Bustling Venture: Startup in Singapore, Nutrition Technologies Collects $28 Million to Turn Flies into Farm Food
Nutrition Technologies, backed by $28 million in funding, focuses on creating food for animals and useful fertilisers using an unexpected ingredient: black soldier flies.
Flies, often seen as pesky insects associated with illness and decay, take on a new role for Nutrition Technologies.
Despite the common negativity towards flies and bugs, this company, recognised on the Forbes Asia 100 to Watch list, sees them as an opportunity in the world of agricultural technology.
“People approach insects with a lot of baggage, a lot of fear and disgust,” says Martin Zorrilla, CTO at Nutrition Technologies, in an interview at the startup’s headquarters in Singapore. “We take advantage of the fact that society has looked away, and instead look very closely at these organisms and recognize how remarkable they are at what they do.”
Established in 2015, Nutrition Technologies transforms black soldier fly larvae into supplements for animal feed and fertilisers. Their products, like Hi. Protein, used in pet food, and Vitalis, which enhance plant health, highlight their innovative approach.
Operating mainly from a factory in Malaysia spanning two hectares, the company sees further growth in the country and plans to expand across Southeast Asia, targeting Thailand, Vietnam, Indonesia, and the Philippines.
Investors are flocking to support Nutrition Technologies. With $28 million raised so far, a significant $20 million round in 2022 was led by PTT, the venture capital arm of Thailand’s state-owned oil and gas giant. Collaborations with U.S. agricultural heavyweight Bunge and Japanese trading firm Sumitomo Corp. underline their global ambitions.
Financial details remain undisclosed, but according to NTG Holdings’ report, revenues rose to $380,855 in 2022 from $73,402 the previous year. However, losses widened from $4 million to $7.9 million during the same period, attributed to factors beyond sales post-factory completion in 2022.
Buranin Rattanasombat, PTT’s chief new business and infrastructure officer, notes Nutrition Technologies’ advancement in Southeast Asia, expressing optimism about their potential to thrive further with enhanced efficiency and product quality.
In the realm of insect-based feed, Nutrition Technologies stands out with its unique fermentation methods and cost-effective facilities. PTT’s involvement includes providing expertise and resources, including collaboration with Nutrition Technologies on operational projects like automating production tasks.
For the 44-year-old petrochemicals company, the move into agritech signifies a shift towards a future beyond fossil fuels, aligning with global climate change goals.
The process involves bacterially fermenting raw agricultural waste like palm oil fibres or coffee grounds to feed black soldier fly larvae until they mature, a cycle lasting up to 10 days. The larvae are then processed into powder or oil for animal feed, while their waste, mixed with a microbial inoculant, produces a fertiliser teeming with living microorganisms known as a biofertilizer.
Zorrilla highlights the black soldier fly’s immune system as a pivotal choice. Unlike mosquitoes, these flies don’t transmit diseases to humans. Their genes can potentially produce more than 50 antimicrobial peptides, aiding immunity, as per a research paper in the American Society for Microbiology’s journal.
The safety of traditional feed ingredients remains a concern, with risks like fungus-contaminated grains and species-specific feed contrasting with the cleaner and more efficient nature of insect-based feeding, Zorrilla notes.
Amidst escalating meat demand and its environmental impact, alternative protein sources like black soldier fly larvae present a viable solution. While they can’t entirely replace soybean meal yet, they offer rich nutrients like fatty acids, proteins, and minerals.
Competition looms for Nutrition Technologies in Southeast Asia from startups like Entobel and Insect Feed Technologies, backed by substantial funding. EU-based giants like Protix and Innovafeed also plan expansions in the region.
Diverse global regulations for insect use in animal feed pose challenges for manufacturers. While U.S. laws restrict live black soldier fly imports for feed, the EU permits insect inclusion, except when containing animal remains. Scientific guidelines on breeding insects remain unclear, raising ethical queries in the absence of consensus on insect sentience.
Overcoming biological hurdles and understanding unknowns in optimisation proved the most challenging during their expansion, acknowledges Berry. His and fellow co-CEO Nick Piggott’s shared vision for a circular economy, using agricultural waste as fertiliser, birthed Nutrition Technologies.
Looking ahead, Nutrition Technologies aims to introduce new biofertilizers and expand production through a mix of debt and equity, building a larger industrial plant in 2024 to further their cause.
Berry envisions a network of Nutrition Technologies factories supporting local economies and reinforcing food security, starting in Southeast Asia and expanding globally within five years.
This story of innovation and sustainability by Nutrition Technologies in the heart of Singapore paints a promising picture for the future of farming and animal feed, driven by passion and purpose.
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