Catalysing a $10m Australian An industry-led Insect Industry RD&E plan
27 March 2020 Emerging Industries
© 2020 AgriFutures Australia All rights reserved.
ISBN 978-1-76053-104-1 ISSN 1440-6845
Catalysing a $10M Australian Insect Industry: an industry-led RD&E plan AgriFutures Australia Publication No. 20-059 AgriFutures Australia Project No. PRJ-011909
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While this report is commissioned by AgriFutures Australia, it is not a report by, or to, government and that the views expressed are the authors.
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Researcher Contact Details Name: Sarah Nolet Phone: (+61) 401 705 697 Email: [email protected]
In submitting this report, the researcher has agreed to AgriFutures Australia publishing this material in its edited form.
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Foreword Acknowledgements
The emergence of the insect farming industry in Australia has AgThentic acknowledges the financial created a new option to influence food and nutrition challenges. assistance of AgriFutures Australia in completing The United Nations, Food and Agriculture Organisation views this research. AgThentic would also like to thank rearing edible insects for human consumption, “insects as food,” the industry stakeholders, business operators, as key to reducing environmental impact and feed a growing and researchers who participated in interviews population which is set to expand to over 9 billion by 2050. as part of the research for this project. In particular, AgThentic acknowledges the valuable input from the Insect Protein Association of Insects have the potential to transform Australian This report has culminated from extensive activities, Australia (IPAA) throughout this project. agriculture and will be a key contributor in Australia’s $100 including domestic consultations with key industry billion farming economy ambitions. AgriFutures Australia stakeholders across food, feed and waste management, has identified insect farming as an emerging industry such as farmers, start-ups, investors, consultants, experts, with high potential to reach $10 million per annum in the academics, industry bodies and related industries. next five years, a core driver of the AgriFutures Emerging Industries Program. Consultations with select international experts have also enabled the collection of international data and examples Growth of insect farming is underpinned by its potential to that can inform future RD&E priorities for Australia. address several challenges, such as pressure on natural resources, climate volatility, a growing global population, and This report pulls together specific recommendations for increased protein demand. Insects are vital to addressing future investment to support the long-term growth and these challenges because they are the most numerous and competitive advantage of Australian insect farmers. successful creatures on Earth. Furthermore, they are more efficient converters of ingested food to body weight than This report has been produced as part of AgriFutures traditional livestock. Australia’s Emerging Industries Program. It is an addition to AgriFutures Australia’s diverse range of over 2000 research There is also considerable potential for use of insects publications and forms part of Arena 4 which focuses on as feed, especially for poultry and fish, due to their high new industries with high growth potential. Emerging animal nutritional values, and because they naturally form part of and plant industries play an important part in the Australian some livestock diets. Other applications for insects are being agricultural landscape, they contribute to the national explored globally, such as waste management, biofuels, economy and they will be key to meeting changing global and pharmaceuticals. Yet in Australia insect farming is food demands. still an immature industry with significant challenges to overcome for it to scale and thrive. Challenges fall into the Most of AgriFutures Australia’s publications are available for following categories: commercial viability; foundational R&D; viewing, free downloading or purchasing online at: protocols, standards and regulations; and social license and www.agrifutures.com.au consumer perceptions.
The purpose of this project is to support the long-term growth and competitive advantage of Australian insect farmers by developing a practical, industry-led RD&E plan. Michael Beer The goal of this roadmap is to identify industry challenges General Manager, Business Development as well as opportunities for Australian insect farmers, and AgriFutures Australia present practical recommendations for overcoming the challenges and capitalising on the opportunities. 006 007
Contents
Foreword 004 Section 5 Industry Roadmap 030
Acknowledgments 005 Recommendation 1: Implement industry convening initiatives 032 Recommendation 2: Develop and implement industry guidelines 033 Contents 006 Recommendation 3: Conduct prioritised foundational industry research 033 Executive summary 008 Efficacy and downstream market confidence 034 Marketing and social licence 034 Regulatory 034 Section 1 Introduction 010
Section 6 Conclusion 037 Section 2 Research Methodology 012
Section 3 Australian Insect Farming Industry Overview 014 Appendices 038
Australian insect industry overview 014 Industry value chain 017 1 Australian insect farming research projects and capabilities 038 Australian insect farming research projects and capabilities 017 2 Insect farming technology and equipment 041 Insect farming technology and equipment 017 3 Industry prioritisation survey results and other potential research projects 043 Australian insect farming regulatory landscape 017 4 Other potential industry convening initiatives 046 Australian insect farming 021 Insects as food 022 Insects as feed 023 Current regulatory landscape 023 Recommended future insects as feed regulatory landscape 025
Section 4 Industry Opportunities and Challenges 027
Industry opportunities 027 Australia is uniquely well-suited to insect farming 027 Industry alignment and prioritisation is key to achieve impact 027 Industry convening to catalyse collaborations 027 Baseline guidelines to build confidence and be proactive 027 High downstream demand from feed industries 027 Industry challenges 028 Concerns around IP prevent foundational industry knowledge sharing 028 Catalysing a Lack of regulatory clarity and consistency for insects as feed 028 Getting to scale 028 Production at scale 029 $10m Australian Access to colonies for research 029 Lack of consumer acceptance and social license risks 029 Justifying research 029 Insect Industry 008 009
Insect farming in Australia is a nascent industry, but one that is poised for growth with high potential to reach, or exceed, the five year $10 million per annum industry target set by AgriFutures Australia. However, there are a number of challenges to overcome, and opportunities to take advantage of for the industry to reach this target.
