E.Africa drought cuts farm output, inflates prices

By Helen Nyambura-Mwaura

NAIROBI (Reuters) - A drawn out drought in east Africa has reduced output of key commodities and pushed up prices across the region, delighting farmers but also threatening many who rely on the maize staple with starvation.

The onset of a rainy season, which may bring heavier than usual downpours, is expected to improve the performance of coffee, tea and sugar crops but may destroy maize harvests in a vital growing region of Kenya.

Coffee output from Africa's top producers, Ethiopia and Uganda, has taken a beating due to the low rainfall levels, but both countries expect a bumper crop this year.

Ethiopia's annual production is estimated at 330,000 tonnes, but output in 2008/09 (July-June) was expected to drop by more than 14 percent because of the bad weather. The country, however, expects better results in 2009/10.

"An assessment ... reported an expected bumper harvest in all the regions," said Tarekgen Tisgie, head of public relations at Ethiopia's Agriculture Ministry, adding the country expected an increase of 20-30 percent this year.

Uganda's production may have fallen by 200,000 60-kg bags in the year ended September, according to David Muwanga, the head of marketing and production at the National Union of Coffee Agribusinesses and Farming Enterprises.

"The reduced output will certainly have some impact on the local prices but I don't think it will be big because it's the London market that has a great influence on prices," he said.

"Our weather forecasters are predicting an El Nino at the end if this year, but coffee farmers should not worry so much since much of coffee is grown in the highlands and they are unlikely to be inundated."