Nov 17, 2009
State Of Mato Grosso Promoting Increased Rubber Production
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Prior to 1920, Brazil was the largest producer of natural rubber in the world, but it lost that title to rubber-producing countries in southern Asia. Starting in 1970, Brazil launched a renewed effort to increase its rubber production, but still most of the rubber consumed in Brazil is imported. Today, Brazil consumes 370,000 tons of rubber per year and two thirds of the latex is imported from the countries of Thailand, Indonesia, and Malaysia.
Renewed efforts are being placed on increasing the production of rubber within Brazil. The leading rubber producing state in Brazil is Sao Paulo, which produces 55% of Brazil's total, followed by Bahia at 16% and Mato Grosso at 14%. The governor of Mato Grosso recently announced a new program aimed at making the state the second leading rubber producing state within the next 20 years. The state's Department of Agriculture will invest RS$ 89 million to help 30,000 rural families start producing rubber.
Rubber production is viewed as a way to diversify the type of crops produced on small family farms in the state. The 30,000 small farmers will start with two hectares (five acres) of rubber trees with the goal of expanding that to six hectares (fifteen acres) within a few years.
The program is expected to generate 150,000 indirect jobs, increase rural incomes, help reforestation efforts, reduce unemployment, and maybe even lead to the construction of a tire factory in the state dedicated to producing tires for farm machinery and other heavy equipment in the state.