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Introduction

A. Rationale of the Study

Rubber is one of the world's major commodities. Its changing patterns of

production, ownership and trade reflects major features of industrial organization

and economic integration in the evolving global economy.

The country’s economic growth created greater capacity for consumption for

different segments of the population. This has stimulated the demand for various

products including those made from rubber, thus, generating the need and

opportunity to develop the country’s rubber product industry.

The Philippines has been among the top ranking countries in rubber production

until the 80’s, when demand for car tires and other rubber-made products slowed

down following the decline in the Japanese and European economies. In recent

times, however, the Philippine market for rubber products has demonstrated new

vitality shown by the increasing demand for rubber-made goods.

The Philippine rubber industry is characterized by its expertise to manufacture a

wide array of rubber products, existing capacity to meet customer demands,

technical capability to satisfy customer needs, strong ability to adjust to customer

requirements, and highly-experienced direct labor.

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The DTI fact file said Philippine exports of natural rubber are comprised of

natural rubber in primary forms; and natural rubber products that include tires,

automotive/industrial products, footwear and latex-based products.

The Philippines is among the top producers of natural rubber in the world, it said.

The government’s Inclusive Innovation Industrial Strategy has included

agribusiness as a priority area. Rubber is one of the prioritized high-value crops

in agribusiness, alongside coconut, mangoes, coffee, cacao, pineapple and

banana.