The Protein Shift: Why We Need New Sources

Only 4% of Europe’s soybean demand for animal feed is currently covered by domestic production, according to the latest figures from the European Commission’s Directorate-General for Agriculture (DG AGRI, 2024). While the EU achieves a self-sufficiency rate of 76% in overall protein feed supply, it remains heavily reliant on imports for protein-rich crops like rapeseed, sunflower, and other oilseeds: self-sufficiency stands at 72% for rapeseed, 53% for sunflower, and just 15% for other oilseeds.

In this context, the so-called EU Protein Strategy has become a central talking point—now more relevant than ever due to ongoing geopolitical and economic challenges. As Stephan Arens, Chair of the Copa-Cogeca Working Group on Oilseeds and Protein Crops, emphasized on March 19, 2024, this strategy is now “more urgent than ever.” Several member states are taking action—Austria, for example, published its own national protein strategy as early as 2021.

The private sector is also driving the diversification of protein sources with increasing intensity. By 2023, approximately €8.5 billion had been invested globally into companies developing plant-based protein products—11% of that amount in 2023 alone.

How Alternative Proteins Are Challenging Agriculture

These developments are not without consequences for traditional agriculture. In public perception, plant-based protein products are often associated with a reduced consumption of animal proteins. However, the actual market share of such alternatives in Austria remains low: according to AMA Marketing, plant-based milk alternatives account for around 3% of the market, while meat substitutes represent just 1%.

Technologies such as single-cell protein, produced via fermentation in bioreactors, are pushing the boundaries even further, challenging traditional notions of farming. Nevertheless, they offer enormous potential, particularly when it comes to efficiency and quality.

Protein fermentation technologies generally fall into two categories: single-cell protein production focuses on rapidly generating protein-rich biomass, while precision fermentation targets specific compounds—such as individual amino acids—with defined quality parameters. The concept isn’t new: as early as the 1960s, lysine (an essential amino acid in animal feed) was being produced in this way.

In recent years, food industry applications have given the sector additional momentum. By the end of 2023, there were 158 companies worldwide specializing in fermentation-based protein production. That same year, the segment attracted $515 million in investment. While high production costs remain a challenge, the growth trajectory of the sector is clear.

Protein Diversification as an Opportunity for Agriculture

Despite some uncertainties, the growing diversity of protein sources also presents tangible opportunities for agricultural production. One classic example is mixed cropping: it allows for higher yields per hectare and brings ecological benefits such as improved soil fertility and increased biodiversity.

Legumes provide another promising avenue. When used as cover crops, they improve soil structure and can unlock additional income streams. Austrian agriculture holds particular advantages here, thanks to its Pannonian climate with long, warm, and dry growing seasons.

As the need to diversify protein supply grows, so too does demand for legume-based foods—opening up new sales channels. According to Statistics Austria, per capita consumption of legumes reached 1.4 kg in 2024—double the amount consumed in 2015 (0.7 kg) and nearly five times the 2005 figure (0.3 kg).

Decreasing Acreage Despite Rising Demand

Despite the favorable market dynamics, cultivation areas for some legumes are shrinking in Austria. In 2024, only 285 hectares of chickpeas were planted—down 39% from three years prior. Lentils also declined by 17%, covering 1,618 hectares. On the other hand, sweet lupin and field peas saw increases of 28.4% and 41.4%, respectively.

This makes it all the more important to identify limiting factors for specialty crops and to develop strategies that allow agriculture to benefit from this trend and generate added value. Barriers may include lack of marketing opportunities, absent purchase guarantees, or insufficient processing infrastructure—for example, for protein extraction.

Innovation to Unlock Agricultural Value Creation

Protein is a multifaceted issue—and one of central importance. It’s not just about closing a supply gap; it’s about ensuring food sovereignty, supply security, and long-term viability for agriculture. Despite clear trends and growing demand, certain barriers remain.

This is where innovation comes into play: it helps identify obstacles, deepen understanding of key relationships, and pave the way for practical, sustainable solutions. The goal is to develop innovations that generate long-term value—and ensure that this value remains within the agricultural sector.

That’s why Agro Innovation Lab, the innovation unit of RWA, is placing a special focus on the topic of “New Proteins” in the coming months. We’re taking a broad approach, exploring multiple avenues:

• Plant-based proteins from traditional cultivation
• Biotechnological fermentation processes
• Utilization of production sidestreams
• Alternative protein sources such as insects, algae, and fungi
• Radical innovation concepts from other world regions

From Theory to Practice

Innovation only becomes meaningful when it transitions from theory into real-world application. That’s where we come in: based on a thorough analysis of key challenges and opportunities in the field of new protein sources, we’re launching concrete pilot projects.

Utilizing Sidestreams: Unlocking Hidden Potential
Context: Nearly all production processes—from oil pressing to brewing and tomato processing—generate protein-rich byproducts. Many of these are currently underutilized or even discarded, often ending up as low-grade animal feed.

Goal: We identify both new and existing sidestreams and assess their potential for high-value processing. The aim is to discover new pathways for valorization and to build or expand value chains.

Contact: c.olivier@agroinnolab.com

Plant-Based Proteins: Breaking Out of the Niche
Context: Plant-based protein supply is currently heavily focused on soybeans—a risky dependency in light of climate change and geopolitical instability. Promising alternatives such as chickpeas, peas, lupins, and other lesser-known beans are available but often remain marginal.

Goal: We tackle the lack of processing infrastructure and sales channels to unleash the full potential of alternative crops—for a more resilient and diverse plant-based protein supply.

Contact: a.haller@agroinnolab.com

Mixed Cropping: Processing and Utilization Challenges
Context: Mixed cropping is a well-studied method that allows for higher protein yield per hectare while improving biodiversity and soil health.

Goal: We focus on the practical aspects of processing: When and how should crops be separated? Where are joint processing steps feasible? The aim is to make mixed cropping systems economically viable throughout the entire value chain.

Contact: p.waldherr@agroinnolab.com

Interested in Collaborating?

Are you interested in sharing expertise or already working on one of these topics? We’d be delighted to hear from you!