Coffee production has played a key role in Costa Rica's history and continues to be important to the country's economy. In 2006, coffee was Costa Rica's number three export, after being the number one cash crop export for several decades. In 1997, the agriculture sector employed 28 percent of the labor force and comprised 20 percent of Costa Rica's total GNP. Production increased from 158,000 tons in 1988 to 168,000 tons in 1992. The largest growing areas are in the provinces of San José, Alajuela, Heredia, Puntarenas, and Cartago. The coffee is exported to other countries in the world and is also exported to cities in Costa Rica.
As a small country, Costa Rica now provides under 1% of the world’s coffee production. In 2015, the value of its coffee exports was US$305.9 million, a small part of the total agricultural exports of US$2.7 billion or of the total of all exports which was US$12.6 billion. Coffee production increased by 13.7% percent in 2015/2016, declined by 17.5% in 2016/2017 but was expected to increase by about 15% in the subsequent year.
Coffee production in the country began in 1779 in the Meseta Central which had ideal soil and climate conditions for coffee plantations. Coffea arabica first imported to Europe through Arabia, whence it takes its name, was introduced to the country directly from Ethiopia. In the nineteenth century, the Costa Rican government strongly encouraged coffee production, and the industry fundamentally transformed a colonial regime and village economy built on direct extraction by a city-based elite towards organized production for export on a larger scale. The government offered farmers plots of land for anybody who wanted to harvest the plants. The coffee plantation system in the country therefore developed in the nineteenth century largely as result of the government's open policy, although the problem with coffee barons did play a role in internal differentiation and inequality in growth. Soon coffee became a major source of revenue surpassing cacao, tobacco, and sugar production as early as 1829.