Agricultural Industry In Paraguay

In spite of being the biggest exporter of hydro energy, Paraguay is also a large agricultural producer, which was enhanced by favorable climate and fertile soil. It preserves the structure of lands, where 35% are forests, 39% are permanent pastures and 10% area arable lands. Notwithstanding that agriculture gives a large share of export(big revenues are assured by exporting of cotton and soy beans, less by tobacco, Tung nut, mate tea, coffee, palm oil, tanning extract from a kebracho tree) the country cannot satisfy the national demand in food provision, except of by partial cultivation of rice, wheat, soy and maize. That leads to a conclusion that the basis of Paraguayan agriculture is comprised by cattle breeding, which factually also focuses on export operations.Due to slow economic development the agricultural sector, especially cattle breeding, develops in the extensive way. This sphere particularly is occupied with breeding of bovines, pigs, sheep for meat production purposes. Meat and skins are permanent points of export.The economy of Paraguay is largely dependent on American monopolies, which in recent years expanded their positions in such fields of economy, as cattle, coffee, cotton and rice. Together with local landowners large U.S. companies control vast tracts of land. 75% of rural families are landless, while the share of 11 foreign companies accounts more than 5 million hectares of fertile land.Latifundism is still preserved in Paraguay, which takes roots from Jesuit period. In colonial times, long dominated by the Jesuits, there were few large secular estates and the possibility of sharp social contradictions was excluded. Large areas of land were owned by the state: about half of it was given on rent in small portions and at reasonable prices, and the rest was intended for large-scale farms – “estancias homeland”, which supplied food for the cities and the army. The government controlled not only production, but also distribution of wealth. Part of the output enterprises were sold on favorable terms by state, or given away for free to the poor, but in basic prices for food was set up.Thankfully for stable development of agriculture, food industry also increases on its basis. In particular, textile manufacture is largely associated with production of cotton fibers, cattle hides, and tannin extract. Additionally, beverage sphere, including mate tea production, and recycling of agricultural products are centered in the Chaco area. Agriculture in Asuncion as the leading center is represented by multiple manufacturing enterprises, which supply national demand and focus on international market.