PurposeWhile literature discussed value cocreation, most still has its focus from customer perspective, this study fills up this gap by focusing on supplier perspective. Second, prior works discussed the outcomes of cocreation; however, the process mechanisms are still under-explored, this study thus aims to explore these process mechanisms that drive value co-creation in the agro-food industry.Design/methodology/approachCase study is used as the method; specifically, six in-depth interviews on an agro-food company and its suppliers (i.e. farmers) are conducted, and data are analyzed using the grounded theory approach.Findings(1). Agro-food company and its rice suppliers invest different resource types and resource density, and the agro-food company is a main actor, i.e. resource investor and integrator; (2). While motivations of the agro-food company and farmers are different, they are mutually fit in the sustainability value; (3). Both parties share similar process mechanisms, i.e. co-production, senses of identification and trust, mutual interaction and information sharing and (4). Both parties thus have similar consequences, i.e. sustainability, codevelopment.Originality/valueThis study (1) proposes an innovative model of what and how values are cocreated, particularly in the agro-food industry; (2). uses three theories, i.e. input–process–output (I–P–O) model (McGrath and Kelly, 1986), service-dominant logic (SD-L) (Vargo and Lusch, 2004), cocreation design framework (Frow et al., 2015), to understand this phenomenon and thus demonstrates and enriches these three theories, particularly applied in the agro-food contexts; (3).offfers practical suggestions to agro-food firms and social enterprises, particularly those having food safety and environment issues.