Because Israel is the Silicon Valley of lab-grown food
The diet of Israel's future does not include animals, or almost no animals. Lab-grown food, whether chicken, beef or milk, is a government priority and a favorite sector of investors. Facts, numbers and comments
Israel, the startup nation, is second only to the United States for investments in alternative proteins and, therefore, laboratory-grown food. In addition to the now well-known cultured meat, chicken and beef , Tel Aviv has also recently received the green light for the marketing in Canada of the products of Remilk , which specializes in laboratory-made milk and dairy products.
But how did it become the Silicon Valley of food-tech and what are the reasons why you see a future in the sector?
INVESTMENTS IN FOOD GROWN IN ISRAEL
In 2022, according to a report by the Good Food Institute Israel (GFI Israel), Israel invested 454 million dollars in alternative proteins, or approximately 15% of total global investments, ranking only after the United States.
Its second place applies to both fermentation and plant-based investments, with $147 million (around 18% of total global investments in the sector) and $200 million (around 16% of total investments) respectively. global investments in the sector).
Between 2020 and 2022, Israeli companies dedicated to alternative proteins – which include cultured meat, plant-based proteins and fermentation-based proteins – raised more than a billion dollars from investors.
The government also did its part with an offer of 14.6 million dollars in funding for fermentation infrastructure, giving particular attention to those who practice it for alternative proteins, and a research funding of 1.2 million of dollars as it is considered a national priority .
The NGO Start-Up Nation Central, however, reports a collapse in investments in the food-tech sector from 600 million dollars in the first half of 2022 to 200 million dollars in the same period of 2023. However, it confirms that the prospects remain promising.
SALES ARE ALSO GOOD
But grown food isn't just appealing to investors. The GFI Israel report, whose data refers to 2022, also reveals that plant-based products continue to grow at a faster pace than animal products. Sales of the former increased by 8%, compared to a growth of 1% for the latter.
Sales of plant-based milk also increased by approximately 15%, compared to a 0% increase for animal-based milk, and accounted for approximately 18% of total milk sales in Israel.
WHERE ISRAEL'S PASSION FOR CULTIVATED FOOD COMES FROM
Perhaps rather than passion we should talk about necessity. “Since its creation, the State of Israel has had to find solutions to two problems: defense and agricultural production in an arid land,” writes Le Monde to explain the quantity of startups that have sprung up like mushrooms in recent years. According to Start-Up Nation Central, Israel had more than 250 startups in the food technology field until last August and according to The Grocer there would be around 400.
Time also points out that, although the country has transformed itself into an agrotechnical powerhouse thanks to advances in water desalination, greenhouse construction, precision irrigation and hydroponics, it is not yet self-sufficient in food.
WHY ISRAEL IS A (FOOD-TECH) STARTUP NATION
As explained to The Grocer by Noga Sela Shalev, CEO of the food technology incubator Fresh Start, in Israel there are a series of advantages that explain the proliferation of companies: from the entrepreneurial culture to the know-how accumulated in the field of agriculture, biotechnology and data, as well as a close relationship between universities and industry, which allows technology transfer, and government contribution.
“The Israeli government understands that the alternative protein sector is a strategic asset for diplomacy and national food security, as well as an engine of economic growth that will generate tens of thousands of jobs and billions in tax revenue,” said Aviv Oren from GFI Israel.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/perche-israele-e-la-silicon-valley-del-cibo-coltivato-in-laboratorio/ on Sun, 11 Feb 2024 07:31:12 +0000.