Exploring Panama’s Specialty Coffee Scene: A Complete Guide

Vietnamese Coffee Exporter
Exploring Panama's Specialty Coffee Scene A Complete Guide

Panama’s: Although coffee cultivation began in Panama in the early 20th century, the country has only earned recognition for producing exceptional coffee over the past two decades.

Today, Panama is renowned for its high-quality coffee, particularly due to the success of the Geisha variety, which has become highly coveted by roasters, buyers, and competition baristas worldwide.

Panama’s; Keep reading to discover more about Panamanian coffee and how Panama has emerged as a premier destination for specialty coffee.

Key Coffee-Producing Regions in Panama

Located along the “bean belt,” Panama’s equatorial position offers an ideal climate for coffee cultivation. According to USDA data, over 80% of Panama’s coffee is arabica, while the remaining 20% is robusta.

Robusta thrives in low-altitude regions such as Cocle, Panama Oeste, Colón, Veraguas, Herrera, Los Santos, Bocas del Toro, Panama Este, and Darien.

In contrast, the highlands of Chiriquí province provide optimal growing conditions for arabica coffee. Boquete, a mountain town in Chiriquí, is particularly famous for its high-quality arabica, benefiting from an elevation of 1,000 to 2,800 meters above sea level.

While Chiriquí’s arabica coffee is primarily exported, robusta from the lower regions is mostly consumed locally. Panama’s coffee consumption averages around 20 million kilograms annually, equating to roughly five kilograms per capita—considerably higher than the one to three kilograms per capita typical in other coffee-producing nations.

Chiriquí Province: Panama’s Premier Coffee Region

The mountainous highlands of Chiriquí offer the perfect elevation for cultivating arabica coffee. The region’s top coffee-growing areas include Boquete, Tierras Altas, and Renacimiento.

Chiriquí lies along the Central American Volcanic Arc (CAVA), home to Volcán Barú, Panama’s highest peak at 3,474 meters above sea level. Volcán Barú, an active stratovolcano, last erupted in the 16th century, dispersing tephra throughout the surrounding lands. This volcanic material enriched the soil with nutrients, creating an exceptionally fertile environment for coffee cultivation.

In addition to its rich soils, Chiriquí also benefits from Panama’s unique weather patterns. The country is known for its over 100 distinct microclimates, resulting in significant regional variations in weather conditions—another factor that enhances the coffee-growing potential of the Chiriquí highlands.

Coffee Varieties Cultivated in Panama

Panama’s favorable climate and geography enable the cultivation of several high-quality coffee varieties, including Catuai, Caturra, Maragogype, Pacamara, and Mundo Novo, among others. However, the country is best known for one particular variety: Geisha.

Although Geisha is now synonymous with Panamanian coffee, it originally comes from Ethiopia and has only been grown in Panama since the 1960s. This variety is celebrated for its distinctive cup profile, offering a pleasant sweetness, bright acidity, and fruity, floral aromas.

Francisco Serracín, owner of Don Pachi Estate, shares that his family has been cultivating coffee in Panama for nearly 150 years. It was his father, also named Francisco Serracín (better known as “Don Pachi”), who first introduced the Geisha variety to Panama.

Don Pachi, a visionary in Panama’s coffee industry, founded the Special Program at the Ministry of Agricultural Development. He also worked at the Tropical Agricultural Research and Higher Education Center (CATIE) in Costa Rica, where he obtained Geisha seeds that he later brought back to Panama and shared with other producers.

According to Francisco, his father foresaw the potential of coffee as a premium, exclusive product with specialized markets. The introduction of Geisha has been pivotal to Panama’s coffee industry, establishing the country as a leader in high-quality, specialty coffee production.

The Panama Specialty Coffee Association

Though the Geisha variety made its way to Panama in the 1960s, the Specialty Coffee Association of Panama (SCAP) was not established until 1997.

The founders of SCAP aimed to revitalize their farms by emphasizing quality over quantity in coffee production. They also developed skills in cupping and tasting, which allowed them to be more selective about the coffee varieties they chose to cultivate.

