PepsiCo, Griffith Foods, Milhão launch direct farmer incentive pilot program in Brazil
This pioneering initiative aims to accelerate regenerative agriculture across 30,000 acres with a US$1 million investment over three years.
BRAZIL – PepsiCo, in partnership with Griffith Foods and Brazilian corn supplier Milhão, launched a direct farmer incentive pilot program to accelerate regenerative agriculture practices in Brazil’s Cerrado region.
This pioneering initiative aims to promote sustainable farming methods that improve soil health, reduce greenhouse gas emissions, and boost climate resilience on farms in one of the world’s largest agricultural frontiers.
The pilot covers 7,000 acres initially, with plans to scale to 30,000 acres, corresponding to PepsiCo’s full corn sourcing volume in the region, by the third year of the program.
Total investments from the partners are expected to reach US$1 million by that time.
The program employs a hybrid model combining “Payment for Practice and Payment for Outcomes”, meaning farmers receive direct financial incentives for adopting regenerative farming inputs and receive bonuses based on measurable reductions in agrochemical usage and improved sustainability outcomes.
Through this approach, the pilot incentivizes farmers to adopt regenerative practices, including reduced tillage, cover cropping, crop rotation, and integrated pest management.
Farmers participating in the program will receive upfront payments to offset the cost of sustainable inputs such as composting and biological treatments.
This dual-incentive structure is designed to lower barriers to entry and reward long-term environmental stewardship.
The goal is to enhance land productivity sustainably, mitigate risks posed by climate change, and foster resilience within local agricultural supply chains.
The Cerrado region produces over 60% of Brazil’s soybeans and substantial volumes of corn, making it critical to global food security.
However, it faces mounting threats from deforestation, soil degradation, and climate change. PepsiCo has identified the area as one of its highest-impact sourcing regions, making it a strategic priority for regenerative transformation.
PepsiCo’s Climate Resilience Platform guides this initiative, underpinning its broader ambition to propagate regenerative methods across 10 million acres by 2030, a key target in its environmental sustainability agenda.
By directly engaging and rewarding farmers, PepsiCo and its partners aim to accelerate agricultural transformation, helping secure long-term natural resource conservation and food security.
Griffith Foods, known for its specialty ingredients and global sourcing network, is partnering closely on the project, ensuring alignment with supply chain sustainability goals.
Meanwhile, Milhão’s local expertise and corn production capacity are critical to piloting practices directly in the Cerrado region, which is vital for global food and beverage supply chains.
This innovative program represents a concrete example of how multinational food companies are collaborating with local players and applying financial incentives to drive the adoption of sustainable agriculture at scale.
If successful, the pilot could serve as a replicable model for incentivizing regenerative agriculture globally, supporting both environmental and economic goals.
PepsiCo, Griffith Foods, and Milhão’s direct farmer incentive pilot in Brazil’s Cerrado is a forward-thinking partnership that catalyzes regenerative agricultural practices through targeted financial rewards, aiming to achieve greater sustainability, climate resilience, and long-term productivity across the food supply chain.
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