Organic sugar and the co-op model

The history of cane sugar has been shaped to a large extent by the plantations of the West Indies, Pacific Islands, and several regions within Latin America. Iturbe, Paraguay has recently distinguished itself as the official headquarters of the Asociación Agricola Cañera del Sur. Since the emergence of democratic government in 1989, agricultural cooperatives have become central to the lives of Paraguay’s primary producers, including those involved in the organic sugar sector.

For a variety of reasons, most sugar producers are not in a position to raise the capital required to modernise operations and secure their access to international markets where organic products are desperately sought. Smaller producers have generally missed out on the assistance provided through officially sponsored programs and there have been significant barriers on account of deficits in regional infrastructure.

Sugar cane processing depends upon availability of milling equipment and the technical expertise which has often forced small scale farmers into individual contracts with mill operators who thereby exploit their stronger negotiating position. The majority of Paraguayan sugar cane farmers work on mixed plantations which may include cotton, soybeans, corn, and other vegetables. The Asociación Agricola Cañera del Sur negotiates on behalf of its members to promote equitable opportunities for community development and access to international markets. In practical terms, this has resulted in the maintenance of local roads, educational opportunities for children, and improved medical services for rural workers.

In partnership with Fairtrade, The Asociación Agricola Cañera del Sur is able to provide a higher income and better lifestyle for many of its members. Fairtrade has also provided valuable assistance in selected development projects and the transition between conventional and organically certified agricultural enterprises.