Currently, all Australian insect farmers are startups or small The roadmap includes three key recommendations. The first businesses, many of which are yet to reach a commercial two recommendations: 1) investment in Industry Convening scale. However, the industry remains a highly attractive target Initiatives; and 2) the development of Industry Guidelines, for potential investors given unique characteristics of the can be completed in parallel. These recommendations have Australian market. For example, farmers experience favourable been designed to provide the building blocks for a strong conditions for raising insects compared to overseas, strong Australian insect industry, thus laying the foundation for its biosecurity measures already in place to protect the industry success. Following the successful implementation of these, the against pests and diseases, growing demand for insect third recommendation is to make investments into prioritised products, particularly from stockfeed industries, and the Foundational Research initiatives, as developed through the ability to leverage Australia’s world class agricultural research implementation of the first two recommendations. capabilities. Together, these three recommendations provide a roadmap Despite this potential, there are several challenges the insect for the industry upon which collaboration can happen and farming industry must overcome. For example, there is very confidence can be built with key stakeholders, including little public data available, domestically and globally, due to regulators, investors, and downstream industries. Finally, and high commercial sensitivities. Consequently, the industry is most importantly, this roadmap will enable the Australian insect experiencing challenges with respect to collaboration and industry to be recognised as a legitimate and high-potential foundational industry knowledge sharing between its members. industry by customers, regulators, new industry entrants, As a result, there is limited information to inform regulators, researchers, and potential investors, globally. provide guidance to industry, and give confidence to potential customers and investors. These challenges are exacerbated by the fact that insect farms, unlike most other farms, can attract venture capital investment due to their high use of technology and suitable economics. Though these are global challenges, not unique to insect farming in Australia, they must This report supports the long be addressed for the industry to grow. term growth and competitive
This report supports the long term growth and competitive advantage of Australian insect advantage of Australian insect farmers by developing a farmers by developing a practical, practical, industry-led RD&E roadmap toward a $10 million industry-led RD&E roadmap industry. This report will also serve to guide future investment into this emerging industry, ultimately helping the industry to toward a $10 million industry. achieve its potential. Excutive Summary Excutive 010 011
Introduction
Australian agriculture is poised for growth with a bold vision to This roadmap will ensure that the Australian insect farming achieve $100 billion in farm gate output by 20301. AgriFutures industry is better placed to retain existing and attract new Australia has identified insect farming as an emerging members, as well as attract new forms of capital investment. industry with high potential to reach $10 million per annum By working closely with the insect farming industry and in the next five years. However, the insect farming industry in related stakeholder groups to develop this roadmap, this Australia is still in its early phases of development with both project will support the industry to reach $10 million (and challenges to overcome and opportunities to take advantage beyond), as well as contribute to this bold, national vision for of, for the industry to reach this target. Australian Agriculture.
Though insect farming and consumption have long been common practice across Asia and Africa, insect farming has gained in popularity globally in the last 20 years. This has been driven by an increasing number of entrepreneurial Introduction companies (i.e., startups) around the globe that are developing innovations for insects as feed, as food, and in various other applications. As a result, there is a high proportion of insect The purpose of this project is to farmers who are startups or small businesses that have not support the long term growth yet reached commercial scale. and competitive advantage This dynamic is true in Australia as well, as the domestic of Australian insect farmers by industry is in its early stages of formation and growth. developing a practical, industry- However, there is high potential for the industry to grow due to some unique opportunities in Australia. For example, led RD&E roadmap to guide future Australian insect farmers can take advantage of favourable investment into this emerging climatic conditions for raising insects, strong biosecurity industry, and ultimately help the measures, a growing downstream demand for insect products, and strong agricultural research capabilities to leverage. industry to achieve its potential. The goal of this roadmap is to identify Despite the opportunities, the nascent nature of the industry, the specific industry challenges as and the fact that the industry is an attractive venture capital investment option, has meant that it is experiencing well as opportunities for Australian challenges. For example, collaboration and foundational insect farmers and present practical industry knowledge sharing between its members is not recommendations for overcoming well-established. Furthermore, there is very little public data available globally due to high commercial sensitivities. the challenges and capitalising on the opportunities. The purpose of this project is to support the long term growth and competitive advantage of Australian insect farmers by developing a practical, industry-led RD&E roadmap to guide future investment into this emerging industry, and ultimately help the industry to achieve its potential. The goal of this roadmap is to identify the specific industry challenges as well as opportunities for Australian insect farmers and present practical recommendations for overcoming the challenges and capitalising on the opportunities. 012 013
Methodology
This project followed a highly consultative, collaborative, and industry-led approach to ensure that the report and recommendations are practical and valuable in helping achieve the goal of a $10 million per annum industry.
30 interviews were conducted with Australian and international This desktop research was used to support and augment insect farmers, researchers, consultants, industry body consultations with industry stakeholders. representatives, experts from related, and other emerging industries (see Table 1).In addition to interviews, a desktop To refine and prioritise the RD&E opportunities identified review of literature and publicly available sources was also during consultations and desktop research, an insect conducted, including: company websites; global insect industry prioritisation survey was prepared and shared with research; industry organisations globally (e.g., Insect Protein all Australian insect farmers and the IPAA board. 88% of the Association of Australia (IPAA), International Platform of industry completed this survey, and subsequent consultations Insects for Food and Feed (IPIFF), North American Coalition for with the IPAA took place to review the final recommendations. Insect Agriculture (NAICIA)); and related industry publications.
