PepsiCo and Yara have achieved 20-40% emissions reductions per ton of potatoes through a collaborative program that integrates lower-carbon fertilizers with data-driven agricultural practices, demonstrating a scalable model for food system decarbonization.
The partnership, which began in Europe and expanded to Mexico, Colombia, Chile and Argentina by mid-2025, combines fertilizers produced from renewable ammonia or carbon capture and storage technology with soil diagnostics and precision nutrient management. The program initially focuses on potato growers within PepsiCo’s supply chain.
“Without collective action, the global food system is not going to change at the speed and scale needed,” said Margaret Henry, vice president of sustainable and regenerative agriculture at PepsiCo. “Our collaboration with Yara is a powerful example of what can help drive the necessary transformation.”
The program addresses emissions both in fertilizer production and on-farm nitrogen use, which releases nitrous oxide, a potent greenhouse gas. Mineral fertilizers support nearly half of global food production, making decarbonization of this segment critical for meeting climate goals.
Lower-carbon inputs combined with agronomic support
The Yara-PepsiCo model moves beyond simply replacing conventional fertilizers by pairing lower-carbon inputs with agronomic advice, soil diagnostics and digital farm monitoring. This approach ensures nutrients are used efficiently, reducing both upstream production emissions and in-field emissions without compromising crop yields.
“To transform our food system, we need to collaborate across the food value chain,” said Benoit Lamaison, senior vice president for Continental Europe and product strategy at Yara. “Decarbonizing food production will be critical to delivering on the Paris Agreement, and farmers will play a key role in helping us get there.”
The fertilizers use either renewable ammonia or carbon capture and storage technology in production, along with nitrous oxide catalytic abatement technology to reduce manufacturing emissions. At the farm level, data-driven nutrient management improves nitrogen use efficiency while maintaining productivity.
For farmers, the transition must make agronomic and economic sense. By pairing lower-carbon fertilizers with monitoring, advice, and existing supply-chain relationships, the program limits risk for producers. Importantly, the use of lower-carbon fertilizers does not require practice changes from farmers.
Geographic expansion demonstrates replicability
The Latin American program mirrors the European collaboration structure, offering lower-carbon fertilizers alongside agronomic support and digital farm monitoring. The geographic and climatic diversity of the rollout — spanning different crops, climates and regulatory contexts—demonstrates potential for wide adaptation.
“By introducing low-emission fertilizer solutions and leveraging innovation, this collaboration helps accelerate progress toward a net-zero food system while supporting farmer livelihoods and strengthening food security,” Henry said.
The partnership addresses a common challenge in agricultural supply chains: aligning buyers and suppliers to justify investments in lower-carbon production. Clear demand signals from food companies help justify infrastructure investments in lower-carbon fertilizer production, while suppliers need customers willing to commit at scale to make those investments profitable.
