Definitions related to supply
Supply is generally defined as the sum
of production in a given coffee year plus stocks carried over from the previous
year.
Exportable supply,
however, is defined as supply minus domestic
consumption and an amount deemed to be required for working
stocks.
The definition of working
stocks is imprecise as it relates to the volume of coffee
required to maintain a steady and planned flow of exports to the market. It is
generally perceived as the amount of coffee in the pipeline in an exporting
country at any one time.
Harvesting and export patterns vary from country to country, so working stocks
are not defined as a fixed percentage or proportion of a country’s production
or export capacity, but rather as an individual amount unique to every country.
In many respects the calculation of working stocks is arbitrary, but it is
generally based on historical data for each country.
Exportable production
is total annual production less domestic consumption (see 01.02.06) in
producing countries. Availability for export is equivalent to the carry-over stocks from
the previous year plus exportable production of the current year. Any
difference between exportable production and actual exports (surplus or
shortfall) results in an adjustment up or down of the carry-over stocks to the
following year.