The future growth of the cell-grown and soy-based food segment is anticipated to increase phenomenally, as I commented last month in my prior legislative commentary. Like it or not, when new food technologies emerge and industry and consumer interest grow, this usually means that some form of government intervention will not be far behind. Such is the case with soy and cell-based foods, as the FDA and USDA address and regulate this new technology. You will recall that I pointed out for my readers last month that “meat” grown from cells is the next big thing in our food industry….and is not to be confused with the also increasing popularity of soy-based meat products that are already readily available in supermarkets. So where is all this new technology going and what is Uncle Sam planning?
In reference to meat cultured from animal cells, Good Food Institute, a nonprofit advocate for alternatives to animal agriculture, policy director Jessica Aly recently said, “What’s happening now is just amazing. There’s such a rush of innovation to shift the impact of our food.” Even the Capitol Hill publication Politico has given the emerging cell-based trend a lot of attention lately, especially since the new Biden administration has said that fighting climate change (gases produced by cattle ultimately contribute to global warming) will be at the forefront of their agenda in 2021 and beyond.
Politico Reports on the Cell-Based Trend
Politico forecast to its readership that big money is starting to flow as cell-based interest matures, and regulation will be next. The publication reported that investment in cultured meat jumped about six-fold in 2020 adding that today there are about 70 cell-based startups globally, up from four in 2015.
Legislatively, a few states have begun to discuss a variety of legislative approaches regarding labeling and marketing of cell-based products. This influx of state laws and regulations will probably be the linchpin that could push Congress to come out with standards. Right now, USDA and FDA are working together on the technology regarding how it will be labeled and marketed, but because the product is years away from appearing on grocery shelves in the U.S., the legislative approach is slow and steady at this time.
While most supermarkets sell soy-based products in the meat case, meat cultured from animal cells can only be purchased at this time at one establishment on the planet: a private club called 1880 in Singapore. According to Politico, 1880 diners can order a Chinese- American entrée with four lab-grown chicken nuggets for $23. The product is produced by a San Francisco firm called Eat Just. The firm also has the distinction of receiving the world’s first regulatory approval for cultured meat, which it was granted late last year.
Other Players In The Cell-Based Race
Another San Francisco firm, Memphis Meats, raised $186 million last year to develop cell-based technology, which was more than the entire industry had raised prior to last year. Another California firm, this one in San Diego, called BlueNalu, raised $60 million in January, and Israel-based Aleph Farms this month unveiled the first cell-based ribeye steak, the holy grail in alternative protein, Politico reported. They added that their goal is to produce the meat people crave without slaughtering animals, flooding our systems with antibiotics, or cutting down forests to feed livestock. Did you know that a third of the Earth’s arable land is devoted to grazing or growing animal feed? Talk about prospects for a better environment!
A single Eat Just nugget tastes like chicken but cost a whopping $90 to make in 2019. However, costs are plummeting and Eat Just CEO Josh Tetrick is confident that efficiencies of growing chicken meat without growing chicken feathers or beaks will make chicken farming obsolete.
Hey – expensive or not, one must start somewhere in this race to efficiently feed the global population and to protect the environment. Winston Churchill envisioned the rise of lab-grown meat in a 1931 essay that predicted we would one day “escape the absurdity of growing a whole chicken in order to eat the breast or wing.” His vision was realized in 2013 when Dutch scientist Mark Post, the founder of Mosa Meat, unveiled a burger cultivated from bovine cells. That meat patty cost $375,000 to build! A lot of money is riding on the Churchillian idea that someday this will be normal. I would not bet against it. Let us now move on to other food industry legislative news.
