Calculation for rubber tree business in Thailand
Last days I spend most of my time on google. Try to find out yourself a formula or excel sheet calculating win and loss for a rubber tree plantation in Thailand. The only number you can rely of, is the actual size of your land you may already own or ready to buy, any other calculation and formulas on the net are just guessing and incorrect.
After a couple of meetings in Thailand with the local heros in thai rubber plantations (5000 and 3500 Rai) I am pretty sure that i got the right formula that I am gonna work with and I like to share that with you.
Fist of all please calculate that you will have no income for the first 7 years. Furthermore you need to calculate about 7000 Thai Baht per Rai per year to keep your plantation up on running and clean. Additional you should calculate the tree/seeds. Each Rai contains 76 trees. Each tree is about 35 – 40 Thai Baht.
After 7 Years each tree gives you around 1kilo rubber. Take 30% off and you get 0,7 kilo. The 30% are water, soil and dirt that will be deducted from the company where you will sell the raw rubber to.
As I said before, each rai contains 76 rubber tree’s. You can harvest around 7 month a year (depending on the raining season).
Per kilo rubber you get payed 120 to 150 Thai Baht. If you dont need to sell on the spot, just keep the rubber for a while and sell when prices are up.
Each rai will give about 55 kilo a month. Multiplied with 120 Thai Baht= 6.600 Thai Baht (worst case szenario)
This 6600 TB multiplied by 7 month = 46.200 Thai Baht. Devided by 12 month = 3.850 Thai Baht monthly income.
A 100 Rai plantation = 660.000 Thai Baht (Euro=16.500 / US=23.000 by December 2010)
By 7 month = 4,6 Million TB. Devided by 12 month = 385.000 TB (EUR= 9.600 / US=14.400 by December 2010)
Last but not least ad the labour costs fort he daily rubber cutting and the cleaning of the plantation at least every six month and the 3 month old trees which are about 35 – 40 TB.
- Dont plant any other crops in between as much people doing it but not realy recomended.
- Fencing your plantation. Cows and Buffalos are around.
- If possible, water the trees at least every 10 days. They will grow slowly if you dont but they wont die.
- Thais do 2 night of cuttings and one night recovery. In total 20 days a month.
- As in 2005 one Rai was about 20.000, the land prices went up double till 2007 and today you find some farms for 50 if you lucky and local. Otherwise count with 60+.
- Planing is everything. Our first plan of transforming our existing plantations and buy strategical new ones are attached.