PepsiCo Launches Pioneering Regenerative Agriculture Pilot Program in Brazil's Cerrado Region

Strategic Insights -

In a landmark initiative, PepsiCo, in collaboration with Griffith Foods and Milhão, has launched a direct farmer incentive pilot program to advance regenerative agriculture in Brazil's Cerrado region, one of the world's most biodiverse savannas and a critical agricultural frontier. The program introduces a hybrid "Payment for Practice and Payment for Outcomes" model, directly compensating farmers for adopting regenerative agriculture practices, such as composting, biological inputs, and reducing chemical fertilizer use. The pilot aims to contribute to PepsiCo's efforts to spread the adoption of regenerative agriculture across 10 million acres by 2030 and will cover 7,000 acres, with plans to scale to 30,000 acres, equivalent to PepsiCo's full corn sourcing volume in the region.

Key Takeaways:

  • The pilot program will directly compensate farmers for adopting regenerative agriculture practices, such as composting, biological inputs, and reducing chemical fertilizer use.
  • The program will cover 7,000 acres initially, with plans to scale to 30,000 acres, equivalent to PepsiCo's full corn sourcing volume in the region.
  • The initiative is co-funded by PepsiCo and Griffith Foods, with additional contributions from Milhão, with a total investment of $1 million over three years.
  • The program aims to contribute to PepsiCo's efforts to spread the adoption of regenerative agriculture across 10 million acres by 2030.
  • The Cerrado region produces substantial volumes of corn and over 60% of Brazil's soybeans, making it critical to global food security.
  • The region faces mounting threats from deforestation, soil degradation, and climate stress, making this initiative strategically important for PepsiCo.

Statistics:

  • The pilot program will cover 7,000 acres initially, with plans to scale to 30,000 acres, equivalent to PepsiCo's full corn sourcing volume in the region.
  • The total investment for the program is expected to reach $1 million over three years.
  • The Cerrado region produces over 60% of Brazil's soybeans, making it a critical agricultural frontier.
  • The region has a high impact sourcing area for PepsiCo, making this initiative strategically important.

Sources:

  • "PepsiCo, Griffith Foods and Milhão launch regenerative agriculture pilot program to bring climate resilience to Brazil's Cerrado region" (PRNewswire, November 3, 2025).
  • "PepsiCo's Climate Resilience Platform" (PepsiCo.com, no publication date).
  • SOURCE PepsiCo, Inc.