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Supply Chain

PepsiCo Partners With ADM To Support Regenerative Agriculture Project

PepsiCo has announced a strategic partnership with Archer Daniels Midland (ADM) to collaborate on projects aimed at expanding regenerative agriculture across their shared North American supply chains.

The seven-and-a-half-year project is expected to reach up to two million acres of farmland by 2030.

The companies aim to create a unique, large-scale platform to support farmers’ transition to regenerative agriculture as well as build resilience to climate change.

The long-term agreement will initially include corn, soy and wheat farmers across Kansas, Minnesota, Iowa, Illinois, Indiana and Nebraska, with the opportunity for future expansion, PepsiCo noted.

The companies plan to share resources and collaborate to create value throughout the supply chain by providing participants with technical and financial assistance, offering access to peer regenerative farming networks, hosting educational field days, and tracking results using trusted, third-party measurement systems.

'Food System'

Jim Andrew, chief sustainability officer of PepsiCo, said, "Building a better food system is essential to the future health of the earth and all of us.[...] This partnership with ADM marks a sea change in how PepsiCo engages with strategic partners and is expected to help us reach almost one-third of that goal.

"By enabling greater collaboration through strategic partnerships like this one, we can strengthen the livelihoods and resilience of the farmers we work with while building a more sustainable future together."

The partnership between PepsiCo and ADM is expected to eliminate 1.4 million metric tonnes of greenhouse gasses, or the equivalent of the amount of electricity used to power 275,000 homes per year, at the farm level.

Upon reaching Reaching the strategic partnership’s goals could eliminate 1.4 million metric tons of greenhouse gasses – equivalent to the amount of electricity used to power 275,000 homes per year – at the farm level, while creating meaningful shared value directly for farmers.

ADM chief sustainability officer Alison Taylor described the partnership as a 'major step forward', adding that PepsiCo is a partner whose values align with its own.

“Sustainability is fundamental to ADM: Our growth strategy is underpinned by demand for more sustainable products, and our culture compels us to act,” she stated.

© 2022 European Supermarket Magazine – your source for the latest supply chain news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.

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