PepsiCo Egypt seeks to boost small-holder potato production in partnership with USAID

EGYPT – Chipsy for Food Industries, subsidiary of PepsiCo Egypt company has renewed its partnership with the U.S. Agency for International Development (USAID), targeting to enhance potato production by Egyptian smallholder farmers for two more years.

The partnership according to US embassy in Egypy, is aimed at boosting the productivity of farmers and building a more transparent and sustainable potato supply chain.

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It empowers the smallholder farmers to establish reliable market linkages, increase crop quality and yields, and progress toward internationally recognized standards for sustainable agriculture.

Through the project, Chipsy, manufacturer and exporter of potato products and potato chips of various flavors is seeking to integrate the potato farmers to its value chain.

“Today, we are honored to renew our cooperation with USAID to improve the livelihoods of the smallholder Egyptian farmers by providing them with the technical know-how and the sustainable agriculture practices, to include these farmers in Chipsy’s supply chain,” Mohamed Shelbaya, CEO of PepsiCo Egypt said.

The renewed partnership comes on the back of success of the first-year undertaking where farmers received training and technical recommendations on good agricultural practices, such as targeted use of irrigation and fertilizer. 

“This partnership is helping farmers to increase their incomes and improve the well-being of their families.”

Jonathan Cohen – U.S. Ambassador

As a result, in the 2019/2020 growing season, hundreds of farmers in Beni Suef significantly increased quality and yield and cut costs, tripling profits.  

“We have been working closely with smallholder farmers who are cornerstone of our agriculture business to develop their capabilities to meet global standards,” stated US embassy in Egypy.

U.S. Ambassador Jonathan Cohen noted, “This partnership is helping farmers to increase their incomes and improve the well-being of their families.”

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Over the next two years, USAID and Chipsy for Food Industries will expand activities to farmers in the Menoufia and Minya governorates and plan to reach 2,500 farmers by 2023. 

Ultimately, Chipsy plans to use this model throughout its entire smallholder supply chain in Egypt. 

PepsiCo Egypt also positively impacts Egypt’s farming communities through initiatives such as its locally grown seeds program, which enables the company to produce 100% locally sourced potato chips.

This partnership is part of the U.S. government’s ongoing support to Egypt’s agricultural sector, which is helping farmers in Upper Egypt become more self-reliant by establishing connections to domestic and international markets, gaining access to finance, and increasing adherence to food and safety practices.

Egypt is one of the lead potatoes producing and exporting countries in Africa.

According to the Union for Producers and Exporters of Horticultural Crops (UPEHC), the country’s potato exports this year has fallen by 25 percent, due to the coronavirus crisis.

Egypt exported 673,000 tons of potatoes, falling short of the target for 850,000 tons.

The area planted during the period under review was 171,000 ha, which saw production reaching three million tons.

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