Liberia - Agricultural sector review (Vol. 3 of 4) : Supporting papers

Report No. 4200-LBR liberia Agricultural Sector Review Vol. 111: Supporting Papers Paper 3: Tree Crops Production Paper 4: Tree Crops Processing and Marketing April 20, 1984 Western Africa Region FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  LIBERIA AGRICULTURAL SECTOR REVIEW CURRENCY EQUIVALENTS Currency Unit = United States Dollars WEIGHTS AND MEASURES 1 Metric ton = C).98 long ton 1 long ton = 2,240 lb = 1.016 metric ton 1 hectare (ha) = 2.47 acres 1 acre = 0.405 hectare 1 kilometer (km) 0.62 mile 1 mile = 1.609 kilometer ABBREVIATIONS ACDB = Agricultural and Cooperative Development Bank ADPs Agricultural Development Projects BCADP = Bong County Agricultural Development Project BOPC = Buto Oil Palm Corporation CAO = County Agricultural Officer CARI = Central Agricultural Research Institute CDA = Cooperative Development Agency CMEU = Central Monitoring and Evaluation Unit CS = Cooperative Society DOPC = Decoris Oil Palm Corporation DPD = Department of Planning and Development of MOA GOL = Government of Liberia IFAD International Fund for Agricultural Development LCADP Lofa County Agricultural Development Project LCCC Liberia Cocoa and Coffee Corporation LPMC = Liberia Produce Marketing Corporation LPPC = Liberia Palm Products Corporation LRDU = Liberia Rubber Development Unit M&E = Monitoring and Evaluation MOA = Ministry of Agriculture MOA Document = "Liberia's Agricultural Development: Policy and Organizational Structure" (MOA, June 1980) MRD = Ministry of Rural Development NCADP = Nimba County Agricultural Development Project RCL - Rubber Corporation of Liberia RDB = Rubber Development Board RRIL Rubber Research Institute of Liberia SRSP = Smallholder Rice Seed Project TCU = Town Cooperative Unit WARDA = West Africa Rice Development Association FISCAL YEAR July 1 - June 30  FOR OFFICIAL USSE ONLY LIBERIA AGRICULTURAL SECTOR REV'IEW Paper 3 Tree Crop Productionl I This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disdosed without World Bank authorization.   Paper 3 LIBERIA AGRICULTURAL SECTOR REVIEW Tree Crop Production Table of Contents Page No. A. INTRODUCTION ................***@@e*s Importance of Tree Crops in the Liberian Economy..... ... . ... , .......... .... 1 International and Domestic Dermand and Price Forecasts for Liberia's Main Tree Cropsts.o. 4 Rubber** . .... ,.........-*........ . .... 4 Cocca.. ... Oil Palm Products................ ... ....... 5 Coconut Pro .u c t s 6 B. TREE CROP PRODUCTION SYSTEMS AND LEVELS............ 7 (i) Production Systems and Orgaizationi........... 7 GRberaPrducio..* .... .... me ...... oo... . ... some 7 Rubber Productiona.............. 8 The Concession Companies....o*o.............. 8 Liberian-owned Commercial Farms.... s......... 9 The Liberian Rubber Developnment Unit (LRDU)... 9 Oil Palm and Coconut Production .............. 10 General**.*.*.... .o...so... ... ... ..*.................... 10 Liberia Produce Marketing Corporation (LPMC).. 10 Liberia Palm Products Corporation (LPPC) ...... 11 Cocoa and Coffee Production..................... 12 General .................................. 12 Liberia Cocoa and Coffee Corporation (LCCC)... 12 Lofa County Agricultural Development Project (LCADP) ......... . ........ ....... .... 12 Bong County Agricultural Development Project (BCADP) . ......................... . 13 Nimba County Integrated Rural Development Program (NIRDEP) . . .. . . ....... 13 South Eastern Counties Rural Development Program (SERUDEP).............. 13 (ii) Production Areas and Level ................... 13 General ...................... ...... 13 Rubbere an. o.*.. ............. 14 Coffee and Coo ....... ,21  - ii - Oil Palm ......................... 30 Coconuts ............ . . .. . * ............ * .... 35 Other Tree Crops ... ..... .. . ..... 36 C. ANALYSIS OF RETURNS TO TREE CROP FARMING............ 36 D. CONSTRAINTS ON TREE CROP DEVELOPMENT............. 39 Introduction..........O*... .... 39 Major Contraints on Tree Crop Developmente.... 40 Data Base.*......... ................ 41 Planning Process . ...................... . , 41 Coordination of Aid Effort.. ............ 41 Design of Programs or Projects .............. 41 Locally Applicable Technology ................. 42 Planting Material ........................... 44 Local Research Effort .... 44 Management .................................... 44 Extension and Input Services........... .,. 46 Producer Prices .................O., 47 Infrastructure ............................. ., 48 Availability of Labor and Level of Wages...... 48 E. RECOMMENDATIONS ................... . ..... f .......,,.. 49 Introduction .... ............... .... ...... 49 Outline Recommendations for the Tree Crop Sub-Sector ........ ... .. ..... ..5. .X.. . ...... .... ..... 49 Crop Suitability ..... . . .. , 49 Farming Systems ............... ...... 50 Immediate Priorities for Increasing Revenue and Decreasing Expendituresu....... 51 Additional Detailed Recommendations ..........v.. 53 Recommended Tree Crops- o...................oo 53 Soil Survey, Land Use and Land Capability Study ........... 53 Technological Improvements ....... 55 Extension. ............. o.................. 56 Applied and Adaptive Tree Crop Research......... 56 General *..*.... 56 Research on Tree Crops Other than Rubber...... 56 Research on Rubber.* ... ... o..... ............. 58 Rehabilitation of Government's Re-acquired Plantations ..................... 58 Coordination of Rubber Activities ......... .... 59 Establishment of a Rubber Planting Fund .......... 60 Rationalization of LPPC and LCCC Activities ..... 60 Required Studies and Surveys ................. . 61  - iii - TEXT TABLES Table A-1 Production and Export of Rubber Table A-2 LPMC Purchases of Coffee, Cocoa and Palm Kernels Table B-1 Rubber Areas by County in 1971 Table B-2 Tree Age Distribution on Liberian Rubber Farms in 1974 and 1981 Table B-3 Farm Size Classes and Tapping Status of Liberian- owned Rubber Farms in 1974 Table B-4 Total and Tapped Rubber Area per Concession (1980) Table B-5 Actual Yields of Three Rubber Clones in Liberia (compared with RRIM600 in Malaysia) Table B-6 Assumed Rubber Yield '?rofiles Under Various Levels of Inputs and Management Table B-7 Rubber Planted Areas, Production and Yields (1960-80) Table B-8 Liberian Rubber Produ3tion (1970-81) by Concessions and Liberian Farmers Table B-9 Area of and Households Growing Coffee (1976-81) Table B-10 Area of and Households Growing Cocoa (1976-81) Table B-11 Assumed Coffee Yield Profiles Under Various Levels of Inputs and Management Table B-12 Assumed Cocoa Yield Profiles Under Various Levels of Inputs and Management Table B-13 Planned LCCC Coffee and Cocoa Plantings (1982-86) Table B-14 Households Making Palm Oil Table B-15 Assumed Oil Palm Yield Profiles Under Various Levels of Inputs and Management Table B-16 Export and Import of Palm Oil and Palm Kernel Oil Table B-17 Assumed Coconut Yield Profiles Under Various Levels of Inputs and Management Table C-1 Financial and Economic Returns to Tree Crops Table E-1 Suitability of the Counties for Commercial Production of Major Tree Crops Appendix 1 Broad Guidelines for a Nationwide Survey of Soils, Land Use and Land Capability SUPPLEMENTARY NOTE 1 Climate and Soils of Liberia in Relation to Suitability for Tree Crop Cultivation. Appendix SN 1.1 Ecological Requirements of Selected Tree Crops SUPPLEMENTARY NOTE 2 GOL's Reacquired Plantations. Map SN 2.1 Approximate LoceLtion of Reacquired Plantations Table SN 2.1 Details of Plantations Managed by Bureau of Reacquisition. Table SN 2.2 Details of Six Reacquired Farms Already Selected for Special Attention.  - iv - SUPPLEMENTARY NOTE 3 Thailand's Rubber Replanting Aid Fund Board (ORRAF) and its Applica- bility to Liberia. Chart SN 3.1 Organization Chart of ORRAF Headquarters Chart SN 3.2 Organization Chart of ORRAF's Provincial Offices SUPPLEMENTARY NOTE 4 Financial and Economic Tables: Rubber - Tables 1-15 Coffee - Tables 16-22 Cocoa - Tables 23-28 Oil Palm - Tables 29-38  Paper 3 LIBERIA AGRICULTURAL SECTOR REVIEW Tree Crop Production A. INTRODUCTION Importance of Tree Crops in the Liberian Economy 1. In 1980 Liberia's GDP at constant 1971 prices amounted to $372 million. Of this total, 45% was contributed by the export oriented sector (within which 38% resulted from agricultural production), while the remainder was derived from traditional agriculturs. The monetary agriculture grew at about 5.7% per annum during 1974-79 but stagnated in 1980 (0.3% growth) and declined steeply in 1981 by about 22% mainly due to a dramatic fall in forestry value added. 2. Within the agricultural sector, tree crops have been the principal cash generators during recent years with rubber occupying a dominant position in this respect. During 1980, rubber accounted for 17% of overall export earnings while coffee, cocoa and palm products contributed 6%,, 2% and 1% respectively of total export earnings in the same year. Although oil palms contribute only minimally to export earnings they additionally provide a vitally significant component of the Liberian diet. 3. Historically and currently rubber is grown on both the concessions and Liberian farms, while the majority of cocoa, coffee and palm products emanate from the Liberian farms at the present time. 4. Liberian rubber production and export statistics for the years 1970 to 1981 are presented in Table A-1, while data in respect of coffee, cocoa and palm kernels (and oil) for the period 1971/72 to 1980/81 appear in Table A-2. 