Does Rubber Need a Reboot?
‘The unicorns are out of business tomorrow if there’s no rubber, because Amazon can’t deliver its parcels, Uber can’t drive its cars and Tesla goes broke immediately because it can’t move cars.’
While natural rubber is more in demand than ever – global consumption has risen from 10m tonnes in 2010 to 14m tonnes today, there is a “looming crisis” in the rubber industry as its supply becomes less and less sustainable and its market economy remains trapped in a boom and bust cycle. A move away from the current speculation driven futures-market-based pricing model would ensure a livelihood for the thousands of smallholder farmers who produce 84% of the world’s rubber; while ensuring the world retains access to the ever-increasing tonnage of rubber it demands per year.