14 DAY TRIAL // The companies operating in the food industry are pressured to come up with healthier, more nutritious food. Pepsi Co wants to face this challenge, while helping Mexican farmers improve their farming techniques. A sustainable agricultural sector provides a win-win situation, both for the stakeholders behind this strategy and for the environment.
Climate change, extreme weather and unstable prices are the main factors that make the productivity of farms significantly decrease, reports Triple Pundit. PepsiCo intends to purchase sunflower oil, necessary for their line of food products from Mexican farmers, as a part of their contribution in the Opportunities for the Majority (OMJ) Initiative, developed by several companies, governments and members of local communities.
Small farms are a cost-effective source, as importing oil from foreign countries would turn out to be much more expensive.
PepsiCo Mexico will work in partnership the Inter-American Development Bank (IDB), aiming that 50,000 hectares of agricultural land will be seeded to provide up to 40,000 tons of sunflower oil. This amount will be enough to boost the profit margins of Mexican local farmers.
PepsiCo's officials declare that they intend to buy sunflower oil worth $52 million (€38.8 million), from 850 private owned small farmers within the next 8 years. Its financial support doesn't end here, as the company is eager to collaborate with IDB to allow local farmers to buy the much-needed equipment.
Moreover, both partners will organize trainings meant to teach the members of small communities everything they need to know about modern agricultural practices.
Most of the assisted farmers have been dealing with financial losses for a considerable period of time, as a result of lack of knowledge and funds. The project aims to regulate the activity of farmers mostly from Mexican states of Jalisco and Durango.
Sustainable sun-flower oil will be incorporated in the manufacturing processes of delicious treats from Sabritas and Gamesa brands, owned by the famous beverage company.
If the collaboration between PepsiCo Mexico-IDB turns out to be successful, several other major players in the food industry will feel encouraged to copy their example, integrating small farming communities in an improved, sustainable supply chain.