Pepsico and Walmart announced a new, seven-year collaboration to support U.S. and Canadian farmers with $120 million in investments in financial, agronomic, and social programs.
The collaboration will focus on improving soil health and water quality, aiming to accelerate the adoption of regenerative agriculture practices on more than 2 million acres of farmland. The actions would result in reducing roughly 4 million metric tons of greenhouse gas emissions and removals by 2030, the companies said.
Pepsico and Walmart are two of the biggest companies in the U.S., and both businesses rely on farmers to grow ingredients used in their products. Pepsico reported net revenue exceeding $86 billion in 2022, while Walmart has a 2023 fiscal revenue of $611 billion and employs 2.1 million associates around the world.
Regenerative agriculture is a method of farming that intends to increase yields and improve land health. By protecting biodiversity and nurturing soil health, the practice is growing in recognition of its positive environmental impacts. Another major consumer packaged goods company, General Mills, announced its new initiatives to promote regenerative agriculture across California and the Northern Great Plains in April.
The regenerative agriculture focus will impact the supply chain for the two companies across North America, which spans a large volume of crops, from potatoes, oats, corn, wheat, soybean, and rice. With such variety, the two companies noted that the collaboration will have a flexible approach, allowing farmers to “have a seat at the table” and recognize the diversity of agriculture.
“From my perspective, embracing regenerative agriculture is essential,” Jeff Huffman, owner and operator of Island Farms in Maxwell, Nebraska, said in a statement. “It’s good for farmers, not only because it’s beneficial to the environment and our food quality, but also for the profitability of our businesses. If you use less fertilizer and you grow a bigger crop, or if you use less water and can still grow the same size of crop, it strengthens your farm in a way that benefits the bottom line and our environment for generations to come.”
Pepsico aims to drive the adoption of regenerative agriculture practices across 7 million acres by 2030 as part of its pep+, or Pepsico Positive, goals. The size of the acreage is Pepsico’s agricultural footprint. In addition, the company aims to reduce absolute GHG emissions by more than 40% across its entire value chain by 2030, compared to a 2015 baseline, while striving toward net-zero emissions by 2040.
Walmart’s goals include protecting, restoring, or more sustainably managing 50 million acres of land and 1 million square miles of ocean by 2030 along with the Walmart Foundation.
“At Walmart, our sustainability strategy is built to make the everyday choice the sustainable choice for our customers,” Jane Ewing, senior vice president for sustainability at Walmart, said in a statement. “This collaboration with PepsiCo is a great example of how we are prioritizing the expansion of regenerative agricultural practices among farmers across North America so that we can continue to make quality products affordable and accessible for customers. This collaboration aims to help elevate farmer livelihoods, engage them on how to more sustainably manage soil health, increase yields, and create a model that others can mimic across other product categories, including encouraging additional investments in regenerative agriculture by other brands.”