Syngenta and PepsiCo have joined hands to support farmers in transitioning towards regenerative agriculture while ensuring greater traceability in food production. Through Syngenta’s Sustainable Sourcing Program, this initiative not only promotes environmentally friendly farming methods but also offers financial incentives to growers who adopt these practices. Farmers participating in the program receive a price premium of 1% to 2% above the domestic market rate for their sunflower grain, making sustainable farming a more profitable choice.
A Step Towards More Sustainable Sunflower Production in Argentina
In the first year of this collaboration, PepsiCo sourced 4,000 tons of sunflower oil from Argentine farms that had implemented regenerative agricultural techniques. These farms, located in the provinces of Buenos Aires, La Pampa, San Luis, and Santa Fe, adhered to verified sustainability practices, ensuring that their production methods contribute to soil health, biodiversity, and efficient resource use.
Following the successful implementation of the first phase, the initiative aims to expand its reach. The companies plan to increase the area under regenerative farming by at least 25% in the next stage. This expansion is expected to encourage more farmers to participate in the program and adopt techniques that enhance long-term agricultural sustainability.
How Farmers Benefit from the Sustainable Sourcing Program
Syngenta’s Sustainable Sourcing Program is designed to help farmers incorporate and document sustainable farming practices. These include crop rotation, the use of cover crops, improved irrigation techniques, biological pest control, and the establishment of pollinator-friendly habitats. The program provides farmers with continuous support and monitoring, ensuring that the best practices are followed and validated.
A key feature of the initiative is third-party verification, which ensures transparency and credibility throughout the commercial supply chain. The sunflower grain is marketed through Syngenta’s Agriculture Value Chain (AVC) program, which streamlines trade and export processes for oil. Farmers can track and validate their farming practices using Syngenta’s Cropwise digital platform, a tool that helps them measure progress, verify regenerative methods, and implement ongoing improvements.
Also Read: PepsiCo Launches RevolutioNari Awards to Empower Women in Agriculture
Corporate Perspectives on Sustainability in Agriculture
For Syngenta, sustainability is an integral part of business operations. Mariale Álvarez, Head of Sustainability & Corporate Affairs for LATAM at Syngenta, emphasized the company’s commitment to improving soil health and nature. “Regenerating soil and nature through practices that aim to leave the system better than we found it is a commitment we assume every day,” Álvarez explained. She highlighted that by working with PepsiCo, Syngenta is able to further this mission by offering financial rewards to farmers who adopt regenerative techniques.
PepsiCo shares a similar vision. Santiago Desmery, Oils Category Leader for PepsiCo Southern Cone and Brazil, pointed out that sustainability is at the heart of the company’s approach to food production. “Companies have a great responsibility to care for and improve the way we produce food. At PepsiCo, everything we do is driven by sustainability within the framework of pep+, our global transformation strategy,” he stated.
The success of this initiative has also positioned PepsiCo Southern Cone as the first region within PepsiCo’s Latin American operations to achieve 100% regenerative agriculture in its sunflower supply. This marks a significant step towards integrating sustainable farming into large-scale food production, setting a precedent for other regions to follow.
Also Read: Regenified Report Highlights Growing Consumer Demand for Regenerative Agriculture
The Future of Regenerative Agriculture and Corporate Collaboration
The collaboration between Syngenta and PepsiCo demonstrates how corporations can work alongside farmers to create more sustainable agricultural systems while ensuring profitability for growers. By offering financial incentives, technical support, and verified traceability, this initiative is not only benefiting farmers but also contributing to broader environmental goals.
As more companies recognize the importance of sustainable sourcing, similar programs could emerge, further driving the adoption of regenerative agriculture. The expansion of this project in Argentina will be closely watched as an example of how agricultural sustainability and business interests can align to create long-term positive impacts on both the environment and the food industry.
