The Role of AI in Transforming Food Sustainability

Tao Zhang is cofounder of Dao Foods International, an investment firm established to build alternative proteins in China. It was founded by Tao Zhang from Dao Ventures and Albert Tseng from Moonspire Social Ventures in collaboration with New Crop Capital.

The views expressed in this article are the author’s own and do not necessarily represent those of AgFunderNews.

As the world faces pressing issues such as climate change, resource depletion, and the imperative for healthier lifestyles, the food industry finds itself at a pivotal moment. Leveraging artificial intelligence (AI) could usher in a wave of innovation, provided it is applied thoughtfully.

As an impact investor focused on climate and environmental solutions, particularly food sustainability, I believe that our initiatives should center on three core areas: reducing food waste, enhancing precision farming techniques, and developing alternative protein sources.

Reducing Food Waste

Having grown up in China amidst food scarcity, I deeply understand the significance of proper nourishment and access to it. For millions still battling malnutrition, AI’s predictive algorithms can help stakeholders forecast consumer demand accurately, aligning food production with actual consumption needs.

China has made strides in reducing food waste, notably through the introduction of the “Clean Plate Campaign” in 2020, which encourages minimization of leftovers, particularly in restaurants and social gatherings. The government has implemented fines for food wastage and is advocating for smaller serving sizes.

In its operations, Yum China—operator of KFC, Pizza Hut, and Taco Bell—employs AI to bolster sustainability. For instance, the KFC Super App utilizes AI to recommend menu items, thus reducing food surplus. Yum China has also established ambitious greenhouse gas emissions targets and is recognized globally for its Environmental, Social, and Governance (ESG) practices.

Furthermore, smart ordering tools are emerging in urban areas to assist restaurants in predicting customer preferences, thereby minimizing food waste. The rapid advancements in AI raise exciting possibilities for innovative approaches to a more sustainable future in China.

Precision Agriculture and Enhanced Efficiency

China has been progressive in incorporating AI and advanced technologies into its agriculture sector to enhance efficiency and sustainability. The deployment of AI-powered drones and smart sensors is enabling real-time monitoring of crop health, soil moisture levels, and pest outbreaks.

Initiatives outlined in China’s “Smart Agriculture Action Plan 2024-2028” underscore the goal of integrating big data and AI into rural farming practices. This aligns resource allocation with crop needs, enhancing agricultural yield.

By implementing pilot programs in leading agricultural regions, China is not just bolstering food security but also setting a benchmark for large-scale, tech-driven reforms in agriculture.

Development of Alternative Proteins

Discussions on sustainable food must prioritize alternative proteins, a focus area for my investment firm, Dao Foods. AI is at the forefront of developing alternative protein sources that mitigate the environmental impacts associated with traditional meat production.

ZhongGu Mycelium, a company specializing in mycelium-based proteins from Inner Mongolia, recently showcased at a Dao Foods workshop how they utilize AI to refine protein production. They’ve developed a proprietary AI model that decomposes the R&D-to-production process into manageable steps, inserting AI-driven enhancements along the way.

Leading Chinese alternative protein companies like Starfield are harnessing AI to innovate new protein products that cater to rising consumer demand. Starfield employs machine learning to assess taste preferences and ingredient combinations, optimizing their plant-based offerings to appeal to both local and international markets.

Personalized Meal Planning

AI-driven meal planning apps increasingly address China’s regional culinary diversity. Companies like Meituan and Ele.me are utilizing AI in their food delivery services to offer personalized recommendations reflective of local flavors—from spicy Sichuan dishes to the subtlety of Guangdong cuisine.

Haidilao, one of China’s largest hotpot chains, opened the world’s first AI-driven restaurant in Beijing in 2018, featuring automation in service and custom order technology for a tailored dining experience. Their frameworks promote sustainability through the recommendation of seasonal ingredients readily available at local markets.

Transparency and Traceability

In the dairy sector, maintaining temperature consistency during production is critical. Mengniu, China’s second-largest dairy firm, collaborates with Alibaba to incorporate AI for smart supply-chain analysis. This partnership focuses on improving efficiency in product delivery and optimizing manufacturing locations.

Alibaba has tested blockchain technology for food tracking and recently demonstrated the capability to trace the origin of mangoes in just 2.2 seconds, compared to the traditional six-day method.

The Future of Food

The prospects for AI in the food sector are expansive. Innovations could lead to new protein sources, automated vertical farming solutions, and AI-curated diets tailored for diverse consumer backgrounds. AI is positioned to play a pivotal role in addressing global food challenges through optimized resource management and sustainable practices in at-risk regions.

Integrating AI within the food industry signifies more than just a technological shift; it is a moral duty. By tackling sustainability, health, and accessibility, AI facilitates a reimagining of food systems, championing a better future. At Dao Foods, our motto rings clear: ‘Good Food, Better World’—a belief we hope to share with all stakeholders in our culinary journey.

Further Reading:

• 🎥 What is the market opportunity in China for meat and dairy alternatives?
• Nestlé bets big on AI and biotech with new deep tech center in Switzerland.
• Acre Venture Partners bets on GenAI for NPD with Zucca investment: Tech will become ‘core to commercialization’ in CPG.