PepsiCo partnered with season and sauce maker Griffith Foods and corn supplier Milhão to support sustainable farming solutions in the Cerrado region of Brazil — one of the most biodiverse savannahs in the world and a key source of soybeans and corn for the consumer-packaged-goods company.
PepsiCo and Griffith Foods are co-investing in a pilot programme that will cover 7,000 acres of farmland in the Cerrado, where growers receive payments upfront for sustainable inputs and bonuses based on how much agrochemicals they reduce through what the company calls a “payment for practices and payment for outcomes model,” PepsiCo shared a press release.
The two companies are expected to invest nearly $1 million by the third year, scaling from 7,000 to 30,000 acres — PepsiCo’s total corn sourcing volume for the region, the company added. The programme assistance can support everything from the adoption of organic fertilisers to ag biologicals, Margaret Henry, VP of sustainable and regenerative agriculture at PepsiCo, told AgTechNavigator.
The partnership is supported by PepsiCo’s Climate Resilience Platform, an open-access tool that allows stakeholders to assess climate change impacts in the future and near term, Henry explained. The tool provides locally relevant agronomic insight, like what planting cover crops can do to mitigate the impacts from heat, floods, or drought, she added.
“PepsiCo is supporting regenerative agriculture on over 3.5 million acres through the same model of work with the local farmers on their risks [and] scale up solutions that are locally relevant,” Henry elaborated.
“I have seen so much innovation coming out of Brazilian farmers. I have also just seen so many challenges. We have had potato farmers who used to be able to grow two crops in a year, now only able to grow one. And so, they are hungry for innovation —hungry for solutions to these very real climatic challenges that are looking them in the face every single day."
Margaret Henry, VP of sustainable and regenerative agriculture at PepsiCo
Brazil embraces innovation, braces for climate change impacts
This corporate collaboration was announced a week ahead of the 30th United Nations Climate Change Conference (COP30), which is being held in Belém, Brazil — just outside the Cerrado. Brazil is at the forefront of tackling climate change, with 60% of the country consisting of Amazon rainforests, and the country serving as a launching pad for sustainable agriculture innovation, especially biologicals.
“The Cerrado is one of the world’s most bio-diverse savannahs. It is an absolutely critical agricultural frontier. It produces over 60% of Brazil’s soybeans, huge corn volumes, and it is very critical to food security for the whole globe. But it is facing so much pressure from deforestation from a history of farming practices that were not always the most regenerative or sustainable,” Henry said.
She added, “I have seen so much innovation coming out of Brazilian farmers. I have also just seen so many challenges. We have had potato farmers who used to be able to grow two crops in a year, now only able to grow one. And so, they are hungry for innovation —hungry for solutions to these very real climatic challenges that are looking them in the face every single day.”
Given the climate change challenge, PepsiCo is working with suppliers and industry stakeholders to “have a positive impact and show what is possible” through investing in sustainable sourcing, Henry noted.
“We are a tiny drop in the bucket of Cerrado agriculture. But if we can show what is possible [and] we can bring others along on that journey — which is how we operate almost everywhere we are doing region ag — ... then we can have a lot more impact beyond even our own reach,” Henry elaborated.
Advancing the PepsiCo Positive agenda with regen ag
PepsiCo’s investment in regen ag in Brazil is all part of the CPG company’s larger sustainability strategy, called PepsiCo Positive (pep+), which list specific environmental actions by specific timelines. The CPG company plans to support regenerative and restorative agriculture practices on 10 million acres by 2030.
Over the years, the CPG giant invested in several regen ag initiatives, including a partnership with crop nutrition company Yara and investing $216 million in the US to support regen ag. Additionally, PepsiCo is celebrating the work of innovative farmers with a new annual Global Farmer Awards, which celebrated its inaugural edition last month, the company shared in a press release.
“For us at PepsiCo, it is all about transforming the business, making us ready for the future — understanding what challenges that we face and how we transform our business to be ready for those and to be able to provide the very best, most delicious food and drinks for people into the future. And that is exactly what we are doing with Milhão on the ground," Henry said.
She added, “We want [the soil] to have better soil structure. I want to see some more earthworms in here. I want more soil carbon — taking carbon out of the atmosphere and putting it in the soil — not only reducing our contributions to climate change but actually making that farmer better able to adapt to the changes that are coming their way.”
