Deal #3460

Location #1

Spatial accuracy level
Exact location
Location
Buchanan, Liberia

Latitude
6.113439705504545
Longitude
-9.748573993017544
Target country
Liberia
Location description
45km northwest of Buchanan
Comment on location
The Liberian Agricultural Company (LAC) is located in District #3, Grand Bassa County. The concession areas cover land lying between the St. John River and the Cestos River South of Compound #3, and it has a total acreage not exceeding three hundred thousand acres (300,000) or one hundred twenty one thousand five hundred hectares (121, 500);

Land area

Intended size (in ha)
122500.0
Size under contract (leased or purchased area, in ha)
[1959] 121407
Size in operation (production, in ha)
[2012] 13738
[2015] 10048
[2016] 10006
[2017] 10208
[2018, current] 12900
Comment on land area
22000ha of the land is currently under development -4534ha immature trees and 9500ha of mature trees (2015), 6400ha for wetlands and forested areas and the remainder is used for infrastructure. Another data source mentions that the size under contract is only 48562.32 ha. Aiddata mentions 242811.385ha. The company itself states 121,407ha.

Intention of investment

Intention of investment
Non-food agricultural commodities
Comment on intention of investment
Rubber

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
Original lease signed in 1959.

Negotiation status

Negotiation status
[1959] Concluded (Contract signed)
[1998, current] Concluded (Contract signed)
[1998] Change of ownership
Comment on negotiation status
The current owners buy a majority share of the company (75%)-1998. In 2001 the remaining 25% is obtained.

Implementation status

Implementation status
[1960] In operation (production)
[1996] Project abandoned
[1999, current] In operation (production)
Comment on implementation status
The company maintains a nursery of around 40ha.

Leasing fees

Comment on leasing fees
In the period 1 July 2010-30 June 2011 the company only paid US$3,350.70 in surface rental.

Contract farming

Contract farming
Yes
On leased / purchased area
Yes
On leased / purchased farmers
130
Not on leased / purchased area (out-grower)
Yes
Not on leased / purchased farmers (out-grower)
555
[2017, current] 1075
Comment on contract farming
In 2017 the company sourced from 1,075 smallholders. The traceability report states that for 2018 16% of the natural rubber input for the factory was purchased from either third party smallholders or dealers/collectors. Socfin purchases latex from smallholders to feed into their processing plant. LAC has provided rubber stumps and bud wood sticks and tapping materials. LAC also provides rental vehicles for rubber collection. The company has also provided technical advice.Total outgrower hectares are 5400ha, it is not clear how this is split between on the lease and not on the lease.

Contract #1

Contract date
1959
Contract expiration date
1929
Duration of the agreement (in years)
70
Comment on contract
The Liberian Agricultural Company was established by Uniroyal in 1959 and it has a ratified Concession Agreement ceded to her by the Government of Liberia up to 2029;

Number of total jobs created

Jobs created (total)
Yes
Comment on jobs created (total)
4,565 direct and indirect employees

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of employees (domestic)
[2015] 1800
[2018, current] 2300
Current number of daily/seasonal workers (domestic)
[2015] 2300
Comment on jobs created (domestic)
Full-time workers are housed in worker camps on the plantation. The company has been accused of use of child labour, poor living conditions. The company operates nine schools on the plantation providing learning for over 6,000 children (workers children). There is a hospital and four health clinics on the plantation with a full-time medical staff. The hospital and clinic provides medical care to full-time workers and dependent families.

Operating company

 

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Data source #1

Data source type
Company sources
File
Comment on data source
company website

Data source #2

Data source type
Media report
File
Date
2017-05-25
Comment on data source
Swedish Human Rights Groups Investigates SRC, LAC Abuses

Data source #3

Data source type
Government sources
File
Comment on data source
Leiti 4th Reconciliation report

Data source #4

Data source type
Media report
File
Date
2012-08-20
Comment on data source
The Africa Report- Making concessions in Liberia - Agriculture

Data source #5

Data source type
Other (Please specify in comment field)
File
Comment on data source
Itouch Map which depicts the exact location of the concession - Liberian Agricultural Company, Liberia

Data source #6

Data source type
Research Paper / Policy Report
File
Comment on data source
Liberian Agricultural Company (LAC), Liberia Environmental and Social Due Diligence Assessment, July 2015

Data source #7

Data source type
Research Paper / Policy Report
File
Comment on data source
Africa’s forests under threat: Socfin’s plantations in Cameroon and Liberia. May 2016.

