[Disclosure: AgFunderNews’ parent company AgFunder is an investor in Hoxton Farms.]
Pork fat grown in a bioreactor instead of a pig could be heading to Japan and other markets in Asia-Pacific in the coming years following a strategic partnership between UK-based cultivated fat startup Hoxton Farms and Japanese trading giant Sumitomo Corporation.
Under the deal, the two parties will create partnerships with manufacturers to integrate Hoxton Fat into multiple food products from soups and sauces to savory pastries and processed meats.
They will also work with Japanese regulators to secure the relevant food safety approvals aided by the Japan Association for Cellular Agriculture (JACA), a nonprofit advancing guidelines for the responsible adoption of cellular ag in Japan.
“Cell-based foods are an innovative source of protein that can help address future food security challenges without the need for animal sacrifice and with a lower environmental impact. We see Hoxton Farms’ cultured fat as a groundbreaking ingredient that contributes not only to better taste but also to sustainability.” Takeo Kojima, head of Sumitomo Corporation’s agri-innovation unit
Market drivers for cultivated fat
“Asia is a pork market, but a very broken one, so we think Hoxton Fat is a really great fit for this market,” cofounder and CEO Max Jamilly PhD, told AgFunderNews.
“Since the beginning, with the help of some existing partners in Japan, we have been exploring the possibility of partnerships here, and Sumitomo Corp is a very natural fit as they are one of the largest and most knowledgeable traders of pork with a business in pork meat and in pork fat as a separate input in processed meats, bakery, soup and sauces.”
The main drivers for Sumitomo are a desire for healthier fats that still deliver the unique taste and functionality of animal fats and a desire to futureproof the supply chain, said Jamilly.
Put simply, he said, demand for meat in Asia is steadily increasing, driven by rising income, urbanization and population growth, yet supplies are threatened by an array of challenges from disease (African swine fever massively disrupted the global pork market in 2018) to rising input costs, trade issues, and climate change.
As for health, Hoxton Farms is able to customize the fatty acid profile, saturated fat content and flavor of its fats by moderating the cell culture media, process, and the cells themselves, said Jamilly.
“This collaboration presents significant benefits for Japan, as it enables Japanese stakeholders efficient access to groundbreaking technologies, production facilities, and essential information regarding safety and taste in addressing challenges in food supply.” Megumi Avigail Yoshitomi, president, JACA
Unit economics, manufacturing and scaleup
Hoxton Farms—founded in 2020 by Jamilly (a synthetic biologist) and Ed Steele ( a mathematician and computer scientist)—is laser-focused on optimizing media formulations to get its porcine stem cells to grow as quickly as possible with high rates of differentiation (more cells that turn into fat) and high levels of fat accumulation.
It has also developed proprietary bioreactors Jamilly claims enable it to scale up in a modular fashion with significantly lower capex and operating costs.
And while the unit economics of cultivated meat can be challenging, he said, cultivated fat grows more quickly than muscle and is a “high-impact, low-inclusion rate” ingredient by comparison.
“At the moment, we’re producing from our pilot site in London, but now that we’re building partnerships around the world, we’re looking at establishing manufacturing partnerships with our customers as well,” said Jamilly.
“We are very well placed to scale and come to market in partnership with our b2b customers who are very well-established CPG food players.”
On the regulatory front, Hoxton is preparing to make a submission to regulators in the UK shortly, with applications in the US and Singapore expected to follow by the end of the year, he said. “We also working closely with JACA [to help navigate the regulatory process in Japan].”
Futureproofing the pork supply chain
According to Hoxton Farms, “Asia’s demand for meat is projected to increase by 78% by 2050, driven by rising income, urbanization and population growth.
“This has already led to soaring food prices and concerns over supply stability due to climate change and disease,” added the firm, noting how the 2018 African Swine Fever outbreak in China forced it to cull 25% of the global pig population.
“Consumers and food brands alike are seeking healthier, resilient and more sustainable alternatives that maintain the taste and culinary traditions of conventional meat.”
Further reading:
Inside the UK cultivated meat regulatory sandbox with Mosa Meat, Hoxton Farms, and BlueNalu
🎥Hoxton Farms tackles fat, the final frontier for alt meat
Mission Barns secures FDA approval for cultivated fat, gears up for US launch
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