WASHINGTON, June 12 (Reuters) - World coffee production for 2009/10 is forecast at 127.4 million (60 kg) bags, down 7.3 million, or 5 percent, from last year's record harvest of 134.8 million bags, the U.S. Agriculture Department said on Friday. 
  

The decline is largely attributed to Brazil, where Arabica trees are entering the off-year of their biennial cycle, reducing the crop there to 43.5 million bags, a decline of 8 million from 2008/09. Still, USDA said conditions in Brazil were favorable for coffee growth.
   "Despite the loss, Arabica trees benefited from favorable weather during blossom, cherry setting, and fruit formation, thus offsetting below average crop management due to higher fertilizer and labor costs," the department said in its trade report focusing on coffee.
   In Vietnam, production was forecast to drop 1.3 million bags to 18.4 million in 2009/10 due to rainy weather, uneven flowering and higher labor costs than a year ago.
    Brazil and Vietnam together account for 49 percent of the world's coffee production.
   Colombia and India are on track to buck the downward trend, the USDA said.
   Production in Colombia was forecast to rise 1.7 million bags to 12.2 million in 2009/10 on expectations of favorable growing conditions. India benefited from timely rains, pushing output up 500,000 bags to 4.9 million.
   USDA also forecast total world ending stocks to decline by 4.8 million bags to 35.3 million.
   Overall, green coffee bean exports are forecast to total 91.7 million bags in 2009/10, down 2.3 million from the previous year.