Coffee has fueled the Salvadoran economy and shaped its history for more than a century. It was first cultivated for domestic use early in the nineteenth century. By mid-century its commercial promise was noticeable, and the government began to favor its production through legislation such as tax breaks for producers, exemption from military service for coffee workers, and elimination of export duties for new producers. By 1880 coffee had become virtually the sole export crop. El Salvador nonetheless became one of the most efficient coffee producers in the world. This was particularly true on the large coffee fincas, where the yield per hectare increased in proportion to the size of the finca, a rare occurrence in plantation agriculture. The effect of coffee production on Salvadoran society has been immeasurable, not only in terms of land tenure but also because the coffee industry has served as a catalyst for the development of infrastructure and and as a mechanism for the integration of indigenous communities into the national economy.

Government control of coffee marketing and export was regarded as one of the strongest deterrents to investment in the industry. In the first year of Incafe's existence, coffee yields dropped by over 20 %. During each of the ensuing four years, yields were about 30 % lower than those registered during the 1978-80 time. Although the area in production remained fairly constant at around 180,000 hectares, production of green coffee declined in absolute terms from 175,000 tons in 1979 to 141,000 tons in 1986; this 19 % drop was a direct result of lower yields, which in turn were attributed to decreased levels of investment.

Coffee growers also suffered from guerrilla attacks, extortion, and the imposition of so-called "war taxes" during the 1980s. These difficulties, in addition to their direct impact on production, also decreased investment. Under normal conditions, coffee growers replaced at least 5 % of their coffee plants each year because the most productive coffee plants are between five and fifteen years old. Many coffee growers in El Salvador, in an effort to avoid further losses, neglected to replant.