ADM and PepsiCo recently announced a 7.5-year strategic agreement with the goal to expand regenerative agriculture throughout shared North American supply chains.
The long-term agreement is projected to reach nearly 2 million acres by 2030, representing the initiative of the two global companies to achieve carbon reduction goals. ADM and PepsiCo’s abilities “span the food and agriculture value chains, creating a unique, large-scale platform to support farmers’ transition to regenerative agriculture, while building their resilience to climate change,” according to a release.
The partnership will recruit corn, soy and wheat farmers throughout Kansas, Minnesota, Iowa, Illinois, Indiana and Nebraska to expand visibility among the value chain and unite a span of regenerative agriculture initiatives that are multi-year farmer-first. These initiatives include “cover crops, reduced tillage, nutrient management, diverse rotations, and responsible pesticide use,” explained the release.
The companies will combine resources to create value across the supply chain by offering participants technical and financial assistance, providing access to networks for peer regenerative farming, holding educational field days and recording results with a reputable third-party measurement system.
“Building a better food system is essential to the future health of the earth and all of us,” said Jim Andrew, chief sustainability officer at PepsiCo. “At its core, PepsiCo is an agricultural company, working to spread regenerative agriculture practices that restore the earth and reduce carbon emissions to 7 million acres by 2030. 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.”
Through this partnership, the companies could eliminate up to 1.4 million metric tons of greenhouse gasses, while focusing on the values of farmers.
“Sustainability is fundamental to ADM: Our growth strategy is underpinned by demand for more sustainable products, and our culture compels us to act,” said Alison Taylor, ADM’s chief sustainability officer. “Last year, we expanded on our Strive 35 sustainability goals with a commitment to reduce our Scope 3 emissions by 25% by 2035, and expanding regenerative agriculture practices – as we have with our recent strategic partnerships with the National Fish and Wildlife Foundation and Farmers Business Network – will be key to reaching that goal. Today’s announcement is a major step forward, as we work with a partner whose values align with our own to scale up regenerative agriculture in a way few other companies can. We’re excited to take the next big step in reducing carbon and making our entire food system more sustainable.”
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