Panama’s premium coffee sector sees great auction values and praise across the globe for its special Geisha type. Climate issues, altered rain along with a hard to guess global market put at risk both small growers and old producers in this small, well-known coffee area.
A Distinct Market for Panamanian Coffee
Panama is a relatively small player in the global coffee sector, especially when compared to regional heavyweights such as Costa Rica and Colombia. Yet it has earned a coveted place in the international spotlight thanks to its famed Geisha coffee, which can fetch astronomical prices at auctions—sometimes exceeding 10,000 US dollars per kilogram.
While the worldwide benchmark for coffee can hover around 4 dollars per pound, luxury Panamanian coffee transcends these typical market limitations, explains Rachel Peterson, who is in charge of marketing for Hacienda La Esmeralda. The Peterson family’s farm, located in Boquete in the mountainous province of Chiriquí, was the first to introduce Geisha to the world stage about two decades ago.
“We’ve never had a large coffee supply in Panama because, in terms of production, we’re a small country,” Peterson told EFE. “Here, we’ve managed to move away from (international) market prices. Our clients accept the prices we set, and they’re not influenced by those global fluctuations.”
According to Peterson, luxury-coffee consumers do not concern themselves with international price shifts. The staggering values reached in specialty auctions—where some lots can surpass 10,000 dollars per kilogram—reflect the willingness of connoisseurs to pay a premium for the unique taste, aroma, and terroir that Panamanian Geisha is reputed to offer. This phenomenon creates a market separate from standard or “traditional” coffee, whose producers often rely on global commodity prices and the volatility that entails.
Traditional Varieties Feel the Climate Pinch
Even with the nation’s large renown for high-end coffee, most Panamanian growers continue to grow common kinds of coffee. These kinds are linked to international exchange values. The recent increase to about 4 dollars each pound on the worldwide market offered some money aid to these growers. It failed to lessen the problems made by irregular weather.
For the 2023-2024 cycle, unseasonably high rainfall during what are usually drier months (December, January, and February) disrupted the flowering and fruiting phases, creating more humid conditions that favor pests and fungal diseases. These large weather changes make it more difficult for those who farm to schedule their crops and keep their plants safe from unexpected illness.
Ricardo Koyner, the president of the Specialty Coffee Association of Panama (SCAP), addressed the dangers in an interview with EFE: “Climate change affects production by altering flowering and fruiting cycles as well as increasing the prevalence of diseases because of excessive humidity or prolonged drought. This variability confuses the plant’s growth process.”
The statistics back up Koyner’s concerns. Ministry of Agricultural Development figures suggest total production in recent years has hovered around 200,000 quintals annually (a quintal being roughly 100 pounds). Yet Koyner notes a steep decline from about 400,000 quintals a decade ago to an estimated 120,000–140,000 this year—a stark reflection of environmental stress.
Moreover, the number of coffee producers nationwide has dropped from 10,000 to 6,000 over the same period. Many farmers have chosen to abandon coffee in favor of more predictable or profitable crops. Even so, those who remain find a glimmer of hope in the growing cachet of Panama’s name among specialty buyers worldwide.
Geisha and the Value of Exclusivity
Central to Panama’s distinctive reputation is the Geisha variety—a rare and exclusive bean that commands some of the highest prices in the specialty coffee world. Geisha is cultivated in only a handful of microclimates across Panama, often in high-altitude regions like Boquete or Volcán, areas prized for their cool temperatures and volcanic soil.
“The price of Geisha is based on quality, not quantity,” Koyner explained. “Very few places can produce a Geisha that justifies these higher values.” That exclusivity has attracted an international following of buyers and coffee enthusiasts who are eager to bid at annual auctions such as the Best of Panama (BOP), organized by SCAP.
In 2024, Wilford Lamastus of Lamastus Family Estates garnered headlines by fetching 10,013 dollars per kilogram in the BOP’s electronic auction—only to surpass that record in a private sale, reaching an unprecedented 13,518 dollars per kilogram. Speaking with EFE, Lamastus highlighted the ripple effect that Geisha has had on the broader coffee industry:
“The Geisha has benefited the entire sector by drawing in buyers who also purchase other varieties. Today, selling traditional coffee is easier thanks to the attention that Geisha commands.”
While glamorous sales figures flood the headlines, producers emphasize the painstaking labor required to produce high-end coffee. On farms like Hacienda La Esmeralda, workers return each harvest season to carefully pick only the ripest cherries. They benefit from fair wages, stable housing during harvest, and, in Peterson’s words, “dignified working conditions,” which the farm views as integral to maintaining the coffee’s reputation for excellence.
Sustainable Cultivation Beyond the Highlands
Although Boquete and other high-elevation regions garner the most media attention, coffee production extends into other parts of Panama—including areas near the Panama Canal watershed. In the district of Capira, the small community of La Negrita hosts Finca Lidu, a four-hectare property owned by Liduvina Rivera. Here, farmers grow primarily Robusta coffee at lower elevations, supported by environmental and technical guidance from the canal’s administration.
“We started with just a single hectare, producing between three and five quintals,” Rivera told EFE. “Once we learned new techniques – like replacing diseased or dead plants immediately – our yields climbed. We’re producing up to 200 quintals.”
Rivera’s story shows a larger plan that began in 2006. In this plan communities grow shade-grown coffee. This protects the canal’s forests along with water sources. At first the region had about 800 quintals each year. The amount now is near 14,000. This means an increase of 1.1 million dollars for farmers living there.
Small-scale farmers near the canal rely on Robusta for its resilience at lower altitudes. Although it lacks the extraordinary flavor profile of Geisha, the Robusta harvest offers a steady income stream—something vital for families who might otherwise have few economic opportunities. “It’s an environmentally friendly crop because it grows under shade trees,” Rivera explained. “We’re forced to plant and maintain trees, preserving the soil and water sources for the Panama Canal.”
A Cautious Look Ahead
Coffee from Panama, which includes both types sold at auction and regular ones grown close to waterways, has great potential but also faces problems. Cultivators in high locations have established themselves in an exclusive segment. They are separate from the global market, which has changing prices. Modest farms emphasize eco-conscious, regional cultivation. This helps both the environment and the lives of the people living there.
Weather pattern shifts continue to be a key issue. They affect rainfall and pests. With less farmers the fate of coffee crops in Panama depends on adjustment and new ideas. This may include better ways to farm, enhanced methods to manage disease or new steps in the processing. This will help keep the taste that Panama is known for.
Also Read: Latin America Awaits Boeing’s Road to Trust Restoration
At this time the mark of “Panamanian coffee” still gets notice, which is not expected from the small amount made in the country. Sales at high prices bring attention, yet they also raise how well the whole business is viewed. This assists those that make less coffee to sell to those that roast across the world. Because the Earth heats and the market changes, Panama’s coffee farmers want to expand this history by keeping standards high for quality and strength when things are not sure.