Table 1: Summary of interviews conducted to date
Interview Category Domestic International Total 23 Domestic Insect Farmers
Insects as food 4 1 5
Insects as feed 8 1 9
Total Insect Farmers 12 2 14 7 International
Other stakeholders
Industry body 2 3 5
Expert, consultant or researcher 2 1 3
Related and other industry experts 7 1 8 Total Total other stakeholders 11 5 16 30
Methodology Grand Total 23 7 30 014 015
Australian Insect Farming Industry Overview Industry Overview
The Australian insect industry is in its early stages of formation. exclusively on insect farming or primarily on insect based In 2017, the IPAA was formed to support its Australian farmer product manufacturing. Of the insect farmers, 10 are producing members and increase the profile of insect farming. The IPAA is insects for animal feed (“insects as feed”) and 4 are producing currently the only insect industry body in Australia. insects for human consumption (“insects as food”). One farmer is producing both insects for both food and feed. In addition There are currently only 14 active Australian insect farming to these producers, there are also 5 active insect product businesses operating across Australia (see Figure 1). It is worth manufacturers (food and feed). noting, for the purposes of this report, that Australian insect industry members have been defined as any business focused
Australian insect industry
Insects as feed Insects as food Insect Product Producers Producers Manufacturers 016 017
Insect protein Total insect In some cases, insects producers are also exploring the To quantify the addressable insects for feed market in Australia, Sector Tonnes/annum 4 inclusion rate tonnes Annual value production of insects for other applications, these include: it is helpful to look at the annual stockfeed use within the applicable livestock sectors, as well as the inclusion rate for Poultry 2,942,415 10% 6 294,242 $588,483,000 • utilising insect by-products to produce fertiliser; insect protein (i.e., the percent of a ration that can be replaced • farming insects for integrated pest management by insect protein). The inclusion rate for insects as feed is an Layers 793,336 7.5% 7 59,500 $119,000,400 (IPM) in agriculture; active area of research as there are several variables at play. For • waste management; and example insect species vary in protein content between 40-70% Aquaculture 136,500 10% 8 13,650 $27,300,000 • for use in pharmaceutical products. and fat content between 10-40%. Similarly, the composition of the ration, and the amount of insect protein required, changes Pork 1,406,675 5% 9 70,334 $140,667,500 No other markets or applications for insect products were depending on which commodity in the feed ration is being identified in the industry. replaced (e.g., soy vs. fishmeal). Based on 2015-16 stockfeed Beef 3,175,950 Not known N/A N/A numbers, the total addressable insects for feed market in While these other insect applications remain in early-stage Australia is approximately $875 million, excluding the pet food Sheep 173,554 Not known N/A N/A exploratory and trial phases, insects farmed for food and feed and waste management segments (see Table 2). The exclusion appear to be the main focus for Australian insect farmers. of ruminants in this analysis is based on the current regulatory Dairy 3,111,008 Not known N/A N/A Insects as feed producers are selling into the livestock feed and status (see Tables 7 and 8). pet food markets. Livestock feed markets include aquaculture and poultry stockfeed, as well as pet food via direct-to- Total $875,450,900 consumer, pet store, and supermarket retail channels. Figure 2, shows sizes of these downstream markets, in terms of gross value of production. It is worth noting that the food waste market, Table 2: Analysis of the total market for insects for feed market which is being targeted by at least one producer, is valued at $3.1B annually2. Insects as food markets currently include direct-to-consumer Insect farming technology and equipment (e.g., online/e-commerce) and Fast Moving Consumer Goods 12 (FMCG) insect products. The latter are sold into retail and food There is an emerging global supply chain for dedicated insect service channels (e.g. restaurants). farming technology and equipment manufacturers. A summary of commercially available insect farming technology and equipment, 10 identified from this project, is provided in Appendix 2. However, Australian insect farming research a large proportion of technology and equipment used for insect projects and capabilities farming in Australia is proprietary, due to the fact that commercially 8 available technology is either very expensive, or is difficult to Given the early nature of the Australian insect industry, implement, and adapt to Australian conditions. For example, there research efforts to date have been minimal, and are are challenges with achieving labour savings and efficiencies fragmented. However, there are some strong emerging with off-the-shelf buckets and nets developed for use in overseas capabilities in this industry, drawing on Australia’s strong countries where the cost of labour is less of a challenge.
ar et si e research capabilities in livestock, and agriculture more broadly (e.g., entomology, integrated pest management). A summary Australian insect farming regulatory landscape of Australian insect farming current research projects, and existing industry research capabilities, identified from this The following section provides an overview of the current 2 project, is provided in Appendix 1. regulatory status of insect farming in Australia. Table 3, shows the status of regulation in the insects as food, feed and other insect markets. Overall the status of regulation in insects as 0 food is clear for industry members to follow. The insect as Pet food Chic en Eggs Aquaculture Por eef amb Dairy meat feed industry, however, is causing some confusion for industry members, due to some inconsistencies between states and Segment across different feed markets. There is currently no regulation known to exist for any other market applications for insect products, however, these markets are still in early stages of Figure 2: Size of downstream markets for insects as feed3 exploratory research. 018
Key Figure 3: Insects as food Insects as feed Australian insects Other insect applications industry value chain All insect farming
Australian insect farming businesses all Wild insects live catch Chitin run their farms slightly differently to one Insect type Oil another, as there is no publicly known Genetics Frass method or blueprint for how to successfully raise insects under Australian conditions. Consequently, a number of farmers are Insect doing things differently at each step of Insect by-product the supply chain. Figure 3 shows the key Breeding 3 elements of the insect industry value chain processing for food, feed, and other market applications as the industry currently stands. 6
1 2 8
Substance Pre- Rearing Harvesting Processing Marketing Sourcing Processing 7
4 5
Pre-consumer food waste Heat Husbandry Freezing Washing Human consumption Post-consumer food waste Ferment Standard Operating Drying Blanching Pet food Procedures Agricultural waste Grinding Grinding Rendering Livestock (poultry, aquaculture) Welfare Animal manure Other Dehydrating Fertilizer OH&S Livestock feeds/grains Roasting Compost Microwaving Waste management Pest management Pharmaceutical 020 021
Australian insect farming regulatory landscape
It is worth noting that Animal Health Committee (AHC) has formed a Task Group, which includes representatives from the IPAA, A summary of regulatory status for Australian farmed insects is provided in Table 4. The table highlights that while regulations on Department of Agriculture, Animal Health Australia, and other industry representatives, to look at the biosecurity risks of insects as importing and pest insect species are clear, guidance on good rearing practices for industry do not exist, and guidance on rendering livestock feed to help address the lack of clarity with regulation. This Task Group submitted a white paper with recommendations for insects is unclear from not being specific to insects, only animals more broadly. the industry and are awaiting a response from the regulator.
