From Microbes to Market: Daisy Lab Achieves High-Yield Lactoferrin Production

Courtesy: Daisy Lab

Women-led Daisy Lab, the New Zealand-based biotech startup known for its work in animal-free dairy proteins, has announced a major technological milestone in its development of bovine lactoferrin through precision fermentation. The company reports achieving multi-gram-per-liter yields of the bioactive protein—levels that far exceed what can be found in cow’s milk and dramatically shift the calculus for commercial production.

It’s a pivotal moment not only for Daisy Lab, but for a fast-growing sector that is racing to replace high-value animal-derived ingredients with scalable, microbe-powered alternatives.

From Drop to Deluge: Rethinking Lactoferrin Production

Lactoferrin has long been recognized as one of the most potent proteins in dairy—coveted for its antimicrobial, anti-inflammatory, and immune-supporting functions. But its promise has been matched by scarcity. Naturally present in bovine milk at concentrations as low as 0.02 grams per liter, its extraction has traditionally relied on vast volumes of milk and energy-intensive purification, making it expensive and environmentally taxing.

By turning to precision fermentation—using genetically modified yeast to produce a molecularly identical version of bovine lactoferrin—Daisy Lab offers a radically different approach. Their fermentation process not only bypasses the need for animal agriculture but also produces the protein at concentrations several times higher than what nature provides. It’s a leap that could fundamentally reshape cost structures, supply chains, and access to this once-elusive ingredient.

The implications are far-reaching. Lactoferrin plays a central role in infant formula, gut health supplements, and clinical nutrition, yet has remained a niche product due to high prices and volatile supply. A stable, animal-free source could open new use cases in broader food and health markets, particularly as consumers increasingly seek functional ingredients with traceable, sustainable origins.

Not Just Dairy-Free, But Dairy-Plus

Daisy Lab’s path into precision fermentation began with beta-lactoglobulin, the dominant whey protein in cow’s milk known for its functionality in food formulations. After raising NZ$1.75 million (approximately US$1.08 million) in early funding and reaching yields of 10 grams per liter for beta-lactoglobulin, Daisy Lab pivoted in early 2024 to focus on lactoferrin—driven by the ingredient’s significantly higher commercial value and its potential to demonstrate the scalability and business viability of the company’s precision fermentation platform amid a more cautious investment climate.

This dual-protein focus places the startup in a category with more advanced players like Vivici and TurtleTree, though each is targeting different use cases. Vivici, for example, has focused on beta-lactoglobulin with a clear B2B commercialization strategy across performance and lifestyle nutrition. In contrast, TurtleTree has zeroed in on human lactoferrin, with applications in gut health and immune function, and is already piloting its LF+ product with commercial partners.

Daisy Lab’s approach remains centered on producing bovine-identical proteins, making it potentially more compatible with existing food systems and formulations in traditional dairy categories. While the company has expressed interest in building out its scale with the support of new fundraising and fermenter infrastructure, its regulatory and commercialization routes will depend largely on the geographical priorities of its future partners.

What’s clear is that Daisy Lab is not merely chasing the plant-based trend—it’s targeting the functionality, bioactivity, and nutritional sophistication of dairy’s most potent molecules, with an eye on creating ingredients that can meet the evolving needs of food, health, and nutrition sectors alike.

Scaling the Invisible

Reaching high titers in a controlled lab environment is a significant achievement, but the road to commercialization still depends on scaling up—without compromising yield, purity, or cost-efficiency. Daisy Lab’s announcement suggests that its process economics are improving, a necessary step to make lactoferrin cost-competitive with existing sources or unlock new value in premium formulations.

As the company moves toward pilot scale, key questions will involve regulatory approval timelines, downstream processing efficiency, and potential partnerships for distribution or co-manufacturing. It also enters a market where supply security and ESG credentials are fast becoming strategic differentiators. If Daisy Lab can demonstrate both technical and economic viability, it may find itself in high demand—not just from food manufacturers, but also pharma and wellness players looking to fortify products with functional ingredient components.

A Signal for the Category

Beyond the immediate breakthrough, Daisy Lab’s progress reinforces a broader trend: the shift toward biomanufacturing platforms that offer precision, consistency, and sustainability. As synthetic biology matures, the gap between concept and commercialization is narrowing, and bioactive proteins—once viewed as too complex or niche—are emerging as the new frontier in food innovation.

For now, Daisy Lab has taken a decisive step in proving that animal-free doesn’t have to mean nutritionally inferior or commercially unscalable. It also underscores that the most valuable proteins in dairy aren’t just those we taste—but those we feel, in immune resilience, cellular health, and biological function. The company’s work is a reminder that the next evolution of dairy may not come from cows, but from code.