PepsiCo and Yara extend fertilizer partnership to Latin America

PepsiCo and Norwegian fertilizer company Yara International are expanding their partnership to Latin America in an effort to reduce agricultural emissions and support regenerative farming practices in key potato-producing regions.

The agreement, which builds on a 2023 collaboration in Europe, will provide farmers in Mexico, Chile, Colombia and Argentina with access to low-carbon fertilizers and digital tools. The initiative is part of PepsiCo’s broader strategy to decarbonize its agricultural supply chain and promote sustainability in raw material sourcing.

Yara will supply a mix of its conventional nitrate-based fertilizers—produced with proprietary low-emission technology—and its Yara Climate Choice products, which use either renewable ammonia or carbon capture. The company estimates the inputs can cut the carbon footprint of potato production by 20% to 40% per metric ton.

“This partnership reflects the commercial value of sustainable solutions in agriculture,” said Pedro Parenti, senior vice president of Yara Latin America. “It also shows how we can work across the value chain to address environmental challenges.”

The companies also plan to support participating farmers with advisory services, digital precision-farming tools, and financial incentives to offset transition costs. PepsiCo said the initiative supports its “positive agriculture” strategy, which aims to spread regenerative practices across its supply chain.

“This collaboration represents meaningful progress in our commitment to sustainable sourcing,” said Paula Santilli, chief executive of PepsiCo Latin America. “It addresses environmental concerns while helping us meet growing demand for food.”

The two companies did not disclose the financial terms of the deal. Yara reported $13.9 billion in revenue in 2024 and operates in more than 60 countries. PepsiCo, whose brands include Lay’s, Quaker and Pepsi-Cola, generated $91 billion in 2023 revenue.