In parts of Mexico, Pepsi Co no longer deals with middlemen and instead goes directly to the farmers:...But more recently, many have managed to avoid the trips, staying home as the result of a new venture with PepsiCo, which buys their crops.
“Some of us used to go north to work to make money to pay off debts, but no longer,” said MartÃn Ramos Torres, a farmer, adding that at least two members of the cooperative he leads had been caught by United States border patrol agents and deported. “In just three years, everything has changed.”
Mr. Ramos and some 300 small farmers here no longer sell their corn to middlemen but directly to PepsiCo, which guarantees the price it will pay for their crops upfront. The deal enables the small farmers to secure credit to buy seeds and fertilizers, crop insurance and equipment...
The deal also has many added benefits for Pepsi. Find out the benefits in the full NYT article.
