The Dairy Emissions Crisis
The EU dairy sector is a cornerstone of European agriculture—and a cornerstone of European emissions. EU farms produced approximately 160 million tonnes of raw milk in 2022, translating to roughly 5.3 million tonnes of milk proteins annually. The environmental footprint is enormous: in 2010, EU dairy production generated an estimated 176 to 241 million tonnes of CO2-equivalent.
On land use, dairy farming and feed production consume tens of millions of hectares across Europe—pastureland, corn fields, alfalfa, imported soy. The cumulative result: dairy effectively locks in agricultural emissions that are difficult to reduce through incremental efficiency gains.
Fermentation-Derived Dairy Proteins: The Alternative
Perfect Day, a San Francisco-based startup, proved the concept commercially. Using engineered yeast, they produce β-lactoglobulin—whey protein molecularly identical to that secreted by dairy cows. A 2021 ISO-reviewed LCA found Perfect Day's non-animal whey protein had 91 to 97 percent lower GHG emissions, required 29 to 60 percent less non-renewable energy, and used 96 to 99 percent less water compared to conventional whey from cow milk.
In the EU, German startup Formo and Israel's Remilk are scaling fermented dairy proteins. Formo is developing both whey and casein proteins—the latter crucial for cheese-making. Remilk has a production partnership in Europe with a facility in Denmark. These are capital-backed companies building production capacity.
The Land and Water Liberation
If the EU replaced all dairy protein with fermentation-derived equivalents, the approximately 200 million tonnes of CO2-equivalent annually from EU dairy could shrink to approximately 8 million tonnes. That is a reduction equivalent to removing roughly 40 million passenger cars from European roads.
Land use reduction is equally dramatic. One analysis found that producing 1 kilogram of microbial protein needs 4 to 5 square meters of land, compared to 273 square meters for 1 kilogram of bovine milk protein. Perfect Day's process uses approximately 74 liters of water per kilogram of protein—up to 99 percent less than dairy.
Regulatory Status and Commercial Timeline
The EU dairy market is worth approximately €200 billion annually. Even a 10 percent penetration by fermented proteins would represent a €20 billion market. Formo has announced production timelines in the near term (2026 onward). Remilk's Danish facility is designed to supply casein for European cheesemaking.
The Bottom Line: Fermentation-derived dairy proteins could cut EU dairy-sector emissions by 190+ million tonnes CO2-equivalent annually while freeing 15 to 20 million hectares of land. With Perfect Day commercial and EU startups months from pilot production, the technology's window from research novelty to market inflection is now open.