They’re both in the white powder business. Both produce protein for export. And they both love occupying flat, rain-drenched New Zealand pasture.
So is plant-protein pioneer Leaft Foods a competitor or a complement to the dairy sector?
The irony of the question is not lost on co-founder Maury Leyland, a former Fonterra executive, or business partner and husband John Penno, whoset up Synlait, the award-winning dairy company.
Now they’re a plant-protein pioneers.
Are you like a reformed smoker, I ask.
Leyland laughs and says even if she was, there’s some way to go before Leaft will threaten the dominance of dairy.
Leaft has cracked a global challenge: extracting rubisco protein from lucerne leaves
“And anyway, John grew up a farmer and has a PhD in agriculture and animal science. So it’s been a lifetime passion for him. And I went into the dairy industry 20 years ago, so I’ve made a career out of it.”
The motivation behind Christchurch-based Leaft she says is to find new ways to farm, post-peak cow. “After Synlait, we thought what’s next? We felt quite strongly that we should look at opportunities for farmers to change in a way that was going to be positive for the environment – but also meet offshore consumer need and grow our food and fibre exports.”
The idea for Leaft came to the couple in a hackathon in 2019 when they learned about rubisco, the world’s most common protein, found in the leaves of all plants. The enzyme is critical in photosynthesis, rich in amino acids and rivals eggs and beef for nutritional value.
They also learned it’s hard to extract and in its raw form humans can’t digest it.
Skip forward four years, Leaft has cracked the science to extract, from lucerne (alfalfa), a tasteless, soluble and digestible protein powder suitable as an ingredient. Last year Leaft raised $22 million in funding in local and international venture capital (including Khosla Ventures) to scale up production and launch its first consumer product: a branded protein powder.
“Our initial thought was to focus on ingredients. But the more that we learn about the protein and what it has to offer and the system that goes with it, we realised that we were would vanish into the back of a pack in very small font behind somebody else’s brand messaging. So we decided that we will go to market with a consumer lifestyle protein powder.”
Penno and Leyland are using their experience in Synlait to scale the plant-based alternative
The ambition though, is for more than one product. Leyland says the IP at the heart of Leaft is protected and could be deployed anywhere under license or used to create a scalable ingredients business. “We are a substantial farming nation. We export substantial quantities now. So, if we are to make a real difference in terms of land use, then Leaft will absolutely be an ingredient business as well.”
Which, not to go on about it, sounds a bit like a rival to conventional farming. Not necessarily she says.
“The way that farming is heading, whether it’s called regenerative or not, is rotational. You work through different crops, through permanent pasture and legumes and various other plants. So we would like to see our lucerne as part of that rotation. As a legume, it could be in the ground for maybe five to seven years. There’s no reason it couldn’t be over a whole farm but that’s a decision the farmer would make.”
How do the economics work? Will it compel farmers to diversify? Leyland says it’s early days but the pilot programme is showing promising results. Leaft’s modeling suggests that producing rubisco protein directly from leafy crops has a 10-times lower carbon footprint per hectare than conventional dairy protein.
“It’s a very efficient way to get protein. We can extract as much protein from lucerne as dairy can get from the same hectare.”
And wait, there’s more. After they’ve extracted the rubisco, the company is left with a by-product which can be turned into protein silage for cattle – which then produces more protein in the milk or the meat. Left to its own devices the highly soluble rubisco tends to pass quickly through a cow and end up in the urine.
“So if we can remove that rubsico first, which she can’t digest anyway, we can then get the same volume of protein again. So with our system at the moment, if it’s incorporated into an animal system, it’s about twice as efficient as dairy.”
They chose lucerne because it’s a common and robust crop on NZ farms
Thinking about lucerne and rubisco as a system could have a profound effect on farming and is one of the reasons Khosla Ventures came in as an investor. Khosla is a Silicon Valley venture capital firm backing innovators such as Impossible Foods, OpenAi and RocketLabs.
“They are very driven for positive climate action. And our global food systems need changing. New Zealand has been historically a great place to get things up and going, to innovate, try new things, get them right, and then, and then take them out to the world.”
The Change It Up series is proudly sponsored by Everybird. Drink it black, with milk, mylk or sugar – Everybird coffee is a versatile drop that’s best enjoyed however you like it. Certified Fairtrade, organic and climate neutral, it feels as good as it tastes, and it’s now available at Supie.
Maury Leyland will be speaking at E Tipu – The Boma Agri Business Summit in Christchurch June 19-20. It’s not too late to secure tickets including online participation
