Forestlands constituted approximately one-third of Paraguay's total area. Utilized for fuelwoods, timber exports, and extracts, the country's wooded areas constituted a key economic resource. Approximately half of all woodlands contained commercially valuable timber. In the 1980s about 4 million hectÍÍÍÍares were being lumbered commercially. Forestry data was only a broad estimate, however, as a full third of timber production was believed to be exported illegally to Brazil. Registered forestry exports accounted for about 8 percent of total exports during most of the 1980s. Forests have played an important role in the economy since the 1800s with the processing of yerba maté and the resilient quebracho. Because of a general decline in tannin exports, however, the quebracho played a correspondingly less important role in forestry.

Officially, Paraguay produced over 1 million cubic meters of lumber a year in the 1980s. Trees were processed at over 150 small, mostly outdated sawmills that produced wood products for the paper, cardboard, construction, and furniture industries and for export. Trees also fueled the country's railroad and largest steel mill. The country's woodlands contained over forty-five species of wood suitable for export, but fewer than ten species were exported in quantity. Paraguay was recognized as an exporter of fine timber, and its wood exports were internationally competitive. In 1987 lumber exports to Argentina, Brazil, and Mexico earned US$50 million in foreign exchange.

Despite the abundance of premium forests, deforestation was progressing at an alarming rate, about 150,000 to 200,000 hectares per year. The rapid depletion of Paraguay's woods was caused by the clearing of virgin forests associated with agricultural colonization, the farming practice of land-clearing and treeburning , and the felling of trees for charcoal and the other fuelwoods that accounted for 80 percent of household energy consumption.

Although the country contained enormous installed energy capacity, fuelwood remained the most important domestic source of energy in the 1980s. In fact, Paraguay's per capita consumption of fuelwood was the highest in all of Latin America and the Caribbean and nearly three times the level of other South American countries. The deforestation question was complicated by the distribution of forestlands and population. Southeast Paraguay was being deforested the most rapidly. From the mid-1970s to the mid-1980s, that region's forestland decreased from just under 45 percent of all land to 30 percent. The Chaco maintained a large number of forestlands and shrubs, but they could not be economically exploited.

Government policy was slow to respond to deforestation because of the traditional abundance of forests as well as the generally laissez-faire dynamics of the land colonization process. In 1973 the government established a National Forestry Service under the Ministry of Agriculture and Livestock to protect, conserve, and expand the country's forests. The service, however, was hindered by a lack of resources, staff, serious government initiativ 420es, and d public education on the problem of deforestation. The planting of fast-growing trees and modernization of the lumber industry were recommended by the government, but only about 7,000 hectares of new forests were seeded annually in the mid-1980s. Given these levels of deforestation and reforestation, analysts estimated that few commercial lumbering lands would be available by the year 2020.

For landlocked Paraguay, fishing was only a minor industry. It focused on more than 230 freshwater fish species in the country's rivers and streams. Only fifty or so species of fish were eaten, dorado and pacú being the most popular. Some fishing companies, mostly family operations, maintained boats, refrigeration facilities, and marketing outlets.

Data as of December 1988