Daisy Lab achieves high-yield lactoferrin production using precision fermentation

Daisy Lab, a New Zealand-based precision fermentation company, has announced a key development in its efforts to produce bovine lactoferrin without animals. The company’s new yeast-based system can generate multiple grams per liter of the protein – significantly higher than the trace levels typically found in cow’s milk – marking what it calls a major technical milestone.

Lactoferrin is a bioactive protein prized for its antimicrobial, anti-inflammatory, and immune-supporting properties. Demand for the ingredient is increasing across several sectors, particularly in infant formula, dietary supplements, functional foods, and nutraceuticals. However, extracting it from dairy is costly and inefficient due to its low natural concentration in milk, which ranges between just 0.02 and 0.2 grams per liter.

“This achievement can mean a huge breakthrough for the New Zealand food-tech sector,” said Irina Miller, co-founder and CEO of Daisy Lab. “We're not only matching – but far exceeding – cow's limits in producing this valuable protein.”

The company’s platform uses genetically engineered yeast to produce lactoferrin that is molecularly identical to the animal-derived version, but without the need for cows. This not only helps reduce reliance on dairy farming, but also provides a more stable and scalable method for producing the protein.

“We are still in development,” Miller added, “but this gives us real confidence in the path to scaling, with better unit economics and a more sustainable approach compared to traditional methods.”

Daisy Lab’s approach reflects a wider trend toward fermentation-enabled food production, which aims to deliver animal-identical proteins through microbial hosts such as yeast, fungi, or bacteria. While precision fermentation is still relatively early in its commercial trajectory, a growing number of companies are targeting proteins that are otherwise difficult or inefficient to source through conventional means.

Miller emphasized that Daisy Lab is not seeking to displace the dairy sector, but rather support it. “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,” she said.

The successful expression of lactoferrin at high levels could have particular relevance for infant nutrition, where the protein is a key component of human breast milk and is increasingly added to formula to support immune health. Its inclusion in other categories, including supplements and functional beverages, is also growing, but supply constraints have been a limiting factor.

By significantly increasing the yield of lactoferrin through fermentation, Daisy Lab hopes to create a more affordable and accessible supply chain for manufacturers looking to include the protein in their formulations. The company believes this could help meet both consumer demand and regulatory expectations for high-quality, consistent ingredients.

Though Daisy Lab has not yet confirmed a timeline for commercialization, the announcement signals that it may be approaching pilot-scale readiness. The company’s stated focus on sustainability and improved economics suggests it is positioning itself to eventually compete with conventional lactoferrin suppliers not only on performance, but also on cost.

Based in Auckland, Daisy Lab has been working to expand New Zealand’s footprint in precision fermentation, an area that is attracting increasing interest from both investors and food producers. Its latest milestone adds to a growing body of evidence that microbial platforms can be harnessed to produce complex dairy proteins in a scalable, animal-free format.

With global demand for lactoferrin projected to rise in the coming years, Daisy Lab’s development could offer food and nutrition companies a new option for sourcing this high-value ingredient – one that sidesteps the inefficiencies of milk extraction and aligns with broader goals around sustainability and supply chain resilience.