Estonia: The future is fungal

Thanks to breakthroughs in biotechnology and circular production systems, fungi have become a major frontier and opportunity in food systems as an alternative source of protein. Estonian research and development company, Centre of Food and Fermentation Technologies (TFTAK), has a good, long-standing reputation in food technology, alternative proteins and bioprocesses that it is now harnessing to transform fungi into new foods to tantalise palettes.

Setting out to exploit the potential of fungi, TFTAK and companies from Spain and the United Kingdom collaborated on a Eureka project called BETTER FISH. The project partners set out to create a plant-based fish fillet prototype that is sustainable, nutritious and a well-textured alternative to conventional fish fillets.

To achieve this, the consortium mixed fermented food industry by-products and microalgae, using a proprietary bioprocess based on filamentous fungi fermentation. Creating something tasty was also a priority: Ranno Nahku, Research and Development Director of Biotechnology at TFTAK, explains, “the project deepened our understanding of complex food properties like fish texture and flavour”.

The Eureka project gave us the freedom to think outside the box, or rather, outside the fish. BETTER FISH laid the foundation for a new fungal bioprocesses team and proved that scientific curiosity can have very tangible value.

Ranno Nahku – Research and Development Director of Biotechnology at TFTAKs

Eureka and Enterprise Estonia support was essential not only in providing funding but also in facilitating effective collaboration between partners from across Europe with complementary expertise. Equally important was the structured proposal and reporting process, which helped establish focus and strategic thinking, define milestones and evaluate progress. This systematic approach encouraged critical reflection on what steps were truly necessary for success.

Out of BETTER FISH’s success, TFTAK launched a fungal fermentation platform, employing a specialised team working on fungal bioprocesses. This team applies its expertise to create new, innovative ingredients and consumer products, leading to revenue growth. One of these is NordTempeh, a product line developed for Estonian company Nordictempeh. Made from yellow peas and produced through fungal fermentation, NordTempeh offers a sustainable alternative to traditional soy-based tempeh, with a much smaller environmental footprint.

TFTAK’s new capabilities have also empowered collaborations with emerging companies such as Funki, an Estonian startup developing meat alternatives based on filamentous fungi. Through such partnerships, TFTAK strengthens the regional alternative-protein ecosystem and helps bring novel, sustainable foods to market.

Beyond food innovation, TFTAK is applying its fungal bioprocess expertise to environmental solutions. In collaboration with Estonian company, Systemseparation, TFTAK develops bio-based agricultural products using filamentous fungi. These solutions help farmers reduce pesticide use, improve soil health and enhance resource efficiency, paving the way for next-generation sustainable agriculture.

As TFTAK continues to expand the horizons of fungal biotechnology, transforming food production and advancing sustainable agriculture, the momentum behind filamentous fungi as a driver of circular, futureready solutions grows. Breakthroughs from projects like BETTER FISH demonstrate how collaborative science can unlock new value streams, nurture regional innovation ecosystems and reshape how societies think about food and sustainability. With each new partnership, TFTAK refines the tools and knowledge needed to advance fungal fermentation and build resilient, resource-efficient systems. As this field accelerates, opportunities multiply for those curious to explore what fungi-based technologies can do.