Jay Baxter - Senior Trader | Navigating a Changing Coffee Market

Jay’s Experience in Coffee Trading

With a career in the coffee trade spanning over 28 years, Jay’s passion for the industry remains as strong as ever. From humble beginnings as an assistant runner after leaving school, he steadily climbed the ranks. His first roles included messenger duties, shipping coordination, and managing invoices, but for over 20 years now, he has been a seasoned coffee trader. 

Despite his extensive time in the industry, Jay still finds the world of the coffee trade exciting, largely due to the brilliant people he works with and the opportunities to travel globally. The dynamic nature of the industry keeps him engaged, where he interacts with sharp minds and gains insights from a variety of cultures.

For Jay, the excitement isn’t just about the commodity—it’s about relationships. The vibrant network of people, from producers to buyers, creates a thrilling environment where each day is different. 

Travelling to coffee-growing regions worldwide has not only enriched his understanding of the markets but also deepened his appreciation for the people behind the coffee beans.

Key Qualities of a Successful Coffee Trader

Having thrived in the industry for nearly three decades, Jay believes that the key qualities of a successful coffee trader are built around integrity and market knowledge. "Integrity is everything," Jay emphasizes. "Without it, you can’t build trust with your clients or partners."

Beyond integrity, understanding market dynamics and offering valuable suggestions to clients is essential. "It’s about more than just trading coffee—it’s about being able to analyze the market trends and give thoughtful advice to your clients, guiding them through price fluctuations and emerging opportunities," he explains. 

Knowing how to build strong relationships and offering competitive pricing are equally critical, according to Jay. These elements ensure not only business success but also long-term partnerships in an ever-evolving market.

Challenges and Opportunities in the Current Coffee Market

In today’s coffee market, Jay acknowledges that the industry is facing significant challenges. The most pressing issue is the global coffee bean shortfall, which has led buyers to turn to countries like Vietnam—known for being a top producer of Robusta beans used in instant blends. 

However, Vietnam has faced its worst drought in nearly a decade, which has impacted production. Adding to this complexity, some Vietnamese farmers are transitioning to durian farming to capitalize on the rising demand for this exotic fruit, further constricting the coffee supply.

One of the most striking changes, according to Jay, is that for the first time in history, the price of Robusta beans has surpassed that of Arabica - a shift driven by the scarcity of supply and market instability. In addition, geopolitical conflicts, climate change, rising fuel prices, and increased logistical costs are adding to the strain on the industry.

However, with every challenge comes opportunity. Jay notes that due to price fluctuations, more roasters are seeking out new suppliers in search of better deals. 

"This presents a huge opportunity for us," Jay says confidently. "Our expertise, especially in foundational coffee and spot trading, allows us to offer competitive pricing and meet the demand of new potential buyers."

Brewing Success - The Advantage of Specialization

Origin Commodities (a subsidiary of Torq Commodities) holds a distinct advantage in the market, focusing on foundation coffee and spot trading. By specializing in specific markets and concentrating on areas where they have deep expertise, they have been offering competitive prices while providing tailored market consultations to clients. 

"We focus on the markets we know best," Jay explains that focusing on the markets we know best "allows us to understand exactly what our clients need and offer them guidance in a more considerate and effective way."

Their strategy of staying within familiar markets, rather than spreading too thin across all coffee varieties, has allowed them to refine their expertise. As a result, Origin Commodities has positioned itself as a reliable partner in a volatile market, meeting the demands of clients while offering strategic insights.

Jay’s journey through the coffee trade is one of passion, perseverance, and adaptability. While the challenges of the current market are undeniable, Jay remains optimistic.