Fonterra is ramping up efforts to explore alternative protein options.
The dairy cooperative last week annouced a joint venture with Dutch multinational Royal DSM to develop and commercialise “fermentation-derived proteins with dairy-like properties”. Royal DSM is a global purpose-led company in health, nutrition and bioscience, and the newly formed startup aims to accelerate the development and commercialisation of fermentation-derived proteins with dairy-like properties. Fonterra has been working with them since 2019 to build a comprehensive understanding of how to use precision fermentation science and technology to produce proteins similar to those found in dairy.
The new startup will produce food utilising this intellectual property, while continuing to focus on further precision fermentation research and development.
But what exactly is precision fermentation?
While traditional fermentation processes rely on microbial cells (yeast, fungi) and anaerobic (oxygen-free) conditions to convert ingredients into end-products with unique texture or flavour properties such as yoghurt, bread and alcoholic beverages, biomass fermentation makes use of the nutritional qualities of fungal mycelium and the branching thread-like fibres that typically form the vegetative part of a fungus. Mycelium is cultivated in large tanks, harvested, then cut and flavoured to produce alternative protein products (mycoprotein). Fungal mycelia offer high levels of protein as well as fibre, vitamins, minerals, and can be used directly as an ingredient, without the need to extract and purify the protein.
The same process can be used to create synthetic milk, which does not require cows or other animals, yet can have the biochemical makeup as animal milk.
Fonterra chief innovation and brand officer Komal Mistry-Mehta says “the new startup is an exciting opportunity to combine DSM’s world-leading expertise in precision fermentation science and technology with Fonterra’s world-leading dairy science and technology”.
“With fermentation-produced proteins having a wide array of potential applications for customers and consumers, this partnership aligns well with the co-op’s strategy to be a leader in dairy innovation and science,” Mistry-Mehta said.
“By exploring the opportunities of nutrition science solutions, we can unlock the growth potential of our advanced specialty ingredients and play more boldly in this category.
“Dairy nutrition will always be our core strength, now and into the future, and there will continue to be strong demand for our sustainable, pasture-based dairy. At the same time, we are conscious that preferences of some consumers are evolving, and we believe proteins produced with emerging technologies can work alongside our dairy products.
“With continued population growth, there will be a role for both dairy and other sources of nutrition in feeding the world’s population – they offer choice and they are complementary.”
The startup has yet to be named, but Fonterra’s programme leader for complementary nutrition and new partnerships development Jonathan Boswell says it will be determined ahead of incorporation.
He said the partnership will help Fonterra deliver on its strategy of generating more value for farmers and for New Zealand over the coming years.
“We see this technology, not as a dairy alternative but playing a role right alongside it,” he said.
Fonterra, which currently holds sixth place in global dairy rankings, has already used traditional fermentation to make cultures for cheese and probiotics, and Boswell said the new proteins would complement this.
Fonterra and DSM are also collaborating to reduce on-farm greenhouse gas (GHG) emissions, by exploring applications for DSM’s methane-inhibiting Bovaer technology in the New Zealand pasture-based farming system. It also bought a small stake in Motif Ingredients in 2019, a US-based food ingredients company which develops and commercialises bio-engineered animal and food ingredients, to “be part of this emerging next-generation fermentation-produced nutrition sector.”
“Consumers around the world will continue to want natural, grass-fed dairy as a premium source of nutrition. At the same time, we recognise that no two consumers are the same. As diets and preferences continue to evolve, we want to be there, providing people with choices,” the company said at the time.
