How PepsiCo Seeds Climate-Smart Farming in Brazil’s Cerrado

PepsiCo is beginning a regenerative agriculture pilot in Brazil's Cerrado, teaming up with Griffith Foods and local grain supplier Milhão.

The initiative introduces a hybrid model that pays farmers for both sustainable practices and measurable outcomes, directly targeting corn production across one of the most ecologically diverse and agriculturally vital regions in Brazil.

Backed by a US$1m investment, the pilot will launch across 7,000 acres and is designed to scale up to 30,000 acres over three years. This footprint aligns with PepsiCo’s total corn sourcing volume from the Cerrado and supports its global aim to implement regenerative farming across 10 million acres by 2030.

The Cerrado, which accounts for more than 60% of Brazil’s soybean output and is also a major corn-growing area, faces intense deforestation, soil degradation and increasing climate pressures.

The supply chain in this region is already under strain and the transition to regenerative agriculture is seen as a way to future-proof operations and maintain crop supply while reducing environmental impact.

Under the pilot, PepsiCo provides upfront support for composting, biological inputs and reduced use of synthetic fertilisers. Additional performance-based payments are tied to lower agrochemical use throughout the season. The model is designed to remove one of the key barriers to adoption, financial risk and offer farmers an economic reason to shift practices.

"This programme tackles one of the biggest barriers to the adoption of regenerative agriculture: the financial risk farmers face when transitioning to new practices," says Thais Souza, Sustainability Lead at PepsiCo Brazil.

"By providing direct economic incentives, we're helping facilitate outcomes such as improved soil health, reduced GHG emissions and climate resilience."

Building climate resilience in supply chains

PepsiCo identifies the Cerrado as a high-impact sourcing region, meaning risks to land and climate in this area directly affect supply chain continuity and farm-level productivity. The pilot is therefore not only an environmental investment but a strategic move to secure supply and support farmers through uncertain growing conditions.

The work is guided by PepsiCo’s Climate Resilience Platform, a publicly-accessible tool developed to help farmers and agribusinesses adapt to changing environmental conditions. The platform allows suppliers and growers to make more informed decisions about input usage, crop planning and sustainable practices.

Nicholas Costa, Regional Sustainability Director at Griffith Foods Central and South America, explains: "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.

"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."

A practical blueprint for regenerative farming

Regenerative agriculture prioritises soil health, biodiversity and reduced reliance on synthetic inputs. It is promoted globally as a farming approach that increases yields, enhances food quality and improves land resilience to climate extremes.

In supply chain terms, it also offers food producers a way to stabilise production and reduce long-term risks associated with land degradation and volatile input costs.

According to the UK Government, regenerative agriculture is farmer-led and focuses on improving water quality, supporting biodiversity and reducing dependence on agrochemicals. Techniques include minimising soil disturbance, using organic composts and integrating crop diversity, all of which contribute to healthier soil and more sustainable yields.

JP Cavalcanti, Senior Director, Market Supply Officer at PepsiCo Brazil Foods, adds: "This is more than a pilot, it's a blueprint for efforts to transform agriculture in one of the world's most critical regions.

"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."

The initiative also encourages broader collaboration between agrifood stakeholders. Early interest from other regional actors hints at the potential for wider adoption. With the pilot offering a clear pathway to both economic and environmental improvements, the model could shape how other companies engage with regenerative practices across their supply chains.

By offering cost-sharing and aligning sustainability goals, the collaboration between PepsiCo, Griffith Foods and Milhão helps reduce the transition risk for farmers while promoting practices that support long-term crop supply and rural resilience. This approach reflects a growing recognition that resilient supply chains depend on healthy landscapes and economically viable farms.