Bars, chips, pasta and even alcoholic cocktails made from insects are already a reality. Insect farms received $ 277 million investment, and this number will only grow.
We are used to perceiving insects as pests. But they are also a source of protein, which is in no way inferior to meat. So far, insect food is not a popular idea. First of all, due to the fact that most people dislike the idea of eating food from bugs and cockroaches.
Considerable funds are already invested in the production of insect feed for animals. And mass production of food for people from such a protein is a matter of time.
Insect Protein Stops Feed Price Rises
Traditional livestock production accounts for 70% of agricultural land, including 33% for agricultural crops for feed.
The need for food will grow, along with population growth. There are no special resources for expanding the area for agriculture. We need to look for alternative ways to “get” sources of calories for livestock. As a rule, raw materials with a high protein content range from 50 to 70 percent of livestock costs. In 2017, the global feed industry is valued at $ 430 billion.
Stocks of wild fish in the ocean are also running out. This caused the growth of fish farms and the development of aquaculture. For example, in Vietnam, the area of water farms doubled from 2000 to 2010, and production reached more than a million tons of fish.
In 2014, more fish are produced in special farms in the world than are caught in the ocean. It is expected that by 2030 на of world fish production will be on farms.
The growth of aquaculture farms has increased the price of fish feed. And with the development of aquatic technologies – the price will rise further. Cheaper production will be able to feed on insects.
Insects are common food for many animals. Their protein can replace from 25% to 100% of existing feed, depending on the type of animal. This protein is easily absorbed and is not inferior to its analogs in its nutritional properties.
$ 276 million investment already directed to insect protein production
So far, the European Union has not given permission to use insect feed in livestock. Approved only similar feed for aquaculture. It is expected that only by 2019 insect protein will be allowed to be used in poultry farms.
In the United States, the situation is simpler – Enterra has already received permission to sell fish feed this year. This industry is growing rapidly, but there are no accurate statistics. An independent analysis from CB Insights and Crunchbase showed that from 2009 to June 2018, more than 50 companies received funding for insect protein-related projects. Of these, 42 companies received $ 277 million.
Most companies are located in Europe – they received 84% of the financing. Companies from North America received a total of $ 26 million in investments: Enterra ($ 10 million), eXo ($ 5.2 million) and Entomo Farms ($ 3.3 million).
Actively developing insect farms in China. Local firms from suppliers of raw materials for the production of drugs are moving into the feed business. In Shandong Province alone, 400 cockroach farms have already been formed.
Black lions, mealworms and cockroaches are ideal sources of protein for animals
In practice, flour worms, cockroaches and black lions are used as raw materials for the industrial production of feed. And for food production, mainly crickets are used. Although Nicole Kidman recently demonstrated that worms, grasshoppers, and cockroaches can be eaten calmly.
Black lion cubs recycle livestock waste well. Therefore, these are promising insects for the feed business – they process waste and are raw materials for the production of feed. Most of the companies that have attracted investment deal with black lions. These are AgriProtein, Protix Biosystems, InnovaFeed, Enterra, and Nextalim.
Global corporations that produce food have also become interested in this type of protein. The agro-industrial corporation ADM has acquired the French company Neovia, which is engaged in insect feed for animals. McDonald’s is looking for a manufacturer of such chicken feed.
In the United States, there are many startups that are engaged in the production of food based on protein crickets. Moreover, the range of such food is growing. There are already eXo protein fitness bars, Chapul chocolate bars, Six Food chips, Bugsolutely pasta, and even Citterbitters cocktail bitter and Aspire’s Aletta flour.
In March 2018, Loblaws, Canada’s largest food retailer, launched cricket powder called President’s Choice. And one of Canada’s leading meat suppliers Maple Leaf Foods has invested $ 1.4 million in Entomo Farms.
Insect farms are actively innovating in production
Regardless of whether the insects are used for food or for food – caring for them is time-consuming, and the products are not yet popular. Therefore, farms merge with feed producers to optimize production.
In addition, farms are developing systems for efficient production. Insect grows flour worm larvae using machine learning technology. Farms use IoT sensors. Similarly, Aspire launched its first automated cricket farm in 2017. It uses robots. They feed crickets and also collect data from over 30 million data points. Information is processed and optimal conditions for the growth of crickets are determined.
The largest Chinese cockroach farm annually grows 6 billion insects for medicine. It uses a system that collects and analyzes more than 80 categories of data, including humidity, temperature, nutrition, and how genetic mutations affect the growth rates of cockroaches.
In the future, global food corporations will pay attention to insect protein
Swiss food supplier Bühler, with sales of 2.6 billion in conjunction with Protix, created a joint venture, Bühler Insect Technology Solutions. The construction of Europe’s largest insect processing plant is already nearing completion.
In the United States, they created the modular Cowboy Cricket Farms system. This is an autonomous insect farm that regulates temperature and humidity, controls air quality and maintains feed and water.
Tiny Farms plans to license its turnkey insect farm so farmers can cricket to specifications and sell them for processing.
AgriProtein raised $ 105 million to expand capacity in Africa and Asia. Local waste will be used as an inexpensive feed for larvae. The project will install six plants, each of which will receive 250 tons of raw materials per day and produce 50 tons of larvae per day.
These are just a few examples of how the industry is developing. Insect farms are a very promising area of agriculture. Insects reproduce quickly and in large quantities. Breeders are actively engaged in the cultivation of insects, the cultivation of which will be even more effective. Hendrix Genetics is actively working in this direction.
Insect farms – can be a very profitable business. For example, cockroach farms are one of the most cost-effective types of agribusiness.