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The history of Varela Hermanos, S.A dates back to 1908, when Don Jose Varela Blanco, a young Spanish immigrant, established in the town of Pese the San Isidro Sugar Mill, the first sugar mill in the recently formed Republic of Panama.

Pese, founded in the mid XVIII Century, is located on a fertile valley in the center of Panama. The main activity of its population of about 10,000 people is the cultivation of sugar cane.