Entrepreneurship Zone: 19 January 2023 :: Kenya: Insects as a food source for humans and livestock

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Entrepreneurship Zone: 19 January 2023 :: Kenya: Insects as a food source for humans and livestock

 


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Talash Huijbers, founder of InsectiPro

 

InsectiPro is a Kenyan company that cultivates black soldier flies and crickets on a commercial scale.

Talash Huijbers was planning on farming fish in her native Kenya. The tilapia species, to be exact. Today, however, she supplies insect protein from black soldier flies to four large animal feed mills. Her company, InsectiPro, is also testing the market’s appetite for dried crickets.

It started with Huijbers’ realisation that in Kenya, tilapia farming was difficult to run as a profitable venture despite the country’s ideal conditions. The main reason is the high cost of fish feed, which makes up between 60-80% of the production cost of fish in East Africa, as opposed to 30-50% in Europe. This is because of the shortage of protein sources like fishmeal and soy in Kenya. Huijbers researched alternative options and saw the potential in bugs.

To make the proposed venture feasible, Huijbers needed to find customers for her insect protein. And so, one day in October 2018, Huijbers, dressed in a somewhat dirty white T-shirt and gumboots from being on her father’s farm earlier, walked into the offices of the largest feed miller in Kenya and declared to the production manager that she had a protein alternative.

“As a cocky 23-year-old, I casually asked: ‘What would your potential order be?’. To this, he calmly responded that the company would take 500 tonnes per month, immediately,” she remembers. “I walked out of there, calling my dad and telling him that we were starting the very next day!”


Setting up production


Huijbers’s father grows garden plants for export to Europe and offered her one acre of land on his farm. She funded the venture with her own money and financial support from family members who believed in her business pitch. The company has now grown to produce one tonne of product from its black soldier fly operations daily, as well as between 100-200kg of dried crickets a month.

“I am probably the most productive smallholder farmer in Africa,” she jokes. From that one acre, the company does US$1,000 to $2,000 worth of product per day.



Employees at one of InsectiPro’s production facilities.

 

InsectiPro began operations with black soldier fly production, obtaining its first colony from the International Centre of Insect Physiology and Ecology in Nairobi. The company processes the flies into three products: black soldier fly meal (the protein component for animal feed made from the defatted fly), frass (organic fertiliser made from the left-over product after growing the larvae), and chitin (a natural polymer found in the exoskeleton of the flies and used in the pharmaceutical industry).

Two years later, a supplier of nutritional products for school feeding programmes visited the facility and inquired about insect protein for their products. Though InsectiPro was not growing insects for human consumption at the time, it secured the order and began producing crickets shortly after.

The company, which currently employs 82 people, has already established satellite farm sites next to large-scale manufacturers that produce unwanted organic waste. “It is a decentralised model. We take ourselves closer to the waste, 80% of which we get for free. For most large corporates it is an attractive narrative where they can state that they’ve gone from waste dumping to upcycling,” she says.


Farming crickets for food security and nutrition


Eating crickets has been a tradition for thousands of years. They are a high-protein food source, with studies showing they can contain up to 73% protein. Huijbers notes that only 20g of crickets, or a handful, is needed daily to meet one’s nutritional needs.

InsectiPro grows crickets in stackable crates, utilising the space-saving benefits of insect farming. Each female cricket can lay 300-400 eggs over a period of two to three weeks. After 10 days, the crickets are moved to feeding trays and are ready for harvesting after five weeks. They are then frozen, thawed, and baked for consumption.

Currently, the company offers three cricket protein products. The first is a crunchy snack called Chirrup’s, made from cricket flour, which is available in four flavors (barbecue, plain, caramel cinnamon, and salt and vinegar) and sold in colourful 20g packets with playful branding featuring an illustrated cricket character engaging in different activities. Chirrup’s can be found on Greenspoon.co.ke, an e-commerce platform for health products in Kenya. Additionally, Insectipro produces a cricket powder under the name PET and a porridge that is used for feeding schemes.



InsectiPro’s branded Chirrup’s snack brand made from cricket flour.

 

Huijbers explains that it can be challenging to sell the product as a whole cricket, but sees potential in the powder form as it can be easily incorporated into various dishes and drinks, such as smoothies and school meals, without broadcasting the source.

“I find the cricket side of the business very stimulating, creatively,” she says. “We are working with chefs all across the country, encouraging and daring them to put it on their menu. We are testing different products.”


Growth potential


Eating insects is a growing trend in Europe, while in many parts of Africa it is a cultural norm. Huijbers states that the company has received export requests, but the administrative and paperwork requirements make it unviable at this time. As the industry of insect farming for human consumption is relatively new, internationally recognised standards are not yet fully established. InsectiPro has obtained certification from the local bureau of standards and is currently focusing on regional markets. It has already appointed a Ugandan CEO and will expand there in 2023. Rwanda is lined up for 2024.

“We will stick to the insects that people are used to eating in a specific location,” says Huijbers. In Uganda and Rwanda that would be grasshoppers. InsectiPro also has a small project running in partnership with the Bill & Melinda Gates Foundation in the Republic of Congo that focuses on palm weevils but is not planning to scale this commercially.

Huijbers believes a more eco-conscious generation will drive insect consumption in the future. “There is a younger generation that is not only worried about cost. They want to know about the impact, both positive and negative, of a product before they consider buying it. And they are looking at environmentally friendly alternatives that are available locally.”

 

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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

 


 

 


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