They have been working together since 2019, to build a comprehensive understanding of how to use precision fermentation science and technology, to produce proteins similar to those found in dairy.
"Precision fermentation is a technology where micro-organisms, like yeast, can be harnessed to produce ingredients for food," Boswell told The Country Sport Breakfast's, Brian Kelly.
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The collaboration had been successful so far, he said.
"To date, our work with DSM has enabled us to create valuable intellectual property which we've filed patents for.
"This next step will enable us to accelerate the development and the commercialisation of those proteins."
It would be a while before the proteins hit the market, Boswell said.
"We're aiming for commercialisation within the next few years as we explore the opportunities for nutrition science solutions and our advance specialty ingredients."
It was important that the co-op continued to deepen its understanding of emerging food technologies' potential, Boswell said.
"[It] helps Fonterra to deliver on our strategy of generating more value for farmers and for New Zealand over the coming years [and] to be a leader in dairy innovation and science."
Fonterra already used traditional fermentation to make cultures for cheese and probiotics, and Boswell said the new proteins would complement this.
"We see this technology, not as a dairy alternative but playing a role right alongside it."
