Rice-Based Casein? This Japanese Startup Says It’s Cracked the Grain

Tokyo-based food tech startup Kinish has raised ¥120M ($800,000) to grow “real deal” milk protein in rice grains through molecular farming.

Japanese rice may be best known for its sushi, but one local startup wants to use the ingredient to grow another staple.

Kinish, an alternative protein firm based in Tokyo, has secured ¥120M ($800,000) in seed funding to produce animal-free dairy proteins inside rice grains via molecular farming.

The round was led by Genesia Ventures, Lifetime Ventures, Full Commit Partners, and Mitsubishi UFJ Capital, and will allow the startup to accelerate R&D for its rice-derived casein and expand into the US.

Modern dairy farming is heavily dependent on limited resources such as large amounts of water and vast tracts of land, and we believe that it will be placed under increasingly severe conditions due to future environmental changes and the reevaluation of water resources due to advances in AI,” said Takashi Sogabe, associate at Genesia Ventures.

At the same time, existing plant-based milks “have not shown sufficient improvement in taste and texture, and are one step away from being widely accepted by society”, he added.

“Kinish has the elemental technology to provide a low-cost alternative milk that faithfully reproduces the functionality of milk, and we are confident that it will become a company that meets the great social needs for environmental and resource issues that will likely become apparent in the future.”

How Kinish grows milk proteins in rice

Established in early 2023 by CEO Hashizume Hiroya, Kinish blends plant molecular farming with vertical farming to make its next-generation casein.

“In the face of pressing environmental issues, we fear that opportunities to enjoy the joy of food will decrease at an accelerating rate,” Hashizume said. “Kinish is working to develop an unprecedented dairy alternative product by maximising the potential of rice and our unique technology.”

Molecular farming has been identified as a more viable and affordable way to replicate animal proteins than cell cultivation or precision fermentation. A market set to double in value by 2029, the technology genetically engineers plants to produce proteins, which can be harvested from leaves or other tissues. This eschews the need for expensive fermentation tanks, since plants themselves act as the bioreactors.

Kinish applies the technology to dwarf rice plants, which are just 20cm tall and can be cultivated in large quantities in plant factories. By utilising vertical farming, it can grow the crops in stacked cultivation and harvest them in less than half the time required for traditional rice.

The company will use the funds to speed up its R&D efforts, part of which is a research collaboration with Shizuoka University to design a plant factory specialising in dwarf rice.

Dairy and rice are two of the largest contributors to the food system’s methane emissions, but the former’s carbon impact is more than twice as high as the latter’s. But by making use of vertical farms, Kinish can grow milk proteins in rice grains with a fraction of the land and water traditionally used in both industries.

Climate change is wreaking havoc on Japan’s rice production. Consumption of the staple has more than halved since the 1960s and a crop shortage has forced the government to release 200,000 tonnes of emergency rice stockpile. Solutions like vertical farming can help safeguard crop security amid the climate crisis.

Targeting Japan and the US for market entry

In Japan, the number of dairy farmers is declining, while milk consumption has been shrinking since the 1990s. At the same time, 2.4% of Japanese consumers said they were vegan in 2023, up from 1% in 2017.

Casein is the most common protein found in cow’s milk, making up 80% of its protein content. It’s a key emulsifier that prevents water and fat from separating, giving cheese its melty and stretchy properties and making ice creams creamier.

The fresh capital will allow Kinish to develop a casein-containing rice variety that can be grown on a commercial scale. While its first product is a rice-based ice cream with no casein, it will allow the brand to commercialise in both Japan and the US and expand its marketing efforts.

Eventually, it aims to create an ice cream combining the rice-derived casein with rice starch for sweetness, as well as a variety of cheese products with its milk protein.

“Many food tech startups are trying to solve food problems, but Kinish is characterised by its unique technology and marketing-focused strategy, and is steadily preparing to bring its products to market as soon as possible,” stated Koichi Hatano, a general manager at Mitsubishi UFJ Capital.

The company has won several awards, including the Startup Award at Japan Summit 2024, the Real Tech Fund Award at Food Tech Grand Prix 2024, and the ICJ Award at FoodxTech Mercato.

It is among a host of companies using molecular farming to produce planet-friendly versions of animal proteins – Alpine Bio, Mozza, Miruku, Veloz Bio, and Finally Foods are all similarly working on casein. Others, such as Moolec and PoLoPo, are working on meat and egg proteins, respectively.

Meanwhile, food tech innovators are also making recombinant casein via precision fermentation, including New Culture, Change Foods, Fermify, Zero Cow Factory, Standing Ovation, and Those Vegan Cowboys. And New York-based Pureture is making yeast-derived vegan casein via liquid fermentation.