PepsiCo and Yara have taken another significant step in their ongoing partnership, announcing a new long-term agreement focused on Latin America. This latest collaboration aims to provide crop nutrition programs designed to lower the carbon impact of food production across the region, with a particular emphasis on supporting potato farmers in Mexico, Colombia, Chile, and Argentina.
The move builds upon a previous agreement signed between the two companies in July of last year, which covered similar initiatives in Europe. There, Yara began supplying PepsiCo’s network of farmers with specialized fertilizers, agronomic advice, and precision farming tools. These resources were aimed at improving sustainability practices while also supporting agricultural productivity.
Now, the focus shifts to Latin America, where both companies believe there is a strong opportunity to help farmers not only reduce emissions but also transition toward more sustainable and regenerative practices.
Supporting Farmers Through Sustainable Solutions
As part of the agreement, Yara will offer PepsiCo a tailored mix of its fertilizer products. Many of these fall under the “Yara Climate Choice” category—a range that includes lower-emission fertilizers produced either through renewable ammonia sources or by using carbon capture and storage (CCS) technologies. Additionally, conventional nitrate-based fertilizers, which are already produced using Yara’s catalyst technology to reduce emissions, will also be part of the supply package.
These products have been designed to lower greenhouse gas emissions while supporting crop yields. Depending on the type of fertilizer used, the carbon footprint for each tonne of potato grown can be reduced by between 20% to 40%.
Pedro Parenti, Senior Vice President of Yara Latin America, sees the partnership as an important signal of how businesses can work together to move agriculture in a more environmentally responsible direction.
“The agreement demonstrates the value of our solutions for decarbonizing agriculture and food production. With PepsiCo as an ally and leader on this path, we can protect the environment for both present and future generations.”
More Than Just Fertilizer: A Broader Agricultural Vision
For Yara, the partnership with PepsiCo is not just about supplying crop nutrients—it also reflects a broader commitment to improving agricultural practices through innovation and collaboration. Chrystel Monthean, Executive Vice President of Yara Americas, highlights the broader goals of the initiative.
The relationship between the two companies has evolved to include digital tools for precision farming, access to agronomic support, and financial models that help farmers manage the costs of transitioning to new farming methods. These added layers of support are particularly important in Latin America, where many farmers face financial and technical barriers when attempting to adopt more sustainable practices.
“This partnership with PepsiCo is pivotal in our pursuit of Growing a Nature-Positive Food Future. By improving fertilizer efficiency and encouraging regenerative farming methods, we are not only cutting emissions but also boosting the sustainability of agricultural production.”
Shared Commitment to a Better Food System
The collaboration underscores a mutual desire to create a more sustainable and resilient food system. For PepsiCo, this new phase of its work with Yara aligns closely with its broader “pep+” (PepsiCo Positive) strategy, which includes a focus on regenerative agriculture, responsible sourcing, and improved livelihoods for farming communities. Paula Santilli, CEO of PepsiCo Latin America, believes the partnership brings them closer to achieving several key company goals.
This perspective acknowledges that the food and agriculture industries must adapt quickly to meet the dual challenges of climate change and increasing food demand. Through such partnerships, large-scale players like PepsiCo can influence supply chains while also creating real change on the ground for individual farmers.
“This collaboration agreement with Yara represents significant progress in our pep+ (PepsiCo Positive) agenda. We believe that Positive Agriculture – our ambition to support regenerative farming practices, sustainable sourcing, and better living conditions – will be key to meeting the growing demand for food as the global population increases, while addressing the need to protect and improve our natural resources and promote human well-being.”
Easing the Transition for Farmers
One of the major challenges in shifting to more sustainable agricultural practices is the upfront cost for farmers. Equipment upgrades, new fertilizers, and different farming methods all come with risks and expenses that can be difficult for growers to manage alone.
Recognizing this, PepsiCo and Yara have committed to sharing the financial burden. Their partnership model includes support for transition costs, making it easier for farmers to test and adopt new approaches without facing prohibitive risks. This kind of assistance is especially important in countries where smallholder and mid-sized farmers make up the bulk of food production. By making the transition more accessible, the companies hope to enable broader adoption of regenerative and climate-conscious practices across their supply chains.
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While this announcement focuses on potato farming in Latin America, the principles behind the partnership suggest the potential for expansion into other crops and regions. Both companies appear committed to building long-term, mutually beneficial relationships with farmers and agricultural stakeholders.
For Yara, the initiative also illustrates the commercial viability of lower-emission products—an important factor in showing that sustainability can go hand-in-hand with business success. And for PepsiCo, the collaboration reflects an ongoing effort to integrate sustainability into its core business operations.
As attention continues to grow around the environmental impact of agriculture, especially in high-emission sectors like fertilizer use and soil management, partnerships like this one may become more common. They serve as a model for how companies can work together to address environmental issues while supporting those who are on the front lines of food production.
