Kenya coffee output down 26.6 pct in 2009/10

NAIROBI (Reuters) - Kenya's coffee production fell 26.6 percent to 42,096 tonnes in the crop year concluded in September while prices jumped 53 percent to $236.69 per 50-kg bag, statistics by an industry association showed.

Coffee production -- one of the top five foreign exchange earners for the east African economy -- was depressed during the season following heavy rainfall that disrupted flowering and promoted disease.

The Kenya Coffee Traders Association said 36,197 tonnes of beans were sold at auction in 2009/10 (Oct-Sept), down from 51,881 in the previous season.

Although a very small producer by global standards, Kenya produces top-notch coffee that is often picked up by lovers of specialty coffee from the United States, Germany and Japan.

At this week's auction, a lot of benchmark AA grade hit a high of $1,022 per 50-kg bag, beating a previous record of $1,011 in January.

(Source: http://af.reuters.com/article/investingNews/idAFJOE7190AX20110210?feedType=RSS&feedName=investingNews)