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Deal #3458 Version #87179

Liberia
Created at
2013-03-25
Last update
2022-06-21
Last full update
2022-12-22

Land area

Intended size
8 000 ha
Size under contract (leased or purchased area)
  • [1959-08-01] 8000 ha
  • [2007, current] 8000 ha
Size in operation (production)
  • [2013] 4297 ha
  • [2014] 4805 ha
  • [2017, current] 4577 ha
Comment on land area
Another source mentions 40468.8ha in 1959. Another source states size is 8800 ha. In 2017 2,042ha were productive, the remaining area was immature trees. In 2021, Front page by Africa mentioned Salala Rubber Corporation, established in 1959, holds a concession of over 40,000 hectares

Intention of investment

Intention of investment
  • [2007, current] Non-food agricultural commodities (8000 ha)
Comment on intention of investment
Rubber

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
Previous owners- 70 years from 1959 (1959/08/01)

Negotiation status

Negotiation status
  • [1959] Concluded (Contract signed)
  • [2007] Concluded (Change of ownership)
  • [2007, current] Concluded (Contract signed)
Comment on negotiation status
Current owners took over the company in 2007. Previous owners acquired plantation in 1959.

Implementation status

Implementation status
  • [2007, current] In operation (production)
Comment on implementation status
It is not clear when and if the previous owners brought the land into production

Leasing fees

Comment on leasing fee
The rent is still paid to the government, not to the people with customary land rights. Bread for All states that the rent is considerably below what it should be because the amount is based on the 1959 contract. The company paid US$1,200 in surface rental for the period 1 July 2010 - 30 June 2011.

Contract farming

Contract farming
Yes
Not on leased / purchased (out-grower)
Yes
Not on leased area/farmers/households (out-grower)
  • [2017, current] 60
Comment on contract farming
The corporation is also engaged in a smallholder program for local rubber farmers. In implementing this program, Salala provides budded rubber stumps of variety of clones to local farmers who are selling rubber to Salala. In addition to providing rubber stumps, Salala also provides technical support – (training of tappers, etc.) agricultural tools and chemicals (acid, fertilizers) for local farmers.