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Colombia’s Coffee Inventories in December Increase on Month, Indicates A Better Harvest Towards End of 2023: FNC

By: Diana Delgado, Contractor

Colombia’s Coffee Inventories in December Increase on Month, Indicates A Better Harvest Towards End of 2023: FNC
 
Diana Delgado
Latin American correspondent
diana.delgado@stonex.com

Colombia’s Coffee Inventories in December Increase on Month, Indicates A Better Harvest Towards End of 2023: FNC

Bogota (Coffee Network)- Coffee inventories in Colombia increased by 5.2% in December compared to the previous month, and stood at 1.515 million bags of 60-kg.

That compared with 1.429 million in November, and up from 1.307 million bags in October amid higher production in the world’s third-largest coffee producing nation, the coffee growers federation (FNC) said.

Higher inventories are the reflection of higher output during the country’s main harvest. The harvest was collected in October, November and December but some grains will also be picked up in January, the representatives of the country’s largest producing provinces of Huila and Antioquia said.

“A rapid recovery is observed in the level of inventories in the last three months of the year, approaching levels close to those seen in 2020 and 2021, compared to 2022, which was a year with a low average level of inventories,” FNC said.

Coffee production at Colombia, the world’s third largest coffee producer, totaled 1.22 million 60-kg bags of green coffee in December, up 24.3% on year, the coffee growers federation said.

The December figures is in line with November figure is higher than the 1.157 million 60-kilo bags of green coffee produced in October 2023, the third consecutive month with rises, marking a turning point in production as a dry spell in February onwards marked the end of 32 months of torrential rains.
Higher output was possible thanks to favorable weather around February- March 2023 that allowed good flowerings to take place as downpours receded  with the beginning of the country’s second dry season in June-September.

In September, coffee inventories were 1.141 million bags. In August, inventories were 1.198 million bags. In July, inventories stood at 1.214 million bags, compared with 1.245 million in June. In May, coffee stockpiles were 1.120 million, while in Abril they stood at 1.190 million, the lowest level reported so far 2023.

In March, coffee inventories were 1.34 million bags, compared with 1.412 million in February, the highest level in 2023. In January, they stood at 1.307 in January, FNC said.

Consumption

In December, preliminary domestic consumption was estimated at 236,228 bags, a level 0.6% higher than that seen in the same month last year. For its part, final consumption in November presented a negative variation of 1.0% compared to November 2022. It is estimated that consumption in the accumulated year to date will close at 2.2 million bags, 3.0% less in 2022.

In December, the value of the harvest was 1.01 trillion pesos, a drop of 12.7% compared to the same month in 2022. In the accumulated 12 months, the value of the harvest was at 11.1 trillion pesos, a level 23.2% lower than that seen in the accumulated 12 months of the previous year, when the figure was 14.5 trillion. Although the figure is lower than 2022, it is still higher than that seen in previous years and only the third time that the 10 billion mark has been exceeded.

Differentials on Colombian coffee

The Colombian coffee differential fell by 80.3% in December compared to December 2022 and stood at an average of 10.9¢/lb. Compared to the previous month, the differential presented a negative variation of 17.3%, this being the first time that it has been below the average mark of 20¢/lb for two consecutive months since January 2019.

Exports in November

Final exports in November stood at 1.104 million bags, 29.5% higher than those observed in the same month of 2022. Exports in November are also higher than the 840,000 recorded in September.

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