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The population is 28,966 inhabitants, though the 2010 estimate indicates a population of around 33 thousand. Owing to highly fertile land, the city is a flourishing agricultural hub and a base for two major agricultural companies: C. Vale and I. Rieddi. Another highlight of Palotina is the campus of the Federal University of Paraná (UFPR). There is also one private university, the UESPAR (União de Ensino Superior do Paraná).
The municipality contains the 385 hectares (950 acres) São Camilo State Park, a conservation unit originally created as a biological reserve in 1990.
Settlement in the area started in 1953 when Pinho e Terras started to colonize the area. The settlement began to grow and on July 25, 1960 attained the status of municipality. Pinho e Terras approach to colonization was called exemplary, but in the early 1960s the colonists were besieged by gunmen hired by the "new landowners" affiliated with state governor and Socialist Democratic Party boss Moises Lupion. The federal government moved in a regiment of border guards to pacify the area and in 1963 re-nationalized the disputed lands. The colonists had to buy back their own land.
Agriciltural economy of Palotina relies on production of corn, wheat and soybean. A 1969 survey placed Palotina in the cluster of most efficient agricultural communities in Brazil. According to authors of the study, higher productivity in this cluster stemmed from raising pigs, which accounts for 68% of its output. 82% of lands were allotted to fodder crops rather than traditional rice, bean and cotton.
Nowadays, Palotina is a near 30k inhabitants municipality with an agroindustrial economy and a hopeful future. Most of the population, around 68%, are Italian descents. About 13% of the community of are of German descent.