Regenerative Agriculture: PepsiCo & Griffith Foods Team Up

PepsiCo has launched a direct farmer incentive pilot in Brazil’s Cerrado, partnering with Griffith Foods and Milhão to accelerate the adoption of regenerative agriculture. 

The initiative applies a hybrid “Payment for Practice and Payment for Outcomes” model to reward sustainable farming in one of the world’s most biodiverse savannas and a critical agricultural hub.

Accelerating regenerative agriculture

The pilot begins across 7,000 acres with a plan to scale to 30,000 acres more than three years, equivalent to PepsiCo’s full corn sourcing volume in the region. 

Backed by a total investment of US$1m, the scheme provides upfront support to offset the cost of composting, biological inputs and reduced chemical fertiliser use.

The scheme also aims to add performance-based bonuses tied to lower agrochemical applications during the season. 

Early interest from other landscape actors suggests the approach could inform wider industry adoption in the Cerrado, which produces substantial volumes of corn and more than 60% of Brazil’s soybeans yet faces deforestation, soil degradation and climate stress.

"This programme tackles one of the biggest barriers to the adoption of regenerative agriculture: the financial risk farmers face when transitioning to new practices," says Thais Souza, Sustainability Lead at PepsiCo Brazil. 

"By providing direct economic incentives, we're helping facilitate outcomes such as improved soil health, reduced GHG emissions and climate resilience."

PepsiCo’s spreading sustainability 

For PepsiCo, the Cerrado is a high-impact sourcing area, making the pilot strategically important to supply security and farm resilience. 

The work is aligned to PepsiCo’s goal to spread protective and restorative practices across 10 million acres by 2030 and is guided by the company’s Climate Resilience Platform, an open-access tool designed to help agricultural stakeholders plan for and mitigate climate risks.

"At Griffith Foods, we see this collaboration as part of our journey to help nourish the world and transform the food system, an essential part of the climate equation that demands both courage and collaboration,” says Nicholas Costa, Regional Sustainability Director Griffith Foods Central and South America.

“Guided by our 2030 Aspirations, we're turning that vision into action by moving beyond 'do no harm' thinking to embrace a regenerative mindset that restores soils, strengthens communities and proves that business can truly be a vehicle for greater good.

"This collaboration shows how science, innovation and shared purpose can turn ambition into a positive impact and help nourish both people and the planet. 

“By sharing costs and aligning on sustainability ambitions, PepsiCo, Griffith Foods and Milhão are demonstrating how competitors can work together pre-competitively with the aim of helping drive systemic change."

What does this mean for the future?

Regenerative agriculture is a farmer-led movement that aims to improve water quality, mitigate and adapt to climate change, produce profitable food/drink and improve biodiversity and soil health, according to the UK Government.

Overall, regenerative agriculture aims to reduce soil disturbance, reliance on chemicals to focus on soil health which ultimately helps lead to healthier and cleaner food, animals and land.

"This is more than a pilot, it's a blueprint for efforts to transform agriculture in one of the world's most critical regions," says JP Cavalcanti, Sr Director, Market Supply Officer PepsiCo Brazil Foods. 

"We're proud to lead this effort and invite others to join us in scaling regenerative solutions that can benefit farmers, ecosystems and food systems."

Announced on 3 November 2025, the collaboration positions PepsiCo, Griffith Foods and Milhão to demonstrate how cost sharing and aligned sustainability targets can reduce the financial risk for farmers transitioning to regenerative methods, while delivering improved soil health, lower GHG emissions and stronger rural communities.

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