Report Highlights: In 2005/06, Vietnam cotton area dropped significantly compared with the 2004/05 crop due to lower world prices and un-favorable weather at planting time.
However, improved weather later in the crop year allowed yields to improve significantly and production actually increased slightly. With farmers still only able to gain the government support price, 2006/07 cotton area is expected near the 2005/06 level.
Although not growing as rapidly as in previous years, Vietnam's cotton imports in MY- 2005/2006 are expected to reach 155 thousand metric tons, 3 percent higher than cotton imports in MY2004/2005 due to continued growth in demand from the local textile industry. Modest growth should continue through 2006/07.
Vietnam's 2005/06 Cotton Production According to statistical data from the Vietnam General Statistical Office (GSO) and the Ministry of Agricultural and Rural Development (MARD) Vietnam's 2005/06 cotton harvested area was 22.6 thousand hectares (tha), 15 percent less than the cotton area harvested in the 2004/05 crop.
Drought at planting time and lower world prices that led to weaker anticipated returns even given the government guarantee price, prompted farmers in cotton regions to switch cotton land to other crops.
Vietnam 2006/07 Cotton Production According to several agronomists, Vietnam's 2006/07 cotton production will be improved a little mainly due to better crop yields (estimated at 1.3 mt/ha). However, the crop growing area is forecasted to stay at the same level as the 2005/06 crop.
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