Deal #3460

Liberia
Created at
2013-03-25
Last update
2021-09-01
Last full update
2017-05-26

Land area

Intended size
122 500 ha
Size under contract (leased or purchased area)
  • [1959, current] 121407.0 ha
Size in operation (production)
  • [2012] 13738.0 ha
  • [2015] 10048.0 ha
  • [2016] 10006.0 ha
  • [2017] 10208.0 ha
  • [2018, current] 12900.0 ha
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
  • [current] 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] Concluded (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.In August 2021 ,Following a work-related accident at the Liberian Agricultural Company (LAC) rubber plant, which resulted in the death of an employee, the government ordered the factory to remain closed until all safety measures were taken. safety systems are evaluated by independent technicians to ensure the safety of workers. The closure is temporary and partial, with farmers being able to sell their rubber to the company

Leasing fees

Comment on leasing fee
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
Yes
On leased area/farmers/households
  • [current] 130
Not on leased / purchased (out-grower)
Yes
Not on leased area/farmers/households (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.