NEW ZEALAND'S FOOD AND FIBRE SECTOR THINK TANK
In this issue:
- Alternative Protein 2022 - Te Puna Whakaaronui reference document release
- NZ food producers progressing ethical credentials
- Big food players backing alt-protein companies
- We have been looking at...
Alt-Protein 2022 - reference document release
This week Te Puna Whakaaronui released WELL_NZ: Alternative Protein 2022 – establishing a fact base, the second in a series of four reports that will underpin a sector-wide conversation about re-designing of New Zealand’s food production eco-system. This publication’s neutral perspective is timely alongside a profusion of industry reports and growing government interest in the ability of alternative proteins to support food resilience in the face of climate change, pandemic, geopolitical disruption and population growth.
“It is important that New Zealand’s food production sector has a shared understanding of the change that alt-proteins will bring globally. Domestic producers will need to respond and it’s important this happens strategically for both existing and developing sectors,” Lain Jager, Te Puna Whakaaronui Thought Leaders Chair.
WELL_NZ: Alternative Protein 2022 demonstrates that disruption to New Zealand’s conventional, natural meat and dairy production by alternative proteins is plausible. It indicates that an increase in the use of these new food technologies and the resulting products could take a greater share of supermarket shelf-space by 2030. However, it identifies that alternative proteins will augment the global conventional protein supply, not replace it.
A wide range of precision fermented dairy products are already available in some countries: ice cream, cream cheese, fluid milk and yoghurt. Cultured meat is already retailing in Singapore. There are many variables that will impact on market share capture for these new products: consumer acceptance, production costs, supply chain development and scaling production.
Regulation, investment capital and lack of a national strategy are factors in the development of a domestic alternative protein industry. New Zealand could see economic success by focussing on creating intellectual property as well as high-value niche products and ingredients.
Te Puna Whakaaronui is keen to hear your view on the impacts of alternative protein development, as well as connect with industry conversations on the topic. Let us know what you think. Read summary and full versions of WELL_NZ: Alternative Protein 2022.
NZ food producers progressing ethical credentials
With alt-protein development driven, in part, by consumer demand for lower emission products New Zealand’s existing, conventional food production sector has stepped-up to develop its own industry food miles certification process. The sector is currently working to clarify food miles accrued within both the domestic and international supply chain. Ultimately, sound certification will enable New Zealand’s natural food producers to meet the demands of the growing number of ethically conscious consumers in some export markets.
Earlier this month AgResearch released Carbon footprint of New Zealand beef and sheep exported to different markets, commissioned by Beef + Lamb NZ and the Meat Industry Association. It assessed the carbon footprint of exported New Zealand sheep and beef meat. It found:
- 90-95% came from on-farm emissions (primarily enteric methane from animals and nitrous oxide from excreta);
- 2-4% was from meat processing; and,
- 2-6% was from post-processing transport to market (food miles).
The report noted that emissions intensity of sheep and beef meat from New Zealand was at the lower end of the range compared to a selection of published studies from other countries.
AsureQuality, in partnership with Toitū Envirocare, has developed a Farm Carbon Certification Programme for New Zealand farmers to capitalise on environmental work already happening inside the farm-gate. It uses an on-line carbon management tool integrated with OverseerFM (a greenhouse gas reporting tool) and allows for emission and on-farm sequestration tracking. OverseerFM is recognised in over sixty countries, making it “an ideal component of the certification programme for New Zealand farmers exporting products in global supply chains” according to AsureQuality.
Internationally recognised and accessible certification will support the ongoing export of our natural meat and dairy production, particularly with ethically conscious consumers. The alternative protein industry may well need to develop a similar food miles certification process, in due course, to support consumer comparison.
Big food players backing alt-protein companies
The last two years have seen increased investment by global food companies in alternative protein start-ups. Last year we saw major food players invest in alternative protein: Tyson Foods, Cargill, Kellogg’s, General Mills, Kraft Heinz, Hormel Food Corporation, Rich Products Corporation, ADM, Katjes Group, Thai Union Group, Paulig Group, BRF, JBS Foods and New Zealand’s own Fonterra.
In the first half of 2022, alternative protein companies raised US$1.75 billion. According to the Good Food Institute: US$717 to plant-based food production companies, US$396 million to precision fermentation companies, and US$634 million to cultivated meat companies. In addition to six companies raising at least US$100 million in the first half of 2022, one came close to raising US$85 million.
Investment activity is primarily focussed on development in Israel, China, Singapore and the USA. However, Denmark led the world with a US$177 million investment (over 9 years) in plant-based proteins in 2021 and Canada invested over $30 million in plant protein research in 2021. In 2022 Israel leads the world with investment in plant-based proteins (US$160m) and has made a significant investment in cultivated and fermentation proteins (US$320m), second only to the US (US$857m).
With big food companies at the table alongside alt-protein start-ups, will we begin to see incorporation of alt-protein products and ingredients into mainstream products soon?
We’d love to hear from you! Let us know what you think, email us at: tepunawhakaaronui@mpi.govt.nz
We have been looking at...
- China’s Shenzhen Energy Group has signed a long-term agreement with oil major BP to buy liquefied natural gas (LNG), aiming to lock in supplies with gas-fired power generation poised to surge in China.
- Research briefings: A gene variant in maize that increases protein content.
- UK-based molecular farming start-up, Bright Biotech, secured US$3.2 million in funding following its announcement of the development of a new genetic engineering method to make proteins that stimulate cell growth from tobacco plants that can be used for cultivated meat production.
- Scotland’s Oceanium has launched the seaweed-derived Ocean Health Fibre, a one-to-one replacement for synthetic methylcellulose, a common food ingredient in plant-based foods.
- Flemington Farm in Ashburton receive the top sustainability accolade at the 2022 Ballance Farm Environment Awards.
- New report from the Commonwealth Scientific and Industrial Research Organisation: Insights on technology adoption and innovation among northern Australian beef producers, identifies key barriers to technology adoption.
- Salmonella not detected on NZ poultry farms since September 2022.
See more at www.tpw.org.nz.
E-mail us at tepunawhakaaronui@mpi.govt.nz
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Published by Te Puna Whakaaronui. Not Government policy.