a complete umbrella for start-ups, including shared workspaces, lab equipment, investor access, R&D assistance and financial investment. Scaling up at the pilot stage: In the pilot stage, companies develop the production process, before transitioning towards larger operations. Scaling up requires more extensive equipment and infrastructure, often housed in a dedicated “pilot plant”. Contract development and manufacturing organizations (CDMOs) that in biotech traditionally serve pharmaceutical companies have begun to expand to the cultivated meat industry. In Israel, YDLabs’ fermentation centre – a CDMO specializing in process development and optimization (volume ranging from a few litres at lab scale to 1,000 litres for process development) – provides testing, R&D support, economic feasibility experiments, consumer testing and guidance on food regulations. In 2023, YDLabs won Israel Innovation Authority’s $13.5 million tender for fermentation services of up to 20,000 litres, spanning initial manufacturing.31 The selection of YDLabs by the Israel Innovation Authority as a precision fermentation service provider marks a pivotal step in facilitating the transition from R&D to pilot stage infrastructure within the alternative protein market. This initiative not only enables local and global companies to conduct crucial developmental testing of novel foods in Israel but also establishes a centre of excellence that promises quality and reliability in service provision. By fostering critical infrastructures in the ecosystem, we aim to bolster alternative protein initiatives globally, ensuring that innovative solutions thrive and address pressing global challenges. Noa Matarasso, Senior Director, Academia/Infrastructure Division, Israel Innovation Authority Navigating initial production: At the semi- industrial scale, companies test scalability and explore commercialization potential through collaborations. Choices at this stage range from building proprietary facilities to partnering with existing manufacturers, using co-working facilities or opting for a contract manufacturing organization (CMO) or CDMO. A special track for “Development to Production R&D” was launched three years ago by the Israel Innovation Authority, funding the development of manufacturing processes and investing in companies while they transition from lab to production. The authority invested in three companies in 2023 on that path. Rabobank, a Dutch bank specializing in food and agriculture companies, provides them with specialized financial services, such as low-rate loans and credit lines, especially for establishing production facilities. 4.4 A global perspective on the value chain Embracing a holistic view of global food systems enables Israel to identify its unique contributions and focus areas within the alternative proteins ecosystem. Understanding each country and geography’s distinctive role facilitates collaborative efforts, enhancing the collective impact on the industry’s evolution. The Israeli government’s strategic involvement across the local alternative proteins value chain reflects a nuanced understanding of the challenges and opportunities, setting the stage for sustained innovation and growth within this dynamic ecosystem.Alternative proteins offer a globally scalable regional food solution – produced by both multinational companies and small-scale farmers with indigenous crops adapted to local climates and suited to the needs and tastes of local communities. Like the ecological dynamics within natural ecosystems – in which diversity equals resilience – diverse people, crops, models and solutions will be needed to infuse much-needed resilience into variable global food systems. Creating a Vibrant Food Innovation Ecosystem 17

Protein Diversification 2024