November 27, 2018
Dawei, Tanintharyi Region, Myanmar: The DaNa Facility, a UK Government Department for International Development (DFID) funded programme, Dawei Golden Land Co (DGL) and the World Wide Fund for Nature (WWF), the world’s leading independent conservation organisation, today announced a joint investment of over $2.4 million in an innovative project aimed at catalysing change in global rubber production.
The project, focused on supporting environmentally, socially, and commercially sustainable rubber production in Tanintharyi, Myanmar, has a long-term goal that the region, as part of the WWF initiative, provides a replicable business model in sustainable and traceable rubber.
Speaking at the launch Tom Coward, Team Leader of the Inclusive Growth and Livelihoods Unit for DFID in Myanmar, said:
“It is exciting to be launching this project with WWF and to see the significant transformative potential of producing rubber sustainably in Myanmar. With Myanmar the seventh largest rubber producer in the world, this project has huge potential to improve the livelihoods of poor farmers, while also promoting the feasibility and profitability of ‘zero deforestation’ sustainable rubber.”
The project will be implemented in partnership with Tanintharyi-based DGL, established in 2017 by 22 rubber growers in Tanintharyi region, including members of the Tanintharyi Rubber Planters and Producers Association (TRPPA). DGL, a proactive actor in the sector and is committed to break the cycle of low-quality and low-priced rubber, has invested over $1 million in building a new rubber factory that enables high-quality rubber to be produced at a scale attractive to premium buyers.
Also speaking today Gaurav Gupta, Programme Manager from WWF Myanmar said:
“Rubber production in Myanmar has caused deforestation and displaced communities from their customary land. A shift towards sustainable rubber production will ensure that there is no further deforestation, no land grabbing, and no human rights violations.”
Myanmar is the world’s seventh largest producer of rubber and rubber is one of the country’s biggest exports. Yet, the sector is stuck in a cycle of low yields, poor processing, low quality products, and low pricing, making Myanmar dependent on the cut-price market.
The project has three main components. To support DGL in working with their suppliers by setting up collection centres in nine villages and training smallholders in sustainable rubber agroforestry systems, including the requirements of zero deforestation, and purchasing latex from the farmers to ensure a fully traceable and transparent processes.
The project will then support DGL in developing their rubber processing factory to meet the sustainability compliance requirements of international premium buyers, ISO quality standards and to produce the large volume of consistent, high quality rubber, needed for the business to attract the sustainable buyers necessary to become commercially viable.
Finally, the project will support DGL in marketing their products internationally to attract premium, sustainable buyers. The project has already secured expressions of interest from a Singapore-based buyer and is conducting discussions with premium international tire producers.
The project will work with 250 smallholder producers to increase their income by up to 30% through training in sustainable rubber agroforestry practices. By selling latex directly to the factory for processing, the project hopes to help an additional 2,500 smallholder producers save around 50% of their labour-production time with no loss of income. The new sustainable rubber factory will also create another 250 new full-time jobs, 60% of which will be for women.
Notes to editors:
For more information please contact the DaNa Facility communications team at: +95 978 250 0725 or through email: email@example.com
The DaNa Facility: The DaNa Facility is a UK Department for International Development (DFID) funded programme, established in May 2016 as one of three components of DFID’s wider ‘Business for Shared Prosperity’ (BSP) programme. The DaNa Facility, implemented by DAI Europe and KPMG, supports inclusive economic growth and private sector development in Myanmar through responsible and sustainable business growth, investment and trade. For more information on the DaNa Facility please visit: www.danafacility.com
WWF: WWF is one of the largest and most respected independent conservation organisations, with more than five million supporters and a global network active in more than 100 countries. WWF’s mission is to stop the degradation of the earth’s natural environment and to build a future in which humans live in harmony with nature, by conserving the world’s biological diversity, ensuring that the use of renewable natural resources is sustainable, and promoting the reduction of pollution and wasteful consumption. WWF Myanmar was established in 2014 and is working to conserve the country’s biodiversity and build a sustainable future for people and wildlife. To learn more about WWF activities, please visit us at www.wwf.org.mm