PepsiCo 2009 Annual Report

Cultivating Local Opportunity

At PepsiCo, our agricultural heritage gives us a healthy respect for the grains, fruits, vegetables and nuts that deliver great taste and nutrition. We rely on local farmers to supply our network of global facilities with high-quality fruits and vegetables. These strong partnerships help us ensure consistent freshness and quality, increase crop yields, reduce our carbon footprint and support families and communities.

In Mexico, Sabritas creates a reliable and sustainable market for small and mid-sized corn farmers. We invited them to become Sabritas supply chain partners and are working with the local Educampo Program to provide the seeds, fertilizers, agrochemicals and water usage guidelines that help farmers produce abundant crops. This educational, technical and financial support is enabling 297 producers in poor farming communities to cultivate new economic and social development opportunities while increasing their average crop yield by more than 165 percent.

Similar agricultural programs are reaping positive results in other countries as well. In Russia, when the economic downturn restricted available credit, we kept local farmers afloat with microcredits, payments for crops, seed credits and leases for agricultural machinery. Our agro-manager teams also consulted with farmers and shared best practices. And in Inner Mongolia, China, we introduced proven environmentally friendly irrigation and crop rotation practices that save water and help local potato farmers grow thriving crops in the middle of the desert. These farmers are better able to make a sustainable living by selling their crops at competitive prices.

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