Data source #8

Data source type
Media report
File
Date
2015-02-04
Comment on data source
The New Dawn- LAC death toll rises

Data source #9

Data source type
Other (Please specify in comment field)
File
Comment on data source
LEITI Companies database

Data source #10

Data source type
Other (Please specify in comment field)
File
Comment on data source
Liberia National concession portal

Data source #11

Data source type
Company sources
File
Publication title
Corporate presentation
Date
2018

Data source #12

Data source type
Company sources
File
Publication title
Concession boundaries LAC
Date
2019

Data source #13

Data source type
Company sources
File
Publication title
Natural Rubber Procurement Report
Date
2019
Comment on data source
Traceability report 2018

How did the community react?

Community reaction
Rejection
Comment on community reaction
The company has put expansion plans on hold since 2004. The plan was to develop a new plantation area within the concession (including outgrowers operating on the lease). This development was due to be undertaken within the existing concession area.

Displacement of people

Comment on displacement of people
The company has been accused of evicting entire villages.

Materialized benefits for local communities

Materialized benefits for local communities
Health
Education
Roads
Other
Comment on materialized benefits for local communities
Operates a number of schools, internships for young people, training of midwives, company hospital offers medical services to persons in the surrounding towns and contractors, partners in sanitation projects

Former land owner (not by constitution)

Former land owner
Private (large-scale farm)
Comment on former land owner
Rubber plantation since 1959

Former land use

Former land use
Commercial (large-scale) agriculture
Comment on former land use
Rubber plantation since 1959

Former land cover

Former land cover
Cropland
Comment on former land cover
Rubber plantation since 1959

Detailed crop, animal and mineral information

Crops area
[2018] Rubber tree (12900 ha)
Crops yield
Rubber tree
Comment on crops
Industrial plantation production: 14 391 tons yield: 1.41 T/ha in 2017

Detailed contract farming crop and animal information

Contract farming crops
Rubber tree

Use of produce

Has export
Yes
Comment on use of produce
Main destinations of dry rubber: Brazil, USA, Czech Republic, Germany, Spain, France, The Netherlands, Poland, Singapore, Malaysia, Belgium, China

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Rubber processing plant. Processed 18000 tonnes of latex in 2014. Latex produced on the plantation is coagulated in the field, transported, and stored at LAC's rubber processing plant, which is situated on the concession area.
Processing facilities / production infrastructure of the project (e.g. oil mill, ethanol distillery, biomass power plant etc.)
The company built a biomass power plant which uses rubber wood to generate steam for the dryer, and a micro hydro power plant that generates 70% of total demand.
In-country end products of the project
Dry rubber

Water extraction envisaged

Water extraction envisaged
Yes

Source of water extraction

Source of water extraction
Surface water (River)

Overall comment

Overall comment
It seems unlikely that the investor will ever use all land under concession. To date only 22000ha is being used for the project (excluding outgrowers on the lease). The company has also had resistance from the community when attempting to expand (since 2004) and has put these plans on hold.

May 20, 2020, 4:57 p.m.

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Feb. 1, 2018, 2:18 p.m.

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May 26, 2017, 12:02 p.m.

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April 12, 2017, 5:23 p.m.

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April 11, 2017, 6:50 p.m.

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Dec. 1, 2016, 5:16 p.m.

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Dec. 11, 2015, 2:05 p.m.

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Dec. 11, 2015, 1:49 p.m.

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Dec. 8, 2015, 3:08 p.m.

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July 10, 2013, 1:35 p.m.

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June 3, 2013, 3:15 p.m.

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April 18, 2013, 5:10 p.m.

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March 25, 2013, 11:44 a.m.

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