FINANCIAL FEASIBILITY OF LOW FREQUENCY TAPPING SYSTEMS TO DEAL WITH THE BUSINESS CHALLENGE OF RUBBER PLANTATIONS IN INDONESIA

Abstract

In present day context, rubber plantations are facing problems of the low rubber price, difficulty in finding workers for tapping and rising the cost of production. Tapping cost  is the biggest component in cost of production. Therefore, this study was aimed to  analyze financial feasibility of different tapping systems in the mature rubber tapped on B0 panel and H0 B1 panel. Tapping systems comprised varying degree of tapping frequencies and stimulation (ethephon) systems. Financial analysis was based on assessments on  the margin revenue and margin costs.  Out of 19 tapping systems tested, five systems found to be profitable against the usually practiced once in three day tapping with 2.5% ethephon every two weeks. On the virgin base panel (B0), three systems are available, i.e. two with once in three days tapping using 2.5% ethephon at 10 days interval and 4% ethephon at 2 weeks interval and, another with once in four days tapping using 5% ethephon at 2 weeks interval. In intensified tapping with double cuts (DU), only once in three days tapping was found financially feasible with 4% and 5% ethephon at two weeks intervals on the base panel.

Key words :  economic feasibility, partial budget, rubber, tapping system.