Manduvirá
The area of Arroyos y Estoros, located in the south-east of Paraguay, is isolated. Despite fertile grounds, the lack of a reliable income has forced many farmers to sell their land and move to the city in search of a job. As a result, many of Paraguay's sugar producers have turned to alternative crops or new sources of income in recent years. Others have turned to Fair Trade certification.
Fair Trade sugar cane co-ops in Paraguay
35 years of history...
In 1975, approximately 200 Paraguayans farmers met to find an alternative to their precarious economic situation. They faced serious financial problems during this period (often referred to as “el tiempo muerto”, or “ the idle period”); harvest incomes from the previous season had been exhausted and prices barely covered the costs of production.
This same year they founded Manduvirá Co-operative, as a means of coming together to produce and market sugar cane. Each producer has an average of three hectares of land, and many also cultivate fruits and vegetables which they sell on the local market. Up until 2005, the co-operative sold its sugar case to Otisa, one of the largest sugar mills in the country. However, with 30 years of experience, the co-operative realized that it possessed the knowledge and the expertise to transform and export sugar cane, and in 2005 began to rent its own mill.
As a result, they have been able to reduce their costs, to better manage the manufacturing processes, and to control quality. Several Canadian companies currently purchase from Manduvirá.
Impacts of Fair Trade
At Manduvirá, the impacts of Fair Trade certification have been felt on all fronts. Through direct contact with partners, particularly importers, the co-op's members remain informed about price fluctuations in futures markets. This information serves to reinforce their power of negotiation. Members' voices are heard because the democratic nature of the organization guarantees a better representation of producers' interests and needs.
Moreover, the Fair Trade premium has served to mitigate the difficulties of the low season between harvests. This money, the usage of which is voted on democratically, enables the co-op to improve the living condition of its members. This has included purchasing food, sending their children to school, repairing their homes, and ensuring access to running water.
The Fair Trade premium also profits the community. For example, in the past the premium has been used to construct a medical centre. The co-operative pays a doctor, two dentists, two health workers, and a laboratory analyst. These health services present a concrete solution towards development and an increase in the living standard of this community.