Natural Rubber is by product of latex from rubber tree "Hevea Brasiliensis". Last century, British merchant initially plant "Hevea" in Sri Lanka and Malaya (currently Malaysia). At that time, Thai noble envisaged that "Hevea" will be economic crop in Thailand and brought them to the South of Thailand. It is widely cultivated in the East, Northeast, and North respectively.

Natural Rubber as Economic crop

Thailand produced about 2.61 million tons and exported more than 2.35 million tons of natural rubber valued 76,400 million Baht in 2002. While the No.2, 3 are Indonesia, India produced 1.63, 0.64 million tons respectively. Natural Rubber was domestically used in tire industry, rubber stick, latex glove, and condom.

In addition, wood from rubber tree is important for furniture industry. Exported wood furniture valued more than 27,000 million Baht a year.

Rubber Production

Rubber is tropical plant cultivated in Equator area. The temperature does not change dramatically and relative humidity is about 65 percent a year. To improve productivity, high latex rubber variety was developed to replace lower latex rubber variety by government agency.

Rubber farmer will select and nourish rubber offspring in his land about 4-5 years until it is able to tap. The rubber tree at age 18-23 will cut down and transform to furniture. Rubber farmer transforms latex to unsmoked rubber sheets instead of centrifuged concentrate latex.

Thailand is global No.1 natural rubber producer due to government support, appropriate climate and geography, skill labor. Thai government has envisaged and pioneered to found government agency to support rubber production as the followings.

1. Rubber Research Institute Its duties are technological research rubber strain and rubber by product, technological transfer.
2. Rubber Organization Its duties are rubber production, rubber pledge, rubber product invention.
3. Office of Rubber Planting Aid Fund Its duties are funding farmer the high latex rubber variety, cess from rubber export.

The small domestic rubber usage caused rubber price determined by world rubber demand. The world rubber price is determined by world rubber demand. But natural rubber usage is substituted by synthetic rubber usage derived from petroleum. If petroleum price is higher, natural rubber demand will be higher. Most natural rubber is used in tire industry.