Sustainable Farming: PepsiCo Plan for Low-Carbon Fertiliser

PepsiCo and Fertiberia have entered into a partnership that could reshape ingredient sourcing for snack products across European markets.

The arrangement centres on replacing traditional fertilisers with green hydrogen alternatives across farmland supplying potatoes and corn to production lines for Lay's, Doritos and Cheetos.

According to the companies, the programme will eventually encompass 400,000 acres and involve more than 1,500 farmers.

Sourcing low-carbon fertiliser at volume

Fertiberia will deliver up to 136,000 tonnes of Impact Zero fertiliser to PepsiCo's supply chain annually by 2030.

The product substitutes green hydrogen for natural gas during manufacturing. According to Fertiberia, this modification cuts GHG emissions by up to 63% compared to conventional fertiliser production.

Impact Zero incorporates slow-release formulas and biological inhibitors designed to improve nutrient retention in soil. The fertiliser will be applied to crops including potatoes, corn, sunflowers, sugar beet and rapeseed.

These ingredients flow directly into PepsiCo's snack production lines serving multiple European markets. The arrangement connects farm-level sourcing decisions to finished consumer products distributed across the region.

Supply chain emissions reduction

When combined with existing supplier agreements, the Fertiberia collaboration could bring low-carbon fertiliser to around 50% of PepsiCo's European supply chain by 2030.

According to global estimates, fertilisers contribute approximately 2% of total GHG emissions worldwide. For PepsiCo, fertiliser production and use currently accounts for around half of the company's average potato carbon footprint in Europe.

The arrangement builds on a trial conducted in Spain and Portugal. According to the companies, that pilot programme cut emissions by up to 20% in corn farming and up to 15% in potato cultivation.

The programme launches initially in France, Romania, Serbia, Greece and Turkey. It will also expand in Spain and Portugal, where the pilot took place.

"We're working to lead the way on regenerative agriculture and helping to build a more resilient agricultural supply chain," says Archana Jagannathan, Chief Sustainability Officer, PepsiCo Europe, the Middle East and Africa.

"Switching to low-carbon fertiliser is one of the strongest levers we have to reduce agricultural emissions and use of digital technology can complement this journey towards food system transformation."

Technical support for farmer adoption

Both companies will provide technical guidance and digital tools to participating farmers.

These include precision agriculture technologies that use data to optimise fertiliser application rates and timing. The tools will also track implementation of regenerative agriculture practices across the participating acreage.

"Since 2022, we have been developing lower-carbon hydrogen-based fertilisers, powered by cutting-edge technology such as NSAFE, the world's first bio-inhibitor of nitrification that prevents nitrogen losses and accelerates the transformation of European agriculture," says David Herrero, Chief Operating Officer at Fertiberia.

"Today, this journey takes on greater meaning thanks to the trust of partners like PepsiCo, with whom we are collaborating to help decarbonise agri-food value chains."

Testing integration into food production

Herdade da Malhadinha is a farming operation in Portugal.

"We joined the programme during its pilot in 2024 and in our second year we've fertilised 30 acres of potatoes using Impact Zero both for base and top dressing," says Herdade da Malhadinha.

"It has been a smooth process, as the fertilisation method is technically identical to our usual practice and so doesn't alter our daily operations."

This means the switch does not require farmers to adopt new equipment or techniques. The scaling of the programme into additional European markets will depend on continued adoption by farmers applying the low-carbon solutions in real field conditions.

According to PepsiCo, the collaboration supports its ambition to implement regenerative, restorative or protective practices across 10 million acres globally by 2030. The initiative also contributes to PepsiCo's goal to reduce Scope 3 forest, land and agriculture GHG emissions by 30% by 2030, measured against a 2022 baseline.

The collaboration represents a commercial-scale test of whether green hydrogen-based fertilisers can be integrated into existing food supply chains without compromising crop yields or farm economics. Results from the expanded programme could inform similar initiatives across other agricultural sectors in Europe and potentially influence fertiliser sourcing decisions in other global food manufacturing operations.