5. In addition to the cash crops rubber, coffee, cocoa and oil palms, a number of tree crops are of significance on the domestic market within the food economy. Of greatest importance are coconuts, citrus (oranges and grapefruits), mangoes, guava, avocado, breadfruit, passion fruit and cashew.  - 2 - Table A-1: LIBERIAN PRODUCTION AND EXPORT OF RUBBER (in thousands metric tonnes drc) Production Exports Year Concessions Liberian Farms Total Total 1970 54.7 23.0 77.7 83.6 1971 57.9 22.4 80.3 84.8 1972 60.0 21.8 81.8 83.1 1973 59.2 26.8 86.0 85.9 1974 56.8 31.7 88.5 86.4 1975 58.1 24.2 82.3 81.0 1976 61.6 22.9 84.5 73.4 1977 55.3 22.5 77.8 69.8 1978 54.0 24.0 78.0 71.8 1979 52-7 26.2 78.9 75-1 1980 58.3 23.1 81.4 76.7 1981 59.3 23.0 82.3 76.9 Source: 1) Bureau of Technical Services - Ministry of Finance. 2) Rubber Advisory Service - Ministry of Agriculture. 3) Rubber Planters Association of Liberia. 4) Foreign Trade Division - Ministry of Comrmerce.  Table A-2: LPMC PURCHASES OF COFFEE, COCOA AND PALM KERNELS (tons) Coffee Cocoa Palm Kernels Year l/ (clean) (dry beans) (dry kernels) Palm Oil 2/ Expeller Cake 2/ 1971/72 4,100 2,632 11 ,568 2,992 3,641 1972/73 4,635 2,290 11,785 4,987 5,923 1973/74 3,635 3,165 15,485 6,743 7,458 1974/75 3,950 2,730 13,797 5,811 6,739 1975/76 4,320 2,772 12,399 5,168 6,118 1976/77 10,566 2,757 9,181 4,508 5,253 1977/78 10,108 3,351 8,779 3,4180 3,296 1978/79 8,458 3,594 7,389 2,556 3,529 1979/80 10,240 5,142 6,593 1,9190 2,312 1980/81 - 8,060 6,863 2,152 758 960 Source: LPMC 1/ October - September 2/ Production 7/ October - June  International and Domestic Demand and Price Forecasts for Liberia's Main Tree Crops Rubber - International Demand and Prices 6. Total world exports of all grades of natural rubber reached a level of approximately 3.3 million tonnes during 1980. Despite being ranked as fifth largest rubber producing country in the world, Liberia exported approxi- mately 2% of this total during 1980, and thereby had a minimal effect on world rubber prices. 7. On the basis of anticipated world production and consumption of elas- tomers during the next thirteen years, the World Bank has recently estimated that the price of RSSI Spot New York in 1981 constant dollars is projected to increase from $1.01 per kg in 1982 to $1.34 per kg in 1985 and to $1.61 per kg in 1995. By 1985 the price of natural rubber in constant dollar terms is expected to return to its 1977-79 level and to gain a further 20% in the following ten years. 8. World production and demand for natural rubber is expected to increase at annual rates of 3.8% and 3.2% between 1980 and 1985 and between 1985 and 1995 respectively. There is thus adequate scope for Liberia to increase its market share provided that it can produce efficiently and to acceptable specifications. Rubber Domestic Demand 9. There is unlikely to be any domestic demand for Liberian rubber within the foreseeable future. Coffee - International Demand and Prices 10. Total world exports of coffee during 1980 were approximately 3.7 million tonnes. Liberia's export of this commodity ranging from 8,000 to 10,000 m.t. during the past few years is a mere 0.2% of the world total. 11. Bearing in mind the dominant position of Brazil and on the basis of expected world production and demand, the World Bank now estimates that coffee prices will decline from $3.10/kg in 1982 to $2.62/kg in 1985 and $2.65/kg in 1990 in 1981 constant dollars. World coffee consumption is expected to in- crease at an average annual rate of 1.3% between 1980 and 1985 with the annual rate of increase declining to between 0.5 and 0.7% between 1985 and 1995. 12. As a member of the International Coffee Organization (ICO) Liberia has an annual quota of 8,700 metric tonnes. However, the Government of Liberia has signed a five-year contract with Libya (which is not a member of the ICO) for an annual delivery of 2,000 m.t. of coffee. Over the two-year period (1981 and 1982), Liberia was able to export a total of only 2,500 m.t, to Libya (since Liberia gives first priority to ICO countries). Exporting coffee from Liberia is, therefore, not a problem at this stage. However, Liberia's export quota to ICO countries is likely to grow very slowly. The non-ICO market is already very competitive and Liberia, with a relatively  - 5 - lower quality coffee, would have to sell in this market at a heavy discount if domestic production substantially exceeds the export quota to ICO members. The scope for domestic coffee consumption increases is also small (para 14). 