Para-rubber industry under ASEAN Economic Community: Manifestation of Para-rubber Plantation Area in the Large City of Two Sea

Abstract

This article aimed (1) to study production condition of para-rubber farmers, (2) to study the link of para-rubber supply chain, and (3) to investigate impact perceptions and adaptations of para-rubber industry from the ASEAN Economic Community (AEC) participation. Songkhla province was selected as the research area. Primary data were collected using structured interviews from a total sample of 400 para-rubber farmers, using the mixed methods sampling technique. In addition, the in-depth interviews of 12 key informants, i.e., the entrepreneurs in para-rubber industry and relevant government representatives. The data were analyzed using arithmetic mean and manifest content analysis. The results show the para-rubber farmers have para-rubber smallhollding farms. The supply chain structure of para-rubber systematically links from the upstream supply chain which is categorized into rubber latex, unsmoked sheet rubber, cup lump rubber, and scrap. These upstream outputs will be transferred to the midstream supply chain in order to be processed. The midstream outputs are concentrated latex, unsmoked sheet rubber, ribbed smoked sheet, block rubber, and other types of para-rubber, such as rubber blend or compound rubber. These midstream outputs will be transferred to the downstream rubber industry to produce para-rubber products, which are rubber gloves, hydraulic rubber pipes, and handrail for escalators. The para-rubber entrepreneurs perceive a low level of potential impacts of the AEC participation. They view that Thai para-rubber industry gets comparative advantage, when comparing with the other world para-rubber exporters; Malaysia and Indonesia. However, the para-rubber entrepreneurs have adapted themselves in various practices for a long time. The related government agencies can benefit from the application of these research findings to enable development planning for para-rubber industry.