Table 4: Regulation for all farmed Australian insects10 The following key relates to Tables 3, 4, 5 and 6 Name of Regulator(s)
Industry Practice or any relevant guidance Description Status Status Key Importing The Australian Government When importing insects for either human consumption Regulatory clarity Department of Agriculture, or animal feed, the insects must be dead and heat- Water and the Environment treated with supporting documentation. Insect species Some regulations exist, but they are either also must not be listed on the CITES list of endangered not clear, inconsistent or incomplete species. DAWE may require additional information on an import declaration, together with an import permit. Each Regulations do not exist application is assessed on a case-by-case basis.
Pest Species Relevant state or territory Certain insect species are declared as pests in various Primary Industries and states across Australia. Insect farmers must therefore Biosecurity regulator. obtain written approval, from their relevant authority, for each proposed live insect species farmed. Subject to regulations under the Biosecurity Act 2015. Table 3: Australian insect industry regulatory status Good Rearing IPAA guidance The IPPAA provides general adequate rearing conditions Practices recommendations for producers to use as a starting
point, however this is not regulated. Furthermore, the IPAA Application of insects Status recommends that producers record and retain insect feed substrate records. Insects as food
Rendering11 Australian Standard for It is unclear how suitable the Australian Standard for Insects as feed Hygienic Rendering of Animal Hygienic Rendering is for insects. Not specific to insect Products - AS5008:2007 species, animals only. Other insect applications 022 023
Insects as food Insects as feed
Table 5 provides a snapshot of the current regulatory status for insects as food in Australia. The table shows that guidelines on food Current regulatory landscape: An overview summary of the current regulatory status for insects as feed is provided in Table 6. The safety, food hygiene and country of origin labelling are clear for the industry to follow. The only key area where regulation is lacking for table highlights that there is a large degree of confusion, or in one instance no guidance, on insects as feed farming. This includes a insects as food is in the processing of the insects. lack of clarity in what substrates insects are able to be fed, which animals insects can be fed to, how to process insects as feed, and guidance on country of origin labelling for insects as feed products. A summary of current state and territory-level regulations is also provided in Table 7.
Table 5: Insects as food regulation12 Table 6: Name of Regulator(s) Insects as feed regulation overview13 Industry Practice or any relevant guidance Description Status Name of Regulator(s) Food Safety The Food Standards Australia Three insect species in Australia were assessed and Industry Practice or any relevant guidance Description Status & New Zealand (FSANZ) categorised as ‘non-traditional’ and ‘not novel’ foods Advisory Committee on Novel in Australia and New Zealand. There were no safety Substrate (what Relevant regulations relative to each Guidance relative to what can be fed to insects in each Foods (ACNF) concerns for human consumption for super mealworms, you can feed state or territory 14 state and territory can be determined, based on the house crickets and mealworm beetles. insects) relevant information for feeding livestock in each state. National regulation is unclear as it varies by state. The Food Hygiene Standards 3.2.2 and 3.2.3 of Any business processing food for human consumption IPAA recommends that all insect for livestock feed the Australia New Zealand must comply with these standards on cleaning and farmers consider both the waste management and Food Standards Code (the hygienic practices to prevent the spread of disease or handling regulations relative to their state or territory, Code). cross-contamination. in addition to the relevant livestock feed regulations relating to Restricted Animal Material (RAM) and other Processing IPAA guidance The IPAA provides general guidance for producers to labelling standards and regulations. process their insects before sale for consumption, via freezing, as part of the slaughter process, or application Livestock feed All insects destined to commercial All insects destined to commercial livestock feed or of heat (e.g., blanching, roasting, microwaving or cooking) livestock feed or pet food must meet pet food must meet the regulation requirements for to remove bacteria, viruses or fungi. However this is not the regulation requirements for these these products as outlined by feed regulation, labelling regulated. products as outlined by feed regulation, and processing laws outlined by each state. National labelling and processing laws outlined regulation is unclear as it varies by state. Country of Origin Australian Consumer Law All insect products sold in Australia must comply by by each state, as well as the Stock Feed Labelling Standard via The Australian this code, and clearly label whether the food was grown, Manufacturers Council of Australia Competition and Consumer produced, made in, or packaged in Australia. FeedSafe accredited manufacturers QA Commission (ACCC) as of July program. 2018. All warning statements If a food is grown, produced, made or packed in Australia, and declarations must be it’s country of origin labelling must (unless stated Pet food15 Currently, the pet food industry in PFIAA members are encouraged to take care when made in accordance with otherwise) disclose the proportion of Australian content in Australia is self-regulated by the Pet sourcing their raw materials to ensure they are fit for Standard 1.2.3 of the Code. the product. This requirement is optional for all other food. Food Industry Association of Australia purpose, safe and nutritious. (PFIAA)
Feed Safety Unclear The IPAA provides some guidance for insects as food, but it is unclear if guidance applies to insects for feed.
Processing Unclear The IPAA also provides some guidance for insects as food, but it is unclear if these apply to insects for feed.
Country of Origin None None provided for insects as feed. Labelling 024 025
Recommended future insects as feed Table 7: regulatory landscape17 National stockfeed regulation current stocktake by state16 The following key relates to Tables 7 and 8.
