MONROVIA- Quite recently, the Liberian government directed the Ministry of Agriculture to assume full regulatory control over national rubber pricing, a landmark decision aimed at protecting farmers and ensuring fair market practices across the country’s struggling rubber sector.
The mandate, which takes effect in June, follows the formation of the Liberia National Rubber Pricing Committee by President Joseph Nyuma Boakai to establish a transparent, enforceable pricing mechanism. The move comes after years of complaints from local farmers about exploitative buying practices and unregulated price fluctuations.
The committee, chaired by the Ministry of Agriculture, includes high-level representatives from the Ministries of Finance, Commerce, and Justice, as well as the National Investment Commission, the Rubber Development Fund Incorporated, and the Rubber Planters Association of Liberia. Firestone Liberia and other major processors are also members, tasked with determining and publicly posting the official monthly price of rubber.
“This initiative marks a turning point for Liberia’s rubber industry,” Agriculture Ministry officials said during a formal signing ceremony held Saturday at the Ministry’s headquarters in Monrovia.
According to documents, the new pricing formula will calculate the monthly rate based on the average daily price per ton on the Singapore Commodity Exchange. It will be adjusted for a 58 percent dry rubber content, with production costs subtracted and a 10 percent profit margin factored in for processors.
Against this backdrop, Firestone Liberia has suspended all rubber purchases across the country, citing the Liberian government’s new mandated price as unsustainable and warning the move threatens the company’s operations and the livelihoods of thousands of smallholder farmers.
In a statement issued Monday, June 2, 2025, Firestone-Liberia’s largest private employer – said the price set by the National Rubber Pricing Committee does not reflect the economic realities of rubber processing in Liberia. The company said it cannot absorb the financial burden of extensive social obligations under its concession agreement, which includes education, housing, health care, infrastructure, and support to smallholder rubber farmers.
“The price announced by the Committee does not take into consideration the various key factors stated above and is therefore not sustainable,” Firestone said. “Other countries with national pricing formulae do not have these mandatory social responsibilities.”
The suspension follows President Joseph Boakai’s decision to give the Ministry of Agriculture full oversight of national rubber pricing. The Pricing Committee – established to introduce transparency and fairness – includes representatives from multiple ministries, the Rubber Development Fund, the Rubber Planters Association of Liberia, and major processors including Firestone.
Under the new framework, monthly prices will be based on international benchmarks from the Singapore Commodity Exchange and adjusted for Liberia’s 58% dry rubber content. Processors are guaranteed a 10% profit margin, and production costs are to be deducted. Prices will be publicly posted, and non-compliance will lead to penalties, including legal action.
Firestone, however, contends the model is overly simplistic and fails to account for its operational costs. The company said it spent more than six months engaging with the Pricing Committee in hopes of producing a viable pricing structure, but its concerns have gone unheeded.
“Under our concession agreement, Firestone is authorized to set monthly prices based on international market conditions, which we’ve consistently communicated to the Ministry of Agriculture,” the company said.
Firestone’s withdrawal could have immediate consequences across Liberia’s rural economy. The company purchases more than 60 million pounds of rubber from smallholder farmers annually, injecting over $30 million into local communities in Margibi, Bong, and Nimba counties.
With the peak harvest season underway, small farmers now risk losing access to a reliable buyer, sparking fears of income losses and stalled livelihoods.
Despite the suspension, Firestone said it remains committed to working with the government to find common ground. “We remain hopeful that working together, a solution can be reached in the interest of all parties involved,” the company said.
The Boakai administration has characterized the pricing reforms as a landmark step toward protecting smallholder farmers and restoring fairness to a sector long plagued by fluctuating prices and allegations of exploitation.
In a related move, the Pricing Committee is also preparing to recommend an Executive Order from President Boakai imposing a surcharge on unprocessed rubber exports. The measure aims to encourage domestic value addition and protect raw material supply for Liberian-based manufacturing.
The new system came into effect in June 2025 with the committee expected to announce the official price for each coming month. The rate will be published in national media and posted at all rubber purchasing points to ensure widespread compliance.
Buyers who fail to adhere to the set price will face penalties, including potential legal action. The committee has also reserved the right to revise the pricing formula to reflect market realities or operational challenges.
Rubber remains one of Liberia’s most significant export commodities, but price instability and limited domestic value addition have long hindered the sector’s development. Stakeholders have welcomed the government’s action as a step toward restoring confidence among farmers and investors alike.
