October 12, 2023

DAIZ will Increase the Production of Plant Meat Raw Materials

DAIZ Inc. (Kumamoto, Japan), a startup developing and producing soybean-derived "plant meat" ingredients, will double its annual production to 8,000 tons by 2025. The company will invest approximately 4.2 billion yen to build a new plant in Kumamoto Prefecture and ship mainly to the European market. With the price of beef, pork, and other livestock meat rising, demand is increasing for low-cost plant meat to be mixed into products, and DAIZ Inc. is serious about expanding its business overseas.

A new plant will be built near the current factory with an annual production capacity of 4,000 tons in Mashikimachi, Kumamoto Prefecture. It will start operation in 2025 with a yearly production capacity of 8,000 tons. The company has raised approximately 3.7 billion yen in a capital increase through third-party allotment from Nisshin Seifun Group and Rocket, a prominent French chemical company, and has borrowed about 3.4 billion yen from Japan Finance Corporation and others, part of which will be used for the plant investment.

DAIZ supplies "Miracle Meat," a plant meat ingredient, to major food manufacturers and others. The selling price is 70% lower than that of regular ground beef, and its strength lies in the unique cultivation method that enhances the umami content of soybeans and reduces the grain's characteristic odor.

Customers typically commercialize a mixture of plant meat ingredients and livestock meat. According to DAIZ, competitors' ingredients have a low mixing ratio of less than 10% with livestock meat due to odor and taste issues. On the other hand, DAIZ's raw material has fewer problems and is called "Some of our customers are selling products with blends as high as 50%" (DAIZ), which is highly competitive.

Plant meat raw materials are in great demand in the US and Europe, where environmental awareness is high. In Europe, inflation and rising feed prices have increased the price of livestock meat, "Demand for plant meat raw materials is increasing to reduce the risk of price increases and shortages" (DAIZ). The company has been selling raw materials to Japan and Southeast Asia and will newly develop the European market.