Stronger Fundamentals, Local Solutions: Insights from Agri-Tech and Blue Food Summits

From San Francisco to London, the message was clear: the future of sustainable food systems depends on what we feed to farmed animals. That’s why CFI attended the World Agri-Tech Innovation Summit and the Blue Food Innovation Summit to promote the transition to sustainable novel feed ingredients. 

These events brought together investors, corporate leaders, founders, and policymakers to discuss the future of sustainable agriculture and aquaculture. We left with an improved assessment of how shifting economic dynamics are affecting the novel feed ingredient companies. Here are our 4 key takeaways from the conferences, and what they mean for the novel feed ingredient industry.

1. Less Hype, Stronger Fundamentals

In 2025, the advice to start-ups from the agribusiness industry was that stronger unit economics now matter far more than growth narratives. Between 2021 and 2022, Ag Tech start-ups raised funds on ambitious projections and innovative pilot facilities. In 2025, businesses are now expected to show repeat customer behaviour, reliable production models, and credible paths to break-even in smaller-scale production. 

As one panellist put it, “In previous years, we were looking for companies with 100% year-on-year growth. Today, we are looking much closer at how ag tech start-ups can break even in terms of cash flow”. For novel feed companies with CapEx-intensive business models, this means investors are paying closer attention to their manufacturing and input costs, profitability, and R&D burden.

2. Circularity and Local Production Models Are Gaining Momentum

Momentum is rapidly building behind circular economy solutions and localised production systems. With 70% of the protein used in animal feed being imported to the EU, the case for local production of novel feed ingredients is growing rapidly. Supply chain disruptions, trade uncertainty, international conflicts, and crop failures are all pushing governments and agribusiness to re-shore or near-shore the production of feed ingredients. 

This trend is benefiting omega-3 and single-cell protein companies, which can produce essential nutrients like fatty acids or digestible proteins without requiring marine extraction or complex global supply chains. Novel feed companies that upcycle waste streams — whether from distillers’ grains, food waste, or aquaculture byproducts — also stand to benefit thanks to their low reliance on imported inputs. 

3. Green Premiums Are Under Pressure From Governments

Sustainability remains a top priority for major aquaculture and agriculture producers. Yet, the tension between climate commitments and economic realities is growing. Governments are focused at present on reducing food prices over promoting environmentally superior products. As one speaker noted, “No government wants to raise food prices to meet sustainability goals.”

This tension highlights the challenges of getting B2B customers to pay a significant green premium for novel feed ingredients. Novel feed ingredient companies must prioritise reaching competitive unit economics at smaller production volumes over ambitious scale-up in response to this demand-side shift. 

4. Distribution Remains A Bottleneck

While technical progress in alternative feed ingredients has been substantial, many startups are facing challenges in penetrating key markets such as aquafeed. Distribution deals via feed manufacturers are the best path forward to commercialise innovative ingredients at scale. Yet, several attendees acknowledged that distribution partnerships and repeated procurement agreements are limited in the novel feed ingredient industry. Therefore, the challenge here is not only developing a viable product, but also demonstrating that it fits smoothly into the supply chains of feed manufacturers. 

In the aquaculture industry, novel feed ingredient companies are price takers, not price makers. The concern here is that innovative technologies are getting stuck at the pilot scale. The recent collapse of high-profile aquaculture and novel feed startups has served as a sobering reminder of what happens when climate goals, investor expectations, and business fundamentals misalign. The implication for novel feed producers is that they must build trust in their product and business model with their distribution partners ahead of commercialising their products. 

Shaping the Future of Animal Feed

The future of novel feed ingredients will be shaped not just by innovation, but by execution. As market conditions evolve, the novel feed industry must adapt, building resilient businesses that can deliver both environmental impact and commercial viability. Companies that combine strong fundamentals, local supply models, cost-competitiveness, and mutually beneficial distribution partnerships will be best positioned to scale. 

For startups in the sector, this means adapting to tighter capital markets with more compelling business fundamentals. For investors and policymakers, it means doubling down on the kinds of capital—patient,  and impact-focused—that these technologies need to succeed.

At the Centre for Feed Innovation, we are helping bridge the gap between technical innovation and market adoption. Through our research, industry engagement, and advisory work, we are promoting the adoption of sustainable, scalable and safe feed ingredients. Our work is accelerating the next generation of sustainable feed to reach the market

If you’re interested in discussing the implications of these trends, get in touch—we’d be happy to share more insights.