Panamanian Coffee: From Obscurity to Global Recognition

This episode examines the rise of Panamanian specialty coffee, focusing on the Geisha variety, its impact on the global market, and the challenges and opportunities faced by the industry. The conversation draws upon a variety of sources, including articles, industry reports, and guides.

1. The Ascent of Geisha: Although coffee has been cultivated in Panama since the early 20th century, its global recognition as a high-quality origin blossomed in the past two decades, largely propelled by the success of the Geisha variety. Originally from Ethiopia, the Geisha variety was introduced to Panama in the 1960s by Francisco Serracín (Don Pachi), a visionary who foresaw the potential of specialty coffee as "an exclusive, luxurious, quality product with differentiated markets" (Perfect Daily Grind).
2. Breaking Auction Records: The Geisha variety's exceptional cup profile, marked by its sweetness, bright acidity, and fruity and floral aroma, has captivated the specialty coffee world. Its impact was most dramatically showcased at the Best of Panama (BOP) auctions, where Panamanian coffees gained international exposure. Initially, achieving $2 per pound was considered a success. However, in 2004, a Geisha from Hacienda La Esmeralda sold for a groundbreaking $21 per pound, signaling a shift in the market's perception of coffee varieties. This was followed by a series of record-breaking prices, culminating in a Lamastus Family Estates Geisha fetching $1,029 per pound in 2019 (Perfect Daily Grind). The 2024 BOP auction continued this trend, with the average price reaching an astounding $627.27 per pound, driven by a consortium of Asian buyers who paid $4,542 per pound for a natural-process Gesha from Lamastus Family Estates (Daily Coffee News).
3. Specialty Coffee Consumption in Panama: While Panama's coffee exports have soared, internal consumption has also seen significant growth, particularly after 2000. The emergence of specialty coffee shops, like Café Unido, has played a pivotal role in connecting consumers with high-quality Panamanian coffees and fostering a culture of appreciation for specialty coffee. Alberto Bermúdez, founder of Café Unido, observes a generational shift, with younger consumers more receptive to experimenting with different coffee flavors (Perfect Daily Grind).
4. Challenges and Opportunities: Despite its success, the Panamanian coffee industry faces challenges. Maintaining innovation while expanding internal consumption and establishing Panamanian consumers as ambassadors for their nation's coffee are crucial for future growth (Perfect Daily Grind). The volatile C market, influenced by factors like climate change, political unrest, and supply chain disruptions, adds another layer of complexity. The European Union's Deforestation Regulation (EUDR), while aiming to promote sustainability, has created pricing challenges and uncertainties for producers. As Red Fox Coffee Merchants notes, "the cause-&-effect relationship of a volatile C market on local prices in the communities in which we work don’t move in tandem with that market" (Red Fox Coffee Merchants Q4 2024 Report).
5. The Rise of E-commerce: The global specialty coffee market is experiencing a surge, with a projected CAGR of 10.4% from 2025 to 2030 (Specialty Coffee Market Report 2030). This growth is fueled by factors such as evolving consumer preferences, increased awareness of quality coffee, and the expanding coffee culture, particularly among millennials and Gen Z. E-commerce is playing an increasingly significant role in this expansion, providing producers and roasters with expanded market access and consumers with greater convenience and choice. As Jolene Zehnder of Mercon Specialty points out, "Ecommerce allows us to trade with smaller roasters... If we can automate the pro