Providing a detailed analysis of the rubber production landscape in Cambodia and due diligence on local plantations.
Our client, a global tire manufacturer interested in Cambodian rubber as a possible new supply of raw material. Cambodia is a relatively new producer of natural rubber compared to its neighbors like Thailand and Malaysia. The number of plantations and the size of existing plantations have increased in the past few years. We helped the client to understand the future volumes of rubber to be produced, the locations of the plantations, the current and future processing capabilities, the cost structure, among others.
YCP Solidiance helped the client by providing a detailed evaluation of the current plantation size, with current and future output. We also looked at the grade of rubber currently produced, the methods of operation for large plantations in both the collection of the rubber and its processing.
YCP Solidiance studied in detail the whole ecosystem, including smallholders working with the plantations. Our team looked into the government policies favoring investment in rubber plantations, but also the social and environmental impact of these plantations. Our project team was composed of Cambodian and Vietnamese consultants which were very helpful as a great share of Cambodian rubber is being traded with Vietnamese stakeholders. We conducted more than 50 interviews in Phnom Penh and in several provinces across Cambodia.
This study provided our client with the strategic information they needed to fully understand the Cambodian rubber market, from production, processing, trading and export. It allowed the client to get a better understanding of the quality of rubber produced, and the future market size by province. Our due diligence of some large plantations gave the keys to understand the capabilities of some large rubber producers, their political networks, and their overall reliability as possible future suppliers.