For the entire value chain around plant-based companies working with plant protein to function well, farmers are needed to grow legumes and other crops with high protein content, actors who can extract the proteins, and someone who can turn them into end products.
But in the Swedish market, certain links in that chain are currently missing, according to Peter Bolinder, who founded the plant protein company Proteinish together with Isabelle Egholt Falck.
Infrastructure problems hinder development
According to him, there are certain fundamental factors in the infrastructure surrounding plant-based products that are causing the industry to struggle – despite climate and health research supporting more vegetarian options. Impact Loop has described the issue from various perspectives in a series of articles under the headline Vego 2.0.
Peter Bolinder specifically points out that the new facility for processing legumes in Lidköping, in which the industry organisation Lantmännen has invested 1.2 billion kronor, will not be completed until 2027.
"As long as we cannot process the crops into the raw materials we need to make new plant proteins, we are severely limited in Sweden," says Peter Bolinder.
More targeted funding needed
The second thing he sees as a hindrance for the Swedish plant-based industry is the grant system, which he believes does not work well enough.
"We have a new food strategy that says we should invest in plant proteins and in exporting Swedish foods, but we have very little funding in the grant system allocated specifically for that," says Peter Bolinder.
Vinnova's grants under the programme for innovative food systems remain available until next year, and there is some new funding to apply for through the government research council Formas. But more is needed, according to Peter Bolinder.
"Formas is closely tied to research, which requires an academic partner that not everyone has. And Vinnova's call for centres of excellence does not focus on food. If Vinnova cannot step in to support new companies at an early stage, the Swedish Board of Agriculture or another government agency needs to step in so that venture capital can take the next step for more companies," he says.
You are one of several companies describing a tough market, what keeps you going?
"We are convinced that we will push through this. We have some money left and have developed samples for several customers and are aiming for offtake agreements. We are also looking at European calls."
Developing a protein pellet
Proteinish works with a variety of raw materials, legumes, and grains, and eventually algae, to produce a dry protein pellet that can serve as a base ingredient in other companies' final products. The company aims to build its own production facility in the former premises of food giant Findus in Bjuv, Skåne. When that will happen is not set in stone.
"Our original plan was to be able to open in 2027."
What do you think is needed to speed up the entire segment?
"We need a grant system that brings innovations to a level where private capital feels comfortable taking over. This is not just about individual products but more about the fundamental conditions. Here, politics must do more," says Peter Bolinder.
Must the entire value chain be here in Sweden?
"Yes, not least for self-sufficiency and preparedness reasons. And if we are to have a food industry that is internationally competitive, it requires that we have a complete value chain."