Editing Natural rubber (section)

== Rubber shortage and global economics ==
There is growing concern for the future supply of rubber due to various factors, including plant disease, climate change, and the volatile market price of rubber.<ref>{{cite web
 | first        = Mauricio
 | last         = Espinoza
 | title        = US seeks domestic rubber as global shortage worsens |quote=The importance of developing alternative sources of natural rubber becomes clear when considering that there has been a shortage in the supply of this critical resource every year since 2004. By 2020, the global shortfall of natural rubber is projected to be more than the entire amount (1.2 million metric tonnes) the U.S. imports every year.
 | url          = https://www.farmprogress.com/markets/us-seeks-domestic-rubber-global-shortage-worsens
 | work         = Ohio State University
 | date         = 2012-11-01
 | access-date  = 2021-03-13
}}</ref><ref>{{cite web
 | title        = Natural rubber shortage
 | url          = https://www.therubbereconomist.com/nr-shortage
 | work         = The Rubber Economist
 | access-date  = 2021-03-13
}}</ref><ref>{{cite web
 | first        = Robert
 | last         = Meyer
 | title        = Situation Report: The looming crisis of natural rubber. The Chief Executive's view
 | date = 9 September 2019
 | url          = https://www.corrie-maccoll.com/situation-report/
 | access-date  = 2021-03-13
}}</ref><ref name=Swain>{{cite web
 | first        = Frank
 | last         = Swain
 | title        = The wonder material we all need but is running out: ''Climate change, capitalism and disease are threatening to strike a mortal blow to the world's rubber trees. Do we need to find alternative sources of rubber before it's too late?''
 | url          = https://www.bbc.com/future/article/20210308-rubber-the-wonder-material-we-are-running-out-of
 | publisher    = [[BBC Future]]
 | date         = 2021-03-08
 | access-date  = 2021-03-13
}}</ref> Producers of natural rubber are mostly small family-held plantations, often serving large industrial aggregators. High volatility in the price of rubber affects rubber plantation investment, and farmers may remove their rubber trees if the international market spot price of a seemingly more profitable crop (for example [[palm oil]]) surges in relation to rubber. 

For instance, during the 2020 and 2021 international [[COVID-19 pandemic]], demand for [[Rubber glove|rubber gloves]] surged, leading to a spike in rubber prices of about 30%. In addition to the pandemic, demand exceeded supply in part because long term plantations had been torn out and replaced with other crops over the previous 5–10 years, and other areas were affected by climate-fueled natural disasters. In this environment, producers did increase their prices in keeping with supply and demand dynamics, putting upward price pressure on the whole downstream supply chain.<ref name=Swain/>