September 23, 2020

By Lynda Kiernan, Global AgInvesting Media

Bulgaria-based Nasekomo has partnered with France’s Groupe Grimaud to launch Fly Genetics – a joint venture aiming to be the leading European supplier of improved black soldier flies to the insect-based bioconversion industry.

In business for only three years, Nasekomo is creating an environmentally positive circular economy based on the belief that insects are a scalable and natural solution to the challenges being faced by the feed industry.

The company leverages proprietary robotized insect-rearing technology, AI, big data, and selective breeding programs to raise black soldier flies that are fed using local agricultural by-products to create a protein source for poultry, pigs, fish, and pets. The scalable system not only uses a minimum of water, but eases the pressure on wild-caught sources of protein for fish feed, and the deforestation resulting from soybean production for animal feed.

In July of this year the company made news when it secured US$4.5 million in funding from Morningside Hill and New Vision 3 – two venture capital funds backed by the Fund of Funds in Bulgaria – representing the largest early-stage agtech funding in emerging Europe. 

“Insects are part of the natural diet for many animal species,” said Olga Marcenac, co-founder, Nasekomo in July. “They now represent an opportunity to become a sustainable solution to supply the proteins that the world is increasingly consuming. Instead of increasing wild fish catch in oceans and deforesting to plant soy, we can feed insects with local agricultural by-products with extremely limited water consumption, and produce high-quality sustainable proteins for fish, poultry, pigs and pets.”

Not only does insect protein present a solution as an animal feed, but the process of raising the insects also provides a service by feeding the insects large volumes of organic by-products that are difficult to recycle, such as spent grains from breweries and cereal processing, or fruit and vegetable cuttings.

This circularity generates two distinct benefits – it recovers and recycles by-products and decreases the environmental impact of animal-based agriculture and aquaculture through more sustainable inputs. An added benefit is that studies indicate that animals fed rations including insect-based proteins prove to be more robust, and potentially require less antibiotics.

Partners

This partnership brings Nasekomo together with Groupe Grimaud – one of the world’s leaders in multi-species animal genetics, bio-pharmacy, and novel farming practices. Mainly family-owned and headquartered in  Sèvremoine, France, Groupe Grimaud has operations in more than 100 countries, and generates €320 million (US$375 million) in turnover.

Together, through Fly Genetics, the partners will bring together expertise in genetic selection of animals for efficient protein production with experienced insect production to provide enhanced black soldier flies to optimize the conversion of by-products into alternative proteins and other insect-based products.

“We are happy to apply all of our know-how to a natural diversification of our activities, while continuing to support traditional animal sectors through investments focused on sustainability and animal welfare such as sexing duck eggs, or more recently, the inauguration of a new French hatchery with the latest standards in laying hens,” said Frédéric Grimaud, CEO, Groupe Grimaud. “For us this means striking the right balance between our flagship activities and the newly emerging ones.”

A key aim for the venture is to develop new black soldier fly strains that will increase insect bioconversion efficiency, and which the partners expect to be marketing beginning in the second half of 2021.

“With this partnership, Nasekomo will nurture its unique position within this new insect industry,” said Marc-Bolard, co-founder, Nasekomo. This joint venture will naturally enhance our animal population and thus strengthen the economic and environmental impact of insect-based bioconversion: a larger range of by-products will be converted into valuable products with better biological efficiency for increased economic returns.”

Bollard continued, “With the support of our proprietary technologies and services, our clients will benefit from tailored, sustainable, and competitive solutions to lead the circular agriculture revolution.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.