Calculation for rubber tree business in Thailand

Calculation for rubber tree business in Thailand

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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.
Some recomendations
  • 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.

87 Comments

  1. Alban

    Hi,after visiting your site, I was not sure if you had already attached an excel sheet like a base of business plan for rubber trees plantation, is there any attachement and if yes where to get it?
    Thanks a lot
    Alban

  2. Cherry

    Thanks for sharing your xperience. I’m just starting, planted 100 rubber trees & still on going planting on my 700 sq mtr land.

  3. jaran sangsawat

    Hi cherry.
    where is you planting rubber tree.
    do you planting for wood or for rubber.
    100 tree in 700 sq.mtr.is not good.
    and now i have rubber tree 5 year and good rubber.
    if you want call me 086 569 4872

    jaran

  4. Hi,

    interesting calculation, but there are some issues here.

    My father in law have rubber plantation in Satun (South Thailand).

    They are making a lot of money, 1 kg is today 70 bht. Latex aprox. 130 bht

    1 kg, you get from 2-3 trees.
    1 usd = 30 bht 1 eur = 40 bht
    1 Rai = 1,600 sq.meter

    He have many plantations, but for one I know he have 15 Rais.
    Per 1 Rai he have 70 trees, so 1050 trees together. One cup is giving aprox. 330 g of rubber. That is 346,50 kg = 24255 bht; they sell rubber every third day so that is 10 times in a month = 242.550 bht !!!!
    I just know they are making millions ;) they tap it for 8 even 9 months, depend on rainy season and trees.
    You need to wait 6-7 years till plants grow up so you can tap it. You can tap trees for 20-22 years; Then you can sell trees for furniture, 1 kg is 2 bht today 25.04.2012 ;)

  5. stephaaniem

    Hi
    From my experience in helping at the rubber plantations.Most of them are facing low yield,infectile,drying bark,disease infected roots.I felt great that our Yuli Super Nano Organic is the organic solution for rubber tree.It was helps to solve all the above mentioned problems.

  6. Carl

    All very good information but now a little confused Wehave 12rai with 960 trees growing would like to keep track of market but not sure on prices or which formula I know up north east here people generally cut 9 months per year.Please could some one give me an idea on todays markets

  7. Looking at comment and question on this site, I’m really glad that planters care for what and how things is organized and calculated in papers. When I did my research in the Southern and Eastern Thailand, I’ve found that there are still many planters does not understand the important of the trees as their asset, many type of stimulant has been used and many of their assets have be destroyed. What causes that to happen? This is all because of the price of the rubber going higher. When this happen, planter will do their very best to force the rubber trees to produc more yield, but in long run the trees will die. How to avoid that and you still have better yield? check the website and you will have the answer. Happy farming to everyone.

  8. Winny Eizinga

    Hello everyone,

    We just bought 130 Rai in Kuiburi (near Hua Hin) already 80 Rai filled up with pineapples and 250 rubber trees, now I want to develop the 130 rai into a mixt pineapple and rubbertree plant.
    Where can I buy the no 1 grade rubbertrees I need aprox 11000 trees (not in one time, as it`s impossible to plant in one day)
    Furteliser where to buy and if someone has some good ideas please tel me. The proffit at this moment is not important as I have to wait for another 6/7 years, in the time between I do pineapples, this will cover the expenses on the land and for me and other workers. All ideas are welcome. I bought the land very cheap 500.000 baht for all, as the people who own the land now did not have any money anymore and I wil do the the business togheter with them, win win situation. I was looking for this a long time, hard to find.

  9. Ray

    Everybody my company sale good rubber tree in thailand n export around we have RRIM 600,RRIT 251,PB350,RRIM2025,RRIM 3001,from trang south thailand any helping call me +66829016161(oray) Mss.thailandrubber.com

  10. Hi,

    you really buy cheap land, in south is only 5 Rai 500 000 bht..

