Structure

In Liberia, Agriculture is dominated by traditional subsistence farming systems, often characterized by labor intensive and less mechanized system of farming. The most common subsistence is the growth of food crops such as rice, cassava, vegetables, and other staples which aggregately accounts for about 87 percent of cultivated land. In addition, there are commercial agricultural activities that includes plantation estates of rubber, oil palm, coffee and cocoa. These cash crops are usually exported as raw materials with no or little value addition. The structure of Liberia’s agriculture sector has remained the same since the beginning of cash crop (rubber) exports in the 1920s.

Economic Importance

The agriculture sector has historically been a significant contributor to Liberia’s economy and socioeconomic development. It contributes directly in terms of domestic government revenue, employment, merchandise exports, foreign exchange earnings and Foreign Direct Investment. Agriculture sector contribution to Liberia’s economic growth remains vital, even though in the last decade it has been declining compared to the service. COVID 19 mitigation measures (lockdowns) affected its growth in 2020 but has since regained its growth. Over 60 percent of Liberia’s population depends on the sector for their livelihood. Agriculture, including forestry has remained the sector largest contributor to GDP after Services sector.

Under LEITI, Agriculture is defined to mean Rubber and Oil palm sub sectors. Historically, the sector has evolved through series of policies, from focusing on raw material and cash crop production to adoption of technology and innovation to modernize agricultural practices and strengthening linkages between agriculture sector and other sectors.

Rubber Subsector

Since the establishment of the Firestone plantation in 1926, rubber has been the most important cash crop in Liberia, having served as a much-needed generator of state revenues and a creator of formal, salaried employment in a country with a largely subsistence agricultural economy. Rubber has become one of the backbones of Liberia’s economy and even in post-conflict Liberia, this commodity remains the country’s most important cash crop.

Key Rubber Plantation in Liberia

Until 2008, significant private investment in agriculture was in tree crops. This changed with the increase in international food prices. Although cash crops investment is dominant, some investors have folded up since 2008 due to global prices and venture into other investments. The review that follows profiles current investment activities by agricultural concessions.

Firestone Liberia produces natural rubber in Margibi County. The company has the oldest plantation in Liberia which dates to the 1920s.

The Cavalla Rubber Plantation produces natural rubber in Maryland County and is owned by Belgian and French interests. The GOL in 2008 has sold its 50 percent stake in the company to the private investors.

The Cocopa Plantation produces natural rubber in Nimba County and is owned by the Liberia Company,whose majority shares are owned by American investors.

The Sinoe Rubber Corporation also produces natural rubber in Sinoe County.

The Salala Rubber Corporation is in Bong County, and it produces rubber. In 2007, Salala merged with Weala, and the International Finance Corporation took an equity stake in the new company.

Since 2006, several reforms have been initiated by the Liberian government with the aim to revive investments in the sector after a dip during the civil war. Further, these reforms have enhanced Liberia’s external economic relations to increase rubber exports. In 2008 just after reforms had begun, Rubber exports accounted for 86.1 percent of total merchandised exports and generated approximately about US$ 218 million in revenues in 2007. At the same time, concessionaires and commercial farmers employed over 14,000 people and contributed to more than US$ 40 million in direct wages22. Even though Rubber continues to relevant in terms of its contribution to exports, its share of exports has dropped significantly. In 2020, Rubber contributed to 13.5 percent of total exports.

Oil Palm Subsector

Besides Rubber, Oil Palm has been a very critical cash crop for Liberia. Before the civil war, the subsectorwas competitive with other African countries such as Ivory Coast, Ghana and Nigeria. Oil palm has significant private and state plantations, estimated at about over 180,000 hectares24. Today, the country produces about 22,000 metric tons, estimated at about US$ 11 million (2020 est).