(Bloomberg) -- Archer-Daniels-Midland Co. is betting on an animal-free mozzarella to conquer the market for dairy-protein alternatives, a segment that has lagged behind more-popular meat substitutes.

ADM, one of the world’s biggest agricultural traders and processors, is working with the startup New Culture to launch an animal-free mozzarella in the US food-service market, beginning with Midwest pizzerias in 2023, the companies said.

The aim is produce and distribute a new product that is similar in price to animal-based cheese, but more sustainable, according to Matt Gibson, co-founder and chief executive officer of New Culture, based in San Leandro, California. New Culture uses fermentation to produce animal-free casein protein. Casein is what gives cheese consistency, pull and melting. 

ADM will provide a well-developed supply chain, with access to lower-priced ingredients that can cut production costs, along with manufacturing assets and expertise.

“We believe this technology is a game changer and will help lead the transition of the global dairy diet,” Gibson said. “But the partnership with ADM will give us a new scale and competitiveness, and at the end of the day, the decision comes to price, taste and convenience.”

The dairy market in the US is $70 billion, with about 30% from cheese, according to Chicago-based ADM, and will exceed $100 billion by 2030. But alternative products haven’t thrived. ADM is betting the partnership with New Culture will accelerate the development and commercialization of products that can be made at scale.

“We are working to enable the transition of the global dairy diet and we have a real harmony between the two companies,” said Darren Streiler, vice president of ADM Ventures. “We are already working closely together to decide logistics, production and we will play a key part in this multibillion-dollar market.” 

ADM is the world’s cheapest producer of source ingredients that will be used in the manufacturing process, according to Streiler. “That, combined with our assets and flavor capabilities, will make this product even better,” he said. The partnership will accelerate offerings for food service first and then for consumer applications. 

(Updates with ADM comment in last paragraph. A previous version of the story misspelled the company name in the first paragraph.)

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