BRID - Cell-based meat is approved in the U.S. for the first time

2023-06-21 12:40:47 ET

U.S. regulators approved the sale of chicken made from animal cells for the first time in what could be a landmark development for a long list of companies looking to produce lab-grown meat.

The Agriculture Department gave the green light to California firms Upside Foods and Good Meat to sell what is referred to as cell-cultivated or cultured meat and poultry. The approval came several months after the U.S. Food and Drug Administration determined products from Upside Foods and Good Meat were safe to eat.

The move could launch a new era of meat production aimed at eliminating harm to animals and drastically reducing the environmental impacts of grazing, growing feed for animals and animal waste.

Cultivated meat is typically grown in steel tanks, using cells that come from a living animal, a fertilized egg or a special bank of stored cells. In Upside's case, it comes out in large sheets that are then formed into shapes like chicken cutlets and sausages. Good Meat, which already sells cultivated meat in Singapore, the first country to allow it, turns masses of chicken cells into cutlets, nuggets, shredded meat and satays.

Due to the high cost of mass producing the lab-grown meat, the companies plan to serve the new products only in exclusive restaurants in the initial roll-out phase. Industry analysts think it will take seven to ten years before lab-grown meat will be seen broadly in grocery stores.

Will consumers bite? Execs with Upside Foods and Good Eat have been quick to note the products are meat, not substitutes like the Impossible Burger or offerings from Beyond Meat ( NASDAQ: BYND ), which are made from plant proteins and other ingredients. However, consumer polling indicates there are initial concerns about the concept. Advocates of cultured meat say it is much less likely to be infected by E. coli bacteria and other contaminants you might find in a meat processing plant. There also could be reduced exposure to antibiotics by taking farm animals out of the equation.

Tyson Foods ( TSN ) is an early investor in Upside Foods. The growth of lab-based meat could also eventually be of interest to Hormel ( HRL ), JBS SA ( OTCQX:JBSAY ), Bridgford Foods ( BRID ), Cargill's various meat concerns, Sysco ( SYY ), and Pilgrim's Pride ( PPC ).

The pure-play bet on cultivated meat may be Steakholder Foods ( STKH ). The company says it is developing a slaughter-free solution for producing cellular agriculture meat products, such as beef and seafood, by offering manufacturers the ability to produce a cultivated meat product that aims to closely mimic the taste, texture, and appearance of traditional meat— as an alternative to industrialized farming and fishing.

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