FrieslandCampina ends precision fermentation investments, shifts focus back to dairy

NETHERLANDS – FrieslandCampina, a Dutch dairy company, has discontinued its investment in precision fermentation, a technology that produces specific proteins and nutrients without the use of dairy cows.

Changing market conditions and increasing competition have led the company to reassess its strategy. FrieslandCampina has now opted to refocus its resources on its core dairy operations, prioritising the production of milk proteins and other nutrients such as galacto-oligosaccharides.

The company explained that it initially embraced precision fermentation as an innovative technology to produce specific proteins and nutrients without the use of dairy cows. This aligned with the growing demand for alternatives to animal-based proteins and contributed to a broader product portfolio.

Although precision fermentation initially showed promise, changing market conditions have led us to the decision to cease further investment in this area.

“Competition has intensified due to, among other factors, the entry of new players and market consolidation. As a result, continued investment in precision fermentation is no longer economically viable for FrieslandCampina,” the company stated.

FrieslandCampina’s CEO, Jan Derck van Karnebeek, pointed out that the company is focusing on strengthening its core dairy business in its annual figures presentation.

“We’re also discontinuing precision fermentation because we can achieve much more in terms of sustainability by further improving the CO2 footprint of dairy products. Together with dairy farmers, we’re making significant progress in this area,” he stated.

The company will continue to explore hybrid products, which blend dairy and plant-based ingredients. FrieslandCampina has already introduced hybrid products, such as butter blends and “milky porridge” in Nigeria, that combine dairy with plant components to offer consumers more sustainable options.

These hybrid products will be developed only if they meet specific criteria related to taste, nutrition, sustainability, and convenience.

Jan-Willem ter Avest emphasized that dairy continues to be the cornerstone of their product range, highlighting its natural, nutritious qualities and versatile applications.

He acknowledged the evolving food landscape, noting that consumer preferences are increasingly leaning toward healthier, more sustainable, and innovative options.

While hybrid products might offer valuable opportunities, he clarified that the company views them not as a primary objective but as a complementary addition—only viable if built upon their deep dairy expertise and held to high standards of quality.

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