As mentioned above, the AHC formed a Task Group in 2017-18 National stockfeed regulation Insects as Feed Current Regulation Status Status Key to look at the biosecurity risks of insects as livestock feed. Regulators This Task Group submitted a paper with recommendations for QLD NSW VIC TAS SA WA ACT NT Clear that insects are allowed Name and Programs Description the industry to AHC. Table 8, summarises the proposed feed to be fed to recommendations. Ruminants Animal Health Restricted Animal Material Unclear if insects are allowed (e.g. cattle, Australia (RAM) cannot be fed to ruminant In summary, the Task Group recommended that commonly to be fed to sheep, national livestock species (e.g. cattle, produced insects (i.e., BSF and mealworm) be approved for goats definition and sheep, goats or deer). RAM is use as a feed for aquaculture, poultry, and pigs nationally, It is clear that insects are or deer) relevant state defined as any material taken provided that they meet swill feeding legislation and general not allowed to be fed to authorities. from a vertebrate animal stockfeed requirements (i.e., they don’t contain residues, other than tallow, gelatin, milk heavy metals, etc.). products or oils. It is important to note that at the time of writing, the AHC have not yet come out with a policy in response to the Pigs Animal Health Prohibited Pig Feed (PPF) recommendations made by the Task Group. Australia or Swill means material of national mammalian origin, or any Table 8: Another recommendation made by the Task Group was definition and substance that has come in Proposed national stockfeed to progress the draft Australian Feed Standard for Food relevant state contact with this material unless regulation for insects Producing Animals, and potentially include insect protein in authorities. otherwise specified.* this standard. This is currently underway, but it is unclear Status Key when it will be completed and how insects will be included In all states insect meal can in it. AHC are considering this standard at present and are Aquaculture be fed to pigs, as long as it looking to progress this once their concerns have been is not PPF. Insects fed plant addressed. It is not currently known what these concerns material would not be swill Poultry might be, nor if they are material or not. Once done to the even if raw. Insects fed anything satisfaction of the AHC, this standard will progress to containing swill/meat need SAFEMEAT for review and consideration by its members. It is Pigs to be appropriately treated to hoped that this process will conclude by the end of 2020. make it non-swill (e.g. meet the Rendering Standard), as a result Ruminants there are restrictions if swill is fed to the insects. Table 7 provides a snapshot of Poultry Relevant state Insects as a feed source for the current national stockfeed authorities poultry. QLD and SA have similar regulation status across Australia. regulations in poultry as they do for pigs. This table highlights the large degree of variation across the Aquatic and Relevant state Aquatic or animals other than different states and territories, and other authorities ruminants, pigs and poultry. animals the lack of clarity in what substrates are able to be fed to insects, and subsequently, what livestock insects are able to be fed to. 026 Opportunities and Challenges 027 insect industry, underpinnedby clear priorities. toopportunity similarinitiatives support for theAustralian achieving theindustry’s commongoal. There isasignificant or generated from targeted research anddirected towards foundational industry knowledge was thenable to becollated priority andgetting buy-infrom theinsect industry asawhole, practice guidelines for theindustry to follow. By setting aclear around regulations, thenworked withindustry to develop best industry. The IPIFF beganby lobbying for policy andclarity clarity intheEUfor useof insect feed inthe aquaculture For example, IPIFF started withafocus ongainingregulatory strategic, longer-term initiatives. the industry achieve both quick wins, aswell aswork toward to enter specificmarkets. Clear goals andprioritieswillhelp or identifyingtheresearch, regulations, andguidance required could includeindustry alignmenton what markets to target, together andset clear industry goals andpriorities. Examples strong requirement for theAustralian insect industry to come and experts, includingtheIPIFF andtheNACIA, highlighted a Insights from discussionswithoverseas insect industry bodies is key to achieve impact Industry alignmentandprioritisation create favourable conditionsfor local producers. fact that Australia isfree of diseasessuch asMadCow Disease, policies, includingastrict banonlive insects, import andthe year round asitistoo cold. Finally, Australia’s strict biosecurity round, whereas European farmers, for example, cannot grow conditions enable Australian farmers to grow insects year compared to strains available overseas. Furthermore, seasonal unique strains of insects that potentially perform favourably farming compared to overseas. For example, Australia hassome Australia presents for someuniqueopportunities insect insect farming Australia isuniquely well-suited to Industry Opportunities capitalise on the following opportunities. The Australian insect industryiswell-placed to
Industry convening to catalyse collaborations confidence for thesecompanies. example onfeed trialsorother initiatives, to provide clarityand to therefore withthese downstream partner stakeholders, for these industries. There for isanopportunity theinsects industry nutritional value, represents akey barrier for insects to scale into and thelack of clarityaround insect feed regulations and Australian insect industry, thelack of scale intheinsect industry, Though thisinterest presents asignificantopportunity for the supply (e.g., pricevolatility, droughts, fires, biosecurity). (e.g., fishmeal for aquaculture), and challenges with reliability of include challenges relating to traditional feed sustainability provide analternative to traditional feedstocks. Drivers here are looking for sustainable, protein-based feed sources that Australia. This islargely due to thefact that theseindustries and status of insect basedprotein industries globally andin overall, withmany companies actively monitoring theprogress feedstock; pet food) hasbeenpositive andenthusiastic Feedback from downstream feed industries (e.g., livestock; High downstream demandfrom feed industries foundational industry knowledge aswell asproactively manage risk. stepping stone for theindustry to beginto collaborate andshare thedevelopmentsupporting of such guidelines would provide a Learnings from other Australian livestock industries suggest that management, food safety, andOH&Sneedto bedeveloped. biosecurity, welfare, environmental management, antimicrobial regulators andresearchers. For example, national guidelines on guidelines for useby Australian insect farmers, andto guide There to isanopportunity the development support of national and beproactive Baseline guidelines to build confidence and other industries. provided asaunanimous “voice” from theindustry to regulators and shared interests, aswell ascollect information that canbe Such events allow stakeholders to discusscommonchallenges stakeholders (e.g., investors, regulators, downstream industries). collaboration amongproducers, researchers, andother in industry convening events to isanopportunity increase Given theearly andfragmented nature of theindustry, investing
028 029
Industry challenges