Animal Genetic Engineering Regulations
Last month the Department of Agriculture’s Animal and Plant Health Inspection Service announced the reopening of the comment period for its advance notice of proposed rulemaking for regulatory review of agricultural animals developed through genetic engineering. Wishing to take “credit” for the move, Republican leader on the House committee on agriculture, Glenn Thompson said, “Hopefully this is a sign of continued efforts to build on the work of the last administration that resulted in this proposal and the related memorandum of understanding between USDA and the FDA. A risk-based and science-based review process that leads to the commercialization of animal biotechnology products Is critical to ensuring our livestock producers are equipped to meet the challenges of feeding a growing population while adapting to a changing climate and reducing emissions along the way.”
This reopening of the rule-making process was done at the request of the Center for Science in the Public Interest and the Consumer Federation of America. Why all this back and forth between USDA and FDA? Meatingplace News reported that in general, consumer groups tend to see the FDA as an agency more attuned to the food safety issues related to genetically modified livestock. Meanwhile, players along the meat supply chain would like to see USDA, and its generally faster approval process, in the driver’s seat.
SNAP Benefits To Grown Significantly
Now that the passage and presidential signing of the American Rescue Plan Act is done and checks have been sent to millions of Americans, there is even more help on the way to jolt the economy back to life and get money into the hands of struggling Americans. For the retail food industry, expect to see a boost in spending by needy consumers via increased benefits for participants of the Supplemental Nutritional Assistance Program (SNAP) and WIC (Women, Infants and Children) Program (more WIC information below).
Prior to the pandemic, in February of 2020, there were 36.8 million people on SNAP. By April of 2020, SNAP rolls were up to 40 million people and that increased to nearly 43 million people last September.
What can we expect in the future? The Congressional Budget Office last month released its baseline projections for the next 10 years for SNAP. They predict that the negative effects of the pandemic will continue through most of 2022, with an average total of 44 million people on SNAP next year, before it begins to decrease in 2023.
Free Meals For Children
USDA also announced late last month a nationwide expansion of several waivers that allow all children to continue to receive nutritious meals this coming summer when schools are out of session. These new flexibilities are now available through September 30, 2021. The new waivers were previously extended only through June 30, 2021. The new waivers allow for safe meal distribution sites that serve all children for free, regardless of income.
WIC Program Expands
The Biden administration has also said that it will invest more funds in the WIC Program. While the number of WIC participants continues to remain low, the government wants to do what it can to increase participation to reduce stark racial disparities in child health and development. The Biden administration is thus creating a new national outreach campaign to ensure that eligible families know about WIC’s benefits and offer new, easy ways for them to enroll. Also, while the WIC Cash Value Voucher allows WIC participants to purchase fruits and vegetables at grocery stores and farmers markets, the administration is supporting a temporary increase in the amount provided for each participant, from the current $8 per month to $35.
Vilsack’s Vision
By now we all know that Tom Vilsack was approved by the Senate to be secretary of USDA to serve in the new Biden administration just as he did for former President Barack Obama. What are his thoughts as he again leads one of the largest departments in the federal bureaucracy? He has promised to address discrimination in all its forms across USDA agencies, offices, and programs and work to ensure that all programming is equitable and roots out generations of systemic racism. This is long overdue as Black farmers have complained for years that they were being treated unfairly. Vilsack has said his actions will soon speak louder than words so that Black farmers get a fair shake. Vilsack has also laid out a plan to include COVID-19 recovery and his plans and vision for addressing climate change.
Interesting enough, his thoughts on food safety were missing from his acceptance speech that crossed my desk, but I do not think that indicates a more moderate or even a lesser approach to food safety issues. As a matter of fact, USDA has just named a “heavyweight” as deputy undersecretary of food safety, Sandra Eskin, who is well-known as the food safety project director for The Pew Charitable Trust where she focused on food safety issues. Until the president nominates, and the Senate confirms, a person to be USDA Under Secretary for Food Safety) Eskin will head things there. It is an important position, as the office of food safety ensures that the nation’s supply of meat, poultry, and egg products are safe, properly labeled, and wholesome.
Barry Scher is associated with the public policy firm of Policy Solutions LLC and may be reached at [email protected]
