Nairobi, Feb. 4 - Only about 15 percent of Kenya's coffee output has been hurt by the political crisis that has affected other export crops such as tea, flowers and vegetables, a leading coffee miller said on Monday.
Ethnic clashes arising from a disputed poll that reinstated President Mwai Kibaki have killed more than 900 people and muddled the formerly thriving east African economy.
Operations in some tea and horticulture farms in the Rift Valley province have been brought to a standstill as ethnic groups affliated to either Kibaki or his rival Raila Odinga have clashed.
"Coffees from Western Kenya and the Rift for the moment are blocked. They cannot come to Nairobi," said Etienne Delbar, managing director of Socfinaf, a leading producer and miller.
"For the rest, coffee is coming to the mills and there is delivery to the warehouses."
He said beans from the affected area accounted for only 15 percent of the country's total production. Most Kenyan farms are in the fertile highlands around Mt. Kenya.
Some farms in Kiambu district that largely supports Kibaki, have also had disruptions as workers from communities seen as Odinga's supporters were chased away.
The former political prisoner maintains he is the rightful winner of the Dec. 27 election.
Delbar said auction prices in January were good as buyers snapped up coffee following a poor harvest in 2007. Exporters were also comfortable they would get the volumes they needed and ship through the port in Mombasa, he said.
The average price per 50-kg bag rose $214.12 at last week's auction from $209.00 previously.
"Buyers still believe coffee is not threatened by violence, that there is no increase in the insecurity and they will be able to ship to Mombasa," he said.
GOOD 2008 OUTPUT
The first auction of 2008 was postponed as most traders, fresh from the holiday break, were caught unawares by the sudden spiral of violence that hit parts of the country when Kibaki was announced winner. They have since resumed normal operations.
Output in 2007 was down due to a bad case of the Coffee Berry Disease and researchers expect overall production over 2007/08 (April/March) to fall below 42,000 tonnes.
Delbar said flowering for the 2008 main crop had been very good following consistent rain over six days in January.
"January is normally a dry month and we received in some areas more than 100 mm (4 inch) which is excellent because it saves money on irrigation," he said.
"The only issue now is to make sure the flower will develop into cherry and fight against disease."
Production in 2008/09 -- whose first harvest is expected in April -- is seen at about 56,000 tonnes.
Delbar said the rains were also welcome because they saved the farms irrigation costs. Growers have been asked to pay a new tax on water which they say is draining their pockets.
"The whole agriculture sector is asking for a review because it is a huge cost," he said. "We need millions of cubic metres."