The Growing Importance of Food Security
Access to a reliable supply of affordable, nutritious food is something many people may take for granted. However, with war and extreme weather events linked to climate change disrupting food production, supply chains, and harvests, food is becoming more expensive. As future shocks and a growing global population are expected, food could become less abundant. This situation highlights the urgent need for innovative solutions to ensure food security.
China's Strategic Approach to Food Security
China has recognized the importance of food security and is taking significant steps to ensure its people have access to sufficient food in the future. In contrast, the EU has not yet fully addressed this critical issue. One example of this is the development of new proteins, which could define the 21st century. On a rainy day in March, while the EU was missing an opportunity, China was making progress towards food security.
On that same day, the EU decided to ban 'meaty' terms such as beef, pork, or chicken from being used to name cultivated meat products. This decision could hinder a technology that could provide a reliable flow of home-grown protein, whose price and availability would not fluctuate with world events.
Meanwhile, in Beijing, the National People’s Congress unveiled the 15th Five-Year Plan, which identified new proteins, including cultivated meat, as a national food security priority for the first time. This move demonstrates China's commitment to addressing food security through innovation.
The EU's Reliance on Imported Feed
Despite being a net exporter of meat and dairy, the EU's industrial meat complex is heavily dependent on imported high-protein feed. This includes soy and maize, which are essential for intensive livestock production. The EU relies on imports for two-thirds of its high-protein feed requirements, with soybean meals being the primary source.
Soybean meals account for 17% of total EU feed protein use, with nearly all of it being imported. The EU only produces 10% of its soy consumption, primarily for human consumption. Additionally, the EU imports substantial volumes of maize, another key animal feed crop, to meet the high demand for animal feed.
Supply Chain Disruptions and Meat Prices
Supply chain disruptions caused by conflicts in Ukraine and Iran have led to rising meat prices. Instead of focusing on increasing animal feed imports and diversifying protein sources, the EU could shore up food security by exploring alternative solutions.
China has already recognized this vulnerability and has taken steps to address it. As a major meat producer, China is highly dependent on imported animal feed, particularly soy from Brazil and Argentina. However, unlike Europe, China sees dependency on high-protein feed as a critical vulnerability and has elevated new proteins to a top food security priority in its 15th Five-Year Plan.
New Proteins as National Security Infrastructure
For China, new proteins are treated as national security infrastructure, similar to how solar panels and electric vehicles were prioritized in previous years. A recent report by Systemiq highlights how China is applying its proven industrial strategy playbook to protein production. This includes state-backed research and development, infrastructure investment, public procurement, and low-cost capital to accelerate domestic capability and reduce dependence on imported feed and livestock systems.
China's Five-Year Plans have historically transformed their own economy and reshaped global markets. When China supported electric vehicles in the 2011-2015 Plan, electric car adoption accelerated worldwide. Today, over one in four cars sold globally are electric, with China dominating the industry. A similar pattern could now emerge in the food sector.
According to projections from Systemiq’s analysts, China’s strategic pivot toward biomanufacturing and new proteins is set to significantly reduce its soybean import dependency by 2030. This reduction could be equivalent to current imports from the United States.
The EU's Opportunity for Change
If the EU does not act now and invest heavily in new proteins, it risks exacerbating its dependency on animal feed from the US and South America, increasing its trade deficit, and becoming more technologically dependent on China. The irony is that this technology was developed in Europe, with the Dutch creating the first lab-grown burger around 15 years ago.
Europe has a competitive advantage in biotechnology and biomanufacturing, with a highly-skilled labor force capable of bringing lab-grown proteins to market. The upcoming EU Biotech Act II offers a second chance to strengthen food security within the bloc.
This industrial policy instrument aims to stop the EU from being a biotech talent farm for the US and China by reducing red tape, unlocking investment, scaling up production at home, and boosting 'Made in the EU.' For the Act to effectively strengthen food security, it must include biomanufacturing for food and feed applications.
By including food and feed production in the Biotech Act II, the EU can biomanufacture enzymes, feed inputs, proteins, and biomaterials domestically rather than importing them. This step could signal that the EU is finally onboard the food security boat before it's too late.
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