Estimation of supply and demand of rubber in Cotabato Province, Philippines

Abstract

The demand for rubber by-products has the potential to significantly impact rubber supply. However, rubber production in the province of Cotabato has not returned to its peak production reached prior to the El Niño phenomenon of 2016. It is essential to study the factors affecting rubber supply and demand as they form the basis for strengthening the rubber industry. This study aimed to describe the distribution flow of rubber by-products from the major sources to processors, assess cup lump demand by processors and its supply from farmers, and investigate factors impacting rubber supply and demand in Cotabato province. Results revealed that the rubber supply chain in the province encompasses various steps, including rubber farming, product trading, and rubber byproduct processing, which eventually leads to the production of rubber sheets and cup lumps. These products are both distributed locally and exported, depending on market demand and processing capabilities. Trade relationships within the supply chain rely on mutual trust and verbal agreements. Despite the potentially stable supply of cup lumps resulting from the presence of processors and traders, the market price remains unstable, due to dynamics of supply and demand, particularly the shortage of cup lumps. To ensure price stability, consistent supply is essential. As a recommendation, the government should formulate policies and programs to encourage farmers to engage in rubber production and help them improve rubber productivity to increase supply and meet the demand for cup lumps.