Closed borders squeeze Eritrea's

coffee culture

 ASMARA (Reuters) - In the windless pre-dawn of a dark Asmara backstreet, while women are asleep in doorways and teams of cycling enthusiasts begin their morning training, a thin stream of smoke rises from a chimney.

Brothers Eyob and Filimon Kahsay have been roasting coffee since 3 a.m. -- long before the mosque calls its faithful to prayer and Orthodox Christians begin their chanting.

"Eritreans must have their coffee," says Eyob, one of eight children whose parents bought the shop from Italian colonial owners.

"It's our business. It's how we get our injera," he says, referring to the local bread.

Eritrea produces no significant amounts of coffee itself, although neighbouring Ethiopia -- its bitter Horn of Africa foe -- is the continent's largest producer.

The borders with both Ethiopia and Sudan have been closed for years, making it harder to import coffee.

The 1,000-km (620-mile) Ethiopian-Eritrean frontier has been blocked since the two countries' 1998-2000 border war, which cost about 70,000 lives.

Then in 2002, Sudan accused Africa's newest independent state of giving military support to rebels fighting the Khartoum government, and closed their common border too.

In spite of the closure of these trade routes, coffee from Ethiopian and other sources still finds its way to Eritrea. A short walk from the brothers' shop, packets of "Ethiocoffee" can be bought.

COFFEE CEREMONY

The caffeinated beverage is an essential part of life in Eritrea.

The coffee ceremony, for example, is an essential part of Eritrean hospitality. The visitor receives at least three rounds of sweetened coffee and, by tradition, must describe the first round as "delicious".

The ceremony takes place throughout the country.

At Korokon camp for refugees from the border war with Ethiopia, women roast coffee beans on small portable stoves before offering it to the guest.

In the capital Asmara, the Italian colonial influence also lingers.

Eyob and Filimon say their coffee has the best taste, not because of their old and elaborate Italian roasting and grinding machinery, marked from "fino" up to "grasso", but because they roast their coffee over wood.

"Clients try our coffee, like the taste and move from other shops," says Eyob, listing diplomats, tourists, and bars among his clients.

A short drive away, at the Bar Tre Stelle, day has dawned and business is brisk. A woman sells cigarettes and lottery tickets outside, while unshaven men sit at the modest tables reading newspapers and slurping frothy cappuccinos.

Later, as the shadows lengthen from the old Catholic brick-built cathedral, well-dressed Eritreans sit in bars and cafes on the capital's palm-lined Harnet Avenue, watching the world go by.

"Today is a holiday, so I'm drinking coffee with my friend," said Yemane, 20, sipping an espresso at the Impero cafe where the hiss of steam from the machinery competes with the gentle chatter of the clientele.

"We do the coffee ceremony at home with friends and family, but it takes a long time," he says. "And sometimes, it's important to go out with friends."

RISING PRICES

Eritreans may still be drinking coffee, but the closed borders have affected the price.

Elsewhere in the world, coffee prices crashed to 30-year lows in 2001, but in Eritrea they have rocketed.

Official data are hard to find, but Eritreans report that before the 1998-2000 border war, coffee in Asmara cost 30 to 45 Nakfa per kg ($2.00 to $3.00 at the current rate).

That is a fraction of the current price of 100 to 120 Nakfa ($6.66 to $8.00).

"It is difficult to find right now," said a 24-year-old Eritrean man, who acknowledged shortages of other basic commodities in the Red Sea state.

In 2005, the government opened so-called "fair price" shops, where Eritreans with ration coupons can buy commodities such as sugar and coffee at below the market price.

Even in these shops, coffee is reported to cost 60 to 65 nakfa ($4.00 to $4.33) per kg -- higher than in 1998.

Coffee prices are lower closer to the borders. In Tesseney, about 25 km (15 miles) from the Sudanese border, prices are said to be 70-75 Nakfa ($4.67 to $5.00) -- lower than in Asmara.

The coffee's provenance is still extremely sensitive.

Merchants are comfortable showing bags of Ugandan coffee but reluctant to discuss any other sources.

Suspicions of Ethiopia run deep in Eritrea, and acknowledging a link could bring trouble.

One interview is interrupted by a middle-aged man, bringing it to an end with a threat implicit in his tone.

He has the look of an ex-fighter from Eritrea's bitter 30-year struggle against its southern foe.

"We don't depend on Ethiopia for anything," he says.