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PepsiCo, Griffith Foods, and Milhão Launch Direct Farmer Incentive Pilot Program in Brazil's Cerrado Region to Advance Regenerative Agriculture

1. PepsiCo partners to launch regenerative agriculture pilot in Brazil's Cerrado region. 2. Program compensates farmers for sustainable practices; $1 million investment planned. 3. Pilot covers 7,000 acres, expanding to 30,000 acres, PepsiCo's full corn sourcing volume. 4. Aims for regenerative practices across 10 million acres by 2030. 5. Collaboration addresses financial risks for farmers transitioning to sustainable agriculture.

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Why Bullish?

The initiative strengthens PepsiCo's supply chain resilience and sustainability efforts, attracting positive investor interest similar to past agricultural innovations that elevated stock prices.

How important is it?

The pilot enhances PepsiCo's commitment to sustainability, potentially increasing market share and consumer loyalty, reflected in future revenue growth.

Why Long Term?

Investments in sustainability often yield long-term benefits through cost reductions and improved public perception, as evidenced by companies like Unilever showcasing substantial gains from sustainability-focused initiatives.

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A pioneering hybrid "Payment for Practice and Payment for Outcomes" model, directly compensating farmers for adopting regenerative agriculture practices Launched in Brazil's Cerrado region, one of the world's most biodiverse savannas and a vital agricultural frontier that produces 60% of Brazil's soybeans and a substantial amount of corn The pilot will cover 7,000 acres, with plans to scale to 30,000 acres, equivalent to PepsiCo's full corn sourcing volume in the region, with a total investment of $1 million over three years. This project aims to contribute to PepsiCo's efforts to spread the adoption of regenerative agriculture, protective and restorative practices across 10 million acres by 2030. , /PRNewswire/ -- PepsiCo (NASDAQ: PEP), in collaboration with Griffith Foods and Milhão, today announced the launch of a pioneering direct farmer incentive pilot program to advance regenerative agriculture, in Brazil's Cerrado region, one of the world's most biodiverse savannas and a vital agricultural frontier. PepsiCo, Griffith Foods, and Milhão teams in Brazil The Cerrado region produces substantial volumes of corn and over 60% of Brazil's soybeans, making it critical to global food security. However, the region faces mounting threats from deforestation, soil degradation, and climate stress. For PepsiCo, the Cerrado region represents one of its highest impact sourcing areas, making this initiative strategically important. The new pilot program introduces a hybrid Payment for Practice and Payment for Outcomes model, directly compensating farmers for adopting regenerative agriculture practices such as composting, biological inputs, and reducing chemical fertilizer use. Farmers receive upfront payments to offset the cost of sustainable inputs, and then also receive performance-based bonuses for reducing agrochemical applications throughout the season. Additional landscape members are already expressing interest, positioning this as a potential blueprint for industry-wide transformation in one of the world's most critical agricultural regions.  "This program tackles one of the biggest barriers to the adoption of regenerative agriculture: the financial risk farmers face when transitioning to new practices," said Thais Souza, Sustainability Lead at PepsiCo Brazil. "By providing direct economic incentives, we're helping facilitate outcomes such as improved soil health, reduced greenhouse gas emissions, and climate resilience."The pilot will cover 7,000 acres, with plans to scale to 30,000 acres, PepsiCo's full corn sourcing volume in the region, by year three. The initiative is co-funded by PepsiCo and Griffith Foods, with additional contributions from Milhão. Total investment is expected to reach $1 million by year three."At Griffith Foods, we see this collaboration as part of our journey to help nourish the world and transform the food system, an essential part of the climate equation that demands both courage and collaboration. Guided by our 2030 Aspirations, we're turning that vision into action by moving beyond 'do no harm' thinking to embrace a regenerative mindset that restores soils, strengthens communities, and proves that business can truly be a vehicle for greater good," Nicholas Costa, Regional Sustainability Director Griffith Foods Central and South America said. "This collaboration shows how science, innovation, and shared purpose can turn ambition into a positive impact and help nourish both people and the planet. By sharing costs and aligning on sustainability ambitions, PepsiCo, Griffith Foods, and Milhão are demonstrating how competitors can work together pre-competitively with the aim of helping drive systemic change.""This is more than a pilot, it's a blueprint for efforts to transform agriculture in one of the world's most critical regions," said JP Cavalcanti," Sr Director, Market Supply Officer PepsiCo Brazil Foods said. "We're proud to lead this effort and invite others to join us in scaling regenerative solutions that can benefit farmers, ecosystems, and food systems."Guided by PepsiCo's Climate Resilience Platform, an open-access tool designed to help agricultural stakeholders plan for and mitigate the impacts of climate change, the program targets high-impact, region-specific practices to help strengthen climate adaptation, secure long-term supply, and support resilient farming communities. Media Contact: [email protected] SOURCE PepsiCo, Inc.

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