    Did you check your agreement very well? Foreigners cannot buy land in Thailand, only lease, 30 years with extension of 30 years.

    There are many fertilizers in Thailand, sorry don t know which one is best, do some research and ask some people who already have plantations.

    You have to make research if pineapple trees can be close to rubber trees, as I know coconut trees cannot be near palm oil trees..

    If I would be buying plant trees I would go to south and buy it there as ti is better quality and give more rubber..
    Price is 30 BHT per plant (I was in June 2012 in Thailand) but I think if you buy larger amount, you will get cheaper..

    I dont know about land, but you can make money with Cassava, Palm Oil trees, Bamboo trees in the meanwhile ;)
    If possible, Longhkorn, Durian and Mangosteen fruit too ;) – Good money

  11. maza

    where can i find the “daily market) price for a “cup of rubber” in bht/kg on the internet? (i find only price of sheets)

    thank you!

  12. anthony worley

    hello my wife and i have 2000 trees just planted and going to do a other 1000 next year we live in sirsan. we live and work in austraila so for the next 6 years we can wait and go back to thailand and with money in the bank so the money from the farm is all cream.

  13. Ron

    Hi Anthony Worley. I live in Australian and considering the same vernture you seem to have already put in motion. I’m travelling to thailand in 3 days to buy land in my wife’s home town not far from Roi Et. The plan is to setup a long term investment into ‘Garden Rubber Trees’ (i’m not the farmer in the family as you may already tell) Eventually migrate to Thailand with a diverse passive income.

    How did you organise to setup your rubber tree farm??
    Are you putting alot of trust into local managers?? or are you able to travel regularly to check everything?
    are you building on the property??
    have you had any trouble? got any hints & tips???

    appreciate your advice.
    Thanks,
    Ron.

  14. Anthony

    Hi Ron , im in the same situation as you .I have just bought 54 Rai and intend on planting rubber trees .My partner is Thai and her family are the farmers. The season to start planting is April / May
    Regards
    Anthony
    Ps happy to chat more on this , let me know how your trip goes

  15. Rubberpatch

    Hi All
    I too am wanting a site for the daily “cup rubber” price. any help on roller prices and suppliers appreciated. regards rubberpatch

  16. stewart

    hi,my wife and i are looking at buying mature rubber trees in si sa ket approx 10 rai,not sure on the price we should be paying,

    appreciate all advice
    regards,
    stewart.

  17. simon

    Hi, my wifes family already have 15 rai of rubber tree land in Nakon Si Thamarad, they have just sold the old trees and planted new ones so roughtly a 6 year wait for them now. We have been offered 4 rai with 7 year old trees on it which have been producing rubber for 2 years at the price of 800.000bt all in . Its the old storey of the owner selling part of the land because they need money to repay an oustanding dept. Any thoughts on the price of the land, seems like a good price to me, according to her family these pieces of land are very rarely available for sale.
    Any comments welcome.

  18. Richard

    Hello everybody, i have been offered 20rai wit 7 year old trees in Chachangsao,chonburi for 100,000baht each (2 million baht total).
    would someone tell me if this is a good deal or is it still worth looking around thailand as i am not committed to buying in any specific area.however i do want already matured tree ready to go.. will you all pay your help in %%% or will you pay them monthly salaries?? many thanks in advance

  19. Tino Ha

    Hi, it sound interesting!! Can you email me the excel copy.

    Thanks

  20. bob nelsontrees. any suggestions or direction to look for suggestions

    i have 30 rai and 10 rai, both have eucalisis trees. have just cut the 30 rai and am thinking of putting in rubber trees.
    any suggestions or places to look for suggestions on soil prep, where and type of rubber tree to buy, fertilizer to use and how often, and watering, would be appreciated.
    last question, you say to water 1 time a week…how do you do this? do you get a water truck and drive the field?
    i know nothing about this so any help please
    thanks

  21. kai

    Im being offered 7 rai full grown age 10th years..at hat yai 20km away from airport .. 500k baht upfront and each month of 10k are to be given to the owner which in total pays up to 2.8m for 7 rai.
    400k per rai.. but the profit rate from start is good.. what should i do?

