Research on World Agricultural Economy

Fairness is a core principle of agroecology; however, its realization cannot be taken for granted through certification schemes alone. In this study, we examined how agroecological fairness is operationalized in practice through democratic governance and strong local leadership, using the Manduvirá cooperative in Paraguay, a pioneering Fairtrade organic sugar producer, as a case. Drawing on fieldwork and interviews with cooperative leaders, the results show that fairness functions not as an automatic outcome of Fairtrade certification, but as a normative value principle guiding decision-making, benefit distribution, and social recognition within the cooperative. Under conditions of long-standing economic hardship and unequal market relations, Manduvirá’s leadership played a critical role in mobilizing collective action and steering the cooperative toward greater autonomy. Through democratic governance arrangements, Fairtrade Premium revenues were transparently allocated, with half distributed directly to members and the remaining half invested in community-oriented initiatives, certification costs, and social programs. These practices enabled the cooperative to transition from a marginal sugarcane supplier to an independent exporter of organic sugar. The findings demonstrate that Fairtrade mechanisms can advance agroecological fairness only when they are embedded in bottom-up institutional arrangements grounded in democratic governance and strong local leadership. By reconceptualizing fairness as a guiding value rather than a guaranteed outcome of standards, this study offers insights relevant to academic debates and policy efforts aimed at fostering more sustainable and just food systems.