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Incorporation of small, low-income producers into the supply chains of larger companies in rural Mexico is increasingly becoming a powerful way to break the cycle of poverty.

Sabritas, a leading Mexican snack foods producer owned by PepsiCo has decided to take action. The company, with support from the Opportunities for the Majority initiative and the local financial institution Agrofinanzas, will scale a pilot programme that incorporates small farmers into its sunflower supply chain. The new production of sunflower oil will reduce the company’s dependence on expensive, unhealthy imported palm oil, while at the same time giving small farmers the chance to expand their crop output and enter the formal economy.

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