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The economy is based on agriculture, livestock raising and wood processing. In 2007, there were two small transformation industries and 24 commercial units. There were 59,000 head of cattle. Agricultural production was modest with small areas of rice, bananas, beans, sugarcane, corn and soybeans.
Agricultural data 2006
Number of farms: 391
Total area: 48,159 hectares (119,000 acres)
Area of permanent crops: 30 hectares (74 acres) (bananas)
Area of perennial crops: 557 hectares (1,380 acres) (soybeans, corn, rice)
Area of natural pasture: 36,229 hectares (89,520 acres)
Area of woodland and forests: 10,988 hectares (27,150 acres)
Settlement began in 1946 on lands belonging to the municipality of Iporá. A local rancher, Edmundo Benuto Dias, donated land for a new settlement which was called Aropi, the inversion of the name Iporá. In 1954, it was elevated to the category of district with the new name of Mendelândia, after Antônio Mendes, one of the pioneers of the region. In 1955, the name was changed to Diorama, of unknown origin. In 1958, it became a municipality.