New Player Enters Lactoferrin Market with Precision Fermentation Facility
A new player is plotting a move into the lactoferrin market with plans to construct a precision fermentation facility in the Midwest producing the high-value ingredient using genetically engineered microbes.
The company—PFerrinX26—is backed by VC firm Earth First Food Ventures Ltd (EFFV), which is putting together a consortium of players spanning “big dairy, dextrose providers, offtakers, CPG and ingredient players together with innovative financing solutions” to fund a facility capable of producing 200 tons of bovine lactoferrin in the coming years.
An iron-binding anti-microbial protein found in mammalian milk, lactoferrin has benefits for humans around immunity, iron regulation, digestive health, endurance, and muscle strength, but has historically only been available in small quantities owing to the costs and challenges of isolating it from milk.
As a result, prices can range from $600- $1,500/kilo, making lactoferrin an attractive candidate for firms in the precision fermentation space seeking to unlock new markets for lactoferrin in adult and performance nutrition.
Consortium Building
EFFV plans to build and operate its own American facilities rather than rely on co-manufacturing agreements, allowing for greater control over production quality and cost efficiency.
“Our first facility will be located in the Midwest where we have an abundance of dextrose–a large input and crucial feedstock. So we will be getting offtake agreement as we architect the consortium, and then once the facility is up and running we’ll be employing a b2b model,” shared cofounder and CFO Ricardo Radwanski.
With an initial focus on land-based recirculating aquaculture systems, EFFV is “used to large scale, industrial scale ups with novel technologies, with over $850 million raised to scale globally,” said Radwanski.
Market Drivers for Dairy without Cows
While EFFV is looking at other dairy proteins such as beta lactoglobulin down the road, it is initially focused on lactoferrin given its high market value and relatively low inclusion rates in key applications.
“What we are looking at right now is what makes the most sense from a unit economics perspective. We also know that the demand is there. Were there more available, the market would grow,” Radwanski explained.
Large food companies recognize that dairy supplies will not be able to keep up with demand, leading to a deficit of dairy by 2030 which can be addressed via dairy alternatives and dairy from precision fermentation.
Overall, the move towards precision fermentation in the dairy industry signifies a shift towards sustainable and innovative solutions to meet the growing demand for dairy products.
