October 19, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Global food giant Tyson made news in 2016 when, as the company whose very name is synonymous with the meat industry, it was the first key meat company to invest in a plant-based meat alternative startup aiming to reduce the production and consumption of meat.

Over the ensuing years, the company continued to look beyond its own horizons to identify and support new sustainable food solutions, such as its 2019 pre-Series A investment in New Wave Foods, a maker of plant-based shellfish and shrimp alternative production. 

Today, Tyson Foods has underpinned its commitment to innovation and sustainability, and has agreed to a two-fold investment with Protix, a leading global insect protein ingredients company. 

Founded in 2009 by former McKinsey & Company colleagues Kees Aarts and Tarique Arsiwala, Protix uses low-grade organic waste as feedstock to produce insects for the production of high-quality proteins, lipids, and micro-nutrients for use in animal feed rations. Through this process, the company is able to supply a low-impact protein alternative that can serve to help meet growing demand for fish, meat, and eggs from a growing global population, while also preventing the overfishing and deforestation stemming from the sourcing of fishmeal and soy for rations.

The company’s facility in the Netherlands, which has been in operation since 2019 produces and processes 14,000 metric tons per year, serves major global pet food, aquaculture, livestock, and organic fertilizer companies as demand continues to grow. 

Tyson explained that this strategic investment is being undertaken to support the growth of the nascent insect ingredients industry, and to expand the use of insect ingredients to create more efficient and sustainable proteins and lipids for use in the global food system. 

“Our partnership with Protix represents the latest strategic investment by Tyson Foods in groundbreaking solutions that drive added value to Tyson Foods’ business,” said John R. Tyson, CFO, Tyson Foods. “The insect lifecycle provides the opportunity for full circularity within our value chain, strengthening our commitment to building a more sustainable food system for the future.”

Within the framing of the two-fold partnership, Tyson will make a direct investment in Protix in exchange for a minority stake in the company to foster its global expansion. Secondly, Tyson and Protix have entered into a joint venture for the construction and operation of an insect ingredients facility in the continental U.S. 

Upon its completion, this to-be-built joint venture facility will be the first at-scale facility of its kind to upcycle food manufacturing byproducts into high-quality insect  proteins and lipids for use in the pet food, aquaculture, and livestock industries. It also will encompass an integrated system to support all aspects of insect protein production including breeding, incubating, and hatching of the insect larvae.

“We are very excited to announce the next step in our international growth strategy,” said Kees Aarts, CEO, Protix. “Tyson Foods’ and Protix’s strategic partnership advances our joint work towards creating high-quality, more sustainable protein using innovative technology and solutions.”

“Moreover, we can immediately use their existing byproducts as feedstock for our insects. This agreement is a major milestone for Protix and significantly accelerates our ambition to grow through international partnerships.”   

~ 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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