Rubber Tree Plantations

Product Description:

These are tropical broad a leafed tree from which to a material called latex is extracted from the trunk of the trees. Latex is used for producing different types of rubber products including, rubber tires crashers, shoe soles rubberized fabrics Malysia and Brazil have huge rubber tree plantations and they produce the largest volume of natural rubber latex.

Market Potential:

The raw material for the sole tyre making factory (matador Addis Tyre Factory) comes fro foreign sources. To produce natural rubber latex in the country, a rubber tree plantation scheme was established in the former Illubabor province.

Up now not much latex production has been achieved by the plantation.The use of different types of rubber products in Ethiopia will increase and this will necessitate the importation or domestic production of natural rubber latex. Tires are strategic products from the point of view of national security and economic independence. If imported supplies of red made tires or latex are disrupted by causes beyond the control of the national government, the whole economy and the capability of national defense will be adversely affected. This is because the movement of people and goods will be disrupted.

Given this, it is imperative that every attempt should be made to produce both the raw material and the final product of this strategic item here at home.Ethiopia imports some 3000 tons of different types of raw rubbers (costs Birr 60 million) annually. In contrast to this, however, the report of the National Project of Rubber Plantation and Processing (NPRPP) suggests the country's rubber import amounts to 6,000 tons annually.

Currently, Ethiopia has expanded its plantation by over 10 folds during the past three years. According to the report of the National Project of Rubber Plantation and Processing under the Ministry of Agriculture and Rural Development, the pilot project launched in southwest Ethiopia on 46 hectares of land has jumped to 500 hectares. The pilot project is expected to yield up to 30 tons of latex annually. Although the trend is encouraging, as compared to the country’s need, this output is insignificant. In order to meet the country’s demand for raw rubber locally, thousands of hectares of land need to be cultivated.

Some localities in the Amhara region have the necessary climatic conditions to grow rubber trees. Localities in West Gojam and Awi Zones are identified to be suitable for growing rubber trees. If this case, plantations for growing rubber should be established to produce the foreign dependency of this critical product.According to the report of Ministry of Finance and Economic Development, the country’s economy is growing at 10 % growth rate annually. It is realistic if we assume that the country’s demand for raw rubber will increase in the future by the same rate. Moreover, this project profile takes the CSA’s import statistics (i.e. 3000 tons of rubber import per annum) as a base figure to project the country’s rubber demand under the lowest scenario and that of NPRPP (i.e. 6000 tons of rubber import per annum) to project the demand under the highest scenario.

DEMAND PROJECTION FOR RUBBER

ETHIOPIA IN (TONS)

Source of Raw Material: In this case, the source for the raw material is where the rubber trees will grow.

Process and Technology:

Through the years the process of growing rubber improvements. Basically the process requires selection of the best plantation site, acquiring the land, selection of the most appropriate type of seed or seedlings. (For the first phase seeds or seedlings could be imported.)The next process will be the preparation of the land, planting the seeds or seedlings, maturing the rubber harvesting stage, extracting the rubber latex from each rubber, collecting the latex and packing the latex for sale.

Estimated Investment: For a plantation of 200 hectares, the investment requirement will be:

• • Buildings (Stores...) 100m² at Br. 1500/m² 150,000

  • Machinery 300,000

  • Working capital 100,000

  • 550,000

Benefits: Reduces dependency on foreign supplies, saves foreign exchange, promotes self-sufficiency on a critical product, and generates financial resources to the region.

Location: Localities in Awi and West Gojam Zones.