June 25, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

As a means to spark the circular economy in Latin America and the Caribbean, the International Finance Corporation (IFC) has made an initial investment of $2 million in Costa Rica-based ProNuvo, a startup focused on the sustainable production of insect-based animal feed. 

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.

This 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. 

Founded in 2018, ProNuvo harvests black soldier fly larvae, a species native to Costa Rica. The company uses organic water material as feed for the larvae, which are converted into high-quality fats and proteins, while the residue from the process, or frass, is transformed into organic fertilizer rich in microorganisms. 

“At ProNuvo we transform waste into high-quality products to generate a positive environmental and social impact,” said Miguel Carmona, co-founder and chairman of the board, ProNuvo. “We are proud to operate in a country that is committed to the environment and to have the support of collaborators like IFC that are perfectly aligned with our mission of creating a more sustainable food chain for future generations.”

From the IFC’s perspective, this investment aligns with its global strategy in the insect protein sector, to promote its development based on quality and sustainability standards while also catalyzing innovative processes in coordination with other key actors in the value chain.

“IFC is delighted to support ProNuvo’s growth and commitment to innovation, sustainability and competitiveness,” said Sanaa Abouzaid, IFC regional manager for Central America. “As global industry catalysts, we seek to foster circularity and demonstrate the industrial-scale commercial viability of the project.”

The intersection of insect-based protein in animal feed and the future of feeding a growing population is a promising and sustainable solution – one that can help reduce the strain on traditional agriculture, minimize environmental impacts, and provide a more resource-efficient way to meet the protein needs of both humans and livestock.

Although still far from being mainstream in Western cultures, the numerous benefits of sourcing protein from insects – namely, high conversion rates, the need for less processing compared to plant protein, and being more palatable compared to algae – has prompted a range of startups in the space and interest from the investment universe.

The groundswell in insect-based protein in livestock and aquaculture feed is a promising development that addresses many of the challenges associated with traditional feed sources, such as soy and fishmeal. By providing a sustainable, nutrient-rich, and environmentally friendly alternative, insect-based protein has the potential to revolutionize the way we feed our cattle and marine animals, and contribute to more responsible and sustainable animal agriculture in the future.

In addition to boosting the circular economy by using vegetable and fruit waste as feed, ProNuvo’s insect protein operations, when compared to other animal feed sources, have a lower greenhouse gas footprint and require fewer resources, using 10 percent of the land, 8 percent of the time, and 6 percent of the water compared to typical protein production, which is tied to deforestation and overexploitation.

~ 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. She can be reached at lkiernan-stone@globalaginvesting.com.

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