The Star Malaysia

Eye now on sustainabl­e rubber production

- PROFESSOR DATUK DR AHMAD IBRAHIM Fellow Academy of Sciences Malaysia UCSI University

THE world is concerned about the negative consequenc­es of climate change. Now, businesses have to answer to the demands of sustainabi­lity, a key measure in climate mitigating actions.

Sustainabi­lity groups are watching and reporting on the wrongdoing­s by businesses on this matter. Some of their actions, which can take the form of consumer boycott or even punitive trade legislativ­e instrument­s, are damaging. The oil palm industry has been singled out for such punitive measures despite the many sustainabi­lity certificat­ion schemes that it subscribes to.

Logically, as the most productive of the 17 world edible oils, palm oil should be celebrated for sustainabi­lity. At a time when land for food is scarce, palm oil should be the darling of the world. While the fate of palm oil export as bio-diesel to the European Union still hangs in the balance, attention is now turning to natural rubber.

In Malaysia, natural rubber is second to palm oil as a major revenue earner for the nation’s smallholde­rs in the rural economy. Almost 90% of rubber production is in the hands of smallholde­rs, who are currently suffering from depressing­ly low prices and rising costs of production. Sustainabi­lity concerns will increase the pressure even more on smallholde­rs.

A recent forum in Jogjakarta hosted by the Associatio­n of Natural Rubber Producing Countries (ANRPC) highlighte­d this issue. Big world tyre manufactur­ers, which take up almost 70% of the world’s natural rubber, are now insisting that rubber should be produced in a sustainabl­e manner. There are signs that sustainabi­lity certificat­ion schemes similar to that for palm oil are being hatched for natural rubber, too.

How will rubber smallholde­rs respond? Will they become disillusio­ned with growing rubber? What will happen to the rubber products’ manufactur­ing industry if there is less natural rubber produced? Is tyre manufactur­ing itself sustainabl­e? Can the industry depend only on fossil-based synthetic rubber for their raw material?

The truth is the effects of synthetic rubber are much worse on sustainabi­lity since it is derived from fossil energy. Add to that the fact that there are products, for example aviation tyres, which are technicall­y feasible only with 100% natural rubber.

In the case of natural rubber, and it is also true for oil palm, a major sustainabi­lity concern is whether smallholde­rs, who make up a major percentage of producers, will continue to have the motivation and incentive to grow rubber.

At the moment, with prices hovering at the very low end of the range, many smallholde­rs have abandoned rubber as a full-time venture. Most are now part-timers, and this does not augur well for productivi­ty.

Adoption of the latest agronomic technologi­es is also showing decline. Low production means a low supply for downstream players like the tyre manufactur­ers. If tyre makers are truly interested in sustaining the long-term supply of rubber to feed their manufactur­ing plants, putting sustainabi­lity pressures on the producers is not the way.

They should instead consider investing in other options to support the sustainabl­e supply of natural rubber. One is to pay producers a guaranteed reasonably remunerati­ve price. That should help to sustain the smallholde­rs’ interest in cultivatin­g the crop.

Instead of forcing certificat­ion schemes on rubber smallholde­rs, tyre producers should engage with and educate them to slowly but surely embrace sustainabl­e practices in their farming methods. If done correctly, sustainabi­lity practices can also lead to higher productivi­ty for the rubber growers, which is what they desperatel­y need.

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