Coca-Cola Expands Corn Contract Farming Model

Oct 16, 2012

Coca-Cola Co., one of the global leaders in the beverage industry announced today that the company plans to expand its contract farming portfolio to include other agriculture commodities such as coffee, tea and dairy products – the company already practices contract farming with corn. Contract farming is when the farmer agrees in a contract to provide an agreed upon quantity of an agriculture product to the supplier.

"In most Coca-Cola products, there's a clear directional shift toward the use of high-fructose corn syrup, which is cheaper than sugar," Michael Ferrari, Director of Global Agricultural Commodity Risk Management at Coca-Cola.

The company plans on replicating their corn contracting farming practices and applying that modal to other agriculture commodities as well. Ferrari said in a company statement that contract farming has been a successful model for the company because it allows the company to monitor product yield and quality.

The company also reported that its net income rose 3% in the third quarter and attributes those sales with selling more sports drinks and tea beverages as well as growth in emerging markets. In this period, Coca-Cola saw their sales volume up by 15% and had a 34% increase for its brand in India. Company shares rose 22 cents now pegged at $38.35 U.S.

Video: Dicamba Returns for Georgia Farmers: What the New EPA Ruling Means for Cotton Growers

After being unavailable in 2024 due to registration issues, dicamba products are returning for Georgia farmers this growing season — but under strict new conditions.

In this report from Tifton, Extension Weed Specialist Stanley Culpepper explains the updated EPA ruling, including new application limits, mandatory training requirements, and the need for a restricted use pesticide license. Among the key changes: a cap of two ½-pound applications per year and the required use of an approved volatility reduction agent with every application.

For Georgia cotton producers, the ruling is significant. According to Taylor Sills with the Georgia Cotton Commission, the vast majority of cotton planted in the state carries the dicamba-tolerant trait — meaning farmers had been paying for technology they couldn’t use.

While environmental groups have expressed concerns over spray drift, Georgia growers have reduced off-target pesticide movement by more than 91% over the past decade. Still, this two-year registration period will come with increased scrutiny, making stewardship and compliance more important than ever.