PepsiCo and Walmart recently announced a seven-year collaboration with $120 million focused on supporting U.S. and Canadian farmers in their pursuit 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 reduce greenhouse gas (GHG) emissions by about a million metric tons by 2030.
PepsiCo's and Walmart's businesses are dependent on farmers to grow ingredients that are used to make the delicious products that consumers enjoy every day. 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, recognizes the diversity of agriculture and that one size does not fit all.
"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 of 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 be empowering farmers through education, upfront investment in outcomes, peer coaching, and cost-sharing – and hopefully inspiring others to join us."
Source: PR Newswire July 26, 2023 news release