Is the latest move by Norco, to partner with a lab milk manufacturer which creates milk proteins without the need for a cow, a smart move or just damaging to brand "real milk"?
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The new company, Eden Brew, for which Norco will do the bottling, distribution and marketing, has been formed by tech venture fund Main Sequence, CSIRO and Norco and has created concern among farmers around how this might undermine the real thing.
For instance, Main Sequence says (on its web page) the reason it was formed was "to manage the CSIRO Innovation Fund ... to address the 'valley of death' between research and commercialisation - solving the world's greatest challenges by turning our scientific breakthroughs into next century's giants" and "Our planet has some pretty big problems to solve. We believe that inventors already have the solutions to solve many of these problems and the mindset, capital and community of venturing can deliver the scale that is required for impact."
While it may be refreshing that Australian technology is being commercialised within our shores, it also can't be overlooked that Main Sequence has clearly identified this sector as 'a pretty big problem our planet has to solve' and is aiming to have an impact.
Norco has been given a 25 per cent stake in this start-up at no charge, so entry is low risk. And if it helps spread risk, perhaps there are some benefits, such as a separate revenue stream in droughts when milk supply is reduced. And why not allow farmers to cash in on this new market?
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But, is there more to it? Why would a start-up give Norco 25pc for nothing? Does having Norco on board also reinforce those arguments that say milk is bad for the environment? And are those who buy fake milk because they think it helps the environment being sold a dud?
In 2019, Rabobank research demonstrated that when real milk and soy milk were compared, much more soy milk was required for the consumer to obtain the same level of nutrients. This meant per unit of nutrients obtained, cow's milk emitted less carbon.
Farmers were banking on Norco having a say in this new product's marketing, and in doing so avoiding a situation where it undermined perceptions around real milk.
However, CSIRO and Eden Brew are already calling this product "milk" and "animal free", which insinuates an ethical and environmental superiority over the real thing. So the real thing just may have been sold downstream.
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