PepsiCo Unveils Regenerative Potato Farming Initiative

To drive sustainability, PepsiCo has joined forces with fertiliser leader Yara in an ambitious initiative to transform farming practices across Latin America. The collaboration focuses on supporting farmers transitioning from conventional, natural gas-based fertilisers to Yara’s low-carbon alternatives, made from either ammonia captured through carbon technology or powered by 100% clean energy.

According to Yara, these advanced fertilisers could slash the average farmer’s carbon footprint by up to 60%, depending on the product variant. In addition to the switch, farmers will receive tailored training sessions designed to optimise fertiliser use and field efficiency, emphasising the maintenance of healthy soil and its preservation of quality. The programme begins with a pilot phase, engaging 20 farmers across 700 hectares of potato fields in Mexico, Colombia, Chile, and Argentina.

PepsiCo Latin America’s chief executive, Paula Santilli, said: “This collaboration agreement with Yara marks a significant advancement in our pep+ (PepsiCo Positive) agenda.

“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, while also addressing the need to protect and enhance our natural resources and promote human well-being.”

But this is just the beginning. PepsiCo plans to scale the initiative across Latin America, diversifying its operations into crops such as corn, oats, wheat, coconuts, and bananas. As part of its broader Positive Agriculture strategy, the company has pledged to introduce regenerative farming techniques across seven million acres by 2030 — an area roughly equal to its entire agricultural footprint. This push is projected to help reduce at least three million tons of greenhouse gas (GHG) emissions over the same period. As of 2023, PepsiCo has already achieved a regenerative farming footprint of 1.8 million acres worldwide.

The urgency behind these efforts is apparent: agriculture is responsible for approximately 23% of global greenhouse gas (GHG) emissions. It remains one of the sectors most susceptible to the devastating effects of climate change. With growing temperatures, extreme weather, and droughts wreaking havoc on food production, the future of farming looks increasingly uncertain.

Compounding these challenges, the global population is expected to surge by nearly two billion people by 2050, rising from eight to 9.7 billion, according to UN estimates. The FAO warns that to meet the soaring demand for food, global production must increase by up to 60% within the next 25 years.

Enter regenerative agriculture — a farming approach designed to improve farm resilience while enhancing crop yields and quality. By focusing on the health of the soil, this method promises long-term sustainability.

In 2023, PepsiCo, along with other food and beverage giants like Mars, McCain Foods, McDonald’s, and Waitrose, introduced a new framework to make regenerative farming financially viable and scalable. Yet, the absence of a clear, universally accepted definition for "regenerative agriculture" and the ongoing debate over the specific goals companies should pursue continue to present formidable challenges for the industry.