Download our 2008 Sustainability Report Overview - PepsiCo

AgricultureSupporting the Long-Term Successof Our FarmersAs a food and beverage company, agriculture is perhapsthe largest element of our eco-footprint, so we workhard to continually improve our agricultural processes.This year, we developed and published our GlobalSustainable Agriculture Policy, which demonstrates ourapproach to sustainable development across our entireagriculture supply chain, including water savings, wastereuse, soil protection and chemical use.Our Policy addresses six broad objectives within theagriculture supply chain:• Water Management• Soil Conservation and Preservation• Agrochemical Management• Energy Management• Farm Economics and Land Management• Social and Community ImprovementIn Mexico, our snack food business Sabritas activelyparticipates in a program that contributes to the overalldevelopment of low-income farming families in cornproducingcommunities. In partnership with the MexicanFoundation for Rural Development (FUNDAR), Sabritascontributes to technical and business training for farmers,transfers relevant technology to the communities andinitiates farming contracts. Sabritas and FUNDAR intendto incrementally bring about cultural change in thesecommunities that will lead to the creation of small,sustainable agribusinesses.At the onset, the program began in the state of Jalisco,located near Sabritas’ facility in Guadalajara, and nowspans six municipalities in Mexico. Sabritas pledged 9.1million pesos to fund several initiatives, including:• The organization of corn producers to use their collectivebargaining power to better negotiate competitivecontract prices for corn crops• The launch of a social education program focused ontraining farmers• The purchase of contracts with corn producers• The increased use of technology to produce higher yieldsSabritas’ participation to date has helped more than300 low-income corn producers receive funding, technicalsupport and training, which has resulted in an estimated9,300 tons of corn production across 2,000 hectares.The three-year program is expected to provide farmerswith resources for a 300% increase in income, an80% improvement in land productivity, and 37,000 hoursof education.Throughout the program, Sabritas works toward animproved understanding of the farmers’ needs to becomeindependent business partners. The program also benefitsour business. Strengthening the capabilities of oursuppliers located near our manufacturing facilities meanssaving warehouse and transportation costs as well.We know that engagement with rural farming communitiesand private-public partners is integral to deliveringthe positive social, environmental and economic impactsof this program.By contributing to the overall development of low-incomefarming communities, Sabritas is helping reduce povertywhile improving productivity, profitability and sustainabilityof small-scale farming.PepsiCo invests in innovative farming practices and education toimprove the welfare of the communities that support our agriculturalsupply chain.Sabritas works toward an improved understanding of its farmers’ needsto become independent business partners.PepsiCo Corporate Citizenship Report 2008 15