PepsiCo and Walmart announced a seven-year collaboration to pursue $120 million worth of investments to support USA and Canadian farmers to improve soil health and water quality. By establishing and scaling financial, agronomic and social programs, it aims to enable and accelerate the adoption of regenerative agriculture practices on more than two million acres of farmland and deliver approximately four million metric tons of greenhouse gas (GHG) emission reductions and removals by 2030, roughly equivalent to the amount of electricity needed to power 778,300 homes for one year.
Commenting on the voluntary adoption of regenerative agriculture practices, Jeff Huffman, Owner and Operator of Island Farms LLC in Maxwell, said that embracing regenerative agriculture was essential from his perspective.
"It's good for farmers, not only because it's beneficial to the environment and our food quality, but also for the profitability of our businesses. If you use less fertiliser and you grow a bigger crop, or if you use less water and can still grow the same size, it strengthens your farm in a way that benefits the bottom line and our environment for generations to come," said Huffman.
PepsiCo's and Walmart's businesses depend on farmers to grow ingredients to make delicious products consumers enjoy daily. With a supply chain for the two companies that stretches across North America and involves a large volume of critical crops, including potatoes, oats, corn, wheat, soybean and rice, sustainability will look different from commodity to commodity, region to region, and even farm to farm.
The collaboration between PepsiCo and Walmart offers a voluntary, flexible approach to regenerative agriculture that gives farmers a seat at the table. It recognises the diversity of agriculture and that one size does not fit all.
"Successful sustainability starts and ends with trust. At PepsiCo, we work very hard to earn the farmer's trust. Hence, they understand that we are investing in their legacy, and they can hand their farm down to the next generation," said Jim Andrew, Chief Sustainability Officer, PepsiCo.
Andrew continued that farmers know their business better than anyone else, and Pepsico heard from them that three things need to happen for regenerative agriculture to make business sense.
"They need economic, social, cultural, and agronomic support. This strategic collaboration with Walmart will advance our shared goal to have farmers' backs as they transform farming to benefit the planet and people."
Jane Ewing, Senior Vice President for sustainability at Walmart, said that the retailer's sustainability strategy was built to make the everyday choice sustainable for our customers. This collaboration with PepsiCo is an excellent example of how it prioritised expanding regenerative agricultural practices among farmers across North America to continue making quality products affordable and accessible for customers.
This collaboration is aimed to help elevate farmer livelihoods, engage them on how to more sustainably manage soil health, increase yields and create a model that others can mimic across other product categories, including encouraging additional investments in regenerative agriculture by other brands.
PepsiCo and Walmart have a shared focus on supporting farming communities while improving soil and water health and lowering carbon emissions.
As the largest convenient food and beverage company in North America, a resilient food system is essential to PepsiCo's business and its ability to meet its ambitious pep+ (PepsiCo Positive) goals, which include driving the adoption of regenerative agriculture practices across seven million acres by 2030, an area approximately the size of PepsiCo's agricultural footprint and reducing absolute GHG emissions by more than 40 percent across its entire value chain by 2030 (against a 2015 baseline) while striving toward net-zero emissions by 2040.
"This effort is a new model for PepsiCo, marking our first, large-scale strategic collaboration focused on sustainable agriculture with a retail partner," said Steven Williams, Chief Executive Officer, PepsiCo Foods North America.
"Farmers are critical to our business, and many of the brands our consumers know and love rely on ingredients that we source straight from the farm. By joining forces with Walmart, we'll empower farmers through education, upfront investment in outcomes, peer coaching, cost-sharing, and hopefully inspiring others to join us."