13. With this international and domestic market situation in view, signi- ficant coffee production increase in Liberia is difficult to justify except for relatively small components in ADPs which should continue in order to raise smallholders' incomes and reduce the deleterious effects of slash and burn cultivation on the uplands. Coffee - Domestic Demand 14. There is a limited local demand for Liberian coffee, estimated at only 600 tons per annum. Cocoa - International Demand and Prices 15. The present average annual Liberian exports of 5,000 tons are only 0.4% of world exports of cocoa and cocoa products. 16. On the basis of anticipated world production and consumption of cocoa and cocoa derivatives, the most recent World Bank projections indicate that world prices in 1981 constant dollars are expected to decline from $1.75/kg in 1982 to $1.46/kg in 1985 and $1.45/kg in 1990. 17. The recently initiated International Cocoa Agreement may face diffi- culties under the pressure of declining prices. As supply expands rapidly in the face of slowly growing demand the buffer stock may be required to accu- mulate very large quantities of cocoa during the next few years in order to support prices. The slackening world demand for cocoa and cocoa products will make it difficult for Liberia to profitably expand its production and export of these commodities (once again an exception should be made for relatively small components in ADPs). Cocoa - Domestic Demand 18. Domestic demand for cocoa products is estimated to be even lower than that for coffee (para. 14). Oil Palm Products - International Demand and Prices 19. In view of the inter-relation between fats and oils of plant and animal origin and the fact that several oil bearing plants are grown primarily for their protein component, it appears likely that long-term market prospects remain brighter for oil seeds with a high protein content (e.g. soy beans) than for those with a high oil content e.g. oil palm and coconut. 20. Total world exports of palm oil during 1980 were 3.5 million tonnes with a minimal contribution from Liberia. 21. Recent World Bank projections suggest that in 1981 constant dollar terms, palm oil prices will increase from $443/tonne in 1982 to $575/tonne in 1985 and $582/tonne in 1990. Oil palm kernels are likely to follow a similar trend increasing from $269/tonne in 1982 to $360/tonne in 1985 and $369/tonne in 1990.  22. World demand for fats and oils is projected to grow at approximately 3.3% per annum during the period to 1995. There is scope for Liberia to expand its output of oil palm products to meet international demand, provided additional plantings are located in the most favorable ecological zones. There is also possible scope for penetration of the high-price ECOWAS market, and use of locally produced palm oil and kernels to manufacture a number of import substitution products. Oil Palm Products - Domestic Demand 23. Palm Oil - Virtually all palm oil produced in Liberia is consumed locally. Traditional on-farm processing techniques yield an oil high in acid content which is well suited to local tastes. Domestic consumption of palm oil is estimated at about 20,000 metric tons based on data from Sierra Leone, a country with roughly similar dietary patterns, which suggest a per capita consumption in the range of 15-20kg per year. The data from Sierra Leone and other West African countries imply that the demand for palm oil is relatively income inelastic. Thus future growth in domestic demand will mostly result from population increases. 24. There is scope for import substitution as imports of more highly processed cooking oil and oil products are substantial. 'Imports in 1981 of margarine shortening and fixed vegetable oils totalled about 4,500 metric tons for a value of about $4.5 million. Increasing quantities of palm oil may also be consumed in soap production. 25. Palm Kernel Oil - Palm kernel oil is not consumed domestically. LMPC is the sole buyer of palm kernels which are exported either in unprocessed form or as oil. Coconut Products - International Demand and Prices 26. Total world exports of coconut products (expressed as oil equivalent) during 1980 were 1.2 million tonnes. Liberia made no contribution to this total. Recent World Bank estimates suggest that in 1981 constant dollar terms, coconut oil prices will increase from $461/tonne in 1982 to $701/tonne in 1985 and decline marginally to $696/tonne in 1990. World copra prices will follow a similar trend, increasing from $312/tonne in 1982 to $489/tonne in 1985 and $506/tonne in 1990. Thus world prices for coconut products are en- couraging. There is considerable scope for Liberia to penetrate the inter- national market in coconut products in due course. Coconut Products - Domestic Demand 27. The only coconut product currently produced and consumed in Liberia is the fresh nut. Again, data from Sierra Leone provide the only indication of what current consumption of fresh coconut might be in Liberia. The Sierra Leonean data show, and field observations in Liberia confirm, that coconut is a minor component of the diet with per capita consumption probably not exceeding 3 kg per year. This figure applied to Liberian population data translates into a consumption figure of about 6,000 metric tons a year. Domestic demand is projected to grow mostly with population growth as for palm products.  - 7 - B. TREE CROP PRODUCTION SYSTEMS AND LEVELS (i) Production Systems and Organization General 28. Five broad production systems characterize agricultural output in Liberia. There are the traditional smallholder farms, the Liberian-owned commercial farms, the parastatal corporations, the large foreign-owned planta- tions and the concession plantations. 29. Traditional smallholder farms comprise some 90 percent of all agri- cultural households in Liberia. Approximately 160,000 farms are involved with an average area of 1.5 hectares, and they -typically utilize the bush fallow system whereby land areas are returned to at reducing (but currently 8-12 year) intervals and are cropped following slashing and burning. The principal crop grown by such farmers is upland rice often interplanted with cassava, maize, groundnuts and several varieties of vegetables. In recent years small farmers have increased their plantings of such cash crops as coffee, cocoa, oil palm, coconuts and sugarcane and have also increased their areas of swamp rice. In certain parts of the country, traditional smallholders have been or are being brought under the umbrella of area-specific agricultural development projects. However, the majority of traditional smallholders have yet to bene- fit from such projects. 30. Liberian-owned commercial farms are engaged primarily in the produc- tion of rubber, oil palms and coconut but are progressively entering into the cultivation of coffee, cocoa and vegetables as well as rearing poultry and livestock. Farms within this system display a wide size range from single family units to large plantations. The majority of rubber farms fall within the area served by the Liberian Rubber Development Unit (LRDU), and if small enough can benefit from its services. A number of the larger Liberian-owned commercial farms were confiscated following the 1980 disturbances and are currently being managed by the Bureau of Re-acquired Plantations. 31. Parastatal corporations are publicly owned enterprises and within Liberia four such entities are actively involved in tree crop production. The Liberia Produce Marketing Corporation (LPMC), despite its primary responsibi- lity for marketing and procurement still retains responsibility for managing several oil palm, coffee and cocoa plantat_ons. The Liberia Palm Products Corporation (LPPC), and the Liberia Coffee and Cocoa Corporation (LCCC), which are both subsidiaries of LPMC, have responsibility for the development of oil palm plus coconut and coffee plus cocoa respectively. The Decoris Oil Palm Company (DOPC) is undertaking oil palm production. The Buto project of LPPC was converted into Buto Oil Palm Corporation (BOPC) in November, 1982. 32. The largely foreign-owned concession plantations are engaged in rubber production on an extensive scale. The concession companies involved are Firestone, Liberia Agriculture Company (Uniroyal), Guthrie Plantations Inc., Salala Rubber Corporation, Liberia Company (LIBCO) and the African Fruit Company (which was taken over by the Government of Liberia in 1981).  - 8 - Rubber Production General 33. Rubber is the dominant cash crop in Liberia accounting for some 70% of all agricultural exports and employing one third of the national labor force. The crop is grown on a number of smallhldings, Liberian-owned commer- cial farms and on the concession plantations. 34. Rubber planting in Liberia commenced in 1910 and the rapid expansion initiated by the granting of a 99-year lease of one million acres to Firestone in 1926, continued until very recently. A Liberian-owned private rubber sec- tor developed parallel to Firestone initially as an out-grower adjunct to that company. It expanded rapidly during the Second World War. 35. The concession plantations are generally characterzed by capital intensive production methods, with high overhead costs as a result of large numbers of expatriate staff and the traditional provision of comprehensive infrastructure which benefits surrounding areas as well as the employees of the concessions themselves. Whilst technical efficiency on the concession plantations has in most instances been adequate, high overhead costs have been an impediment to financial viability especially in times of low rubber prices. 