Cargill joins race for alternative protein with eye on China as health crisis boosts market for meat substitutes

Cargill, one of the world’s largest suppliers of meat and grains, is joining the race to develop plant-based protein products as the coronavirus outbreak and other recent health scares spur demand for meat substitutes.

The privately-owned Minnesota-based group plans to roll out four new meatless burger products for food and beverage outlets and retailers in the US from April to kick start its global distribution plan, a company spokesperson said.

This follows its February 24 announcement that it would be developing plant-based protein products, or meat substitutes made from soy or pea protein, with the coronavirus epidemic adding to recent outbreaks of African Swine Fever and Avian flu. Cargill plans to leverage its global supply chains as it attempts to gain market share in plant-based protein.

“We have key advantages in this space,” the company said in an emailed statement to the South China Morning Post. “ This includes our established sourcing and manufacturing strengths in the animal protein sector that transfer well to plant-based protein.”

Cargill recorded US$113.5 billion of revenue in fiscal 2019, according to its annual report published in July of that year, with 29 per cent of that coming from the Asia-Pacific region.

The company is positioning itself to capture a slice of the global demand for protein, which is expected to increase by 70 per cent over the next 30 years. Much of that growth is expected in China, which accounted for 28 per cent of global meat consumption in 2016 based on an estimate by the World Economic Forum.