Royal DSM, Avril Group Launch JV to Produce Non-GMO Canola Protein for the Plant-Based Global Market

Royal DSM of the Netherlands has partnered with Avril Group, France’s fourth largest agro-industrial group, to launch Olatein, a new joint venture to produce canola proteins for the global plant-based market.

This venture is in direct response to growing global demand.

As the global population continues to grow, and consumers continue to become more health conscious and engaged with their food chains, global protein consumption is expected to climb at a compounded annual growth rate (CAGR) of 1.7 percent, reaching 943 million tons by 2054, according to Lux Research.

Over this same time period, alternative protein sources are forecast to command up to a third of the protein market as they fill the void created by slowing growth in meat and seafood production, and demand shifts within the consumer market.

In the short term, the global plant-based market is expected to see a CAGR exceeding 8 percent between 2019 and 2025, And by value, the plant-based protein and meat alternatives market is expected to increase from $4.6 billion in 2018 to an astounding $85 billion by 2030, according to UBS.

“With the global population continuing to grow and the demand for healthy and nutritious proteins on the rise, the world needs sustainable solutions,” said Patrick Niels, president of DSM Food Specialties.

This partnership between DSM and Avril Group brings together DSM’s patented process and technology for extracting high-quality protein from canola meal, and Avril’s 35 years of experience in oilseed and protein crop production. Together the partners will begin construction of a new manufacturing facility in Dieppe, France.

"This partnership with DSM is part of Avril's strategy to develop and conquer new markets, with the aim of structuring a new high-protein seed sector and thus contribute to increasing France's and Europe's protein self-sufficiency,” said Jean-Philippe Puig, CEO, Avril Group.

The resulting product is CanolaPRO, a protein with a high nutritional value, balanced taste profile, and excellent functional properties that can be used in the formulation of vegan and vegetarian products including dairy alternatives, beverages, baked goods, bards, and ready-to-mix products.

While DSM will be marketing CanolaPRO, Avril Group will focus on the upstream - part of the business, leveraging its leadership in oilseed crushing and seed sourcing. Avril will supply Olatein with non-GMO canola meal from a new crushing unit being created on-site.

“Our partnership with Avril enables the production of CanolaPRO™, a high-quality and nutritious protein that supports our customers to provide consumers around the world with better tasting, more enjoyable meat and dairy alternatives—in line with the market trends,” said Niels.

The finalization of this partnership fosters a new phase of activity at the Dieppe site, which is owned by Saipol, a subsidiary of Avril Group. A complete renovation will be undertaken to accommodate the new industrial complex with the support of the Normandy Region, the Dieppe Town Hall, the Port of Dieppe, and state services.

“This project, in line with our commitments, offers a new future for the Dieppe site, while repositioning it on a new activity that will bring growth and industrial sustainability," said Puig.

At this point, plant-based proteins are a well established part of the human diet. And although canola oil has long played a role in the human diet, canola protein is rather new, having traditionally been seen as a factor in animal feed. This perception, however, is changing.

Last year, Canada’s Burcon NutraScience Corp. formed a joint venture with an undisclosed investor group to build a C$65M (US$48.2 million) plant in Western Canada for the production of pea and canola-based protein ingredients.

And in June of this year, Merit Functional Foods announced that construction of its 94,000-square foot facility to produce canola and pea protein in Manitoba was well underway.