36. Although a number of the larger Liberian-owned rubber plantations have been and are being run efficiently, the majority have suffered from lack of capital and adequate technology. Trees are to a large extent over-aged and of poor genetic quality. The Concession Companies 37. The concession plantations are, with the exception of LIBC0, sited within a one hundred kilometer wide coastal belt. Locations are indicated on Map 16711 included in the Main Report (Vol. I). 38. Firestone was the first rubber concession to be established in Liberia and trees were initially opened for tapping in 1934. The concession area currently extends to 52,610 hectares in Harbel and 8,094 hectares in Cavalla. Of this total area some 34,000 hectares have been planted. The company is owned by Firestone Tyre and Rubber Company of USA and managed by Firestone Plantations (Liberia). 39. Liberia Agricultural Company (LAC) was established in 1959 with the granting of a total concession area of 242,817 hectares. It was purchased by Uniroyal from its original Italian owners and is controlled and managed directly by Uniroyal of USA. Some 9,000 hectares of the concession area have been planted. 40. The original B.F. Goodrich concession was signed in 1954 in respect of a total area of 242,817 hectares. The Company was purchased by Guthries in 1981 and is now managed by Guthrie Plantations Liberia Inc. Approximately 7,000 hectares of the concession have been planted.  - 9 - 41. The Salala Rubber Corporation was establshed in 1959 with the grant- ing of a 40,469 hectare concession area. The Corporation is a joint Dutch- German enterprise and is being managed by the Dutch partner - Rubber Cultuurallat Schappy Amsterdam. Just over 2,500 hectares of the concession have been developed. 42. LIBCO signed a concession agreemenl; covering 40,469 hectares in 1949. A number of American shareholders are involved. Until recently the plantation was managed by the Salala Rubber Corporation. LIBCO currently manages in its own right. 2,500 hectares of' the concession area have been developed. 43. The African Fruit Company concession agreement covering an area of 242,817 hectares was signed in 1952 and less than 2,500 hectares have so far been planted. Before its takeover by the Government (para 32), management was by the Mesurado Group with technical assistance from the French consultants SODECI. Liberian-owned Commercial Farms 44. The larger Liberian-owned rubber farms have traditionally received considerable assistance from the concessions by way of subsidized high quality planting material, free extension advice, and processing facilities for their output. By and large this mutually beneficial linkage remains intact. 45. The smaller rubber farms have for the most part received less assis- tance from the concessions and this shortcoming prompted the establishment of the Rubber Advisory Service and subsequently the Rubber Development Unit. The Liberian Rubber Development Unit (LRDU) 46. In establishing the LRDU as a semi-autonomous unit within the Ministry of Agriculture in mid-1978, the objectives were to provide the following services to a considerable number of small and medium rubber farmers: - a permanent extension service; - financial assistance in cash and kind to farmers with up to 61 hectares of rubber for replanting a total of 16,188 hectares of old rubber with high yielding varieties and rehabilitating 9,510 hectares of mature but presently untapped mature rubber having scope for exploitation over at least five years; - training in modern production techniques, emphasizing practical rubber production skills; - assistance in marketing through improvement of on-farm processing, and reduction in transportation costs; - farm planning advice on a fee basis to larger farmers wishing to obtain commercial credit for replanting and rehabilitation; and - funds for a rubber pricing study.  - 10 - 47. Recent reappraisal of the LRDU has led to a reduction in the replant- ing and rehabilitation targets and the introduction of a collection, marketing and processing component. 48. The LRDU has its headquarters at Salala and covers Montserrado, Bong Nimba and Grand Bassa counties. The extent of its operations area is shown on Map 16711 included in the Main Report (Vol. I). Oil Palm and Coconut Production General 49. Oil palm and coconuts are, up to the present time, grown to meet local demand but this situation will change as the currently sizeable and increasing immature areas come into production. 