A Singapore-based startup that turns flies into animal feed and fertilizer has raised $28 million in a Series A round, attracting investors from around the world. Nutrition Technologies is one of the leading companies in the emerging field of insect farming, which aims to provide a sustainable and scalable alternative to traditional feed sources.
The Problem With Conventional Animal Feed
The global demand for animal protein is expected to grow by 70% by 2050, according to the Food and Agriculture Organization of the United Nations. This means that more feed will be needed for livestock, poultry, and aquaculture. However, conventional feed sources such as soybean meal, fishmeal, and corn are becoming increasingly scarce, expensive, and environmentally damaging. For example, soybean production contributes to deforestation and greenhouse gas emissions, while fishmeal depletes the oceans of wild fish stocks.
Insect farming offers a solution to this problem, as insects can convert organic waste into high-quality protein and fertilizer, using less land, water, and energy than conventional feed sources. Insects are also rich in essential amino acids, fatty acids, minerals, and vitamins, making them a nutritious and healthy feed ingredient for animals.
The Solution: Black Soldier Flies
Nutrition Technologies specializes in breeding and processing black soldier flies, a species of fly that is native to tropical and subtropical regions. Black soldier flies are ideal for insect farming, as they have a high reproductive rate, a short life cycle, and a voracious appetite for organic waste. They can consume up to twice their body weight per day, and reduce the volume of waste by up to 70%.
The startup operates a fully automated and vertically integrated production facility in Johor, Malaysia, where it collects organic waste from local farms and food manufacturers. The waste is then fed to the black soldier fly larvae, which grow rapidly and produce a high-quality protein meal and oil. The larvae are harvested and processed into animal feed and fertilizer, while the remaining waste is composted and sold as organic soil conditioner. The adult flies are used to breed more larvae, creating a circular and zero-waste system.
The startup claims that its products can replace up to 50% of conventional feed sources, and reduce the environmental footprint of animal production by up to 90%. Its products are currently sold to customers in Malaysia, Vietnam, Thailand, and Singapore, and are used for poultry, swine, aquaculture, and pet food. The startup plans to expand its production capacity and market reach, as well as develop new products and applications for its insect-based ingredients.
The Investors And The Market
The Series A round was led by Openspace Ventures and Sofina, with participation from SEEDS Capital, Agriline, Wavemaker Partners, Insignia Ventures, and Genesis Alternative Ventures. The round also included strategic investors such as Buhler Group, a Swiss food processing company, and Golden Gate Ventures, a Southeast Asian venture capital firm.
The startup’s founder and CEO, Nick Piggott, said that the funding will enable the company to scale up its operations and technology, and to tap into the growing demand for insect-based products in Asia and beyond. He added that the company’s mission is to “transform the global food system by producing sustainable and scalable alternatives to conventional feed sources”.
The insect farming market is expected to reach $8.4 billion by 2030, according to a report by Barclays. The report also identified insect farming as one of the key trends that will shape the future of food and agriculture. Some of the factors that are driving the growth of the market include the rising awareness of the environmental and social impacts of conventional feed sources, the increasing demand for animal protein, and the supportive regulatory frameworks for insect-based products in some regions.
The startup faces competition from other insect farming companies, such as Protix in the Netherlands, Ynsect in France, Enterra in Canada, and InnovaFeed in France. These companies have also raised significant funding and established partnerships with major players in the food and agriculture industry. However, Nutrition Technologies believes that it has a competitive edge in the Asian market, where it has a strong presence and network, as well as a deep understanding of the local needs and preferences.
The Future Of Insect Farming
Insect farming is not only a viable and profitable business, but also a potential solution to some of the global challenges that we face today, such as food security, climate change, and waste management. By turning flies into farm food, Nutrition Technologies and other insect farming companies are creating a new industry that is buzzing with innovation and impact.
