PepsiCo and Yara’s Regenerative Agriculture Collaboration

As one of the world’s leading food and beverage companies sourcing more than 35 crops from more than 60 countries, agriculture accounted for 37% of PepsiCo’s total emissions in 2023.

PepsiCo is ramping up its efforts to decarbonise its agricultural supply chain with the expansion of its regenerative farming initiative – partnering with fertiliser company Yara International. 

The global beverage company has made clear that reducing emissions is not just about climate responsibility, it’s about long-term food system resilience and business sustainability.

Regenerative agriculture at PepsiCo

The transition to regenerative agriculture central to PepsiCo’s PepsiCo Positive (pep+) sustainability strategy,. 

This strategy combines sustainable sourcing, improved farmer livelihoods and climate-resilient practices. 

“This collaboration agreement with Yara marks a significant advancement in our pep+ (PepsiCo Positive) agenda,” comments Paula Santilli, PepsiCo Latin America’s Chief Executive.

“We believe that Positive Agriculture — our ambition to support regenerative farming practices, sustainable sourcing and improved livelihoods — will be pivotal in meeting the increasing demand for food as the global population grows, while also addressing the need to protect and enhance our natural resources and promote human well-being.”

Globally, PepsiCo aims to implement regenerative practices across seven million acres by 2030 – a footprint roughly equivalent to its total agricultural sourcing. 

To date, 1.8 million acres have been transitioned to regenerative methods.

Latin America’s low-carbon farming

The newest stage in PepsiCo’s partnership with Yara focuses on Latin America. 

In its initial phase, more than 20 farmers across Mexico, Colombia, Chile and Argentina will receive access to Yara’s low-carbon fertilisers, covering approximately 700 hectares of potato fields.

These low-carbon fertilisers are made using either ammonia derived from carbon capture or produced entirely with clean energy. 

Yara claims the fertilisers could reduce an average farmer’s carbon footprint by 40% to 60%, depending on the variant.

Beyond product substitution, the initiative will also provide training to farmers on optimising fertiliser use and preserving soil quality — ensuring the environmental benefits are maximised alongside agricultural productivity. 

Plans are already in place to extend the programme across Latin America, targeting crops such as corn, wheat, oats, coconut and bananas.

PepsiCo’s European expansion

PepsiCo and Yara are also working to scale regenerative agriculture in Europe and the UK.

Their long-term partnership aims to transition around 1,000 farms across 128,000 hectares, starting with potato farms — a key ingredient in PepsiCo’s Lay’s crisps — and expanding to other core crops.

Yara will supply up to 165,000 tonnes of low-carbon fertiliser annually, representing a quarter of PepsiCo’s fertiliser use in the region by 2030. 

These inputs will be sourced from Yara’s new low-emissions plants in Norway and the Netherlands.

To support this shift, the companies are equipping farmers with advanced agronomic support and digital tools like PepsiCo’s CropTrak and ML Analytics and Yara’s AtFarm and MegaLab soil diagnostics. 

These platforms will enable precise nutrient management, increased yields and a significant reduction in on-farm emissions.

A global challenge

With agriculture contributing to around 23% of global greenhouse gas emissions initiatives like this play a critical role in future-proofing food systems. 

Extreme weather events like droughts and floods already threaten harvests globally. 

Simultaneously, the UN projects a population surge to 9.7 billion by 2050 – requiring a 60% increase in food production.

By facilitating access to low-carbon inputs and providing direct support for farmers, PepsiCo is helping overcome the financial and technical barriers that have long held back regenerative agriculture. 

“Low-carbon product research and development requires significant investment and partnership,” explains Jim Andrew, Chief Sustainability Officer at PepsiCo.

“By playing the role of a first mover, PepsiCo helps send demand signals to the market to drive the continual innovation and investment we need to support farmers well into the future.”

This collaboration adds to wider momentum in the food and drink sector. 

In 2023, companies including Mars, McCain Foods, McDonald’s and Waitrose joined PepsiCo in launching a new framework to make regenerative farming scalable and economically viable.

With integrated climate strategies, cross-value chain collaboration and concrete support for farmers, the PepsiCo-Yara partnership stands out as a model for others to follow. 

Explore the latest edition of Sustainability Magazine and be part of the conversation at our global conference series, Sustainability LIVE. 

Discover all our upcoming events and secure your tickets today.

Sustainability Magazine is a BizClik brand