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October 8, 2014

PepsiCo signs farming deal in Vietnam

PepsiCo has struck a deal in Vietnam the snacks giant said will ensure it receives a "sustainable" supply of potatoes.

By Dean Best

PepsiCo has struck a farming deal in Vietnam the snacks giant said will ensure it receives a “sustainable” supply of potatoes.

The US group said a new “contract farming model” will mean it has an agreement with a group of farmers in the central Vietnamese province of Lam Dong, rather than deals with individual growers.

PepsiCo said the contract would have benefits for around 50 farmers in the province. “The … farmers are guaranteed a buyer for their potatoes and at a price that has been negotiated at the start of the growing season and that isn’t subject to market fluctuations,” a spokesperson for PepsiCo’s operations in Asia-Pacific told just-food.

Under the terms of the new deal, PepsiCo said it would continue to work with the farmers to boost production. It claimed its support had helped the growers “nearly double average yields” between 2011 and 2014.

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