50. The majority of current oil palm production comes from low yielding wild palm groves which are exploited by an estimated 40% of Liberian farmers. Some palm products also emanate from a number of Government-owned estates being run by LPMC and larger Liberian-owned and foreign-owned estates, and there will be considerable additional production from the nucleus estates and from smallholder plantings of the parastatals, viz. BOPC, LPPC and DOPC. 51. Coconut production is currently undertaken on only a limited scale by smallholders and on larger Liberian-owned farms, but could increase under plans drawn up by LPPC. 52. The majority of the Government-owned and larger Liberian-owned estates have suffered from a lack of capital and adequate technology, while in the parastatal section there is a general contrast between the general effi- ciency exhibited by DOPC and the lack of cost-effectiveness apparent in LPPC. Liberia Produce Marketing Corporation (LPMC) 53. In 1970/71 Government charged LPMC with nationwide development of tree crops other than rubber. This involved the establishment of a number of oil palm plantations which were ultimately to be subdividesd into smallhold- ings, together with the production and distribution of seedlings including oil palms and coconuts. Extension services and processing facilities were also established. The locations of LPMC managed plantations are shown on Map 16712 included in the Main Report (Vol. I). 54. Subsequent to the initiation of a subsidiary Palm Products Corpora- tion, LPMC handed over all responsibility for oil palm and coconut nurseries and extension work to LPPC in 1980 but retained control of a number of scattered oil palm and other plantations.  - 1 1 -- Liberia Palm Products Corporation (LPPC) 55. LPPC was established as a result of the cooperative agreement between Liberia and Ivory Coast signed in 1975 and following feasibility studies undertaken by SODEPALM. 56. The primary objectives of LPPC were, with initial management assis- tance from SODEPALM, to undertake the following projects: - the Buto Oil Palm plantation in 'Sinoe County with a targeted planting area of 3,035 hectares; - the Dube Oil Palm plantation in Grand Gedeh County with a targeted planting area of 4,047 hectares; - a smallholder oil palm component adjacent to the Buto nucleus plantation; and - a coconut nursery and pilot plantings at Warbar as a precursor to coconut development in the Greenville area. 57. As well as fulfilling these project objectives, LPPC has retained responsibility for nationwide distribution of oil palm and coconut seedlings and provision of an extension service in respect of these two crops. 58. Locations of LPPC's plantation projects before the Buto project was converted into a Corporation (para 31) are shown on Map 16712 in Vol. I. The nurseries are sited as follows: Zone Location (1) Cape Mount Mambo Gohn (2) Bomi/Lower Lofa D.C. Clark Farm Gbodee Klay Gbarma (3) Montserrado/Lower Bong/Gibi Kakata Totota Schiefflin (4) Upper Bong/Nimba Gbarnga Ganta Tapeta Karnplay Zorzor (5) Bassa/River Cess New Cess 59. LPPC also has responsibility for a good coconut seed garden near Monrovia, and additionally manages a coconut plantation nearby on behalf of the Bureau of Reacquired Plantations.  - 12 - Cocoa and Coffee Production General 60. Coffee and cocoa are next in importance to rubber as cash crops. They are being grown by an increasing number of small traditional farmers whose efforts are being supported by a number of area-specific agricultural development projects (ADPs), and also by the Liberia Coffee and Cocoa Corporation (LCCC). 61. The advent of the ADPs and LCCC has in theory meant that the majority of cocoa and coffee farmers no longer lack the inputs and technology transfer which had hitherto been absent. The extent to which these improvements will be reflected in productivity remain to be tested. 62. Monitoring and evaluation units have undertaken some monitoring, but hardly any evaluation within the ADPs. Effectiveness of LCCC is at present neither monitored nor evaluated. Liberia Cocoa and Coffee Corporation 63. As was the case with LPPC, LCCC was established following the coop- erative agreement between Liberia and the Ivory coast. Establishment followed feasibility studies undertaken by SATMACI. The primary objectives of LCCC were with initial management assistance from SATMACI, to establish seed gardens, trial areas and demonstration areas at five sites, and at the same time to promote the establishment of farm family holdings. 64. As well as attending to these project objectives, LCCC assumed responsibility for nationwide distribution of coffee and cocoa seedlings and provision of an extension service in respect of these two crops. 