Insect farming is increasingly viewed as a promising solution to global food security challenges, particularly in the context of animal nutrition. However, the economic viability of this burgeoning industry has come under scrutiny, especially following the struggles of several high-profile companies. While the potential environmental benefits of using insect protein instead of traditional feed sources like corn and soybean meal are often touted, a recent report from Eurogroup for Animals highlights the complexities involved in insect agriculture. The report points out that logistical challenges, food safety regulations, and economic factors frequently lead producers to opt for conventional crops rather than genuinely repurposing food waste.
The notion of converting food waste into valuable protein is appealing, yet the reality of insect farming can be more convoluted. A study published in the journal Sustainable Production and Consumption reinforces this perspective, suggesting that the environmental advantages of insect farming diminish if the insects are fed ingredients that could otherwise nourish livestock or humans. Cédric Provost, CEO of Canadian insect farming company Entosystem, articulates this dilemma succinctly: “It doesn’t really make sense to buy chicken feed to feed insects to feed to chicken.”
Entosystem, which recently secured CAD58 million ($42 million) to expand its black soldier fly larvae facility in Drummondville, Quebec, has taken a different approach by utilizing food waste sourced from grocery stores. However, managing this variable feedstock presents challenges. Provost notes that the company has invested in technology to remove contaminants from the incoming waste, employing nine different machines to ensure the purity of the feedstock. This commitment to diverting organic waste from landfills is central to Entosystem’s mission, despite the operational hurdles it entails.
Scaling up insect farming operations is fraught with challenges. Entosystem spent years testing various feedstocks at a smaller facility before transitioning to the larger Drummondville plant, which is expected to reach a production capacity of 5,000 tons of protein meal and 15,000 tons of organic fertilizer annually within the next year. Provost emphasizes the unpredictability of the industry, acknowledging that there are few established experts to turn to for guidance in large-scale insect farming. Each facility faces unique challenges based on its specific feedstocks and environmental conditions, making it difficult to replicate success across different locations.
As the industry evolves, there is a growing sentiment that specialization within the insect farming supply chain will emerge. However, Provost warns against outsourcing critical components, such as breeding, at this stage. The intricacies of raising insects, including variations in feedstock and environmental conditions, require experienced personnel. While the vision of a streamlined supply chain is appealing, the reality is that the industry is still maturing.
Currently, Entosystem is finding success in diverse markets, including the backyard chicken sector, pet food, and aquaculture. Although insect protein remains pricier than traditional fishmeal, aquafeed companies are motivated to seek alternatives due to concerns about the sustainability of fishmeal sources. Provost acknowledges that while the sustainability narrative is compelling, feed companies are primarily focused on the practical implications of using insect protein, such as animal health and feed conversion efficiency.
Despite the challenges, investor interest in insect farming persists, as evidenced by Entosystem’s recent funding round. However, the industry has seen its share of failures, with notable companies like Enterra and Agriprotein struggling to maintain viability. Provost reflects on the pioneering nature of the insect farming sector, recognizing that initial setbacks often pave the way for future innovation and expertise. As the industry continues to evolve, the lessons learned from early entrants may prove invaluable for the next generation of insect farming enterprises.