PepsiCo partners with fertiliser firm Yara on lower-carbon agriculture

PepsiCo has launched a farming decarbonisation programme in South America with fertiliser company Yara, seeking to cut farming emissions by as much as 60%.

The programme will begin on 20 potato farms in Mexico, Colombia, Chile and Argentina, covering around 700 hectares of production within PepsiCo’s potato supply chain. The farmers will be provided with Yara’s ammonia-based fertilisers, which are sold as lower-carbon solutions thanks to the use of clean energy or carbon capture and storage. 

It’s estimated that these fertilisers can support a 40-60% reduction in farming greenhouse gas emissions, compared to other fertilisers made from natural gas.

"This collaboration agreement with Yara represents a significant step forward in our pep+ (PepsiCo Positive) agenda. We believe that Positive Agriculture – our ambition to support regenerative farming practices, sustainable sourcing, and improved living conditions – will be key to meeting the growing demand for food as the world's population increases, while also addressing the need to protect and enhance our natural resources and promote human well-being," said Paula Santilli, CEO of PepsiCo Latin America.

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PepsiCo's sustainable farming efforts

PepsiCo is one of 14 founding members of the First Movers Coalition for Food, which aims to leverage large food companies’ collective procurement power to accelerate sustainable farming.

As part of its efforts to decarbonise its raw materials supply chain, the company has committed to scaling regenerative practices across its entire agricultural footprint. Through these efforts, PepsiCo hopes to eliminate 3 million tonnes of greenhouse gas emissions by 2030, improve the livelihoods of more than 250,000 people in its agricultural supply chain, and sustainably source 100% of its key ingredients.

Potential expansion to other commodities

After the initial roll-out of the low-carbon fertiliser alternative, PepsiCo and Yara expect to expand the initiative across other commodities, including corn, wheat, oats, coconuts and bananas, and in more South American countries.

"This trade agreement demonstrates the value of our solutions for decarbonising the global food industry. With PepsiCo as a partner and leader in this endeavor, and the use of our solutions focused on reducing the carbon footprint of food production, we are helping to protect the environment for both present and future generations," said Pedro Parenti, SVP of Yara Latin America.