Aug. 1— Thailand, the world's top producer of natural rubber, plans to destroy more than 2 percent of its rubber trees annually as efforts at stockpiling have failed to bolster prices from near 30-year lows, officials said. The government plans to start logging on an annual 47,000 hectares of plantations by the end of this year and shift farmers to planting other crops. With 1.98 million hectares under cultivation, and 400 trees a hectare, Thailand produces a third of the world's natural rubber.
''This augurs well for rubber prices -- you'll see supply drop a lot,'' said Tan Swee Hua, managing director at Getahindus, a rubber-trading company in Malaysia. Malaysia has often tried to reduce the rubber supply, only to see cuts in its supply offset by increased output by Thailand and Indonesia, he added.
Thailand, Indonesia and Malaysia, which produce 85 percent of the world's rubber, agreed this month to restrict supply to help farmers get prices that can sustain cultivation.
Thailand's first concerted effort to cut trees could bolster rubber prices and hurt tire makers, analysts said. The global tire industry buys $6.8 billion worth of natural rubber a year, with the top eight makers, including the Goodyear Tire and Rubber Company, buying 45 percent of the world supply.