Corporate Initiatives: PepsiCo and Clinton Foundation Partnership

Corporate Initiatives In Agriculture: PepsiCo and Clinton Foundation Partnership

PepsiCo and the Clinton Foundation aim to help Indian cashew farmers in Maharashtra. In a move that is positive, both have jointly announced an investment for small-scale cashew farmers in Maharashtra. The aim is to boost the production of cashew fruit to be used in PepsiCo's drinks.

The Clinton foundation focuses on local farmers and provides them with the skills and capabilities to improve farming practices. Founded by former US president Bill Clinton, this foundation focuses on improving yield and production by helping the farmers to learn new skills and methods for agricultural activities.

The long term goal is to build a strong supply chain of cashew for further expansion in domestic as well as international markets. Cashew fruits will be sourced from 2000 farmers this year. The plan is to extend cashew farming to over 15000 farmers over a span of 5 years. PepsiCo has been employing people in India since 1989.

The Clinton Foundation and PepsiCo have announced the strategic partnership to spur social development and economic growth through this innovative social model. The inaugural project was launched in Maharashtra this year. The aim is to get high yields of vitamin rich cashew from smallholder farmers which has dual benefits for the company as well as the agriculturalists.

Through the Clinton Giustra Enterprise Partnership model, founded by Clinton and philanthropist Frank Guistra, this initiative will enable modern agricultural techniques to improve cashew farming and increase yield. It will also increase the income for small-hold farms. It will also strengthen the cashew supply chain in India.

Many cashew farmers reside in less than one hectare of land in India and live below poverty line. The Partnership aims to use market-driven models for spurring production and improving the livelihood of small farmers. This can be useful for handling distribution and logistics.

The approach can be replicated in other areas to enhance the productivity and boost the economic prospect of the farmers. Everything from purchasing the harvest to handling the distribution and logistics will be facilitated through this initiative. This approach has been used for supply chain enterprises in Latin America and Haiti.

Cashew fruit has high nutritional value and it is also rich in potassium. It contains 5 times the vitamin C compared to orange. Cashew fruit is also rich in other nutrients. PepsiCo will be using cashew fruit juice as one of the ingredients in its blended fruit juice products.

According to PepsiCo's Chairperson and CEO, Indra K. Nooyi, the initiative is aimed at performance with purpose. To link corporate success with societal success is the goal of the project, as per her statement. With development taking place in different parts of Maharashtra, initiatives such as these have positive impact for the company as well as the farmer. The food and beverages industry depends on the farmer for critical products. Therefore, they would undoubtedly benefit from corporate initiatives designed to enhance the income and productivity of the farmer as well.