Liberia: 'No More Unfair Rubber Prices' - Government, Stakeholders Adopt National Pricing Formula to Protect Farmers

Monrovia — The Rubber Planters Association and the Government of Liberia are taking action against unfair rubber pricing.

T. Bannie Brown, Vice President of the Rubber Planters Association of Liberia (RPAL), announced this at a press conference on June 5. He read a resolution aimed at improving transparency and fairness for rubber farmers.

Brown spoke on behalf of the Liberia National Rubber Pricing Committee (LNRPC). They have adopted a monthly pricing formula to protect farmers from exploitation by processors and middlemen.

For years, Liberia's rubber sector has faced pricing disputes. Farmers accused buyers of setting prices below international market rates. This led to mistrust and weakened the industry's viability.

In October 2024, President Joseph Nyuma Boakai established the LNRPC to tackle these issues. The committee includes representatives from various ministries, RPAL, and major processors like Firestone Liberia.

After months of discussions, they created a standardized formula for monthly rubber prices. The official price is based on the average daily price from the Singapore Commodity Exchange (SICOM) in the previous month.

This price is adjusted for Liberia's average 58% Dry Rubber Content (DRC). Deductions are made for production costs and a 10% processor profit margin. Statutory levies are also included, resulting in the final net price payable to farmers.

For June 2025, the net price per ton at factory gates is set at US$545.00. The gross price before deductions is US$574.06. Buyers offering less than this official price may face prosecution.

"This decision is a major victory for our farmers," said Brown. "They have suffered under exploitative practices for too long."

To ensure compliance, the LNRPC will meet monthly to announce upcoming prices publicly. Official notices will be posted at all rubber purchasing locations nationwide.

The committee urges President Boakai to issue an Executive Order imposing a surcharge on unprocessed rubber exports. This would encourage domestic value addition and protect local processors.

Brown emphasized that this mechanism goes beyond numbers; it aims to restore trust in the industry.

Industry stakeholders view this new pricing formula as vital for revitalizing the sector. They believe it will ensure dignity for farmers and sustainability for processors while promoting long-term growth.

The resolution establishing this pricing formula remains effective unless revoked formally. With many Liberians relying on rubber for their livelihoods, there is hope that this approach will lead to equity and renewed prosperity in this crucial industry.