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ADNews-Monrovia, Liberia: A severe shortage of raw rubber is threatening to shut down Liberia’s processing industry, raising the prospect of factory closures and widespread job losses.
By Contributing Writer
According to data presented by the Ministry of Agriculture during a legislative hearing on July 15, the country’s six processors need a combined 36,600 metric tons of rubber monthly to sustain operations but currently receive only 14,000 tons, leaving a deficit of 22,600 tons.
The Ministry data further show Firestone receives 5,800 tons monthly versus a need of 7,500 tons, while Lee Group receives 600 tons versus a need of 6,000 tons and Nimba Rubber receives 1,340 tons versus a need of 9,000 tons. Similarly, Cavalla Rubber Company receives 640 tons out of the 5,000 tons it needs, while Jeety Rubber gets far short of the 14,000 tons it needs monthly.
The Ministry says brokers drive the shortfall by the export of approximately 22,000 tons of unprocessed rubber, leaving processing plants to operate well below capacity.
The legislative hearing on July 15, attended by representatives from Firestone, Lee Group, the Liberia Agriculture Company (LAC), and the Rubber Planters Association of Liberia (RPAL), among others, was intended to give the house a full understanding of the necessity and impact of Executive Order No. 166, which banned the export of all unprocessed rubber from Liberia.
President Boakai has framed the policy as a move to protect the domestic rubber industry, preserve jobs, and shift the country from exporting raw materials toward value-added manufacturing
Speaking on behalf of brokers and some smallholder farmers, Saye Keyeh argued the order hands excessive power to processors, stifles competition, and pushes farmers to the economic margins.
He warned the policy could create a monopoly that forces farmers to accept terms set by a few domestic buyers rather than sell to the highest bidder.
But the Ministry of Agriculture countered that an unregulated, export-heavy market robs the government of tax revenue and erodes industrial employment. The Ministry noted that the policy was in the right direction, citing Ivory Coast and Ghana, as prime examples of nations that have successfully implemented similar export bans to boost value-added processing.
According to the Ministry of Agriculture, the government, in an effort to protect farmers’ income, has implemented a standardized pricing framework that is benchmarked against global prices to ensure fair compensation and remove any perceived leverage of processors.
Speaking at the hearing, business tycoon and owner of Jeety Rubber, Mr. Upjit Sachdeva, told lawmakers that his company is currently operating below capacity, and has been facing a daily shortfall of about 200 tons over the past few months, and it is expected to increase to 350–400 tons in the coming months.
“We were already running under capacity. We are going below capacity because rubber is being exported unprocessed,” Jeety told the House Specialized Committee on the Export of Unprocessed Rubber, chaired by Hon. Nyan G. Flomo. “I challenge everybody, give me rubber… and I will give you your first tire in the Republic of Liberia before the 31st of December 2028. If we are exporting our raw material, then we are exporting our jobs.”
Mr. Jeety added that his factory, which needs a three-month stockpile to run efficiently, currently holds only 30 to 35 days of reserves, making a shutdown increasingly likely and putting roughly 600 workers at risk of layoffs.
Despite the shortfall, Mr. Jeety expressed optimism that a stronger enforcement of the executive order could avert closures and allow the company to press ahead with an expansion that would raise processing capacity from 5 to 13 tons per hour, create 400 new jobs, and add 75 positions through a new HFO power plant.
He also rejected claims that local processors lack buying capacity, saying Jeety Rubber pays the government-fixed rate of $814 per ton, plus an $86 incentive, delivering $900 in cash directly to farmers.
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