Local rubber farmers form tire brand

MANILA, Philippines — Local farmers will officially start processing their own rubber produce under a local brand and market it to manufacturing companies.

Officials of the Philippine Rubber Farmers Cooperative recently signed a processing and marketing agreement with Valenzuela City-based Leo Tire Manufacturing Corp for the processing of raw rubber into motorcycle and small tractor tires under the brand name Pilipinas Agila starting February 2019.

Under the agreement, the rubber farmers’ cooperative will buy the raw rubber produce of its members at a price higher than the prevailing local buying price using an initial capitalization of P10 million provided by the Department of Agriculture-Agricultural Credit Policy Council.

Leo Tire Manufacturing Corp. has agreed to a “tolling arrangement” where it will process the farmers’ semi-processed rubber called SPR20 into motorcycle and hand-held tractor tires.

“While cup lump prices have gone down, the cost of tires has gone up. The support given by the DA to the project will start the liberation of farmers from the control of traders and middlemen,” said Agriculture Secretary Emmanuel Piñol.

The DA will provide technical and financial support to the PRFA to implement the project.

Leo Tire Manufacturing produces tire brands like Manhattan, Bulldog and Leo.

Government statistics showed  there are 3.58 million registered motorcycles in the country, most of them are using tires manufactured abroad.

From a high of P100 per kilogram about 10 years ago, prices of raw rubber have declined to P25 per kilo, prompting many farmers to cut down their rubber trees and shift to other crops.

Rubber tree farming has been a steady source of income for many farmers in Mindanao, including Palawan and now Negros Oriental.