Syngenta and PepsiCo Push Sustainable Sourcing in Argentina

As pressure grows for companies to reduce Scope 3 emissions and build more resilient supply chains, sourcing strategies are beginning to align more closely with environmental goals.

Regenerative agriculture is becoming central to procurement decisions, offering both supply chain traceability and long-term sustainability.

In Argentina, Syngenta’s Sustainable Sourcing Program is advancing this transition. Designed to promote regenerative farming, it strengthens traceability across the supply chain while giving farmers economic incentives to adopt more sustainable practices.

With PepsiCo now on board as a key strategic partner, the initiative is gaining ground across key agricultural provinces, including La Pampa, Buenos Aires, Santa Fe and San Luis.

The partnership sees Syngenta supplying sunflower oil to PepsiCo, with 4,000 tonnes already delivered in the programme’s first year. The oil is produced using verified regenerative practices – a move that meets consumer demand for transparency and environmentally-sound sourcing methods.

Santiago Desmery, Oils Category Leader at PepsiCo Southern Cone and Brazil, says: “Companies have a great responsibility to care for and improve the way we produce food.

"At PepsiCo, everything we do is driven by sustainability at its core, within the framework of pep+, our global transformation strategy that aims to create and inspire positive change on the planet and in people.”

Supply chain traceability through regenerative farming

The Sustainable Sourcing Program is rooted in Syngenta’s wider sustainability strategy, providing growers with a combination of technical support and financial incentives to shift to regenerative agriculture.

Participating farmers receive between 1% and 2% above the local market price for their sunflower grain. This premium is awarded for implementing sustainable agricultural practices that are independently verified to ensure credibility.

The initiative promotes soil health, biodiversity and water conservation by supporting actions such as cover cropping, crop rotation, biological inputs, efficient irrigation and pollinator habitat development. These verified practices not only contribute to ecosystem regeneration but also improve visibility and traceability throughout the agricultural supply chain.

Mariale Álvarez, Head Sustainability & Corporate Affairs LATAM at Syngenta, explains: “At Syngenta, sustainability is embedded in the business. Regenerating soil and nature through practices that aim to leave the system better than we found it, is a commitment we assume every day.

“This time, together with a strategic partner like PepsiCo, with whom we share this same vision, we are taking this commitment one step further: farmers who join our Sustainable Sourcing Program receive an economic benefit by demonstrating the adoption of regenerative farming practices in their production process, which has a positive impact not only on the environment but also on their profitability.”

By the second phase of the programme, Syngenta expects to expand regenerative practices to cover at least 25% more hectares. Traceability and transparency are reinforced by third-party monitoring, ensuring each link in the commercial chain is secure and auditable.

Enhancing sourcing and sustainability goals

Alongside its regenerative focus, the programme integrates digital platforms to improve procurement efficiency.

Syngenta’s Cropwise platform is central to this, helping farms implement, track and validate their sustainable agriculture practices. The tool enables suppliers to measure progress and adjust their approaches using real-time data, reinforcing ESG commitments through verifiable metrics.

Digital tools also automate core procurement tasks, including supplier evaluation, contract management and risk assessment.

With AI and analytics, organisations can monitor supplier performance, anticipate disruption and identify sourcing opportunities – all while maintaining compliance with sustainability standards.

The Agriculture Value Chain (AVC) programme supports commercialisation and export of the sunflower grain, expanding the reach and economic potential of regenerative crops.

Sebastian Dicundo, President of Agribusiness Diorsem, a grower in the programme, says: "Being part of the Sustainable Sourcing Program means more than just improving soil health and producing more sustainably. The premium we receive for each ton of sunflower produced using regenerative practices is a real and tangible incentive.”

Sourcing verified environmental outcomes

The evolution of Syngenta’s sourcing model signals a wider shift in how procurement supports sustainability.

Rather than focusing on commodity prices alone, teams are now sourcing verified environmental outcomes. This includes reduced emissions, improved soil health and greater biodiversity – all elements that align with broader ESG goals.

By embedding regenerative agriculture into the procurement strategy, organisations can turn sustainable sourcing into a competitive advantage.

The approach also strengthens supplier relationships, offering long-term stability in regions where agriculture is exposed to climate risk and market volatility.

Syngenta’s Sustainable Sourcing Program offers a practical framework for scaling sustainable agriculture across multiple regions, crops and industries.

As stakeholder expectations rise, procurement leaders will need to adapt to new sourcing models that prioritise traceability and environmental accountability.

In a context where resilience and sustainability define the future of supply chains, the programme offers a clear path forward.

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