PepsiCo Introducing Contract Farming


PepsiCo signs Memorandum of Understanding with Vietnam’s Department of Agriculture and Rural Development, and the Phivang Collaboration of Farmers to introduce a sustainable contract farming model in Vietnam

PepsiCo Foods Vietnam Company (PFVC) announced today that it has signed a first-of-its-kind Memorandum of Understanding (MOU) with the Department of Agriculture and Rural Development (DARD) and the Phivang Collaboration of Farmers in Vietnam to introduce a sustainable contract potato farming model into Vietnam. The agreement will benefit around 50 small-scale farmers in Lam Dong Province, Vietnam. 

As part of the MOU, PFVC will agree a fixed price for the purchase of potatoes from Phivang Collaboration of Farmers at the start of each growing season.  This gives assurances to farmers that they have a buyer for their potatoes and at a price that isn’t subject to market fluctuations.  DARD will provide financial assistance to members of the co-operative to purchase seeds and other inputs for the growing season.  Finally, the Phivang Collaboration of Farmers will unite farmers to negotiate a secure and stable contract with PepsiCo and provide a forum for farmers to exchange growing techniques.  In addition, PFVC will provide technical agronomy support to the farmers through sharing best practice on techniques to improve yields, save water and promote sustainable agriculture.  PFVC has a proven track record of assisting farmers in Vietnam to make their crop cycles more productive.  Between 2011 and 2014, PFVC provided agronomy support to their farmers that enabled them to nearly double their average yields.

Source : Pepsico company website

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