65. The locations of LCCC's nurseries are shown on Map 16712 in Vol. I, together with the positions of the five specific project zones. The geogra- phical areas of LCCC's activities do not overlap with those of the existing ADPs, except in Nimba. Lofa County Agricultural Development Project 66. The first phase of this project, which ran from 1976 to 1980 and covered the northern portion of Lofa county, incorporated provision of devel- opment loans, seasonal credit and all requisite back-up services in support of the new smallholder planting of 2,300 hectares of coffee and 1,500 hectares of cocoa plus the rehabilitation of 500 hectares of old coffee and 800 hectares of old cocoa. 67. Within the second phase project which extends further south into Lofa county, tree crop development is to be extended through planting of a further 3,300 hectares of coffee and 1,940 hectares of cocoa. There is to be rehabilitation of a further 290 hectares of coffee. The exl;ent of the Lofa ADP is shown on Map 16711 in Vol. I.  - 13 - Bong County Agricultural Development Proj_ct 68. Phase I of this project which ran from 1978 to 1983 covers the northern half of the county. With the back-up of requisite technology and services, the programme included the planting of 3,000 ha and 1,500 hectares of smallholder cocoa and coffee respectively. Farmers have been encouraged to group their tree crop plantings into single blocks to facilitate administra- tion and cultural and quality procedures. 69. A follow-up phase for this project is to be implemented soon and whereas initial thoughts allowed for the continued planting of smallholder cocoa and coffee and included a 600 hectare oil palm component, the oil palm and cocoa components have now been excluded from the project. Nimba County Integrated Rural Development Program 70. Phase I of this project which coimmenced in 1979 concentrates on a limited range of high priority measures and includes the establishment by smallholders of 405 hectares of coffee, 162 hectares of cocoa and 50 hectares of cashews. 71. It is intended that a second phase project will be undertaken uti- lizing the experience gained in Phase I and over a larger area of the county. The South Eastern Rural Development Project 72. A project covering Maryland County, Grand Gedeh County and Sinoe County was prepared during 1980. Smallholder tree crops foreseen at the time of preparation were new planting of 1,200 hectares of coffee and 2,200 hectares of cocoa. The project was reprepared and included 750 ha of new coffee and 1,000 ha of new cocoa plantings. However, no decision on the processing of the project has yet been taken. (ii) Production Arsas and Levels General 73. Except in the case of rubber there is a general paucity of data with respect to tree crop plantings in Liberia. The most recent comprehensive Agricultural Census for the country was carried out in 1971 and resultant data have yet to be fully analyzed and published. 74. Data resulting from subsequent suarveys for rubber and other tree crops have frequently revealed glaring inconsistencies. 75. Information presented in ensuing paragraphs relative to the current and historical situation in Liberia with regard to tree crop areas and production in non-concession areas, must therefore be regarded as little more  - 14 - than best estimates. Concession records are considered to be adequately reliable. 76. As yields per hectare are clearly a function of both area and magni- tude of production, estimates in this regard are likely to ;show the greatest inaccuracies. 77. Available information is presented on the status of each tree crop, and anticipated future yield profiles are presented at varying levels of technological input. Rubber Areas and Age Groups 78. On the basis of data from the 1971 Agricultural Census, consultants preparing the RDU project were able to derive estimates of concession and Liberian farms rubber areas in the various counties. Detai'Ls are provided in Table B-1. Table B-1: RUBBER AREAS BY COUNTY IN 1971 (hectares) County or Territory Concessions Farmers Montserrado County - 20,830 Marshall Territory 30,700 5,786 Bomi Territory 5,671 '11,356 Bong County 2,077 63,631 Maryland County 5,275 17,038 Grand Bassa County 7,366 5,151 Nimba County 2,185 7,631 Sinoe County 2,176 1,476 Cape Mount County - 1,655 Grand Gedeh County - 390 Lofa County - 14,464 Upper Lofa County - 2,934 Totals 55,450 152,342 Source: 1971 Agricultural Census 79. After making minor adjustments for rubber planted cn farms between 1971 and 1974, the consultants were able to draw certain conLclusions regarding the distribution of tree age groups on the Liberian-owned farms as in 1974.  - 15 - On the assumption adopted by the Mission that such farms have replanted at the low overall rate of 1,000 hectares per annum during each of the years 1975 to 1979 and at the rate of 1 ,500 hectares per annum during 1980 and 1981 the comparative percentages by tree age groups are as shown in Table B-2. Table B-2: TREE AGE DISTRIBUTION ON LIBERIAN RUBBER FARMS IN 1974 and 1981