CAMARILLO RUBBER

TREE PLANTATION FOR

RESIN PRODUCTION
SUBMITTED BY:JHON VERT CAMARILLO

SUBMITTED TO: MR EDGARDO LILLO

Introduction
Para rubber (Hevea brasiliensis Muell.) is fast becoming a dollar-earner crop in
the Philippines because of its high export potential. In 2016, Natural rubber exports to
Malaysia, Taiwan, USA, Singapore, and Hongkong $ 36.4 million in the forms of latex
and crepe sheets (The World Fact Book, Field Listing Exports-Commodities, Central
Intelegence Agency, 2017). Para rubber (H. brasiliensis Muell), as a reforestation crop
can help control the level of carbon dioxide in the atmosphere and combat green effect.
It is also considered as one of the most profitable agro-industrial ventures in the
country and commercially grown in Mindanao with great success as well as in most
Southeast Asian countries, like Malaysia, Indonesia, Thailand, Cambodia, Vietnam and
Southern China.

Rubber is the latex produced by tapping para rubber (Hevea Braziliensis (Willd. Ex
A.L. Juss.) Muell.-Arg.) trees and is an important raw material in the production of
various industrial, commercial, and household products, most commonly the
manufacture of tires and footwear. It is an agroforestry species that can be grown
alongside agricultural crops such as coffee (Coffea species), cacao (Theobroma cacao),
coconut (Cocos Nucifera), calamansi (Citrus microcarpa), eggplant (Solanun
Melongena), tomato (Lycopersicom esculentum), and papaya (Carica papaya) (Castillo
et al. 2012). Rubber trees are also used for rehabilitating degraded areas.
BUSINESS DISCRIPTION

My rubber tree plantation is established for a production of resin

through the process of tapping. It will have a desired size of one hectare
with a spacing of 3×3 meter. Start from planting, it will take a six years to
have a first harvest. Probably, the rubber tree trunk will reach a diameter
of … that is standard to initiate a first harvest. The location of the
plantation will be held at Davao area due to climatic factor that a rubber
tree Is absolutely compatible. I plan to apply a silviculture strategy to
gain a productive and healthy plantation to have an outcomes of
sustainable production of resin. All harvested resin will directly sell in a
tire company.
MARKETING

Industry and competition

Projected that rubber tree resin will automatically sell at our
logistics tire company to have a negotiable price of 40.00 pesos.
The major competitors of our business are those owner of rubber
tree plantation, but it not decrease the price since resin is highly
demand.
Products/ services offered
Aside from the resin products the plantation are also open for
services:
• Open for social media content creator for rubber tree
exploration and propagation content.
• Recreational activity and camping (with ordinance
implemented to protect the trees).
• Accept seminar for those who want to open a business about
rubber tree.

Industry
The plantation will always cooperate in any association affiliates in
resin export . And, also willing to adapt new strategic silvicultural
practices and sustainable forest management concepts.
Short term and long term goal

My Rubber tree plantation aim to have an increase income every

year since the larger the bark the more resin to produce. I
planned to use all income to buy a new assets to widely extend
my plantation and create a lots of input and outputs. I’m open for
collaboration and business partnership to improve my business
and pave the way for further investment.
Plantation site and stategy
The plantation is located at Davao area due to climatic factors. Para
rubber is a tropical tree crop which requires a warm humid equable
climate (20 to 35°C). Choosing fertile soil will be a key foundation for
rubber tree fast growth. This plantation will look forward and choose
seedlings that came from a healthy mother trees and done with
progeny testing to ensure plant genes. Inevitably, if ever insect will
attacked I planned to consult insect toxicology for pest control and
regulation. Organic fertilizer specifically chicken dung will be use as a
fertilizer due to high price of chemical fertilizer and consistently
having inflation.

Ownership of the farm

• sole proprietorship
Risk involved and management
The risk involve are pest attack, strong wind, drought,
and plant diseases. As a part of management, I already
set intervention for any risk that may cause to the
plantation. Including, pest control, soil acidity testing,
fungi and pathogens eradication. The plantation
already have insurance in case of calamity and
conflagration happen.
Financial statements
The economic rate/net revenue in establishing a one
hectare of para rubber tree plantation for resin
production with 3×3m spacing. Rubber tree resin is sold
at 40.00/per kilo. Start from plantings it will take six years
to have a first harvest. A rubber tree can produce one
kilo of resin in every 2 weeks, expected that in one year a
one rubber tree can produce 24 kilograms of resin. I
invested a capital of 200, 000 .00 pesos which is acquired
amount at the bank with 15% of interest for 7 years.
Seedlings cost = 20.00 seedlings ( 1 hectare = 10,000
m²/3×3m)
= 1,112 seedlings × 20 = 22,240.00
Mortality = 112×20 = 2,240.00

Organic fertilizer = 300 sacks for 100.00/sacks = 30,000.00

Labor = 350.00/day for 30 days for 3 laborers = 21,000.00
Land rental = 10,000.00/year for 6 years = 60,000.00
Maintenance = 10,000.00/year for 6 years = 60,000.00
Total expenses = 195,480.00
Gross income= 1 tree can produce 1 kilo of resin in two weeks
= So 1 tree can produce 24 kilograms of resin in 1 year
= 1,112 heels × 24 kilo of harvested resin × 40.00/per kilo = 1,067,520.00

A• Rate of production = (gross income × 10%)

. = 1,067,520 × 10%
= 106,752
B• Total loan after 6 years:
Vn = Vo (1+i)n
= 200,000.00 (1+.15)⁶
= 200,000.00 (1.15)⁶
= 200,000.00 (2.31)
= 462,000.00

Total interest = Vn- Vo

= 462,000.00 – 200,000.00
= 262,000.00
C• Net income = gross income (total + rate of production + payment of
loan)
= 1,067,520.00 - (195,480.00+106,752.00+462,000.00)
= 303,278.00
Total cost = total expenses + rate of production + payment loan
= 195,480.00+106752.00+462,000.00
= 764,242.00

Total net income = gross revenue – total cost

= 1,067,520.00 - 764,242.00
= 303,278.00

Ratio benefit cost = 1,067,520.00/764,242.00 = 1.3:1

Gain= 1.3-1= 0.3
0.3×100 = 30%
 Thank You
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