Agroloop, a Hungarian insect farming startup, is on the verge of launching a groundbreaking €20 million ($21.2 million) insect farm that promises to reshape the landscape of insect agriculture. Located near Budapest airport, this facility will be the first of its kind to operate without an in-house breeding unit, a significant departure from the traditional model where breeding, farming, and processing are integrated within one facility. Instead, Agroloop has partnered with Israeli company FreezeM, which specializes in providing outsourced breeding solutions.
This innovative approach allows Agroloop to focus solely on farming while relying on FreezeM to supply black soldier fly (BSF) neonates—larvae that have just hatched and are in a state of suspended animation. These neonates, branded as PauseM, are shipped weekly from FreezeM’s breeding hub in Germany, ensuring a consistent supply of high-quality larvae that have a survival rate exceeding 90% over a 14-day period. This process not only streamlines operations but also enhances productivity, as the suspended neonates are reported to grow faster and yield better results when fed.
Rajmond Percze, cofounder and CEO of Agroloop, emphasizes the necessity for innovation in insect farming to meet the increasing global demand for sustainable protein sources. The collaboration with FreezeM is seen as a strategic move to ensure efficient operations while driving business growth. This partnership has already led to an offtake agreement with UBM, one of Hungary’s largest feed companies, which will purchase the majority of Agroloop’s production until 2027.
The decision to outsource breeding raises important questions about the future of insect farming. While some industry veterans may be hesitant to relinquish control over breeding, FreezeM’s cofounder and CEO, Dr. Yuval Gilad, argues that their model offers a viable solution for both new and existing insect farms. The company has invested years into refining its breeding process, which has proven to outperform in-house breeding operations in many cases. This allows farmers to increase production capacity without the complexities and costs associated with maintaining their own breeding colonies.
Moreover, FreezeM has developed an automated deployment system capable of introducing up to 200 million BSF neonate larvae into production lines daily. This level of automation not only reduces labor costs but also enhances the overall efficiency of the farming process. As the insect agriculture sector matures, it is expected that specialization will become increasingly important, similar to other agricultural industries where breeding, farming, and processing are often handled by different entities.
The implications of this shift in insect farming are significant. As Agroloop and FreezeM pave the way for a more segmented and cost-effective approach to insect agriculture, it could lead to the emergence of smaller, specialized facilities capable of ramping up production more swiftly and efficiently. This model may also attract waste management companies, which could play a pivotal role in the future by processing post-consumer waste as feed for insects.
Dr. Gilad predicts that the insect farming industry will evolve to mirror established agricultural sectors, with a clear separation of roles across the supply chain. This evolution could result in a more sustainable and economically viable insect agriculture landscape, where companies focus on their core competencies, ultimately benefiting the entire ecosystem.
As Agroloop prepares to launch its innovative facility, the insect farming sector stands at a crossroads. The success of this venture may not only redefine how insect farms operate but could also serve as a blueprint for future developments in sustainable protein production, making insect farming a necessity rather than a novelty in the agricultural landscape.