“For us, Biotech Heights will be the sequel to the work we begun five years ago when we started working on future scenarios with Tetra Pak. During these years, in addition to a handful of researchers, we have had the help of nearly 40 master's students to collect information. They travelled to China, Nigeria, Brazil, the US and other places to check with experts what the most important factors in the industry are long term. Three years ago, we summarised that work by launching a white paper with four potential future scenarios for the dairy industry and other stakeholders,” says Thomas Kalling, Professor of Strategy at Lund University School of Economics and Management.

The new Biotech Heights will have a broad and interdisciplinary approach, says Thomas Kalling, although the focus will probably be on chemistry and food science. 

“They are the ones who are researching new ways of working with fermentation and cell cultivation. But it goes without saying that it’s imperative that production and business is organised and products marketed, and that's where we researchers in business administration come in. We can take a strategic perspective, both on how the big companies work and the small start-ups; those that may eventually grow big,” he says.

LUSEM’s role in the Biotech Heights research hub

From Lund University School of Economics and Management, researchers in marketing and strategy will participate in Biotech Heights. The research hub contains five system perspectives, where the researchers will contribute with perspectives on consumption and trade as well as business models and investment logic. Together with his colleagues, Thomas Kalling will continue to apply strategic perspectives to future food production.

“The focus will also be on consumer behaviour and what consumers are willing to pay for new products that, for example, have a lower climate impact than traditional foods. But we also have a business perspective. Where will the investment capital come from? Who owns the companies? What kind of start-ups can we see coming?” says Thomas Kalling and continues:

“We always have a global perspective on this. It really doesn't just concern our region in Sweden. In developing countries, it may be about access to good nutrition and protein, in Sweden it may be more about our carbon footprint or even about identity. Now, we see interesting innovations coming from, among others, India, California and the Netherlands.”

Here, Lund can contribute and participate in new innovations, via Biotech Heights.

“We have collaborated with Tetra Pak for several years and have already studied the transition from animal protein to plant-based. But in this new project, we go beyond plant-based, to both fermentation and cultivation of cell-based proteins. It's really cool. If everyone on Earth is to be nourished and have access to protein in their diet, then we need these technologies, along with innovations to deal with waste and nutritious bi-products,” says Thomas Kalling.

He explains that there are already several ongoing experiments in food production world-wide and that there are many innovations that work on a small scale.

“But they are yet to be able to ramp up to large-scale production. It is only then that the innovations come to the market. It is this process that is at the heart of our research,” says Thomas Kalling.

Strategic perspective on novel foods

Thomas Kalling also mentions that historically, political decisions in Sweden and other countries have affected agriculture and the food industry.

“But now, politicians are not entirely certain how they should act on various issues related to regulations, environmental requirements, and subsidies of various kinds. This contributes to uncertainty and makes it difficult for many companies to make long-term investments. But given this, how do companies act in this context? It’s about innovation and renewal, but also about decisions and the behaviour of the owners. It will be exciting for us as researchers to follow.”

But there are also consumer perspectives to consider.

“Last year we saw how sales of oat-based products went down. After all, a litre of oat drink is more expensive than a litre of cow's milk. Economic downturns test people's values. What are your values really worth?”