Alternative protein pioneers and Chinese policymakers convene at “historic” food innovation event

03 Oct 2022 --- Amid a global food crisis, agri-food industry thought leaders convened with Chinese policymakers from the Ministry of Agriculture and Rural Affairs (MARA) online to discuss food security and the prospects of cultivated meat in China and around the world.

The recent panel included Josh Tetrick, CEO of the world’s first cultivated meat company approved for sale, JUST, Inc.; Good Food Institute’s former director of science and technology, David Welch; Jane Lee, global lead for alternative protein strategy and business development at Cargill; and Caio Malufe, head of strategy and business development at Orbillion, a manufacturer of cell-based wagyu beef.

Protein innovation is taking the world by storm as the newest form of food production – one that is secure and sustainable. Yet in China, cultivated meat is still nascent and the commercial ecosystem is gradually emerging.

Providing the industry with better infrastructure and expertise at this critical stage is expected to accelerate its development and bring China and global food supply chains closer to net zero carbon emissions.

Scaling back farming intensity
As host for the international panel held last week, Agfood Future is a non-profit that connects organizations around the goal of agri-food sustainability for food system transformation, both in China and globally.

China has directed significant funds toward scaling up the alternative protein sector – as was previously done for the nation’s development of solar panels, lithium-ion batteries and electric vehicles.The Agfood Future Center of Excellence, along with policymakers from MARA, hosted a discussion on the topic of “protein commercialization, development, opportunities and challenges of cultivated meat from an international perspective.”

“People used to talk about cultivated meat as something out of science fiction, but now it’s commercialized and sold in Singapore,” comments Tetrick. “Cultivated meat uses 80% less land and water than traditional meat farming, reducing emissions.”

In a fast-growing nation like China, where available arable land is dwindling, that shift could have a massive impact, making room for increased domestic production of renewable energy, enhancing food security and providing stronger protection of the nation’s biodiversity.

China’s nascent cellular agriculture space has attracted the attention of broad coverage investors like Matrix Partners China, which backed three alt-protein start-ups last year.

Race toward price parity
Public Chinese government records reviewed by the Good Food Institute APAC reveal that significant funds are being allocated to help the nascent alternative protein sector optimize and scale up – as was previously done for the nation’s development of solar panels, lithium-ion batteries and electric vehicles.

These actions may well bolster the new global sector in its race toward achieving price parity with conventional meat – which according to some forecasts may be in 2032. With regard to price, Tetrick highlights that the three drivers of cost reduction are large-scale vessels, media cost and cell density. 

“China has an important role in leading the industry in building infrastructure and regulation, and I hope to be a part of this process,” he remarks.

Chinese consumers are receptive
Sustainable food actors this year have been outspoken in asserting that Beijing should provide more financial and policy support to establish an open-access research ecosystem for alternative protein start-ups.

Deputy director of MARA Wang Xiaohong agrees that “the localization of cultivated meat is itself a way of carbon reduction,” pointing out that China is ideal for innovation since “Chinese people are highly receptive to new things.”

A previous study of over 2,000 consumers across China has identified that 90% of consumers say they would eat cultivated meat alongside their traditional proteins. Meanwhile, 30% of consumers here say they would make it their main protein purchase if price parity is reached.

David Welch also underscores China’s opportunity to be a major player moving forward – especially in terms of attracting major investment toward new product categories and flavors for cultivated meat.Steve Lin of C2 Capital Partners, a key investment partner of Eat Just, echoes this sentiment. “China is the world’s second largest protein consumer with strong demand. By the first half of 2020, the year-on-year increase [of online purchases of plant-based meat] was more than 150%.”

“In the future, the younger generation in China will have increasingly open attitudes toward alternative proteins,” he remarks.

From his overview of protein innovation trends, David Welch also underscores China’s opportunity to be a major player moving forward – especially in terms of attracting major investment toward new product categories and flavors for cultivated meat.

China’s first cell-based meat company Joes Future Food started making cell-based meats in 2019. It created a FBS serum-free cultivated minced pork with a group of scientists at Najing Agricultural University who were managed by Professor Zhou Guanghong.

The firm secured US$10.9 million to produce cultivated pork last October, as a follow-up to its CNY 50 million (US$7.7 million) Series A funding round.

Evolving food sector
Agriculture has so many more implications than just climate, highlights Agfood Future Center of Excellence vice chair, Jennifer Lee. “It affects feeding the world and a circular economy.”

“As far as China is concerned, the agricultural food sector has an extremely significant impact on the national economy and social stability,” says Agfood Future chairman Ryan Xue. “Providing a safe, secure, nutritious food supply, especially of high-quality protein, is a task facing all companies, governments and institutions focused on sustainable development.”

“At Agfood Future, we are working for solutions through the integration of projects, technologies, markets and policies surrounding protein innovation. Our goal? The sustainable transformation of the food system, a fast-track to net zero.”

Developments in China mirror industry activity across Asia, as there has been new evidence that consumers across Japan, Thailand, Singapore and South Korea are growingly receptive to the novel food type, particularly in seafood format.

Asia’s heightened cravings for cell-based food will continue to spur interesting developments, as food pioneers tailor their offerings toward local cuisines. Last month, Forsea Foods brought its cultivated eel meat concept “closer to natural perfection” through its patented organoid technology.

By Benjamin Ferrer