Government Support Crucial for Australia to Become a Global Precision Fermentation Leader, Says New CAA Report – vegconomist

The non-profit Cellular Agriculture Australia (CAA) has released a new white paper highlighting Australia’s capabilities in producing precision-fermented ingredients and its potential to become a global leader.
The country is already home to a precision fermentation ecosystem of startups, established companies, research institutions, mature investors, and manufacturing capabilities. Eden Brew, Daisy Lab (NZ), All G Foods, Eclipse Ingredients, Nourish Ingredients, the ASX-listed company Noumi, and CMDO Cauldron Ferm contribute to making Australia and New Zealand’s precision fermentation sector the largest in Asia-Pacific.
“Australia has an opportunity to build on existing sovereign capability across the precision fermentation value chain”
These companies focus on producing proteins such as whey and casein for dairy products and bovine lactoferrin, a sought-after whey protein due to its iron content, and fats to improve meat and dairy alternatives.
Australia’s strong reputation as a global food supplier, established logistics networks, and proximity to large markets immensely benefit the sector’s potential. The paper says that fermenting the country’s $2 billion sugar crop into dairy fats and proteins could generate AUD 50-$80 billion, which is 14 to 22 times the current value of the sugar industry, adding high value to raw materials.
Meanwhile, according to the science research agency CSIRO, precision-fermented ingredients could boost Australia’s protein production, contributing to AUD 13 billion in economic opportunity. Additionally, biomanufacturing could help meet the anticipated domestic and export demand for 8.5 million tons of Australian protein products by 2030.
© Cellular Agriculture Australia
Investment and streamlining approvals
Despite these substantial opportunities, the industry faces challenges, including cost and scalability, limited funding for open-access foundational research, high regulatory application costs, unclear requirements, and limited government interest. Cellular Agriculture Australia has proposed recommendations to address these issues.
The paper urges government support and investment in precision fermentation to bolster biotechnology, food manufacturing, jobs, productivity, and competitive advantage. The government should consider funding pilot and commercial-scale facilities since infrastructure is the most significant barrier to industry growth, as by 2035, precision fermentation infrastructure will need to be 180 times greater than today.
The authors also recommend lowering the cost and streamlining (after almost two years, Vow’s cultivated quail still needs to be approved) food safety assessments to encourage companies to seek approval for precision-fermented ingredients through Food Standards Australia New Zealand (FSANZ). FSANZ’s food safety regulations for precision-fermented major compounds have not been tested; however, FSANZ has previously approved precision-fermented additives such as Impossible Foods’s fermented heme.
© Cauldron
Call for government policy
The paper urges the Department of Education to prioritize cellular agriculture as a key focus in the upcoming National Research Infrastructure Roadmap, scheduled for release in 2026. The Department of Education should also highlight food as a priority application of synthetic biology in the revised National Collaborative Research Infrastructure Strategy (NCRIS), due in 2026.
Currently, synthetic biology is classified as a Step Change area in the NCRIS, facilitating nationwide investments in infrastructure by coordinating open-access and specialized resources and emphasizing scale-up and research translation, explained CAA in a press release.
Additionally, the think tank encourages the Department of Industry, Science and Resources to include cellular agriculture as a critical technology for producing food under projected future Australian climate conditions in the refreshed 2024 National Science and Research Priorities.
Net-zero emissions goal
These priorities direct government support for science and research and shape the projects universities submit for funding. The focus should also extend to precision fermentation and other cellular agriculture techniques, recognizing their significant potential in helping the government achieve its net-zero emissions goal.
Sam Perkins, CAA’s CEO, shares, “Australia has an opportunity to build on existing sovereign capability across the precision fermentation value chain, including robust research capability, a collaborative ecosystem of companies, a well-established regulatory system, and an emerging commercial landscape.
“We have all the puzzle pieces here, but Government support is crucial to advancing the sector and ensuring Australian companies remain onshore. The window of opportunity for this is finite.”
The white paper, “Producing food through precision fermentation: The opportunity for Australia,” can be found here.

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