Monrovia–Firestone Liberia has suspended all rubber purchases throughout the nation, citing the Liberian Government’s new mandated worth as unsustainable and warning the transfer threatens the corporate’s operations and the livelihoods of hundreds of smallholder farmers.
In an announcement issued Monday, Firestone, the Liberia’s largest non-public employer stated the value set by the Nationwide Rubber Pricing Committee doesn’t mirror the financial realities of rubber processing in Liberia. The corporate stated it can’t take in the monetary burden of intensive social obligations below its concession settlement, which incorporates schooling, housing, well being care, infrastructure, and assist to smallholder rubber farmers.
“The value introduced by the Committee doesn’t think about the varied key elements said above and is due to this fact not sustainable,” Firestone stated. “Different nations with nationwide pricing formulae wouldn’t have these obligatory social tasks.”
The suspension follows President Joseph Boakai’schoice to offer the Ministry of Agriculture full oversight of nationwide rubber pricing. The Pricing Committee—established to introduce transparency and equity—consists of representatives from a number of ministries, the Rubber Growth Fund, the Rubber Planters Affiliation of Liberia, and main processors together with Firestone.
Underneath the brand new framework, month-to-month costs might be based mostly on worldwide benchmarks from the Singapore Commodity Trade and adjusted for Liberia’s 58% dry rubber content material. Processors are assured a ten% revenue margin, and manufacturing prices are to be deducted. Costs might be publicly posted, and non-compliance will result in penalties, together with authorized motion.
Firestone, nonetheless, contends the mannequin is overly simplistic and fails to account for its operational prices. The corporate stated it spent greater than six months participating with the Pricing Committee in hopes of manufacturing a viable pricing construction, however its considerations have gone unheeded.
“Underneath our concession settlement, Firestone is allowed to set month-to-month costs based mostly on worldwide market circumstances, which we’ve persistently communicated to the Ministry of Agriculture,” the corporate stated.
Firestone’s withdrawal might have instant penalties throughout Liberia’s rural economic system. The corporate purchases greater than 60 million kilos of rubber from smallholder farmers yearly, injecting over $30 million into native communities in Margibi, Bong, and Nimba counties.
With the height harvest season underway, small farmers now danger shedding entry to a dependable purchaser, sparking fears of earnings losses and stalled livelihoods.
Regardless of the suspension, Firestone stated it stays dedicated to working with the federal government to search out frequent floor. “We stay hopeful that working collectively, an answer will be reached within the curiosity of all events concerned,” the corporate stated.
The Boakai administration has characterised the pricing reforms as a landmark step towards defending smallholder farmers and restoring equity to a sector lengthy tormented by fluctuating costs and allegations of exploitation.
In a associated transfer, the Pricing Committee can be making ready to suggest an Government Order from President Boakaiimposing a surcharge on unprocessed rubber exports. The measure goals to encourage home worth addition and shield uncooked materials provide for Liberian-based manufacturing.
