Abstract
This article presents an analysis of the History of Natural Rubber Prices based on the seminal work of Prebish (1950) and Singer (1950) regarding the Secular decline in the net barter terms of commodity trading. Later it debates the potential of Added Value strategies as an alternative to challenge such limitations through the perspective of the Triangular Model of Value Creation, Capturing and Sharing (FAVA NEVES 2014). Primarily, this article adopts the premise that despite the cyclical variations of Natural Rubber (boom and bust cycles observed in 1909, 1921, 1930, 1998 and 2010) the cumulative change in price for the last century, of -93.3% (JACKS 2013), describes a clear long-run downtrend. The proportional expansion of Natural Rubber Production in poor countries and the ever-growing production of manufactured goods on industrialized nations collaborates to the scenario of consistent deterioration of the terms of trade. When discussing Value Sharing in Agricultural Productive Chains, Fava Neves 2014, argues that: “without value or income generation, there is no sustainable income or value distribution”. To that regard, alternatives that comprises strategies related to: DIFFERENTIATION, COLLECTIVE ACTION, COSTS OF PRODUCTION are presented by FAVA NEVES as potential solutions to common agricultural industry problems, such as the one we here characterized on the Rubber Industry. This model Fava Neves calls Triangular Model of Value Creation, Capturing and Sharing. Finally, this article debates about potentials and limitations of the use of such model by the Latin American Rubber Industry
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