Meat and dairy products
from the bioreactor
Those who are skeptical today may be squeezed
out of the market tomorrow
Author: Prof. Dr. Nick Lin-Hi, Economics and Ethics, University of Vechta, Driverstraße 22, 49377 Vechta, Germany,
phone +49 4441 15 703, email nick.lin-hi@uni-vechta.de
“Survival of the fittest” is probably the most famous
phrase coined by Charles Darwin. However, Darwin
has not, as often incorrectly assumed, argued that
the strongest wins in a competitive environment
but stressed the importance of adaptability for survival. The necessity
to constantly assimilate to new developments is not only
prevalent in nature but also in competitive markets. Companies
can only survive in the long run if they are permanently capable of
embracing change and reinventing themselves. Prominent cases
of Kodak, Nokia, and Thomas Cook vividly illustrate the consequences
of companies’ reluctance and incapacity to critically reflect
on and question established business models in the face of
(technological) change.
The logic of adaptability for survival also applies to the agrifood
industry. The industry cannot take for granted that its traditional
business models will continue to be successful in the future.
In fact, some (regional) markets for meat and dairy products are
already undergoing profound changes. The new generation of
plant-based meat and dairy substitutes has created a new product
category that has firmly established itself in the marketplace.
The triumph of plant-based meat and dairy substitutes is closely
linked to the fact that they have become increasingly similar to
their animal-based counterparts. In this way, the new products are
able to satisfy the demand for better nutrition without consumers
having to forego the “real” taste of meat and dairy products. Another
driver of the rising demand for plant-based meat and dairy
substitutes is society’s growing awareness of environmental problems
of consumption and the associated advent of the “vegan
zeitgeist”. By now, the vegan movement has outgrown its niche
and plant-based meat and dairy substitutes are enjoying increasing
popularity with consumers.
For a long time, the incumbent industry has not taken seriously
the rise of plant-based substitute products. Only slowly the
insight is gaining ground that the growing demand for these
products is not a fleeting moment or a negligible trend but has
a profound impact on the industry’s traditional business models.
Recently, Jais Valeur, the CEO of Europe’s largest meat processor
Danish Crown, had to admit to have severely underestimated the
vegan wave. Moreover, he acknowledged that livestock factory
farming imposes enormous negative externalities on the environment.
Therefore, it is only logical that the company has joined
the group of other established companies that are involved in
plant-based substitute products. Notably, doing business in the
domain of plant-based alternatives is likely to be a basic building
block for Danish Crown to meet the self-imposed goal to reduce
its ecological footprint by 50 percent by 2030.
Profund changes ahead
Plant-based substitute products are, however, just a foretaste
for the profound changes lying ahead of the agri-food industry.
With in-vitro produced meat and dairy products new disruptive
innovations are already knocking on the door. Over the past two
years, investments in the new technology for the production of
in-vitro products such as hamburger patties and dairy ice cream
IDM ¦ Disruption
6 · January/February 2022 ¦ international-dairy.com
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