Daisy Lab achieves high-yield lactoferrin production using precision fermentation

Auckland-based precision fermentation company Daisy Lab has confirmed a major research milestone, successfully producing multiple grams per liter of bovine lactoferrin using a yeast host. The announcement marks a significant step toward the commercial production of this high-value dairy protein, which is in increasing demand for use in infant formula, dietary supplements, functional foods, and nutraceuticals.

Lactoferrin is a rare and bioactive protein, naturally present in bovine milk at concentrations as low as 0.02 to 0.2 grams per liter. Daisy Lab’s achievement represents a yield improvement of more than tenfold over traditional dairy extraction methods, potentially transforming access to the ingredient.

“This achievement can mean a huge breakthrough for New Zealand food-tech sector,” commented Irina Miller, Co-founder & CEO of Daisy Lab. “We’re not only matching – but far exceeding – cow’s limits in producing this valuable protein. We are still in development, but this gives us real confidence in the path to scaling, with better unit economics and a more sustainable approach compared to traditional methods.”

Lactoferrin is known for its antimicrobial, anti-inflammatory, and immune-boosting properties, and plays a crucial role in iron absorption and gut health. Because of its functional benefits and scarcity in natural milk, it is one of the most prized components in infant formula and health products. Extracting it from cow’s milk is not only complex but limited by low natural concentrations and variability in supply. By contrast, Daisy Lab’s approach using microbial fermentation offers a controlled and consistent production platform.

Precision fermentation derived lactoferrin offers consistent and more abundant supply of this highly sought-after ingredient, the company said in a statement.

Daisy Lab’s approach involves genetically programming yeast to produce proteins that are molecularly identical to those found in cow’s milk. Its recent success with lactoferrin builds on earlier work scaling production of whey proteins such as beta-lactoglobulin. The company was founded in 2021 and secured seed funding in 2023 to expand its R&D and pilot-scale operations.

The breakthrough underscores the potential for precision fermentation to supplement traditional dairy systems, particularly in areas where supply constraints and sustainability pressures are growing. Rather than positioning itself as an adversary to conventional dairy, Daisy Lab sees its role as complementary.

“We don’t see ourselves as disruptors of the dairy industry, but rather as enablers, helping the industry to futureproof its supply and to diversify its offerings,” added Miller.

The company has signaled its ongoing commitment to developing a scalable and cost-effective production model, with an emphasis on collaboration with global dairy processors. It continues to focus on delivering sustainable food solutions that can alleviate pressure on agricultural resources while maintaining nutritional performance.

Daisy Lab is among a growing number of companies in the precision fermentation space aiming to meet the rising demand for animal-free dairy proteins. However, its achievement in boosting lactoferrin yields to commercially viable levels puts it in a strong position to meet market needs where current supply is limited and costs remain high. Lactoferrin’s market price can reach several thousand US dollars per kilogram, depending on purity, making yield and efficiency crucial for commercial success.

As global food manufacturers look for more reliable and ethical sources of functional ingredients, Daisy Lab’s development may open the door to broader adoption of precision fermentation in mainstream applications. The company said it remains focused on fine-tuning its process and scaling production, though it did not disclose specific commercial timelines.