Farming for the future
Pepsico’s partnership with Practical Farmers of Iowa (PFI) is a standout move to push regenerative farming practices in the Midwest, taking an impressive step towards sustainability. Pepsico creates an eco-friendly practice that fosters biodiversity and maintains soil health, supporting farmers in planting cover crops.
- PepsiCo’s star project: The Cover Crop Cost Share Program, kicked off with PFI’s aim to financially support Midwest farmers as they adopt cover cropping.
- Aim: Enhance soil health, prevent nutrient runoff, and diminish erosion, which are key for environmentally sound agriculture.
- Participants: In its most recent funding round, PepsiCo’s efforts are set to impact nearly 3,800 farmers. The program lowers the cost barriers for smaller farms and offsets planting expenses, making it easier for them to join the regenerative movement.
Beyond the crop
Working with suppliers who understand the agricultural cycle is crucial, this is the lesson for food industry buyers Pepsico’s efforts underscore. Knowing when crops are at their peak can lead to smart, proactive purchasing that secures better prices. This is why Pepsico presents a strategy that involves timing purchase orders (POs) to align with harvests, in other words, proactive crop sourcing. Buyers can improve costs and optimize inventory planning (especially for high-demand ingredients) by working with suppliers who anticipate crop cycles. Looks like everyone is going greener—sustainability is the name of the game!
Beyond soil health, this type of agriculture supports biodiversity and combats climate change contributing to a sustainable food system. This farming initiative provides a model for other companies aiming to diminish their environmental impact, generating positive outcomes in the industry.
From the ground up
- Reducing Emissions: PepsiCo is setting a standard for reducing emissions in agriculture by promoting soil carbon sequestration and cover cropping.
- Long-term Cost Savings: Regenerative strategies lead to healthier soil, which can reduce the need for expensive fertilizers and pesticides and increase yields.
- Stronger Supply Chains: These types of programs create a more resilient food system, support local farmers, and benefit buyers across the industry.
Farm smart push
In today’s dynamic market ingredient availability can fluctuate based on crop health, weather patterns, ingredient availability, and international trade factors. Pepsico’s partnership with PFI serves as a reminder of the value of working with suppliers who monitor crop cycles.
Proactive crop sourcing:
- Secures Supply: Planning around harvest cycles allows buyers to secure supply before demand spikes.
- Optimizes Prices: Working with forward-thinking suppliers can lead to cost savings, as POs timed to the crop cycle reduce reliance on price fluctuations.
- Strengthens Relationships: Collaborative relationships with suppliers encourage transparency and trust, helping buyers ensure quality and continuity of supply.
Regenerative revolution
Curious about how regenerative practices and proactive crop sourcing can transform your business? Contact us to explore our sustainable ingredient sourcing options and ensure your supply chain is ready for the future!