challenging for the industry to meet consumer demands for Queensland Alliance for Agriculture and Food Innovation (QAAFI) Despite the significant opportunities, the insect industry insect products. Barriers to scale for producers include: is an example. faces a number of challenges. • Access to capital; Lack of consumer acceptance and • Access to (and in some cases, existence of) technology social license risks These challenges are common for emerging agricultural and equipment and the knowledge of how to implement Lack of regulatory clarity and consistency Consumer perceptions, specifically around acceptance of industries globally, and are partly due to the unique in a commercially viable way (e.g., on-farm automation to for insects as feed insects as food, is a major challenge that the industry must challenges related to insect farming having the potential to reduce labour costs, cost-effective and environmentally overcome if it is to grow. Western diets are not accustomed to attract investment from new sources (e.g., venture capital). There is currently a lack of regulatory clarity, as well as lack of sustainable sources of energy, and suitable packaging and distribution processes); insects, and there is a concern about the size of the domestic consistency between states, in the Australian insect industry. market for insect-based food products. Concerns around IP prevent foundational This is especially true with respect to insects as livestock • Lack of knowledge of how to successfully breed and rear industry knowledge sharing feed. Currently, regulations often vary between states and for insect colonies; and In addition, the insect industry is yet to test and validate its different livestock sectors (see Table 7). In addition, there is • Lack of paying customers for sub-scale quantities of social licence to operate. Though claims have been made about The nascent nature of the industry, and the fact that the ambiguity around the interpretation of specific wording in the product. the environmental impact and sustainability of insect farming industry is an attractive venture capital investment option, regulations between states, as there is currently no national versus traditional proteins, many of these claims have not been has meant that it is experiencing challenges with respect to standard for industry to follow. validated for Australian insect production at scale. Further, collaboration and foundational industry knowledge sharing A number of off-the-shelf insect industry technology and concerns have been raised around the ethics of insect products, between its members. Farmers are often reluctant to share As stated above, it is important to note that AHC formed a Task equipment providers were identified from this project (refer to and whether communities and/or individuals will express foundational industry knowledge to help inform regulations Group to look at the biosecurity risks of insects as livestock Appendix 2). These have the potential to assist insect farmers resistance to the production of insects at scale (e.g., locations of (e.g., the techniques and equipment used to rear and process feed. This Task Group has submitted its recommendations, in getting to a commercial scale. However there is a perception insect farms, ethics of certain processing methods, etc.). insects), as this is their own intellectual property that has been as outlined above, to AHC in relation to these issues. At the in the industry that these solutions are often very expensive, developed over many years from their own research and trial time of writing, the Task Group is still awaiting a response therefore are difficult to justify investment in, given a large Justifying research and error. As a result, the industry has struggled to determine from the regulator. Based on the current regulations, it is proportion of Australian producers are startups with limited and communicate foundational industry best practices and likely that aquaculture and poultry will be the easiest markets access to capital. Therefore, a large proportion of technology The exact size and turnover of the industry is unknown, standards to inform policymakers and help new entrants get for the industry to enter without additional research, while and equipment used in the industry is proprietary, from therefore it is difficult to quantify the potential impact from started in the industry. Further, the companies in the industry policymakers are likely to require additional evidence to producers either developing their own, or modifying technology funding various research or project initiatives for the industry. today are often too small to fund their own RD&E, and given finalise regulations for pigs, ruminants, and use of effluent and equipment adopted from other industries. Furthermore, there are no industry benchmarks for the industry concerns around IP and a competitive funding environment, as a substrate. On the other hand, insects as food are not to monitor its progress against. As a result, justifying research lack incentives to fund collaborative RD&E for industry-wide experiencing any significant challenges in relation to food safety, Production at scale funds can be a challenge. The foundational industry IP concerns benefit. The implications of this lack of sharing of foundational food hygiene, and product labelling. outlined above contribute to this challenge, as producers industry knowledge, as opposed to commercial company IP, are In addition to the above challenge of getting to scale, there is may not be willing to share this data, even if requested and as follows: Finally, the pet food industry is currently self-regulated. lack of foundational research for how insect farming can best be maintained anonymously. Therefore, at present, Australian insect farmers selling into done at scale. For example, research has not been done on how the pet food market are proceeding with a focus on openness to raise Australian insect strains at scale. This includes insect • there is often no evidence base nor industry consensus and transparency about the quality and safety of their pet food breeding, husbandry, pest and disease management, suitable to inform industry best practices, and guidelines for products (e.g., positioning insect based pet food as a premium substrates, and welfare. Additionally, there is a lack of guidelines regulators; product). There is currently no material concerns in relation to to inform insect farmers about issues such as quality control, Acceptance of insects as food, • there are concerns that industry level collaboration insect pet food regulation, however, improved clarity around biosecurity, OHS, and other on-farm processes. on research will lead to unfavourable outcomes (e.g., regulation will help the industry continue to grow. is a major challenge that the cause competitive advantages for some, for example if Access to colonies for research industry must overcome if it is the IP generated from a project is limited to the private Getting to scale to grow. Western diets are not companies involved with the research); and Researchers in Australia currently do not have access to insect Currently there very few commercial scale insect farms in colonies on which to conduct research. This is because insect accustomed to insects, and • there is no clear foundational industry research agenda for Australia. Results from the insect industry prioritisation survey, farmers either do not have the scale to supply researchers with the industry to follow to help it grow. there is a concern about the showed that only 35% of the industry has between 3 and 15 insects without incurring commercial consequences, or are size of the domestic market for employees, with the remainder of the industry having just 1 to 3 not incentivised to do so (i.e., no funding available, or perceived employees (e.g., they are either startups or still in the process of lack of benefit). Consequently, there is a shortage of published insect-based food products. scaling up). Just the 1 farmer has between 8 and 15 employees. research on breeding and raising Australian insect strains. This high proportion of insect farmers who are startups is a Researchers often rely on their own research colonies, which unique challenge faced by the insect industry. As a result, it is often are not the strains used commercially. The University of 030 031
Industry Roadmap
To catalyse growth of the Australian insect industry Industry Roadmap toward the $10 million target, an industry roadmap has been developed with three key recommendations.
