26 October 2020 - Earlier this month, French insect feed company Ÿnsect raised USD 224 million from investors for its insect farm project in Amiens and for expansion in the North American wet pet food market.
The Amiens farm will produce insect-based nutrients for pets and fish, and as fertiliser for plants. It is expected to open in early 2022. At the site, Ÿnsect will produce 100,000 tonnes of insect products annually, as well as create 500 direct and indirect jobs. All the insect protein production is destined for the feed market (pets and fish for the moment, poultry and pork when European legislation eventually incorporates those species).
Ÿnsect has now raised $425 million, after a previous $125 million fundraising and subsidies of $23 million.
The new funding comes from Astanor Ventures (Series C lead investor), Los Angeles-based Upfront Ventures, Hollywood actor Robert Downey Jr.’s FootPrint Coalition, existing investor Hong-Kong-based Happiness Capital, Supernova Invest (the leading early stage investor in the French deep tech market) and Armat Group (based in Luxembourg).
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At the time, Françoise Lesage, Ÿnsect CFO, commented: “We have sealed a significant and innovative financial partnership with a pool of banks, led by Crédit Agricole Brie Picardie and Caisse d’Epargne des Hauts de France, to support this next phase of growth – with the help of Caisse des Dépôts, our partner for the real estate project financing. Their commitment to the development of French territories, supported by a strong desire to sustain French innovation, is in complete harmony with Ÿnsect’s mission.” In a recent interview, Ÿnsect CEO and Chairman Antoine Hubert spoke to Feedinfo about why Ÿnsect’s expansion is different than other ongoing insect feed projects in Europe, and he provided some background on some of the company’s key ambitions. |
Antoine Hubert |
Hubert stated: “Ÿnsect's expansion project differs from the others in the way that Ÿnsect has created a patented process for producing Tenebrion molitor beetle larvae (mealworms) to produce and distribute a premium range of proteins and fertilisers, while the majority of companies are turning to the black soldier fly.”
According to Ÿnsect's CEO, the choice to use molitor was made because molitor has different virtues from those of the black soldier fly. Molitor in his view can be considered a “premium ingredient”.
“Products derived from the molitor have given extremely significant results on both animals and plants. Several scientific studies have demonstrated that using Ÿnsect products in place of traditional animal proteins and chemical fertilizers have led to increases in yield for rainbow trout, mortality reduction in shrimp and seabass, and a reduction in skin diseases for dogs, among others,” Hubert commented. “All this explains our choice.”
He backed up those comments by saying that the Ÿnsect process is underpinned by technology protected with around 30 patents, representing 40% of the total patent portfolio of the top 10 insect protein companies in the world.
During the molitor breeding process, Ÿnsect will mainly use wheat bran as feed, with all raw materials used being by-products of agricultural production. What is more, suppliers are located close to the company’s farm.
“We use a circular economy. The aim is really to produce more than we consume,” he commented.
And with 100,000 tonnes of projected production capacity in 2022, Hubert argues that the new Amiens farm will be the largest insect farm in the world.
“It's our intention to lead the way with this ‘eco-responsible’ project which is also ‘carbon-negative’. Again, a world premiere,” he claimed.
Furthermore, production capacity at the farm in Amiens is slated to rise to 200,000 tonnes per year after 2023. And in Hubert’s opinion, this significant production volume will permit Ÿnsect to stabilise production costs, with data and AI as increasingly used as tools to manage production, cost and revenues.
When asked about other large-scale insect feed production facilities coming online soon (including InnovaFeed’s new site not far from Amiens), Hubert simply pointed out that the feed market remains huge and Europe is leading the insect sector. So Ÿnsect believes it is necessary to increase its production to meet the global needs.
“But as I said, black soldier flies and mealworms are not the same product, they do not have the same properties, so they don’t have the same use. We can use both in the same recipe; mealworm as a premium ingredient, flies as a food protein,” he commented. “It’s not a competition because we can’t compare insects, be it their qualities or health benefits.”
To date, Ÿnsect has signed a number of contracts for a total value of USD 105 million with customers from all kinds of sectors (who are also part of the Ÿnsect-coordinated FARMŸNG project), such as Torres (a large family owned winery with vineyards in Spain, Chile and California), Compo France, a European leader in plant nutrition for gardeners, and in the aqua feed industry: Skretting.
Earlier this month, talking to the media when Ÿnsect announced it had raised the USD 224 million, Jenna Bowyer, Category Manager Novel Ingredients for Skretting said: “Skretting is proud to be a part of Ÿnsect’s success and we are confident they will continue to be a pivotal player in the global food chain for years to come. We have been working with Insects for the past five years, supporting their progress towards commercialisation through our continuous ingredient development activities while also committing to a long-term partnership.”
Finally, it is also interesting to note that this latest round of fundraising marks what may likely be one of the first cross-continent insect feed projects, with its first North American backing such as Upfront Ventures and Robert Downey Jr.’s FootPrint Coalition.
“After Europe and Asia, the company continues to expand in the US,” Hubert said. “Ÿnsect can now operate on American soil thanks to these two new partners.”
“We also plan to continue expanding our farms as well, and to bring the benefits of this expansion to the territories where we will set up operations.”
