September 16, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

In what the companies are calling an “unprecedented and unique opportunity to expand regen ag at scale”, PepsiCo and Archer Daniels Midland (ADM) announced a groundbreaking 7.5-year strategic commercial partnership to collaborate on projects working to significantly expand regenerative agriculture across their shared North American supply chains. 

This undertaking involves two of the world’s largest companies with footprints extending from the farm gate to retail, and capabilities spanning entire food and agriculture value chains. It is expected to create a large-scale platform to support farmers’ transition to regenerative production while building resilience to climate change on up to 2 million acres by 2030.

“Building a better food system is essential to the future health of the earth and all of us,” said Jim Andrew, chief sustainability officer, 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,” continued Andrew. “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.”

Initially this strategy will enroll corn, soy, and wheat farmers across Kansas, Minnesota, Iowa, Illinois, Indiana, and Nebraska. As time progresses, there will be the opportunity for future expansion that will increase visibility across the value chain and integrate a range of multi-year farmer-first regenerative agricultural initiatives including cover crops, reduced tillage, nutrient management, rotations, and responsible pesticide usage.

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

ADM Chief Sustainability Officer Alison Taylor said, “Sustainability is fundamental to ADM: Our growth strategy is underpinned by demand for more sustainable products, and our culture compels us to act.”

“Last year, we expanded on our Strive 35 sustainability goals with a commitment to reduce our Scope 3 emissions by 25 percent 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.”

The Strive 35 sustainability goals mentioned by Taylor include reducing absolute greenhouse gas emissions by 25 percent, energy intensity by 15 percent, water intensity by 10 percent, and achieving a 90 percent landfill diversion rate compared to a 2019 baseline, by 2035. 

In 2021 ADM also committed to a new, aggressive environmental goal to reduce Scope 3 greenhouse gas emissions by 25 percent by 2035 while also accelerating its target date to achieve a completely deforestation-free supply chain from 2030-2035.

Likewise, pep+ is PepsiCo’s strategic end-to-end business transformation plan with a focus on sustainability and human capital at its core. Under this plan, the company is working to spread regenerative agricultural practices across 7 million acres (equal to its entire agricultural footprint) of farmland by 2030, while striving to achieve net-zero emissions by 2040.

“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,” commented Taylor. “We’re excited to take the next big step in reducing carbon and making our entire food system more sustainable.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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