COVID-19 Pandemic Effects on Sustainable Adaptations of Upstream Rubber Sector: A Case Study in Songkhla Province, Southern Thailand

Abstract

The objectives were to study the effects of COVID-19 on stakeholders in the upstream rubber sector, and their sustainable adaptations. Quantitative and qualitative research was conducted in Songkhla Province. Stratified sampling was used to select four groups of upstream stakeholders, comprising 280 rubber households, 13 rubber cooperatives, 11 fresh latex traders, 9 local middlemen and factories/exporters, and 16 RAOT officers which included 2 central rubber market officers. The research found the following to be the most substantial effects of COVID-19 on the society, the economy, and the production technology and environment of rubber households: less community interaction, worsened mental and physical health, lower incomes, more debts, and adjustments to their consumption and expenses. The study found that 77.7% of fresh latex traders were moderately affected despite the low amount of fresh latex and its low price. Rubber traders adapted by reducing expenses, reducing risks, and keeping financial liquidity by reducing the labor wage, changing selling locations, and increasing efficiency. All factories remained in operation though they experienced labor shortages and a low supply of fresh latex leading to an inability to meet demand for concentrated latex. The upstream rubber sector adapted by increasing production at concentrated latex factories, reducing costs in the process of production (especially by lowering the labor wage), and investing more in the rubber glove industry.