QR Code Link : Type : Thesis Subject : Business, Marketing Main Author : Nur Zaiki Zanudin Title : Impact of the Global Price Mitigation in the Rubber Business Value Chain Price Mechanism towards the Local Rubber Smallholder’s Income: A Study on Rubber Industry in Malaysia Content Type : still image (rdacontent) Media Type : computer (rdamedia) Carrier Type : online resource (rdacarrier)

Place of Production : Kuala Lumpur Publisher : Tun Razak Graduate School Year of Publication : February 2024 Physical Description : ill, 69 pages Notes : Project Paper Submitted in Partial Fulfilment of the Requirements \r\nfor the Degree of Master of Business Administration \r\nUniversiti Tun Abdul Razak Corporate Name : UNIRAZAK Library PDF Full Text : Login required to access this item.

Abstract : UNIRAZAK Library

It was discovered that for the past decade, the FOB price (Global price) of Malaysia TSR20 (also known as SMR20) has always been in the mid-level range at the average price of Rm6.00 per kg. Although price used to soar up to RM 12.00 per kg for a brief period between 2010 and 2011 due to China aggressive development and business expansion at that time, the previous and remaining years, FOB price has always been at the mid-range level. Malaysia smallholder’s income has always been related to the rubber global price. While this is true to a certain extent, what was frequently overlooked is the internal or domestic business mechanism in the value chain. The rubber business value chain has been the same for decades. By normal circumstances, business operations often change to adapt to the current market trend. However, for a commodity such as rubber, the business mechanism has been monotonous throughout with the smallholders representing the upstream, selling to the midstream for processing and the midstream will sell it to the downstream sector. The study aims to explore the impact of the FOB price mitigation in the current rubber business value chain price mechanism towards the rubber smallholders that produce coagulated rubber (aka cup lumps) for SMR20. The study was conducted at Belimbing Kiri, Padang Terap, Kedah Darulaman using secondary data obtained from the Malaysia Rubber Board involving 113 smallholders that produced coagulated latex (cup lump). Through the analysis, the result showed that the smallholder’s price is stuck in the upstream sector while the cost from the midstream mitigates to the upstream rather than towards downstream. The factor of cost includes factory processing cost, trading margin, dealer’s cost and dry rubber content (DRC) that plays a vital role in determining the farmgate price or income of the rubber smallholders. This study is beneficial for MRB to re-evaluate the current business value chain structure in order to make it more transparent and effective.

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