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PepsiCo has initiated a long-term partnership with Soil Capital to promote regenerative agriculture practices among farmers in its European supply chain, specifically targeting rapeseed oil production in the UK, France and Belgium.

This initiative is part of PepsiCo’s broader commitment to sustainability and aims to cover over 35,000 acres of farmland, providing farmers with the necessary tools and support to transition to more sustainable practices.

The partnership seeks to tackle financial and structural barriers that farmers face when adopting regenerative practices. By providing access to digital tools, climate assessments and financial incentives, it aims to facilitate the transition from synthetic inputs to organic fertilisers and cover crops.

These changes are expected to improve soil health, enhance water efficiency and reduce carbon emissions, thereby ensuring a sustainable supply of key ingredients for PepsiCo brands like Lay’s and Walkers.

The programme will be tailored to address local challenges specific to each region, such as the heavy rainfall experienced in France in 2024 and soil compaction issues in the UK. By customising solutions to regional needs, the collaboration aims to create a more resilient agricultural ecosystem.

Initial results from the partnership indicate promising environmental benefits. Farmers participating in the program have reported significant improvements in their greenhouse gas (GHG) balance, with reductions of 38% in France and 36% in the UK.

Additionally, the adoption of cover crops has increased, rising from 49% to 65% in France and from 22% to 34% in the UK. These practices contribute to enhanced soil organic matter and improved water retention, while also decreasing the need for mineral phosphorus fertilisers by 50% among participating farmers in France.

Archana Jagannathan, chief sustainability officer at PepsiCo Europe, said: "Farmers are at the heart of a sustainable food system and regenerative agriculture is key to building resilience for our food supply and farming communities".

The initiative aligns with PepsiCo’s goal to drive the adoption of regenerative practices across 10 million acres globally by 2030, following the successful implementation of practices on 3.5 million acres by 2024.

Chuck de Liedekerke, CEO of Soil Capital, added: "This partnership is founded on putting farmers first and transforming the food system at scale".

To ensure transparency and measure the impact of the initiative, the programme will use a digital Monitoring, Reporting and Verification (MRV) system. This system employs satellite technology and advanced modeling to track GHG emissions and soil carbon storage, providing farmers and companies with data-driven insights to refine their approaches.

David Fuller-Shapcott, a UK farmer involved in the programme, shared his positive experience, stating: "With the right support, I’ve introduced cover crops and reduced tillage, cutting my farm’s emissions by 360 tonnes between 2022 and 2023 and becoming a net carbon storer."