The first two recommendations, investment inIndustry IPAA. Refer to Appendix 3 for a summary of the insect industry Convening Initiatives and the development of Industry prioritisation survey results. Guidelines, can be completed in parallel. Together, they will lay the foundations for a strong Australian insect industry upon The purpose of this roadmap is to provide the Australian insect which collaboration can happen and confidence can be built industry with a strong footing to grow and compete domestically with key stakeholders, including regulators and downstream with other alternative proteins and animal feed sources, and industries. Following that, the third recommendation is to make be taken seriously as an industry by downstream industries investments into prioritised Foundational Research initiatives. and markets. Furthermore, it will fast-track the Australian industry towards being recognised as a global leader in insect This roadmap has been informed by consultations with domestic farming and enable producers to capitalise on Australia’s unique and international stakeholders, results from the insect industry opportunities and competitive advantages. prioritisation survey, and numerous discussions with the
Industry Roadmap
Recommendation 1 Recommendation 2 Recommendation 3 Industry Convening Industry Guidelines: Foundational Research: Initiatives: National Industry Guidelines on Research trials into alternative uses for Foundational projects to how to: insects in other market applications (e.g. catalyse industry collaboration • Process pharmaceuticals, nutrition, packaging, and knowledge sharing: • Slaughter fertiliser, waste management and • Industry Resourcing Support • Render integrated pest management). Efficacy • Industry Event Support • Biosecurity and Downstream Market Confidence: • OH&S • Pet and livestock feed trials to • Food Safety assess performance, health and • Insect welfare nutrition livestock initial focus of • Substrates poultry and aquaculture • Research trials into nutritional and health benefits of insects for humans • Insects as food substrate trails Marketing & Social Licence: • Insects as food consumers acceptance research Regulatory: • Substrate trials to inform regulatory decisions Figure 4: Australian insect industry roadmap to success 032 033
Recommendation 1: Implement industry that the following cornerstone projects be conducted first, brand reputation of the Australian industry. Such events some quick runs on the board for the Australian insect industry convening initiatives as part of this initiative: would help the industry keep informed and up-to-date, as to catalyse it’s growth; further, and most importantly, it will well as generate domestic and international collaboration, stimulate increased industry collaboration and knowledge To catalyse industry collaboration and foundational industry • Support the development of national industry education, and research project opportunities. sharing on future foundational research projects. Finally, knowledge sharing, it is recommended that support be guidelines (see Table 10); and Supporting the projects and initiatives described above guidelines will also build confidence for industry, regulators and provided for projects, convening events, and initiatives that 1. Engage with producers and key industry stakeholders will be a key enabler for future growth and prosperity of the downstream industries (e.g., potential customers), attract more help Australian insect producers to develop a unanimous to prioritise the Foundational Research projects and Australian insect industry. new entrants to the industry, and ensure that industry risk is “voice” for the industry to potential customers, regulators, and initiatives (see Table 11). proactively managed. other related industries. This support will encourage industry Key measures of success for this recommendation are members, and other stakeholders in the value chain, to discuss Several other potential industry-led projects and provided in Table 9. Key measures of success for this recommendation are provided common challenges and shared interests, as well as develop initiatives identified through consultations have been in Table 10. clear foundational research priorities. Specific industry provided in Appendix 4. It is recommended that these Recommendation 2: Develop and implement convening initiatives and projects recommended include: be prioritised by industry once the above projects and industry guidelines Recommendation 3: Conduct prioritised 1. Support a dedicated industry resource: initiatives have been successfully implemented. Support the development of national industry guidelines on: foundational industry research Provide support for a dedicated industry resource to 2. Support industry events: Once recommendations one and two have successfully been develop a prioritised research agenda and deliver industry- It is recommended that support be provided for industry 1. How to farm insects, including guidelines on biosecurity, implemented, as described, investment into foundational led projects and initiatives. This could be done either events to be run in Australia (e.g., an Australian insect OH&S, food safety, and insect welfare; directly through the IPAA, or through a 3rd-party contractor industry research projects and initiatives can commence. conference) to attract overseas experts to Australia. 2. What substrates can be fed safely to insects and for what or consultant. If a 3rd-party is hired to conduct the work, Further, support for industry members to attend global markets; and It is important to note that the final order of priority for it is recommended that the IPAA be closely consulted and insect conferences (e.g., Insects to Feed the World 2020 these foundational industry research projects and initiatives involved with the work throughout, such that the industry Conference) or other relevant international events on insect 3. How to process, slaughter, and render insects to will be determined by the industry as described above in body builds capability for the future. It is recommended farming is recommended to build capacity and increase the optimise the quality, safety and consistency of various recommendation one. A preliminary roadmap for the order of insect products produced, while maximising the priority of projects and initiatives is based on IPAA and industry welfare of the insects. feedback; however, the order of priority is likely to change Table 9: It is recommended that this project be conducted by a 3rd-party pending the outcomes of recommendations one and two. Industry convening initiatives measures of success contractor, with the support of the IPAA, leveraging frameworks The foundational research projects have been divided into and best practices from other industries where possible (e.g., 3 streams of research: 1) research to demonstrate efficacy Recommendation Measures of Success poultry, livestock, mushrooms). Industry guidelines will provide and build downstream market confidence; 2) marketing and social licence research; and 3) research to inform regulatory 1. Industry Convening Initiatives decision making. Table 10: Industry • Dedicated industry resourcing to drive research agendas and industry Industry guidelines measures of success Resourcing initiatives Support • Increased industry foundational knowledge sharing Recommendation Measures of Success
• The successful execution of the Industry Guidelines project, and 2. Industry Guidelines prioritisation of the Foundational Research projects
