2024-05-19
"Financial Analysis" Microbial protein track emerges, Fushine Pharmaceuticals accelerates the industrialization of 10,000 tons of microbial protein
Xinhua Finance, Shanghai, May 19 (Reporter Hu Jiefei) In recent years, driven by favorable policies and markets such as the "big food" concept and synthetic biology, the alternative protein industry has attracted widespread attention from capital.
At the recently held First National Microbial Protein Technology Innovation and Industry Development Conference, Bao Jianhua, Chairman of Fushine Pharmaceuticals (300497.SZ), stated in an exclusive interview with reporters that microbial protein, as an alternative protein, offers advantages such as low production costs, rich protein content, and a flavor and taste similar to animal meat. The company has invested in a Phase I project with an annual production capacity of 200,000 tons of microbial protein and its comprehensive resource utilization. Upon completion, the project will produce 20,000 tons of microbial protein annually.
Policies and capital are favorable, and the microbial protein track has attracted attention.
Chen Jian, an academician of the Chinese Academy of Engineering and professor at Jiangnan University, explained that microbial protein is obtained through fermentation and cultivation of specialized bacterial strains, enabling the production of more protein using fewer resources. He believes this will help transform food protein manufacturing models and achieve high-quality supply; improve protein manufacturing efficiency, address challenges facing humanity, meet national strategic needs, and ensure food security.
"Microbial protein, as a new track and new business model for biofermentation, is of great significance for accelerating the development of new quality productivity and creating a new growth engine for biofermentation." Yu Xuejun, Chairman of the China Biofermentation Industry Association, said that in recent years, the independent innovation capabilities of my country's biomanufacturing industry have significantly increased. In 2023, the output value of major products in the biomanufacturing industry, represented by biofermentation, will be approximately 330 billion yuan, a year-on-year increase of approximately 4.5%; and the export volume will be approximately 7.36 million tons, a year-on-year increase of approximately 12.7%.
Data shows that global alternative protein financing surged in 2020, with $3.2 billion invested that year, a 185% year-on-year increase. Despite a cooling of the overall investment and financing market in 2022, with global alternative protein investment decreasing by 42%, investment in the Asia-Pacific market reached $562 million in 2022, a 43% year-on-year increase.
Dong Guangyang, Vice President and Director of the Research Institute at Huachuang Securities and a New Fortune Platinum Analyst for the food and beverage industry, also observed that since 2021, global capital has shifted its preference for technology routes from plant-based to cell culture and fermented protein. In the Chinese market, nine projects with investments exceeding 100 million yuan have been completed since 2022, five of which are fermented protein.
Among them, Changjin Bio has two major technical routes: biomass fermentation and precision fermentation. It has completed five rounds of financing, and the cumulative financing amount of three rounds with known amounts has reached 295 million yuan.
As a pioneer in this field and achieving industrialization, Fushine Pharmaceuticals completed the industrialized production of microbial protein using a Fusarium fermentation process in 2023 through independent research and development and international collaboration. Bao Jianhua explained that the company has already built and commenced production of a 1,200-ton microbial protein production line, with a 20,000-ton annual protein production line currently under construction.
As an interdisciplinary field at the intersection of synthetic biology and food industry, microbial protein has benefited from multiple favorable policies in recent years. For example, the 14th Five-Year Plan for National Agricultural and Rural Science and Technology Development proposes research into the cultivation and manufacturing of nutritious foods such as functional recombinant proteins; the 14th Five-Year Plan for Bioeconomy Development calls for exploring and developing new foods such as "artificial proteins" to achieve iterative upgrades in the food industry. Furthermore, cities including Beijing, Shanghai, and Jiangsu have introduced policies to encourage the development of synthetic biology.
Industrialization and commercialization issues remain to be seen
As an emerging industry, the industrialization and commercialization of microbial protein has always attracted widespread attention.
From an international perspective, the two companies currently focusing on the microbial protein market overseas are Quorn and Enough.
