October 18, 2023

photo credit: Beta Bugs

By Lynda Kiernan-Stone, Global AgInvesting Media

Black soldier flies have been the predominant insect used for commercial-scale production of insect-based protein, and the quality of the insects has never come into question, until now. 

Scotland-based insect genetics company Beta Bugs has closed on £1.72 million (US$2.09 million) in funding led by The TRICAPITAL Syndicate, and including SIS Ventures, Scottish Enterprise, Beeches Group, Climate.vc, along with additional backing from existing shareholders and InnovateUK. 

“As the UK’s only insect genetics company, Beta Bugs is laying the foundation for a more sustainable global feed system,” said Arran Dewar, executive director, SIS Ventures. 

Founded in Edinburgh in 2017 by CEO Thomas Farrugia, Beta Bugs is the developer of the UK’s first comprehensive selective breeding program and egg production site for black soldier flies (BSF), which are widely farmed and fed feedstock from various agricultural and food waste streams as a sustainable alternative source of protein for the aquaculture, pork, and poultry feed industries. 

“Beta Bugs has supplied its industry leading products to an increasing number of established and new entrant insect farmers in the UK and international markets,” said Farrugia. “The company continues to develop its outstanding HiPer-Fly® breeding programme, which has demonstrated consistent increases in black soldier fly genetic performance across multiple, economically valuable production traits.”

With the global population on track to reach 9.7 billion by 2050, the world’s livestock farmers will require an additional 539 million hectares of land – or an area 44 times the size of Scotland – using current conventional methods of production to produce the needed protein for this growing population.

BSF represents a viable green, circular, and regionally produced alternative to soy meal or fish meal – both of which carry heavy environmental impacts and footprints, and are central causes of deforestation, loss of biodiversity, and overexploitation of wild fish populations. 

This voracious need for high-protein feeds points to a roadmap of growth for insect-based protein production. Today, the market for insect protein stands at approximately 10,000 metric tons. However, a report from Rabo, No Longer Crawling: Insect Protein to Come of Age in the 2020s, estimates that demand for insect protein, mostly by the feed and pet food sectors, could reach a market of 500,000 metric tons by 2030. 

“Insect farming is increasingly seen as a sustainable alternative protein source that could help mitigate the predicted increase in protein demand over the coming decades,” said Moray Martin, managing partner, The TRICAPITAL Syndicate. “The significantly lower environmental impact of insect farming places the sector at the forefront of sustainable food source development. In that context we are delighted to be able to support the acceleration of Beta Bugs to commercial scale.” 

However, despite being commercially farmed for about 10 years now, BSF have yet to be genetically improved for large-scale production. Based in the Easter Bush Campus, Scotland – a center of excellence for animal science and home of the Roslin Institute – Beta Bugs provides superior larvae to insect producers that can increase both protein yield and quality for animal feed, enabling it to ultimately compete with soy and fishmeal on price. 

Currently Beta Bugs employs a team of 12, but stated that, as part of its strategic growth plan, it intends to recruit another four full-time commercial and technical staff over the coming months, and has appointed Chris Richards, a veteran of the international agribusiness industry, as non-executive chair.

“By creating jobs and diverting waste for its ground-breaking breeding programme, the business will deliver significant impact here in Scotland, with the potential to deliver even greater impact globally as the business grows and scales,” said Dewar. 

Kerry Sharp, director of entrepreneurship and investment, Scottish Enterprise, added, “We have supported Beta Bugs through our high growth ventures team as well as financially and this recent investment will help the company fly high as it expands the team and continues to develop its sustainable and innovative insect protein solutions. “It’s a great example of a Scottish bio tech scale up providing value in the supply chain for the agriculture industry and with benefits for the economy and environment.” 

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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