Paraguay is located in the central part of South America, and hence called the heart of South America. The principal industry of Paraguay is farming. The leading agricultural products are cotton, sugarcane, corn, soybeans, potatoes, bananas, oranges, wheat, beans, tobacco, and mandioca (yucca). One of the most important products of the country is the so-called Paraguay tea (maté or yerba maté), which is still the largest article of export. It is the favorite beverage of the country, and is in fact a very popular beverage elsewhere in South America. Manufacturing is confined largely to agricultural and forestry products and to basic consumer goods. Among the important products are packed meat, vegetable oils, and other foodstuffs, textiles, clothes, wood products, tannin, petit grain oil (used as a perfume base), plastics and chemicals.
Chaco is a vast area of Paraguay occupying 60 per cent of the country’s land but containing only a small fraction of its 5.5 million people. Early chroniclers described this region as dry, scrubby and hostile, “green hell”. The Paraguayan government wanted settlers in Chaco to bolster its claim to the area and serve as a “buffer” against neighboring Bolivia.
The Mennonites, a religious sect, are notable immigrants from Germany, Russia and Canada. They were given tax exemptions and expense areas at the central Chaco, where they settled around 1920's, in prosperous colonies, dedicated to agricultural activities. Most of the milk and its derivatives are produced at these colonies. The Mennonites have created an island of order in the chaotic Chaco.
Presently the three Chaco colonies have 12,000 Mennonites. Another 15,000 Mennonites live in numerous smaller colonies scattered throughout Paraguay. The majority of Mennonites seem comfortable; many have become prosperous..................
