertilization is as significant as weeding. Proper fertilization to foster the initial growth makes possible resin collection in the early stage, which will lead to improve project profits. Although it depends on weather and clone, 5 to 6 years is required for the incubation period.


 Costs of Plantation and Incubation

 The expected unit price of plantation and incubation of rubber trees from 0 to 6 years is US$3,000/ha.


 Collection of Rubber Resin

 Necessary Condition to Grow Rubber Trees in a plantation as mentioned above, it takes 5 to 6 years until rubber tree are planted and grow up. Although it depends on the nature of clone, the way of incubation, and the conditions of environment (soil and weather) etc., the first time of tapping comes in 4 to 5 years at the earliest and 7 years in usual cases. Usually, one worker can tap 250 to 300 trees. If the landform is not in good condition or the tapping panel is located quite high, however, s/he may do approximately 150 to 180 trees only.



 The quasi-spiral (1/2S) tap shall continuously be made with a gradient of 30 degrees against the horizon from up left to down right.



 Clone is the core factor to determine on productivity. In order to acquire high productivity,

clone ought to be determined in consideration of a. High quality of DRC (Dry Rubber Content)

to maintain high productivity; b. Resistance against disease/s, wind hazard, harmful insect/s,

and leaf disease/s; c. Resistance against dry weather, infertile soil, and highlands.


 Frequency of Tapping

 The frequency of tapping affects bark damage and span (to generate rubber resin). Today,

a variety of frequency of tapping (every day; every two days; once in three days; and once in

four days) is adopted. Recently, the frequency of tapping coupled with uses of stimulant and fertilizer are decreasing so as to avoid damage and dry of tree and to diminish burden of labor. In rubber companies in Cambodia, S/2d/3 (e.g. once two quasi-spiral cuts in three days) is adopted.


Time Frame of Tapping

 Given that rubber resin flows out to the maximum early in the morning, the tapping shall be

performed under the first sunshine in the morning. The tapping shall be performed only to

trees with dry trunks. In this case, wet trees are not appropriate because rubber resin is lost

from dropping from the tapping as well as there is a possibility that the disease would spread.


Period to Collect Rubber Resin

Rubber resin stops flowing out three to four hours after the tapping. The moment the

tapping stops, we shall collect resin as soon as possible. In the case where the collected

rubber resin show a sign of solidification, it is necessary to use coagulant on the spot. To

avoid early solidification, rubber resin must be transported to factory after collection in no time.

The collected rubber resin is to be put into tank and pulled.


Necessary Infrastructure and Facilities to Develop/Incubate/Run Rubber Plantation

 The necessary infrastructure, vehicles, and facilities are as follows:

 Personnel Housing, Well (for living), School, Health Management Center, Power Facilities

(for living), Use of Renewable Energy Such as Wind Power, Photovoltaic Power, Biomass

etc., Office, Warehouse/Laboratory, Bulldozer, Tractor, Truck, Mini Truck, Pickup Cabin,

Excavator, Forklift, Tank etc.


 Sales Profits of Rubber Resin

 Outline of Cambodian Rubber Industry

 1) CSR (Cambodian Specified Rubber)

1. Composition of Grade

 The natural rubber product in Cambodia is called CSR (Cambodian Specified Rubber).

Rubber resin solidified with acid is processed into CSR3L, CSRL, or CSR5. CSR10 or

CSR20 are used for ordinary products.

 2) Marketing with Regard to NR (Natural Rubber) Products

 40,000 ton of Cambodian rubber block, recently also known as rubber resin crepe rubber,

are annually produced, and almost all of them are exported to Malaysia, Singapore, Vietnam,

etc. The rubber further is processed specially in those countries, and then exported to Europe and America.


The price of rubber block is lower than the international price by 15-20%. This derives

from the fact that CSR has not fully been recognized in the international community, though

RRIC (Rubber Research Institute for Cambodia) has joined IRRDB (International Rubber

Research and Development Board) since January 2002. Nevertheless, the price of CSR is

expected to be the same as the products in other countries in the near future.

Incidentally, the international price in 2003 is US$1,300-1,400/.


 Sales Profits of Rubber Resin

 1) Definition of Rubber Resin to Be Sold

 Generally in Cambodia, rubber is distributed in the form of rubber block; in this feasibility

study, the sales profits are calculated on the assumption that the rubber is sold in the form of

rubber resin (collected rubber resin material). The rubber resin is to be delivered at the

processing factory next to the collection place. As rubber  resin is dealt 30% lower than rubber block, the expected sale price of the rubber resin in this project is US$728/ (International price: US$1,300 x 80% x 70%).

Project capacity

 Options for Donors and investors:

1-   Buying the land then plant the natural rubber trees

                             2-   Buying natural rubber fields age 2-4 years immature for tapping

                                3-   Buying natural rubber fields age 5-6 years which mature for tapping


1-Buying the land then plant the natural rubber trees

The price of lands vary from location to others, the nearest to Capital Phnom Penh is the more expensive.


2-Buying natural rubber fields age 2-4 years immature for tapping 


The price of natural rubber fields vary from location to others, the nearest to Capital Phnom Penh is the more expensive.


3-Buying natural rubber fields age 5-6 years which mature for tapping

The price of natural rubber fields vary from location to others, the nearest to Capital Phnom Penh is the more expensive.


Project income after deduction all the costs

Daily Income/100Ha

Monthly Income/100Ha

Yearly Income/100Ha




This income based on the experience of farmers who own natural rubber fields in Kampong Cham province, Cambodia.


Project Income after deduction Raining season & period of leave fall


In Cambodia there are two seasons, summer and raining seasons. During the raining time we can’t do the tapping ,also there is a certain time of leave fall that cause tapping to be stopped because rubber trees don’t produces resin during this time. The mentioned inconvenient period above, raining time and leave fall takes about 4 months. The following is the yearly income after deduction 4 months

Net Profit of the Project


Yearly Income: 900,000- 4months 300,000= 600,000


Yearly Income: 1,260,000-4month420, 000= 840,000


This income is for the red land rubber trees yield as for the normal land rubber trees yield will be less than the red land rubber trees yield approximately 10% to 15%.       



To maximize the natural rubber fields we should rent the fields to Cassava farmer since Cassava plantation does not disturb the grow of rubber trees especially when the rubber trees have passed two years of plantation. As the owner of land we will get 20% to 30% of the cassava yield from the cassava farmer.




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