We maintain our view for the Vietnamese coffee crop to growrnmodestly in the 2015/16 season, for which the harvest is currentlyrnongoing. Production will grow by 1.4% to 28.3mn 60kg bags, afterrnoutput decreased by a steep 6.4% in 2014/15. Vietnam's coffeernregions have recorded weak rainfall over most of 2015, but farmersrnhave been utilising irrigation, according to local sources, whichrnshould limit the impact of dry weather on yields. Meanwhile, althoughrnarea under coffee cultivation will stagnate in 2015 as somernfarmers switch to pepper production, coffee area remains elevatedrnafter several years of strong growth. Cultivated area probablyrnreached around 670,000 hectares (ha) in 2014, compared withrn555,000ha in 2010 and 497,000ha in 2005, according to Vietnam'srnMinistry of Agriculture.
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