The GSX Podcast Episode Three - A conversation with Dave Behrends, Managing Partner at Sucafina

In this episode of the GSX podcast, host Henry Walsh speaks with Dave Behrends from Sucafina, a leading coffee trading company. They discuss Behrend's extensive experience in the coffee industry, the growth strategies of Sucafina, and the complexities of the coffee supply chain. The conversation delves into market dynamics, consumer trends, financial management, and the challenges of decision-making in a volatile environment. Dave shares insights on communication, coordination, and incentive structures within trading companies, as well as the transferable skills from trading to other business areas. The episode concludes with a discussion on the future of the coffee industry and the potential for increased vertical integration.

Key Takeaways

• Sucafina has grown significantly, trading over his tenure at Sucafina

• The importance of being close to farmers for long-term business success.

• Market dynamics and consumer preferences are shifting towards cold coffee.

• Financial management and cash flow are critical in volatile markets.

• Effective communication is essential in a global trading environment.

• Incentive structures need to adapt as companies mature.

• Skills in trading are transferable to other business areas.

• Decision-making often involves incomplete information and risk assessment.

• The coffee industry may see more vertical integration in the future.

• Understanding market fundamentals is crucial for successful trading.

For those who love coffee markets, I am sure you will enjoy this episode. For those who nothing about coffee or commodities, I am sure you find some great nuggets of wisdom from my friend, Dave Behrends.