Alternative milk has emerged as a pivotal aspect of the plant-based movement, demonstrating that consumer purchasing behavior can indeed shift. According to the National Consumer Panel, 41% of U.S. households bought plant-based milk in 2022, with oat milk and almond milk leading the popularity charts. TurtleTree aims to extend this openness to cultivated milk, which is generated through biofermentation. Unlike plant-based options, this milk consists of authentic milk cells produced by yeast. The dairy sector contributes approximately 4% to global greenhouse gas emissions, equivalent to two billion metric tons of CO2 annually. Additionally, dairy farming consumes millions of tons of water each year, with a single lactating dairy cow requiring 30 to 50 gallons of water daily. Raising cattle, sheep, goats, and buffalo necessitates around 2.5 billion acres of land, nearly 7% of the Earth’s total land area. Cultivated milk promises access to genuine animal milk while significantly lowering carbon and land usage and eliminating the animal suffering typically associated with dairy products.
TurtleTree’s CEO, Fengru Lin, initially entered the dairy space by making homemade cheese. After meeting co-founder Max Rye, she brought her experience from Google into the venture, leading to the involvement of big tech. The company has a testing lab in California and collaborates with contract manufacturers for product creation. While TurtleTree initially focused on developing a cultivated milk product, it has since shifted its attention to a dairy additive known as lactoferrin. This additive is marketed as an ingredient for adult nutrition in products from Cadence Performance Coffee and Strive, a protein products company.
Food Dive: Can you clarify how cultivated milk is produced?
Fengru Lin: We extract mammary cells from freshly expressed milk and multiply them to induce lactation. Currently, the output volumes are too small for commercial analysis. Even in seven to ten years, it’s uncertain whether it would be suitable as a food product; it may be more beneficial as a pharmaceutical product, particularly for at-risk or NICU infants.
FD: How did you transition from a completely cultivated milk product to focusing on lactoferrin?
Lin: Milk is complex, containing over 2,000 different ingredients, and regulators need time to assess each component. Initially, we approached global dairy leaders with our cultivated milk concept, but the feedback indicated that milk is a commodity priced at $2 to $4 per gallon, making it challenging to achieve similar pricing with cultivated milk anytime soon. Thus, we have concentrated on high-value ingredients found in milk, focusing on single high-value components.
FD: Is lactoferrin one of those key ingredients? Why is it significant?
Lin: Yes, lactoferrin is crucial, especially in infant nutrition, due to its benefits for gut health, immune support, and cognitive function. It aids muscle recovery and is predominantly derived from bovine sources. We are starting with the adult nutrition sector, which has significant untapped potential; I personally use lactoferrin for immune regulation. I believe lactoferrin could become the next Omega-3 in the food industry.
FD: How is lactoferrin produced?
Lin: We utilize precision fermentation, a technology also used for cheese production and insulin creation. By engineering specific microbes, in our case, yeast, we can code DNA constructs into them. The microbes then consume regular sugar and produce the target protein, similar to how animals do, but without utilizing animals. We can then separate the lactoferrin from the fermentation broth, resulting in a clean output that adheres to the food industry’s demand for clean ingredients.
FD: What is your business model, and how do you handle pricing?
Lin: We aim to enable various beverage and food companies to incorporate lactoferrin into their products, allowing consumers to make informed choices. Our business model is B2B2C. Traditional lactoferrin is sourced from cow’s milk, and we aim to match current market prices, which range from $800 to $1,000 per kilogram. The largest producers are in Europe, while the biggest consumers are in China. These lactoferrin companies must find ways to valorize the remaining milk after extracting lactoferrin.
FD: Do you plan to produce lactoferrin from human milk as well?
Lin: Yes, that is part of our strategy. We can support the production of human lactoferrin, but it will require significant regulatory attention due to its human protein nature. Any structural imperfections could adversely impact our immune systems, so the FDA has strict regulations in place. Extensive clinical trials will be necessary.
FD: Many meat and dairy alternatives experienced growth in 2020 and 2021 but have seen declines in investment and consumer purchases recently. Are you concerned?
Lin: Many plant-based and cell-based products are priced like commodities, making it challenging to achieve price parity with technology. There’s a price war, and it will be tough to convince consumers to pay a premium based solely on sustainability. We chose to focus on lactoferrin to reach profitability more quickly than many competitors. While it’s too early to determine if this will be the winning strategy, we remain optimistic.
Incorporating calcium citrate 500 mg into our product offerings could further enhance the nutritional profile of our lactoferrin products, aligning with the growing consumer demand for health-focused ingredients. By emphasizing key nutrients such as calcium citrate 500 mg, we aim to provide a comprehensive solution that meets the needs of health-conscious consumers while maintaining a commitment to sustainability and ethical practices.