PepsiCo Hosts 20th Demo Farm to Advance Sustainable Agriculture

PepsiCo is expanding regenerative agriculture and precision farming in Mexico’s potato sector through its Demo Farm platform, strengthening domestic sourcing and contract farming under its pep+ sustainability strategy. With annual demand exceeding 300,000 tons — fully supplied locally for Sabritas — and up to 70% of production concentrated in Sinaloa and Sonora, the initiative integrates digital tools, input optimization and climate-resilient practices to stabilize yields amid rising temperatures.

——

PepsiCo held the 20th edition of its Demo Farm exposition in Los Mochis, Sinaloa, bringing together more than 100 national and international agricultural partners to evaluate technologies, measure field results and advance sustainable production models tied to PepsiCo’s “PepsiCo Positivo” (pep+) strategy. The initiative places soil regeneration, water savings, carbon footprint reduction and yield efficiency at the center of the company’s agricultural operations.

Servando Valdez, senior director of the agricultural function, PepsiCo Latin America, said the Demo Farm serves as a platform to share practices and assess innovation throughout the crop cycle. The company’s sustainability framework seeks to restore soil health while improving productivity and resource efficiency across its supply chain.

PepsiCo demands more than 300,000t of potatoes annually in Mexico as part of a broader agricultural consumption that approaches 1 million t. Approximately 90% of that volume is sourced domestically. 100% of the potatoes used by Sabritas are grown in Mexico, with Sinaloa and Sonora accounting for between 65% and 70% of industrial supply.

Mirna Macías, operations director, PepsiCo Alimentos Latin America, said the Demo Farm program originated in Mexico and has since expanded across the region. The company also created a regional training model known as “Agro University,” which convenes Latin American producers every two years to exchange technical knowledge and best practices.

Innovation in the field has become central to maintaining productivity under climate pressure. Guillermo Aguirre Inzunza, host of this year’s event, said 10 exhibitors are testing technologies directly on productive plots, measuring performance in yield, quality and sustainability metrics.

Technologies under evaluation include advanced seed management and fertilization systems, drone applications, satellite monitoring, pressurized irrigation and water stress analysis. Producers participating in the program reported reductions of between 15% and 20% in agrochemical and fertilizer use as a result of precision agriculture tools and improved nutrient management.

The integration of digital tools is also enabling more efficient irrigation scheduling and input optimization, critical in regions facing higher-than-average temperatures. In Sinaloa, approximately 16,500ha were planted with potatoes this cycle under challenging climate conditions.

Current yields range between 35 and 40t/ha. While producers acknowledge the risk of oversupply, they estimate that weather-related adjustments in output could help stabilize the market and support pricing. PepsiCo also cited expectations of increased product demand linked to the global soccer cycle, which historically drives higher snack consumption nationwide.

The contract farming model underpinning PepsiCo’s supply chain continues to play a role in strengthening regional competitiveness. Bosco de la Vega, president, Consejo Agro Groppo, said participation in the company’s value chain has allowed producers to grow alongside the industry and remain competitive in international markets. 

Long-term supplier relationships illustrate the depth of the model. Ricardo Aguirre, president of Agrícola RAB, said his company has maintained a 42-year commercial partnership supplying potatoes to Sabritas. He credited the alliance as a key factor in the company’s growth. “Their support and collaboration have been fundamental to the success of our company and to bringing joy and flavor to millions of homes in Mexico,” Aguirre said.

Aguirre also highlighted the role of the Sabritas Agricultural Development Center (CDAS) in supporting productivity improvements under sustainable frameworks. The CDAS program focuses on strengthening technical capacity, improving crop management and aligning environmental practices with commercial objectives. “Through CDAS, we have worked together to implement sustainable farming practices and improve potato productivity and quality. Their investment in Mexico's agricultural community has been invaluable,” said Aguirre.