Among them, Quorn was founded in 1985 and has been using fermentation protein technology to develop food since the 1980s. Its earliest product on the market was fitness protein powder. Since then, it has launched fermented protein "meat" burgers, sausages, and meat rolls. Its product matrix currently covers minced meat, whole-cut meat, and seafood products.
Enough positions itself as an ingredient company, providing plant-based meat, seafood, and dairy protein ingredients to B2B customers. Starting in 2020, it began supplying fungal protein ingredients to major clients, including UK retailer Marks & Spencer, Unilever's plant-based meat brands, and an Israeli cell-cultured meat company. In 2022, the company established its first production base in the Netherlands, with an annual output of approximately 10,000 tons, and plans to increase annual output to 60,000 tons by 2024.
Dong Guangyang believes that the prospects for the industrialization and commercialization of microbial protein remain to be seen. Following the "plant-based craze," demand for plant-based meat has slowed, and the consumer base for alternative proteins remains relatively weak. Market promotion is primarily based on a B2B2C model, requiring ongoing consumer education.
In addition, R&D processes have a great impact on cost levels, and companies need to overcome cost barriers before they can commercialize.Cost control is a core pain point in industrial production during the stages of laboratory strain selection, pilot scale expansion, and commercial-scale production in fermentation companies.
Bao Jianhua explained that Fushine Pharmaceuticals has established industry-university-research collaborations with the teams of Academician Chen Jian at Jiangnan University and Professor Tu Zongcai at Jiangxi Normal University, respectively, to conduct in-depth research on microbial protein production process optimization, technological innovation, and downstream product development. Furthermore, the company possesses novel strains with fully independent intellectual property rights, further solidifying its leading position in the microbial protein field.
Fushine Pharmaceuticals recently signed a strategic cooperation agreement with Hong Kong Green Alliance Co., Ltd. The agreement involves the establishment of a joint venture, collaborative research and development, and the supply of microbial protein. The two partners plan to purchase a total of 12,000 tons of Fushine microbial protein over three years, depending on the progress of product development.
Editor: Li Yifan
Disclaimer: Xinhua Finance is a national financial information platform built by Xinhua News Agency. Under no circumstances does the information published on this platform constitute investment advice. If you have any questions, please contact customer service: 400-6123115
At the recently held First National Microbial Protein Technology Innovation and Industry Development Conference, Bao Jianhua, Chairman of Fushine Pharmaceuticals (300497.SZ), stated in an exclusive interview with reporters that microbial protein, as an alternative protein, offers advantages such as low production costs, rich protein content, and a flavor and taste similar to animal meat. The company has invested in a Phase I project with an annual production capacity of 200,000 tons of microbial protein and its comprehensive resource utilization. Upon completion, the project will produce 20,000 tons of microbial protein annually.
Policies and capital are favorable, and the microbial protein track has attracted attention.
Chen Jian, an academician of the Chinese Academy of Engineering and professor at Jiangnan University, explained that microbial protein is obtained through fermentation and cultivation of specialized bacterial strains, enabling the production of more protein using fewer resources. He believes this will help transform food protein manufacturing models and achieve high-quality supply; improve protein manufacturing efficiency, address challenges facing humanity, meet national strategic needs, and ensure food security.
"Microbial protein, as a new track and new business model for biofermentation, is of great significance for accelerating the development of new quality productivity and creating a new growth engine for biofermentation." Yu Xuejun, Chairman of the China Biofermentation Industry Association, said that in recent years, the independent innovation capabilities of my country's biomanufacturing industry have significantly increased. In 2023, the output value of major products in the biomanufacturing industry, represented by biofermentation, will be approximately 330 billion yuan, a year-on-year increase of approximately 4.5%; and the export volume will be approximately 7.36 million tons, a year-on-year increase of approximately 12.7%.
Data shows that global alternative protein financing surged in 2020, with $3.2 billion invested that year, a 185% year-on-year increase. Despite a cooling of the overall investment and financing market in 2022, with global alternative protein investment decreasing by 42%, investment in the Asia-Pacific market reached $562 million in 2022, a 43% year-on-year increase.
