In early 17th century, yerba mate had become the chief export of the Guaraní territories, above sugar, wine and tobacco, which had previously dominated. The
Governor of Río de la Plata,
Hernando Arias de Saavedra, turned in the beginning of the 17th century against the burgeoning mate industry due to beliefs that it was an unhealthy
bad habit and that too much of the Indian workforce was consumed in it. He ordered to end the production in the governorate and at the same time sought approval from the Spanish Crown, which rejected the ban, as did also the people involved in production who never complied with the order. although the Jesuits domesticated it first in the mid 17th century. Up to 1676, during the rise of the industry, the main production centre of yerba mate was the Indian town of
Maracayú northeast of Asunción. In Maracayú, amid forests rich in yerba mate, settlers from
Asunción dominated production. Maracayú came however to be the place of long-standing conflict when settlers from the towns of
Villa Rica del Espíritu Santo and
Ciudad Real del Guayrá begun to move into the Maracayú area that the old settlers regarded as theirs. In the 1630 the conflict escalated when settlers from Villa Rica and Ciudad Real del Guayrá and the Jesuit missions of Guairá had to flee over to the Maracayú area due to attacks from Portuguese settlers from
São Paulo. In the Maracayú area the new settlers made mate their main income source sparking a conflict with the settlers of Asunción which only ended in 1676 when the Portuguese settlers made another push making Maracayú a rather exposed borderland zone. The settlers of Maracaýu relocated to the south forming the modern city of
Villarrica and transformed their new lands into the new centre of the mate industry. The conflict between the old and the new settlers in Maracayú coincided with the spread of consumption of mate beyond the colony of Paraguay, first to the trade hub of
Río de la Plata and from there to
Upper Peru (Bolivia), Lower Peru, Ecuador and Chile, Once trade networks were established mate arrived overland to Chile and from
Valparaíso small quantities were exported north to the ports of
El Callao,
Guayaquil and
Panama. The shift southward to Villarrica of the production led Asunción to lose position as the sole hub of export downstream to
Santa Fe and Buenos Aires. When production was centred in Maracayú transport down
Paraná River was difficult and therefore the yerba was bought through
Jejuy River to Asunción on
Paraguay River which was
navigable all the way down to Río de la Plata. The local government of Asunción tried unsuccessfully to have all mate produced north of
Tebicuary River to pass through the city, but the Villarrica settlers, as well as the Spanish Crown, largely ignored the complaints of the Asunción government. ==Jesuit era and domestication (1650–1767)==