Kellanova & Walmart: Growing a Sustainable Rice Supply Chain

Kellanova and Walmart have initiated a partnership to address supply chain emissions and water consumption originating from rice production through a strategic investment in regenerative agriculture.

Rice cultivation is a resource-intensive process, with research from Harvard University indicating it uses 34 to 43% of the world's irrigation water. The crop is a staple for more than four billion people according to Oxford University, making its production methods a critical area for sustainability improvements.

Kellanova and Walmart's collaboration, which includes Indigo Ag, focuses on supporting farmers in Arkansas, US.

Farmers who join the programme will get a financial premium for each pound of rice they produce using specified regenerative methods. These funds are intended to help farmers adopt new practices such as improved water management techniques, optimised fertiliser application and effective crop rotation, thereby enhancing the sustainability of the food supply chain.

Strengthening the value chain

The partnership aims to build resilience within the agricultural value chain. Kellanova, the company behind brands like Pringles and Rice Krispies, views the initiative as essential for its long-term business sustainability.

“Kellanova is committed to building a more sustainable future for our business and the communities where we operate,” says Janelle Meyers, Chief Sustainability Officer at Kellanova.

She explains that farmers are fundamental to producing Kellanova's food products: “Our Kellanova Better Days Promise aims to advance sustainable practices and mitigate the impacts of climate change—but we know we can’t achieve our goals without our partners.

"By joining forces with Indigo Ag and Walmart, we’re creating agricultural resiliency that increases farmer revenues, advances climate-smart practices and promotes long-term, systemic impact across the value chain."

​​​​​​​Regenerative agriculture is a method of farming that centres on restoring and enhancing the health of ecosystems, particularly soil. The goal is to increase biodiversity, improve water cycles and bolster the land's resilience to climate change.

Common practices include:

• no-till or reduced-till farming to prevent soil erosion
• planting diverse crops in rotation instead of relying on monocultures
• using cover crops to keep soil covered, which prevents erosion and aids moisture retention

For companies like Kellanova and Walmart, this approach could help lower emissions within their supply chains and offer direct benefits to their farming partners.

Reducing the use of synthetic fertilisers and pesticides can decrease operational costs for farmers, while improved resilience against extreme weather events could reduce crop loss.

Measuring regenerative agriculture's impact

The collaboration between Kellanova, Walmart and Indigo Ag provides farmers with the financial means to manage the transition to regenerative practices, which can involve initial investment costs and reduced yields. Participants in the Source by Indigo programme also gain access to resources, data and technical support.

This co-investment expands upon a four-year partnership between Walmart and Indigo Ag, which has supported rice farmers supplying Walmart’s Great Value brand.

The programme has so far helped reduce emissions for the brand by more than 37,000 tonnes of CO₂ and conserved in excess of 11 billion gallons (approximately 41.6 billion litres) of water. It has also provided farmers with more than US$900,000 in additional revenue.

Mikel Hancock, Senior Director, Strategic Initiatives, Sustainability at Walmart, adds: “We are excited to see our regenerative agriculture goals becoming reality.

"Expanding our partnership with Indigo Ag to include Kellanova reflects the scale of impact we can achieve by working together to strengthen supply chains, support farmers and advance environmental stewardship.”

Evolving rice production in the US supply chain

In 2023, Arkansas planted more than 1.4 million acres (approximately 566,560 hectares) of rice, according to the USA Rice Federation, highlighting the region's importance to the US rice supply.

Conventional rice production often involves keeping fields continuously flooded for months to manage weeds. This environment allows microbes to generate methane, a significant greenhouse gas.

Regenerative methods offer an alternative. Techniques like the System of Rice Intensification (SRI) and Alternate Wetting and Drying (AWD) can reduce the negative environmental impact of rice farming. SRI involves using young seedlings and reduced plant density, while AWD irrigation keeps fields wet but not constantly flooded.

“We are proud to work with partners like Kellanova and Walmart to create measurable impact for farmers in Arkansas,” explains Dean Banks, CEO of Indigo Ag.

“Together, we are building prosperity from the ground up: safeguarding water resources, improving soil health, reducing emissions and supporting farmers.”