Harvested rubber seen on the floor
Local rubber traders and aggregators have raised serious concerns over growing challenges that threaten their operations and the sustainability of Ghana’s rubber industry.
The Rubber Cupslumps Traders and Aggregators Association of Ghana (RUCTAAG) has issued a press statement urging stakeholders and policymakers to address what they describe as deliberate attempts by some local rubber processing factories to edge out middlemen in the supply chain.
According to the statement, many local processing factories lack sufficient plantations of their own and heavily rely on farmers and traders for raw rubber.
Yet, instead of collaborating with these traders, the factories are accused of setting up systems and pricing strategies that threaten their survival.
“Most factories don’t own enough plantations to feed even a third of their processing capacity,” the statement reads.
“Traders are often the ones supporting farmers with inputs, tappers, transportation, and even managing abandoned farms, yet they face calculated frustrations from processors,” the statement added.
The traders have argued that while they incur costs such as transportation, loading, and post-harvest losses, local factories are unwilling to pay more than what they offer to farmers.
They said attempts to negotiate fair “trader prices” have reportedly been ignored by major processors, including Ghana Rubber Estates Limited (GREL).
Some processors that do offer trader prices still fail to provide rates that cover the basic operational costs of traders, making the business economically unsustainable.
RUCTAAG has lamented that smaller factories often delay payments for weeks or even months, making it impossible for traders to maintain a consistent supply and operate profitably.
Even when traders attempt to supply, local processors are often overwhelmed within a matter of days.
In times of shipping challenges—when all traders turn to local factories—processing plants are quickly filled up, forcing traders to halt supply or accept significantly reduced prices.
The Tree Crop Development Authority (TCDA), the regulatory body for the sector, is reportedly taking deliberate steps to license and regulate the rubber industry. According to RUCTAAG, this intervention is critical to protect the interests of all actors—especially farmers and traders—who are central to rural economic development and rubber production.
The association warns that if these issues are not addressed and traders are forced out of the system, there could be a return to the dark days when farmers abandoned rubber farming for more lucrative but illegal activities such as galamsey (illegal mining).
“Any government policy that cuts off traders and aggregators without addressing these deep-rooted challenges will collapse the sector. Confidence in the industry will be lost, and Ghana’s dream of a thriving rubber sector will fade,” the statement cautioned.
Meanwhile, RUCTAAG has called for immediate stakeholder engagement to develop a fair, transparent, and mutually beneficial supply system.
The group believes that traders are not just middlemen but critical enablers who ensure the continuous flow of rubber from farms to factories.
