Business Daily (Nairobi)
Sollo Kiragu
17 September 2007
Tea producer and processor Unilever Tea Kenya has suffered a loss estimated at Sh65 million to a hailstorm that hit a section of its plantations destroying 1,600 hectares of the crop.
Initial estimates put the loss at about 620 tonnes - the equivalent of a day's output from its four estates namely Chagaik, Kapkorech, Kimugu and Kapkatungor.
Unilever's corporate, technical and development director Francis Kaptich said about 750 hectares of the affected plantation could take up to two months to recover because of the nature of the damage.
The company said it had been forced to reschedule annual leave for its employees to factor in the reduced workload. Most employees have been asked to take their annual leave this month and are expected to return to their work stations late next month when the crop is expected to have recovered.
Heavy rain pounding the region is expected to boost speedy recovery of the crop. The Meteorological Department has predicted that the rains persist into October, November and December.
Hailstorms have become a common phenomenon in Western Kenya, but last week's was the worst in nearly a decade.
The hailstorm losses came only a month after Unilever Tea announced it had posted a 122.7 million loss in the past six months because pricing problems associated with currency fluctuation.
A Sh110 million programme on management and staff restructure over the second quarter also ate into the firm's earnings.
Tea and flower grower James Finlay's suffered a similar fate after its farms were destroyed a hailstorm. Workers at the company's farms expressed fear of job losses as the company comes to grips with the problem.
The chairman of the Kenya Plantation and Agricultural Workers' Union, Mr Samuel Omari, said it would take two months to fully resume operations.
The storms that lasted hours damaged thousands of acres of farms in Tiltwet, Chepkoiben, Chemase, Kapsongoi and Saramek estates. James Finlay's corporate affairs director Titus Korir the real extent of the damage would be known this week after a detailed assessment.
Destruction of the crop in key growing areas is expected to depress supply at the Mombasa auction in the coming weeks with a possible rise in prices.
Mr Omari said the companies were expected to temporarily lay off 10,000 employees for about two months as the crop recovers.
Most of the workers are expected to become dependent on relief food following the interruption of their main source of income.
A few days ago, similar damage by hailstones was experienced on Kenya Tea Packers ( KETEPA) premises, Unilever Tea Company and Tea Research Foundation of Kenya also located near Kericho town.
Be the first to Write a Comment!
Copyright © 2007 Business Daily. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
