Precision fermentation is a promising technology for the dairy industry, offering numerous benefits such as reduced environmental impact, improved health aspects, increased supply chain resilience, and cost reduction. Floor Buitelaar, Managing Partner and co-founder at Bright Green Partners, a global alternative protein consulting firm, highlights that precision fermentation is a proven technology that has been used for EU-improved ingredients like rennet.
One key advantage of precision fermentation is that the ingredients it produces are identical to those found in cow’s milk, resulting in dairy alternatives with the same taste and texture. Buitelaar believes that this is just the beginning of this novel technology, and many more products will come to the market in the coming years.
While most precision fermentation companies focus on dairy applications like cow-free cheese, milk, and ice cream, the regulatory process for Novel Foods poses a significant challenge for these products and ingredients. Additionally, the industry faces challenges in terms of limited production capacity and the high capital expenditure (CAPEX) required for precision fermentation technologies. Investors are cautious and prefer to see a proven concept before investing significant sums into CAPEX, creating a catch-22 situation.
The closure of Bold Cultr, a General Mills animal-free cream cheese brand developed through precision fermentation, has raised questions about the future of animal-free dairy. However, Buitelaar asserts that consumers are ready for these products as they are increasingly open to dairy alternatives.
To accelerate approval in Europe and communicate the benefits to consumers, collaboration is crucial. Will van den Tweel, Project Director at Those Vegan Cowboys, emphasizes the need for collaborations between precision fermentation companies and established players in the dairy industry. This alliance can help de-risk the industry and accelerate implementation and commercialization. He also mentions the interest of classical dairy companies like Bel Group, Fonterra, Royal DSM, and FrieslandCampina Ingredients in precision fermentation technologies.
Informing both consumers and regulators is another essential aspect of advancing precision fermentation in the dairy industry. Therefore, an alliance called Food Fermentation Europe has been established to facilitate communication and lobbying efforts. This alliance has attracted the attention of even large dairy companies that wish to be part of the transition. Change is happening, and it is important to involve farmers in the supply of feedstocks for new dairy products.
In summary, precision fermentation holds tremendous potential for the dairy industry. Despite challenges related to regulations and limited production capacity, collaborations, communication efforts, and involvement of existing players are key to unlocking the benefits of precision-derived dairy alternatives.
