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PepsiCo's Sustainable Future - Potato Council
Transcript of PepsiCo's Sustainable Future - Potato Council
PepsiCo’s Sustainable Future
PepsiCo Europe – a large Agricultural
Business
1.2 Million tonnes of potatoes
120,000 tonnes of oats
80,000 tonnes of corn
30,000 tonnes of apples
…from 2,200 farms, some supplying PepsiCo for 3 generations and supporting
some of the best loved consumer brands in Europe
How can producer / purchaser
relationships drive farming
productivity and profitability?
Must
V
Potato Example: UK Cost Indices* v CPI
42
31
17
Ind
ex
* Cost of processing potatoes : Andersons and Bidwells for UK Potato Council
Costs >> CPI
highlight the need
for collaboration &
transformation
Left unchecked, potato
cost increases would
be 11% higher than
food as a whole
The commercial landscape is also changing...
• Fewer growers
• Competing Crops
• Higher yielding varieties
• Regulatory pressure
• Climate change
Number of Registered UK potato growers
only 3% of what it was in 1960
Number of UK Potato Growers 1960 - 2009* British Potato Council, July 2011
Weather events have caused significant
crop losses in 6 of last 8 years
So what does all that mean?
Growers and buyers need to carefully select who
to contract with... and where we should grow
Clear, aligned objectives between grower and buyer
reflecting in longer term, more strategic agreements
Seize opportunity to leverage Industry collaborations
& latest technology to do things better
Share the benefits...
Collaboration requires us all
to play a part...
• Doing nothing is not an option
• Trust each other - we are in this together....
• We all have something to learn
• Look around us.... what are other people doing?
• Try something new & share results
By 2017, 80% of PepsiCo crisps will be made from
new, proprietary potato varieties
...but together, we can achieve great things
=
i-Crop Precision Agronomy -
Right variety, right location grown in the right way
10% of UK crop under i-Crop monitoring; rolled out to
Holland, Belgium, France, Germany, Iberia, Poland, Turkey
...but together, we can achieve great things
i-Crop Precision Agronomy
Outputs: Canopy Growth Curve
...but together, we can achieve great things
• No growing days lost on this crop due to canopy falling below 90%
Full Cover (FC)
>90% Canopy
Target: Keep blue line (Act
ETp)
near green line (Pot ETp)!
• This crop reached 95% of its potential yield
• But received 402mm water in total, but ideally only needed 326mm
i-Crop Precision Agronomy
Outputs: Water Modelling
...but together, we can achieve great things
Less Water: >300Ha Drip Irrigation trials Less Carbon: 6 Scale Fertilizer trials
PepsiCo UK “50 in 5” commitment to reduce Carbon and Water use in
our key crops by 50% in 5 years....
• Working with experts to understand scale of the challenge & what we can do
• Working with Cambridge University to develop i-crop technology to measure
and analyse water use; Peers, ADAS, SAI, University of Aberdeen on Carbon
• Working with PepsiCo colleagues to learn from best practice around the
world – introducing drip irrigation
• Most importantly – working with growers to make it happen
...but together, we can achieve great things
Agro Sustainability: Four Key Platforms
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• New VarietiesBetter yield, solids, lower defectsSome require less fertilizer and drought tolerant
• i-Crop Precision AgronomyHow and where to grow our crops
• Modified Agronomy: Irrigation & FertilizersDrip-irrigation; low carbon / organic fertilizers and application
• Cool Farm ToolMeasures results, engages growers in “what if” scenarios
Across EU... CO2e Summary – Very similar drivers across programs
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Sustainable agriculture - progress
• In 2011, the first year of our “50 in 5” commitment, water usage reduced by 8% and yield
increased by 13%
• We have a clear road map to meeting our commitment:
– including the use of i-Crop and Cool Farm Tool
– implementing new varieties of potatoes
– optimising the use of fertilisers as well as switching to lower carbon fertilisers
– implementing drip irrigation in water stressed areas
– improving storage facilities of potatoes
• We are working with others, including Cambridge University Farms and ADAS, to find
further opportunities e.g:
– using smart phone apps to give accurate measurements of crop growth and development
– encouraging growers to generate green energy through biomass, solar and wind
What have we done
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2009 2010 2011 2012
New
Varieties1.75% 5.2% 9.7% 18.3%
I-Crop
UK: 24 fields,
55 crops
UK: 46 fields,
83 crops+ WER, Iberia
UK: 46 fields,
84 crops+ WER, Iberia,
Poland, Turkey
Irrigation /
Fertilizers
UK: 100Ha Drip
TU: 240Ha Drip
UK: 100Ha+ Drip
TU: 240Ha DripSP: mini-sprinkler
& pivot study
WER: 6 Fert. Trials
Cool Farm
Tool
1 Carbon
Footprint
(Carbon Trust)
2 Footprints
UK
26 Footprints
UK, WER, Iberia
>80 Footprints
UK, WER, Iberia,
Poland, Turkey
Carbon Roadmap to 53-59% by Crop 2015
100% 87%
83%
81%
79%
73%68%64%
Crop 2010 Base
Crop 2012-14 Variety Mix
Change
Crop 2014 Drip Irrigation
Crop 2012-13 Switch to
Abated Fertilisers
Crop 2013 Variety
Reallocations
Crop 2011 I-Crop Gain
Crop 2012-15 Additional I-
Crop EfficiencyCrop 2014-5 Storage
Upgrades
+13%
Yield
-6%
Carbon18%
reduction on
34% of
footprint
+2%
Yield
+4%
Yield
+5%
Yield-5%
Carbon33%
reduction on
15%
footprint
+2%
Yield
63%
53-59%Rosetta Replacer 1-3%
Fertiliser usage reduction 1-3%
Field Operations 2-4%
(+ Green Energy TBC)
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Water Roadmap achievable by Crop 2014
100% 105%
82%
45%
38%33%
Crop 2010 Base
Crop 2012-14 Variety Mix
Change
Crop 2014 Drip Irrigation in
East Anglia
Crop 2012-15 Additional I-
Crop Efficiency
Crop 2013 Variety
Reallocations
Crop 2011 I-Crop Gain
+5%
Water
+5%
Yield
-37%
Water
-23%
Water
-7%
Water
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UK Drip Irrigation Trials : -36% H20 & + 7% yield.
Blackleg Noticeable difference in Blackleg disease loadings between gun and
drip irrigated areas, with 8% less disease in the drip areas
� Comparison of Blackleg counts in same field, different irrigation regimes
� <1% Blackleg in the Drip treated area and 8% Blackleg in the Gun treated area
� Would affect both field yield, but also take extra disease into stores with risk of extra losses
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More Yield
+ Better quality
+ less field, store and factory waste
= The oxygen of sustainable productivity
Things need to change... but together, as
growers & buyers, we can make a real
difference in tackling cost inflation whilst
growing our potatoes better:
Doing things better across the agricultural
supply chain drives efficiencies, lowers all
our costs and is more sustainable...
Something we can all feel proud of
...and will give our consumers something
to smile about
Want to know more....?