Using ÄIO and Gelatex as examples: Now is the best time to drive food innovation forward
Innovation in the food industry is one of the most effective ways to reduce humanity’s environmental footprint. This is why companies in Estonia, as well as in other parts of the world, are progressively developing more sustainable ways to bring food to our tables. Innovative production methods are critical for the sustainable development of society—particularly breakthroughs in biotechnology, which offer new methods and alternative ingredients to replace those that are harmful to animals and the environment.
Accelerate Estonia, an innovation lab initiated by the Ministry of Economic Affairs and Communications (MKM) and Tehnopol, has made food industry innovation one of its key focus areas. A pilot project was launched in collaboration with ÄIO and Gelatex.
The Problem
Introducing a novel food to the European market requires a risk assessment by the European Food Safety Authority (EFSA), a process that can take anywhere from 1.5 to 4 years in practice. The process is challenging due to the lack of foundational knowledge, the administrative burden, and the uncertainty surrounding scientific experiments. These complexities lead to uncertainty and a reliance on consultants with EFSA expertise.
Purpose
The aim of the collaboration between Accelerate Estonia, ÄIO, and Gelatex was to establish a hub for food industry innovation in Estonia, supporting both local and international companies by creating a unique knowledge center within the Estonian public sector—initially envisioned as the Rural Knowledge Center. To achieve this, ÄIO and Gelatex developed pilot projects based on their products. However, during the course of the project, it became clear that a more valuable outcome for both the public sector and the novel food industry would be a comprehensive impact analysis of the sector’s potential in Estonia.
Impact Analysis
An impact analysis was conducted in collaboration with Civitta AS to map the challenges and regulations affecting the development of the novel food sector, while also assessing its economic potential. The broader goal of this analysis was to evaluate the potential impact of establishing a new food knowledge unit on the Estonian food industry and economy, and to explore alternative approaches to fostering food innovation.
Key Findings from the Study:
- Low Added Value and R&D in the Estonian Food Industry: The Estonian food sector contributes a low share of added value and has limited research and development activities. Additionally, the industry faces significant environmental and regulatory challenges.
- Research-Intensive Nature of Innovative Food Development: While innovative food production is a research-intensive field, in Estonia, the sector is largely driven by startups. In contrast, large companies dominate this field across Europe.
- Challenges with EFSA’s Risk Assessment: To bring novel foods to the market, a risk assessment by the European Food Safety Authority (EFSA) is required. This process is difficult and time-consuming for companies. Although Estonia currently lacks a national strategy for novel foods, the analysis suggests that developing such a strategy could create science-based jobs and drive innovation.
Four Potential Directions for Sector Development:
The analysis proposed four potential directions for advancing the innovative food sector in Estonia:
- Support Unit with an Advisory Focus: This unit would simplify administrative processes and provide foundational knowledge to companies.
- Knowledge Unit with Extended Functions: This unit would support broader innovation and research-intensive entrepreneurship in the food industry.
- EFSA Kratt: An artificial intelligence-based solution designed to consolidate scientific information and provide guidance related to the sector.
- Improved Organization and Simplification of Innovation Grants: This would streamline funding processes and reduce barriers to innovation.
After analyzing the four proposed alternatives in collaboration with ÄIO and Gelatex, it was concluded that while the development of the novel food sector remains critically important, further efforts are needed. Various stakeholders, such as RUK and ÄIO, have confirmed the necessity of this service, as companies face significant barriers in accessing information, navigating the EFSA process, and securing investments.
Although a complete solution cannot yet be offered, Accelerate Estonia (AE) has laid the groundwork in cooperation with representatives from the food industry. The goal is to develop a roadmap that simplifies these processes, ultimately accelerating food innovation and, in the future, facilitating the establishment of a food innovation center.
According to Plans
The roadmap is being developed based on the existing capabilities of various institutions to identify the potential for acquiring knowledge and housing the service within a specific public sector body. At the start of the project, the Estonian Research Institute of Agriculture and Rural Life (METK) was considered the most suitable institution for this role.
The EAS and KredEx joint institution (EIS) is responsible for coordinating the mapping of food innovation and organizing a working group. The goal of this group is to find a solution for establishing a food innovation center in Estonia.
As a result of the working group’s efforts, a roadmap will be developed to help companies in the food sector better navigate information and financing opportunities. This will also enable EISA to initiate international communication efforts aimed at attracting new companies to Estonia.
A designated owner and a person in charge will be assigned to oversee the new food innovation service, ensuring that the process is updated and refined as new opportunities arise.
The impact analysis revealed that innovative food has significant export potential and highlighted opportunities for promoting international cooperation. Establishing a functional unit would help create an international network, encouraging research and development activities in Estonia in this field. According to Accelerate Estonia, now is the ideal time to advance food innovation, positioning Estonia to stand out globally by supporting entrepreneurship, innovation, and R&D activities.
Estonia’s First Public Novel Food Tasting
As part of the Latitude59 conference held in May, Accelerate Estonia, in collaboration with ÄIO and Gelatex, organized one of Europe’s first public tastings of novel foods. Selected guests and enthusiasts of food innovation had the opportunity to taste five unique recipes prepared by chef Johannes Hõimoja. These dishes featured ÄIO’s yeast biomass and Gelatex’s potato nanofibers, used in the production of cultured meat.
Organizing an innovative food tasting is typically a highly bureaucratic process, but Accelerate Estonia managed to arrange the event in just one month. This accomplishment highlights the national innovation lab’s commitment to reducing bureaucracy and accelerating the path to market for novel innovations. The Estonian public sector is dedicated to building a robust support structure that helps innovative food companies successfully navigate the European regulatory framework, bringing food innovation to our tables more swiftly.
What’s Next for ÄIO and Gelatex?
ÄIO is currently working with over 100 partners, having recently formed a partnership with Finnish dairy producer Valio. Beyond its advancements in the food sector, ÄIO is also expanding into the animal feed and cosmetics industries. The company is preparing for an investment round to scale up production and introduce new food products to the market. While their current focus is on the European, US, and Singapore markets, global expansion is anticipated in the near future.
Gelatex, meanwhile, is collaborating with universities, medical technology companies, pharmaceutical firms, and start-ups in the field of cell and tissue technology. The company continues to provide development and regulatory support to cultured meat companies as needed. However, Gelatex has now shifted its primary focus to other sectors, particularly medical and pharmaceutical applications, where it is partnering with leading companies in those industries.
Source: This article was originally published on https://www.tehnopol.ee/aio-ja-gelatexi-naitel-praegu-on-parim-aeg-toiduinnovatsiooni-arendamiseks/.