Dong Guangyang, Vice President and Director of the Research Institute at Huachuang Securities and a New Fortune Platinum Analyst for the food and beverage industry, also observed that since 2021, global capital has shifted its preference for technology routes from plant-based to cell culture and fermented protein. In the Chinese market, nine projects with investments exceeding 100 million yuan have been completed since 2022, five of which are fermented protein.
Among them, Changjin Bio has two major technical routes: biomass fermentation and precision fermentation. It has completed five rounds of financing, and the cumulative financing amount of three rounds with known amounts has reached 295 million yuan.
As a pioneer in this field and achieving industrialization, Fushine Pharmaceuticals completed the industrialized production of microbial protein using a Fusarium fermentation process in 2023 through independent research and development and international collaboration. Bao Jianhua explained that the company has already built and commenced production of a 1,200-ton microbial protein production line, with a 20,000-ton annual protein production line currently under construction.
As an interdisciplinary field at the intersection of synthetic biology and food industry, microbial protein has benefited from multiple favorable policies in recent years. For example, the 14th Five-Year Plan for National Agricultural and Rural Science and Technology Development proposes research into the cultivation and manufacturing of nutritious foods such as functional recombinant proteins; the 14th Five-Year Plan for Bioeconomy Development calls for exploring and developing new foods such as "artificial proteins" to achieve iterative upgrades in the food industry. Furthermore, cities including Beijing, Shanghai, and Jiangsu have introduced policies to encourage the development of synthetic biology.
Industrialization and commercialization issues remain to be seen
As an emerging industry, the industrialization and commercialization of microbial protein has always attracted widespread attention.
From an international perspective, the two companies currently focusing on the microbial protein market overseas are Quorn and Enough.
Among them, Quorn was founded in 1985 and has been using fermentation protein technology to develop food since the 1980s. Its earliest product on the market was fitness protein powder. Since then, it has launched fermented protein "meat" burgers, sausages, and meat rolls. Its product matrix currently covers minced meat, whole-cut meat, and seafood products.
Enough positions itself as an ingredient company, providing plant-based meat, seafood, and dairy protein ingredients to B2B customers. Starting in 2020, it began supplying fungal protein ingredients to major clients, including UK retailer Marks & Spencer, Unilever's plant-based meat brands, and an Israeli cell-cultured meat company. In 2022, the company established its first production base in the Netherlands, with an annual output of approximately 10,000 tons, and plans to increase annual output to 60,000 tons by 2024.
Dong Guangyang believes that the prospects for the industrialization and commercialization of microbial protein remain to be seen. Following the "plant-based craze," demand for plant-based meat has slowed, and the consumer base for alternative proteins remains relatively weak. Market promotion is primarily based on a B2B2C model, requiring ongoing consumer education.
In addition, R&D processes have a great impact on cost levels, and companies need to overcome cost barriers before they can commercialize.Cost control is a core pain point in industrial production during the stages of laboratory strain selection, pilot scale expansion, and commercial-scale production in fermentation companies.
Bao Jianhua explained that Fushine Pharmaceuticals has established industry-university-research collaborations with the teams of Academician Chen Jian at Jiangnan University and Professor Tu Zongcai at Jiangxi Normal University, respectively, to conduct in-depth research on microbial protein production process optimization, technological innovation, and downstream product development. Furthermore, the company possesses novel strains with fully independent intellectual property rights, further solidifying its leading position in the microbial protein field.
Fushine Pharmaceuticals recently signed a strategic cooperation agreement with Hong Kong Green Alliance Co., Ltd. The agreement involves the establishment of a joint venture, collaborative research and development, and the supply of microbial protein. The two partners plan to purchase a total of 12,000 tons of Fushine microbial protein over three years, depending on the progress of product development.
Editor: Li Yifan
Disclaimer: Xinhua Finance is a national financial information platform built by Xinhua News Agency. Under no circumstances does the information published on this platform constitute investment advice. If you have any questions, please contact customer service: 400-6123115