In 1998, just a year after SCAP’s formation, the Best of Panama (BOP) competition was launched. By 2001, BOP conducted its first international online auction, attracting buyers from around the world to bid on Panamanian coffee.

These auctions significantly enhanced the visibility of Panamanian coffee and established Panama as a notable coffee origin. During this time, reaching prices of $2 per pound was considered a significant achievement for producers.

Reaching a Milestone: A Turning Point in Panama’s Coffee Industry

Wilford Lamastus Jr., a fourth-generation coffee producer at Lamastus Family Estates, shares that the growth of the coffee industry in Panama has been significantly driven by Geisha coffee and the Best of Panama (BOP) competition.

He explains, “At that time, coffee prices rose due to its quality and success in competitions.” Although buyers were willing to pay higher prices for coffee, there was initially no clear way to differentiate between them. This is where the Geisha variety gained prominence.

Many coffee-producing families obtained Geisha from Don Pachi, but it was Price and Daniel Peterson from Hacienda La Esmeralda who first set a record by selling it for an astonishing price. At the BOP 2004, a Geisha from Hacienda La Esmeralda was sold for a historic $21 per pound.

Wilford notes, “From that moment, the market began to consider different varieties.” He emphasizes that this shift in focus occurred when buyers recognized Geisha as a “unique and special” coffee variety.

In 2007, just three years later, another coffee from Hacienda La Esmeralda shattered the triple-digit price barrier by selling for an impressive $130. Over the next decade, Hacienda La Esmeralda continued to break records, achieving four more auction milestones.

After 2017, Lamastus Family Estates emerged as the next record-holder. In 2018, they sold a pound of their Geisha for a remarkable $803, and in 2019, they broke the four-digit threshold with a price of $1,029 per pound.

Since 2014, the record for the highest price per pound has been surpassed every year. Even during the fully virtual BOP 2020 due to the Covid-19 pandemic, records were still shattered.

However, the new record at BOP 2020 was not set by Lamastus Family Estates or Hacienda La Esmeralda; instead, it was a washed Geisha from Finca Sophia that achieved an astonishing price of $1,300.50 per pound, setting a new world record for coffee sold at auction.

The continuous breaking of records for six consecutive years highlights the remarkable growth of Panama’s specialty coffee industry and underscores the significant impact of the Geisha variety.

The Coffee Culture Among Panamanian Consumers

Prior to 2000, the consumption of specialty coffee in Panama was quite limited. However, significant changes in production have been reflected in the growing number of specialty coffee shops throughout the country.

Alberto Bermúdez, the Founder and Head Roaster at Café Unido in Panama City, shares that the café opened in 2014 with the goal of introducing high-quality Panamanian coffees to consumers and creating a connection between them and the producers.

Alberto observes a generational shift in coffee preferences. He notes that younger consumers are more willing to explore different coffee experiences, while older generations tend to have traditional views on what constitutes “good” coffee.

He explains, “The difference is striking… [specialty Panamanian coffee] highlights floral, fruity, and unique flavors, in contrast to the dark profiles typically associated with more conventional roasted coffees.

“Specialty coffee has a certain ‘barrier’ because achieving the best flavor requires proper brewing techniques, unlike other luxury items,” he explains.

He also notes a recent rise in the number of homebrewers in Panama, which he views as a positive development for the industry. “Brewing your own coffee helps you gain a deeper understanding and appreciation for it,” he adds.

In addition to the growing number of coffee shops, Panama has seen an increase in educational opportunities for consumers looking to expand their knowledge. These opportunities include open tastings, webinars, and significant events such as “La Cosecha.

As of now, Panama holds the world record for the highest price per pound of coffee sold at auction. It has become a preferred origin for numerous champion baristas and brewers, despite being relatively new to the specialty coffee scene.

Looking ahead, the primary challenge for the Panamanian coffee industry will be to maintain innovation. At the same time, there is a recognized necessity to boost domestic consumption and encourage Panamanian coffee drinkers to serve as “ambassadors” for the exceptional quality of coffee produced in their country.

 

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