Although the Neotropical forests are renowned for theirbiological diversity, the bulk of their trees consists of fewer than 200species. The mixed character of these forests is a major obstacle to large-scale exploitation of timber. Nonetheless, timber harvesting has expanded dramatically since 1950, especially in theAmazon basin. Many species are used as cabinet woods, including the highly prizedmahogany fromVenezuela,Brazil,Peru, andBolivia and several leguminous species such as rosewood. Some species areexploited as general utility woods and are mainly used domestically, often as fuel. Other species, such as the quebracho tree found in theGran Chaco ofArgentina andParaguay, which produces tannin, have significant commercial value. Commercial tree plantations have become important sources of forest products, especially inChile and Argentina. Additionally, eucalyptus groves have been planted throughout the region since their introduction in the early 1800s and provide both building material and fuel. Chile is a chief exporter of wood chips, plywood, andpaper pulp.

Freshwaterfish, abundant in many South American rivers, have been exploited as a food source since the earliest times, especially in the Amazon region and in the Guianas. Trout were introduced by Europeans into Andean lakes and rivers, sometimes to the detriment ofendemic species, while reservoirs in northeastern Brazil and elsewhere have been stocked with tilapia from Africa. Most freshwater fishing is for localconsumption.

Marine fisheries became important in the 1960s, when Peru emerged as one of the world’s major fishing countries, based on its anchovy fisheries. However, overexploitation severely depleted this resource. Chile has developed a large commercial marinefishing industry as well as salmon, trout, and shrimp “farms” aimed at the export market. Since 1980Ecuador has been a leader in shrimp exports. Since the mid-1990s Peru has rekindled its fishing industry based on catches of anchovies, pilchard, and jack mackerel.

Agriculture

Agricultureconstitutes a large sector of South America’s economy in both its tropical and its temperate regions. Livestock production also occupies large parts of rural South America, especially cattle ranching. Most of the commercial livestock production, especially for the export sector, occurs on hugeestancias (estates) that have been the source of economic and social dominance for their owners for many generations.

Only about one-eighth of South America’s land is suitable for permanent cropping or grazing. It is broadly agreed that agricultural land use throughout thecontinent is less efficient than it might be. Farm and ranch productivity could beenhanced by measures such as providing adequate agricultural credit, improving marketing, storage, and transportation systems, and expanding the educational system in rural areas. Such changes would benefit the large number of small farmholdings (minifundias)—three-fourths of South America’s farmers own less than 25 acres (10 hectares)—making it possible for those farmers to improve theirliving standards and contribute to national development. The changes also would help toalleviate the widespread under- and unemployment prevalent in some densely populated rural areas. Unemployment is a problem in such areas, even though less than one-third of South America’s workingpopulation is employed in the agricultural sector, as compared with nearly one-half of the population for the world as a whole.

The agricultural sector is affected negatively as well by the unfavourableterms of trade between agricultural commodities and manufactured goods that have existed in general sinceWorld War II. The rise in the cost of farming has outstripped the rise in the prices paid for agricultural commodities, and this imbalance substantially lowers the investment potential in the agricultural sector.