PepsiCo has launched a new regenerative agriculture pilot programme focused on potato production across four Latin American countries. In partnership with fertiliser manufacturer Yara, the initiative aims to help farmers lower their carbon footprint by transitioning to low-carbon fertilisers and adopting sustainable field practices.
The programme forms part of PepsiCo’s broader “pep+” (PepsiCo Positive) strategy, which includes a global commitment to spread regenerative practices across seven million acres by 2030—an area roughly equivalent to the company’s entire agricultural footprint. The goal is to avoid more than three million tons of greenhouse gas emissions during this period.
The pilot phase involves around 20 farmers managing 700 hectares of potato fields in Mexico, Colombia, Chile, and Argentina. These growers will receive training in the use of low-emission fertilisers made with carbon-captured ammonia or clean energy, as well as practical guidance to improve soil health and nutrient efficiency in existing field conditions.
Yara claims that depending on the formulation used, its fertilisers can help reduce an average farm’s emissions by 40% to 60%—a substantial margin in a sector responsible for nearly a quarter of global GHG emissions.
“This collaboration agreement with Yara marks a significant advancement in our pep+ agenda,” said Paula Santilli, CEO of PepsiCo Latin America. “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.”
Beyond Potatoes: A Multi-Crop Roadmap
While potatoes are the initial focus, PepsiCo intends to expand the programme to other crops in the region, including corn, wheat, oats, coconut, and bananas. The goal is to promote ecosystem-based farming practices that increase crop resilience, preserve soil quality, and improve overall yields.
The company reported that by the end of 2023, 1.8 million acres of land under PepsiCo’s supply chain were already farmed using regenerative methods.
This latest step builds on a broader industry movement. In 2023, major food companies including PepsiCo, McCain Foods, McDonald’s, and Mars came together to develop a framework to make regenerative agriculture scalable and financially viable. Despite this momentum, challenges persist—including the lack of a universal definition of regenerative agriculture and a standardised set of outcomes.
With agriculture both a major emitter and highly vulnerable to climate disruptions, initiatives like PepsiCo’s Latin American programme represent a critical step in aligning sustainability with long-term agricultural productivity, particularly for key crops like potatoes. As the industry navigates climate pressure, regulatory scrutiny, and consumer demand for sustainable sourcing, scalable solutions in fertiliser innovation and soil health are becoming increasingly central to corporate strategy.
