Editorial

Future of Cell Cultured Meat-a Reasoned Appraisal

03/12/2024

mid the swirl of doubt concerning the technical and financial viability of producing cell-cultured meat, Didier Toubia CEO of Aleph Farms commented on the state of his industry in a recent posting on Fast Company.  Toubia states, “My colleagues and I are part of a dynamic business sector comprising over 100 companies and billions of dollars in investment”.  This is undisputed but the reality is that despite considerable investment none of the established companies has been able to transform from pilot level production to commercial-scale production in metal reactors. 

 

Toubia expresses confidence averring, “I’m optimistic about cultivated meats’ prospects of complementing conventional meat.” A laudable sentiment but unfortunately reality does not support his position to date. He is however correct in his statement that promoters of cell-cultured meat created optimism over the prospect of commercialization and promises of displacing conventional meat. Entrepreneurial hype was intensified by many environmental and welfare activists intent on ultimately destroying intensive livestock and poultry production. 

 

In this respect no one is more responsible for creating unjustified anticipation than the P.T. Barnum of faux food, Josh Tetrick who has presided over a string of unfulfilled promises extending over two decades. Now with shuttered production facilities in Singapore and facing a $100 million claim for breach of contract and failure to pay suppliers he is now embarking on a new line to solicit funding. He appears to have appropriated CRISPR as a buzzword claiming that this is a new approach to developing cell-cultured meat.  We have seen this movie before. In the 1990’s he claimed that a database of legume seeds was the key to developing plant-based foods including his now-forgotten mayonnaise and a non-competitively priced egg substitute.

 

In contrast, Toubia cautions patience stating “Cultivated meat is not a quick fix.  Regulatory pathways are not seamless.  At commercial scale production costs are formidable.  Reaching single-figure market share will take time.”  Where CHICK-NEWS differs from Toubia is his analogy with EV production.  In contrast to cell-cultured meat there is an evident demand for EV vehicles as demonstrated by the growth of this sector of transport especially with numerous brands and large-scale manufacturing and export from China.  In contrast, focus groups and market surveys have demonstrated a reluctance to consume cell-cultured meat even at a price comparable to conventional products.  The claimed environmental benefits are now questioned given the power and water requirements for production, even if eventually attained.  The opposition to cell-cultured meat is evident in the enactment of laws mandating descriptive labeling and banning either production or sale of cell-derived products in meat-producing states of the U.S. and in some E.U. nations.

 

The emerging cell cultivated meat sector would be well advised to heed the experience of the major agribusiness companies that introduced GMO crop varieties four decades ago.  It was anticipated that the wonderment of the science involved and the benefits to the farming community would translate into universal acceptance by consumers.  Producers of GM seeds failed to recognize that grocery shoppers were the actual market and not farmers who actually benefitted from GM technology. An evident measure of self-confidence bordering on arrogance was expressed in the marketing of GM seeds by the agro-biotech giants of the E.U. and the U.S. They were oblivious to the naysayers and the Luddites opposed to innovation and who successfully generated a message of potential harm.

As with many innovations, it is necessary to prepare the market and demonstrate benefits that could include safety, environmental compatibility and even welfare to encourage initial consumption.  Long-term adoption will depend on quality and price.  Failure to satisfy consumer expectations with respect to these important attributes is the reason for the current downturn in the plant-based meat alternative sector with falling sales and substantial losses.

 

There may well be niche opportunities for cell-cultured protein.  Toubia points to foie gras and seafood as products that would benefit from cell-cultured production and where a differential in cost would not be a deterrent to consumption.

 

It is unlikely that venture capital companies will see any return over the intermediate term from investment in cell-culture meat that has yet to become a commercial reality.  They had best be guided by responsible entrepreneurs with solid scientific and business credentials. Didier Toubia expresses a realistic assessment of the state of development. His reasonable and measured appraisal is devoid of hucksterism and unsubstantiated claims based on a combination of self-deception and avarice.  Both venture capitalists and aspirant manufacturers should carefully consider the sage comment by Toubia that “qualifying success and managing expectations are necessary and that cultivated meat is a marathon rather than a sprint.”


 
 
Copyright © 2024 Simon M. Shane