  22. Mr. Thor

    Hi Everybody,

    I am looking for sombody who want to rent some of my land for rubber plantation. I have 3,000 (Three thousand) acres- raw land/ approx 7500 rai in my country(Myanmar). I would like to rent all of my land at once not in seperate.I would like to get rental fees in two to three years advance (It will be millions of USD). I can give you a gurantee for doing business safely in my country. Anyone who are interesting,you can contact to my email- thorhtin@gmail.com

    Thank you.

  23. M Hoi

    Hi, it sound interesting!! I’ m also planning rubber tree business.
    Can you email me the excel copy.
    Thanks

  24. Susan Cahill

    Hithere,

    Thanks for sharing..May I have the excel copy also please.

    Thanks & best regards,
    Susan

  25. Hi everybody, I am a new comer in this field.We have 25 acres of Rubber Plantation in Bangladesh which is take care of my elder brother. But from this month i am took the plantation as i got it by my family property. Now onward i am the owner of the plantation but i have not enough knowledge about the tree.
    The age of plantation is 20 years (approx). The production of Rubber latex is not satisfactory.
    If anyone could advice me ? What i have do in the stage of plantation age ? Replanting or ?
    and if it is wise to sell the tree ?
    Please advice if anyone have good knowledge about all details of Rubber plantation

    Thankx all

  26. Larry

    Can someone put some of these figures in U.S. dollars $ for me?
    We are contemplating planting in Africa and Asia, but am having difficulty in understanding what 1 rubber tree can produce in profit for a year. Seems like easiest calculation for me. Can anyone help please.

    Thank you,
    Larry

  27. Ekow

    Great,I am planning of starting up a rubber plantation in Ghana .Please do well to forward the excel sheet to my email.

  28. Desmond Chia

    I’m interested in starting up a rubber plantation too. Would appreciate if you could email me the excel too. Thanks!

  29. Hello,

    I m newly started rubber plantation business in myanmar, if any one need the land in myanmar cheap rubber tree land or 5 years rubber tree with land,recentaly I brough there. Kindly contact me on 00974 55242647, Qatar no(.00951 548461) myanmar no e mail: myanmarvillas@gmail.com

  30. davide

    Great deal!
    We have 19 Rai with over 1,500 to 2,000 rubber trees in Nong Khai area (Sangkhom), they are just ripe and ready to be cut, planted 7 years ago.
    Please let me know if you are interested. You can contact us at 0818394566.

    Thank you,
    Davide and Aei

  31. Davide

    The deal above consist in the full plantation of 19 Rai and that could be sold at about 1million baht. If you are interest we could help provide also families as labor.
    Since our family is in the need of cash, we are interested to sell below the market value. It important that you reach us at the earliest. In Thailand is not possible for foreigners to personally own agriculture land, yet there are ways to own it and own the rights for unlimited time. You could either: incorporate a thai company or purchase a usufructis lifetime agreement. If you are interested to invest in rubber tree plantation, we could help by sharing our learnings.
    Kind regards, Davide

    my Singapore number is: +65 91 38 29 66. While in Thailand: +66 8183 9 4566

  32. Tommy

    Hi Davide, I would like to know what is your rough estimate of monthly profit on 19 rai? This is after paying the tappers their 50% and fertiliser costs.
    Thanks

  33. Davide

    Tommy, sorry for not getting back as I really didn’t know. I;ve bough the land to my in-laws and I am uncertain. Their comment is that the rubber is incrementing and it will be more as the trees are mature.
    I’ll get back to you about in details.
    Regards,
    :D

  34. Dani Togni

    hey guys, i am thai and im looking for a partner in planting rubber trees in Thailand or Myanmar.

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