Investment, innovation and infrastructure needed to make alt-protein thrive, flags GFI

12 Jul 2023 --- A new report by the Good Food Institute (GFI) reveals that European governments are financially committed to sustainable food systems, pledging €477 million (US$523.68 million) thus far. But much more is needed from authorities to support the development of plant-based foods, cultivated meat and fermentation, which can slash greenhouse gas emissions (GHG) and animal suffering, according to the organization.

The report, which tracks global policy developments in the sustainable protein sector, shows that European governments are leading the way in public investment in these innovative ways of producing meat, seafood, eggs and dairy. 

In 2022 alone, the investment amounted to €370 million (US$406.28 million), over half of the estimated global investments of €576 million (US$635 million).

The report highlights two European countries that broke global records in funding sustainable proteins last year. Denmark announced approximately DKK675 million (US$99.45 million) to support its plant-based sector and encourage farmers to grow protein-rich crops and the Netherlands launched the Cellulaire Agricultuur Nederland program.

Denmark announced approximately DKK675 million (US$99.45 million) to support its plant-based sector in 2022.The Netherlands’ initiative provides €60 million (US$65.89) to speed up the development and market entry of lab-grown meat and targeted fermentation and educate the sector’s workforce. This month, the country became the first in Europe to greenlight cultivated meat and seafood tastings.

“The plant-based sector requires massive investment in infrastructure, training the workforce and optimizing processing techniques, as well as exploring a wider range of protein sources,” Acacia Smith, senior policy manager at GFI Europe, tells Food Ingredients First.

“The cultivated meat sector needs open-access research in areas including reducing the cost of cell culture media – the nutrients cells need to grow – and building larger fermentors that can produce more meat. And the fermentation sector requires the construction of large-scale facilities to ramp up production.” 

“We urgently need to see further investment from governments and the food industry across all these areas, enabling these sectors to deliver sustainable products that taste as good and are as affordable as conventional meat, seafood, eggs and dairy.”

Regulatory troubles
The report comes just weeks after the historic approval of cultivated meat in the US, which marked a major milestone for the sector when Upside Foods and Good Meat received regulatory clearance for cell-based meat sales in the US. 

“The recent approval of cultivated meat in the world’s largest economy will send out a clear message that this food is part of a sustainable food future and trigger a new phase of innovation,” Smith highlights.

 “However, while Europe begins to invest in commercializing cultivated meat, start-ups are now looking to the US and Singapore for a clearer path to market, so governments must ensure regulatory processes are transparent to reap the benefits of their investments.”

Singapore reigns supreme in the space, creating the conditions for cultivated meat to flourish, with other regions working to establish similar regulatory frameworks.“The US approval of cultivated meat in will send out a clear message that this food is part of a sustainable food future and trigger a new phase of innovation,” Smith highlights.

According to Smith, the EU has much to learn from the Asian nation, “The EU and national governments need to adopt coherent strategies to support these sectors and ensure the benefits of these foods are felt in Europe.”

“With Italy trying to ban cultivated meat and other countries considering unnecessary plant-based labeling restrictions, Europe is sending mixed messages to researchers and companies who need certainty to deliver on their potential.”

Nonetheless, the European Food Safety Authority (EFSA) in a proactive announcement, revealed in May that it is ready to receive the first commercial wave of EU requests for the market authorization of cell-based foods.

New horizons for Europe
The EU has increased its research funding for sustainable proteins to €25 million (US$27.41) through the Horizon Europe program. Meanwhile, the EIT Food platform, which the EU also funds, has allocated €1.8 million (US$1.98) to projects involving plant-based meat, cultivated meat and fermentation.

In Finland, Solar Foods, a start-up that makes protein from air and electricity using fermentation, received a €34 million (US$37.35 million) grant to accelerate the building of its first factory.

Solein – the sustainable protein developed by Solar Foods, was tasted for the first time in May in Singapore.

The UK is building a cultivated meat and precision fermentation research hub.Meanwhile, Umiami, a plant-based food maker, will get more than €10 million (US$11.02 million) from France to purchase and upgrade a factory, creating 200 jobs. France will invest, up to €66 million (US$72.73 million) in total, in research on sustainable protein production.

To support the sustainable protein sector, last year, the UK promised to invest £20 million (US$25.85 million) in expanding capacity, advancing research, fostering innovation, and promoting business-led commercialization, including creating foods with fermentation.

The report reveals that European governments provide different reasons for supporting sustainable proteins, such as food security in Norway, climate issues in Denmark and Sweden and biotechnology leadership in the UK and the Netherlands.

“Our report highlights that 2023 has already seen the French government setting aside €8.3 million (US$9.15) toward developing plant-based dairy, the UK government announcing £12 million (US$15.53 million) for a cultivated meat and precision fermentation research hub and investments from the Netherlands, Sweden, Austria and the European Union. 

However, the report also warns that more than public support is needed to realize the full potential of the sustainable protein sectors. According to research funded by the UK Foreign Office and ClimateWorks, it will take more than US$10 billion each year to achieve the “full benefits of sustainable proteins, including supporting 9.8 million jobs and adding US$1.1 trillion in economic activity by 2050,” according to the GFI.

“It’s too early to say whether 2022 will be remembered as a standalone year or as part of a trend in which governments increasingly recognize the importance of sustainable proteins,” Smith concludes.

By Marc Cervera