On a map on ecologist Liu Wenjie's computer, the subtropical southern tip of China's Yunnan province is slowly turning from green to red. Rubber plantations shown in red on Liu's computer screen have supplanted nearly all the low-lying forest in the prefecture of Xishuangbanna and are now starting to encroach on the highlands.
Liu and other scientists are worried that the expansion of rubber plantations to feed China's voracious tyre industry, the world's largest, will destroy the ecosystem of Xishuangbanna. The province is home to China's richest variety of flora and fauna.
Three decades ago, jungles and high mountain forests covered about 70 percent of Xishuangbanna, tucked between China's borders with Laos and Myanmar. By 2003, that proportion had shrunk too less than 50 percent. "With rubber prices rising like crazy, any tree that can be cut down has been cut down to make way for rubber," said Liu, a professor at the Xishuangbanna Tropical Botanical Garden, run by the Chinese Academy of Science.
Rainforests have been reduced to patches of protected zones in Xishuangbanna, one of the top rubber producing regions in China, as double-digit economic growth has caused increasing encroachment on China's last remnants of uncultivated land.
The official figure for Yunnan Province's rubber acreage is 334,000 hectares, about 43 percent of the country's total acreage, but the real figure may be much higher. China consumed 2.35 million tonnes of natural rubber in 2007. About 70 percent of that was imported from abroad, mainly from Thailand, Malaysia and Indonesia, Southeast Asian countries that are also facing deforestation from expanding rubber plantations.
China has seen natural rubber imports nearly double since 2000 thanks to fast-growing domestic auto sales and as it becomes the top tyre maker and exporter in the world.
China produced 330 million units of tyres in 2007 and shipped nearly half abroad. Global tyre heavyweights, such as Goodyear, Continental AG Michelin and Bridgestone, are either setting up or expanding their plants in China. To feed the demand, China is seeking to expand its natural rubber output which is expected to grow by 30 percent to 780,000 tonnes by 2010, the China Rubber Industry Association forecasts.
But available land suitable for growing rubber is very limited, as the trees need to be planted in sub-tropical or tropical climates, weather conditions found only in small parts of southern China.
RUBBER PLANTATIONS SHRINK FORESTS:
In the years between 1976 to 2003, about 67 percent of the region's rainforest areas were lost to rubber plantations, according to a 2006 paper by researchers with the Chinese Academy of Sciences and a scientist at the University of Puerto Rico.
Scientists say that both state-owned and private plantations are responsible for shrinking forests. State-owned Yunnan Natural Rubber Industrial Co, the province's top producer denies the allegation.
Yunnan Rubber currently has rubber acreage of more than 1,333 hectares in neighbouring Laos and Myanmar, which will start producing rubber in six or seven years. It plans to expand the acreage to 33,333 hectares in the next few years, replacing poppy opium fields. High prices have made rubber more appealing to farmers who profit little from growing opium as most of the profits go to the processors.
Rubber prices have almost tripled over the last decade and are now around 20,000 yuan ($2,815) a tonne. "Natural products will continue to get more expensive, there's no doubt about it," said Liu.
Tokyo rubber lower: Tokyo rubber futures extended gains on Monday rising more than 1 percent to touch a three-week high on the back of strong crude oil prices. The benchmark Tokyo Commodity Exchange rubber contract for September delivery stood at 292.3 yen per kg, up 2.3 yen, after rising 1.3 percent to as high as 293.8 yen, the highest level since March 13.
Asian physical rubber: Asian physical rubber prices were quoted unchanged on Monday as thin trading offset rising futures contract prices on the Tokyo Commodity Exchange, which sets the global trend. Physical trade in Thailand, the world's biggest rubber producer, was sluggish due to a public holiday, traders said.
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