Coffee Origin - Panama
Introduction
Panama may be one of the smaller coffee-producing countries in the world, but it’s reputation in the specialty coffee industry has grown quickly. Nestled between the Pacific and Atlantic Oceans, Panama’s unusual east-west orientation and narrow width create a patchwork of microclimates perfect for producing exceptional coffee. Its mountainous terrain and rich volcanic soil, combined with cooling Atlantic breezes, slow the ripening of coffee cherries - resulting in complex, sweet, and vibrant flavour profiles.
Coffee cultivation in Panama is concentrated in its western highlands, particularly in the provinces of Boquete and Volcán, where many of the country’s most celebrated farms are found.
Industry Scale
Panama produces approximately 75,000 x 60kg bags of coffee per year — a volume that places it around 35th in global production rankings. For context, that’s similar to the annual output of a single large farm in Brazil, like Daterra, which produced 85,000 bags in 2024.
Almost all coffee grown in Panama is Arabica, and the majority is exported to high-quality markets such as the US, Japan, and Europe. While its volume is small, the focus is firmly on quality, with many of its top lots sold through competitive auctions.
The History of Coffee in Panama
Coffee production in Panama traces its roots to immigrant farmers who settled in the highlands after working on the Panama Canal. However, it wasn’t until the late 20th century that Panama truly began to emerge as a recognised specialty coffee origin.
Following the collapse of the International Coffee Agreement (ICA) in 1989, global coffee prices fell by a third. In the 1990s, as the market remained depressed, Panamanian farmers were forced to innovate. In 1996, they formed the Specialty Coffee Association of Panama (SCAP), shifting their focus from volume to quality.
Farmers began to cup their own coffees, better understand their value, and isolate lots by variety and plot. In 1996, the Best of Panama competition was launched to showcase the country’s finest coffees — a move that would change Panama’s coffee story forever.
The Best of Panama Auction
Since its inception in 1996, the Best of Panama (BoP) competition has become one of the most prestigious events in the specialty coffee world. The auction showcases the country’s finest micro-lots, often setting global price records and trends.
In the early years, top-scoring coffees fetched a few hundred dollars per kilogram - remarkable at the time. But the last decade has seen staggering growth. Between 2016 and 2025, the top price increased nearly fifty-fold, from $607/kg to a record-breaking $30,204/kg in 2025 – all for geisha varieties.
Interestingly, processing methods have rotated over time, with natural and washed processes both frequently achieving the highest bids.
Here’s a snapshot of top prices by year:
These extraordinary prices reflect not only the rarity of Panama’s high-scoring micro-lots but also the rise of experimental varieties and advanced post-harvest processing techniques. Coffees from the BoP auction are now viewed as luxury products - collected, gifted, and sometimes sold by the cup in exclusive settings for £50 or more.
Final Thoughts
Panama might be small, but its influence on the specialty coffee world is not. Through innovation, careful cultivation, and a commitment to quality over quantity, Panamanian farmers have transformed their country into a premium coffee origin - especially for rare varieties like Geisha.
If you’ve never tried a Panamanian coffee, we currently have a complex coffee from Finca Bonita Springs in Boquete – the first of two coffees from this farm we will be releasing this year. It’s not a geisha, but it’s a great coffee nonetheless!
References
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USDA Foreign Agricultural Service (2025). Production Trends – Coffee: Panama. Accessed via: https://fas.usda.gov/data/production/commodity/07111100
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Mercanta – The Coffee Hunters (n.d.). Panama Origin Report. Accessed via: https://coffeehunter.com/our-origins/panama
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Daterra Coffee / DRWakefield (n.d.). Inside Daterra: Sustainability, Innovation, and Quality. Accessed via: https://drwakefield.com/field-trips/inside-daterra-sustainability-innovation-and-quality