AgriProtein secures US$105m investment in insect protein sector

636637240506098594sustainable circular (2).jpg

05 Jun 2018 --- Waste-to-nutrient business, AgriProtein, has raised US$105 million in funding, marking a new high in investor appetite for the insect protein sector. According to the company, this is the most substantial investment to date.

The record raise by AgriProtein Holdings UK, together with additional local project finance for a series of factory builds in Africa, the Middle East and Asia, puts AgriProtein on track to deliver its ambitious factory roll-out plans.

Jason Drew, AgriProtein Co-Founder and CEO, says: “This is a significant vote of confidence in a growth industry producing a sustainable protein for use in animal diets. It reaffirms our position as the leading up-cycler of waste-to-protein and brings us the financial resources for further global expansion.”

The company, which won acclaim as the BBC Food Chain Global Champion 2017, is building a global business through its circular economy strategy: up-cycling organic waste to tackle the food security and waste disposal challenges posed by the world’s burgeoning population while helping conserve wild-fish stocks in our threatened oceans.

AgriProtein uses black soldier flies and their larvae to convert organic food waste into a high-protein alternative to fishmeal suitable for fish, poultry, pigs and pet food.

Drew adds: “We need to see waste differently – as a resource – particularly food waste. A growing population, scarce water and land resources, and declining natural fish stocks make this more critical than ever.”

Speaking to FoodIngredientsFirst, Drew says: “I think that the insect protein is and will be an increasingly useful contributor that will help plug the ‘Protein Gap’ alongside other technologies such as single-celled bacteria and algae-derived proteins.” 

“Mealworms are already being processed for feed – and with hundreds of thousands of insect species to test we have a long way to go as an industry,” he notes. 

Drew hopes that more investments will be made in this space: “It is a capital intensive and sustainable solution – and as the industry grows it will need more access to capital.”

AgriProtein has fly farm projects under development across the world to produce its flagship product MagMeal.

The company has expanded its R&D capability, hiring new staff and building chemistry and genetics labs. It has also hired senior staff from engineering and waste management backgrounds to increase its project roll-out capacity.

The company is focusing initially on the aquafeed market, where demand is increasing year on year to satisfy growing consumer appetites for farmed fish.

Worth over US$114 billion in 2017, aquafeed is predicted to grow by a factor of 2.5 in just eight years to nearly USD 290 billion in 2026, according to Reuters/MRC Statistics, March 2018.

Drew also notes: “There is simply not enough marine material left in the oceans to meet fishmeal demand in aquafeed, let alone in feed for poultry, pigs and pets. Along with algae and bacteria, new, disruptive sources of protein like our own are needed to close the feed gap and, in the process, help repair the future of the planet.”

In January 2018, AgriProtein was named a Global Cleantech 100 company for the second year.

By Elizabeth Green

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

“Switch to natural”: Solvay eyes growing potential for natural vanillin solutions

18 Feb 2019 --- Driven by concerns around food safety and the need for improved transparency, consumers increasingly seek foods that are simple and contain familiar ingredients. For the US food market, Solvay is now offering a new, natural vanillin further extending its current portfolio of natural and nature-inspired ingredients. Catering to this rising consumer demand for GMO-free, natural and “true-to-nature” products, Solvay has developed a full range to answer the “switch to natural” demand, according to Lucie Morpain, Food & Beverages and Americas Market Manager.

Food Ingredients News

Are US-China trade tensions easing? Striking a deal to finalize an end to excessive tariffs

18 Feb 2019 --- As the clock counts down to March 1, the deadline for the US-China trade conflict truce to come to an end, both countries say they are making positive progress towards ending the trade dispute that has seriously impacted commodities for months. Talks continue this week in Washington after negotiations in Beijing failed to finalize a deal to end the trade war last week. However, as the food industry continues to closely monitor progress, hopes are high that an end is in sight and a return to excessive tariffs will be avoided.

Food Ingredients News

Yolkin’ around: Egg replacement ingredients soar, and it’s not just veganism boosting demand

18 Feb 2019 --- Egg replacements have found a significant market in recent years with potential for further growth in the pipeline. There are several reasons behind this ongoing development. The availability and price of eggs are subject to seasonal fluctuations which can influence the end products’ profitability, meaning that manufacturers who use eggs on a large scale are seeking economical alternatives. Many consumers are adopting plant-based lifestyles, which avoid the consumption of any ingredients derived from animals. According to many suppliers, the rising demand for egg replacement ingredients is related to the mainstreaming of veganism and the even more popular flexitarian trend, both of which are gaining traction in consumer groups globally.

Food Ingredients News

BI Nutraceuticals strengthens Canada presence with Brenntag partnership

15 Feb 2019 --- US-based ingredients supplier BI Nutraceuticals (BI) is partnering with food and nutrition experts Brenntag Canada Inc. to strengthen its reach in Canada. The partnership will allow Brenntag to widen its portfolio to include ingredients that are healthier, natural and on-trend, according to both companies.

Food Ingredients News

Malic acid demand boosts Bartek Ingredients capital investment program

15 Feb 2019 --- Bartek Ingredients Inc., specialized in malic acid, food-grade fumaric acid and maleic anhydride for food and beverage applications, has completed a 4,000 ton/year capacity increase of its malic acid production facilities. The company is planning more investments as part of a series of process and production improvements planned for this year. The capacity expansion also closely follows TorQuest Partners’ acquisition of Bartek Ingredients Inc in November 2018.

More Articles