MONROVIA, Liberia, July 21, 2026 — Liberia’s rubber-processing industry is facing a severe shortage of raw materials, raising fears of factory shutdowns and the loss of hundreds of jobs.
Data presented by the Ministry of Agriculture during a legislative hearing on July 15 showed that the country’s six rubber processors require a combined 36,600 metric tons of rubber monthly to sustain operations but receive only about 14,000 tons shortfall of 22,600 tons.
According to the ministry, Firestone receives 5,800 tons monthly against a requirement of 7,500 tons, while Lee Group receives 600 tons against a need of 6,000 tons. Nimba Rubber receives 1,340 tons of the 9,000 tons it requires, and Cavalla Rubber Company receives 640 tons against a monthly need of 5,000 tons.
Jeety Rubber also receives significantly less than its reported monthly requirement, the ministry said.
The ministry attributed the shortage largely to brokers exporting approximately 22,000 tons of unprocessed rubber, leaving domestic factories operating far below capacity.
The July 15 hearing brought together representatives of Firestone, Lee Group, the Liberia Agriculture Company, the Rubber Planters Association of Liberia and other stakeholders. It was intended to help lawmakers assess the necessity and impact of Executive Order No. 166, which prohibits the export of unprocessed rubber from Liberia.
President Joseph Nyuma Boakai has defended the policy as necessary to protect domestic processors, preserve jobs and shift Liberia from exporting raw materials to producing value-added goods.
However, Saye Keyeh, speaking for brokers and some smallholder farmers, argued that the order gives processors excessive market power, restricts competition and places farmers at an economic disadvantage.
He warned that the policy could create a monopoly in which farmers are compelled to accept prices and conditions set by a limited number of domestic buyers instead of selling to the highest bidder.
The Ministry of Agriculture rejected that argument, maintaining that an unregulated, export-driven market deprives the government of tax revenue and undermines industrial employment.
The ministry cited Côte d’Ivoire and Ghana as countries that have adopted similar restrictions to promote domestic processing and value addition.
It also said the government has introduced a standardized pricing system benchmarked against international market prices to protect farmers’ incomes and prevent processors from exercising unfair pricing power.
Speaking at the hearing, Jeety Rubber owner Upjit Sachdeva said his factory was operating below capacity and experiencing a daily shortage of about 200 tons. He warned that the deficit could rise to between 350 and 400 tons in the coming months.
“We were already running under capacity. We are going below capacity because rubber is being exported unprocessed,” Sachdeva told the House specialized committee chaired by Representative Nyan G. Flomo.
“I challenge everybody: give me rubber, and I will give you your first tire in the Republic of Liberia before December 31, 2028. If we are exporting our raw material, then we are exporting our jobs,” he said.
Sachdeva said the factory requires a three-month stockpile to operate efficiently but currently has only 30 to 35 days of reserves. He warned that the shortage could force the company to shut down and place about 600 jobs at risk.
Despite the challenge, Sachdeva said stronger enforcement of the executive order could prevent factory closures and allow Jeety Rubber to proceed with an expansion plan.
According to him, the planned expansion would increase processing capacity from five to 13 tons per hour, create 400 jobs and add another 75 positions through the construction of a heavy-fuel-oil power plant.
He also rejected claims that local processors lack the financial capacity to purchase rubber, saying Jeety Rubber pays the government-approved price of US$814 per ton, along with an additional US$86 incentive, bringing the total payment to US$900 per ton.
