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PepsiCo to Invest $5 Million in Agricultural Supply Chain in India

PepsiCo to Invest $5 Million in Agricultural Supply Chain in India

In India, PepsiCo works with over 24,000 farmers in states such as Uttar Pradesh and Rajasthan. To ensure responsible agriculture sourcing solutions—or using crops farmed through less resource-intensive methods, the company will spend $5 million by 2020 for its agriculture supply chain in India.

Christine Daugherty, global vice-president for sustainable agriculture at PepsiCo, said that the company had launched pilot programs to digitize its supply chain. “We are in an advanced stage of implementing digitization in agronomy, wherein all activities of the agronomists and all growers and contract farmers will come into a digitized system. So it gives a different level of reach in terms of managing crops and advising and monitoring crops,” she said.

 

Other innovations involving farmers in India include developing training material with more visuals and pictures, that talk about best practices in farming. “When we work with the agricultural supply chain, many of the sustainable farming practices have a direct relation to climate change. If we can improve soil health through better management practices, then those farmers will be more resilient when environmental factors change,” Daugherty added.

“Another thing we are doing here in India, as a pilot, is demonstration farming. That’s where we work with a lead farmer and then we bring in our other agro partners—irrigation equipment makers, pesticide firms—and in a section of their land we put forward the best practices and then invite surrounding farmers in the community to come and look. This is a pilot unique to India because of the number of small farm holders we work with here, they are also less mechanized here compared to various other markets,” noted Daugherty.

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