• Reduced new business failure and dropout rates, in addition to attracting National industry guidelines on how to • Development of industry guidelines to inform industry and regulators an increasing number of new industry entrants farm, process, slaughter and render insects on how to farm, process, slaughter, and render insects, leveraging frameworks and best practices from other industries where possible • Development of a unanimous industry strategy (e.g., poultry, livestock, mushrooms)
Industry Event Support • Increased industry collaboration and foundational knowledge sharing • Growth in insect farming production and demand for insect products from increased clarity on safe insect substrates • Reduced new business failure and dropout rates, in addition to attracting an increasing number of new industry entrants • Industry and regulator acceptance of guidelines
• Improved global and domestic industry recognition • Increased number of insect farmers producing commercially viable volumes of insects • Increased interest from potential investors, and consequently investment into the industry • Increased number of new entrants into the industry 034 035
Efficacy and downstream market confidence demand for insects as food products. This would involve Table 11: consumer perception research, marketability, and sensory The aim of the following research priorities is to demonstrate Foundational research measures of success (e.g. blind tasting) research to determine the key drivers the efficacy of insect products, and build confidence in behind consumer decision making (e.g. taste, palatability, downstream markets. Specific proposed projects include: Recommendation Measures of Success price, sustainability), along with a consumer demographic 1. Pet and livestock feed trials to assess performance, analysis, from which the insect industry can develop a 3. Foundational Research health, and nutrition: Research trials to assess strategy to target, and overcome consumer perception nutritional, health, and performance benefits across challenges accordingly. Efficacy and Pet and livestock Increased demand for insect products due to their health and nutritional benefits for different Australian strains of insects farmed for feed, 2. Marketing and social licence research trials into other Downstream feed trials to assess pets, and livestock. Increased consistency in the quality of insect for feed products and substrates (e.g., pre-consumer, post-consumer, markets for insects: Market Confidence performance, health, produced by industry. Validate and illustrate that insect feed products can be fed agriculture waste, and effluents). Research trials to determine what are the consumer and nutrition safely to livestock and pets, while optimising their performance (e.g. average daily
acceptance and social licence barriers for the insect gain and feed conversion efficiency), health, and well-being across seasons The initial target markets from this research are pet food, industry to overcome to enter into other markets. These poultry, and aquaculture, given these are the industries other markets could include, but are not limited to, Research trials Increased demand and sales growth of insect products into other markets, that insects as feed are most likely to enter first, together pharmaceuticals, nutrition supplements (e.g., aged care, into the efficacy and applications, including, but not limited to, use in pharmaceuticals, with the fact that they have the highest level of industry and sports nutrition), packaging applications, fertiliser, of alternative uses nutrition, packaging, fertiliser, waste management, and integrated pest and downstream market acceptance. Following the compost, waste management, and integrated pest for insects in other management in agriculture successful execution of this research, similar research management in agriculture. market applications can begin for pigs, and ultimately, ruminants. Research trials into The goal of this project will be increased demand for insects as food products from 2. Research trials into the efficacy of alternative uses for Regulatory insects in other market applications: Research trials the nutritional and demonstrating health, and nutritional benefits to assess the nutritional, health, and performance The aim of the proposed research is to inform regulatory health benefits of benefits of various insect products, (e.g., protein, chitin, decision making. Specific proposed projects include: insects for humans and oil) for use in other markets such as, but not limited 1. Substrate trials to inform regulatory decisions: Insects as food Increased consistency in the quality and nutritional composition of insects for food to, pharmaceuticals, nutrition (e.g., aged care, and Research trials to inform regulators about the safety of substrate trials products produced by industry. sports nutrition), packaging, fertiliser, compost, waste different substrates (e.g., pre and post consumer, farm management, and integrated pest management in waste and effluents) for various livestock and pet food Optimise edible insect performance (e.g., maximise growth, and minimise mortality agriculture. markets. rates), health, and wellbeing across seasons 3. Research trials into the nutritional and health benefits The focus of this research will be on approving: Marketing and Insects as Increased demand for insects as food products due to improved consumer of insects for humans: Research trials into the nutritional Social Licence food consumer acceptance of insects and health benefits of various insect food products (e.g., • New insect substrates (e.g., different types of food acceptance research protein, chitin, and oil) for human consumption. Factors waste, farm waste and effluents) for use in already to consider in such research include insect: antibacterial approved insects as feed markets (e.g., pets, Marketing and social Increased demand and sales growth of insect products into other markets, benefits; vitamin and mineral profiles; and long term aquaculture, and poultry); licence research and applications toxicological impact studies from consumption. • Use of already approved substrates (e.g., those already trials into other 4. Insects as food substrate trials: Substrate trials with permitted to be used in aquaculture and poultry) in markets for insects different human-grade pre-consumer waste and other feed new markets (e.g., pigs, and ruminants); and sources (e.g., agriculture feed, and grain) across different • New insect substrates (e.g., different types of food Regulatory Substrate trials to An increased number of substrates approved for use by insects as feed producers, Australian strains of insects used for human consumption. waste, farm waste, and effluents) for use in new inform regulatory An increased number of markets insects as feed producers are allowed to sell to markets (e.g., pigs, and ruminants). decisions Marketing and social licence 2. Research trials into alternative uses for insects in Research trials into Approval for insect products to be used in other markets, and applications The aim of the proposed research is to improve the foundational other market applications to inform regulators: alternative uses industry knowledge base to inform marketing and social licence Research trials to inform regulators about the safety for insects in other industry initiatives. Specific projects include: of various insect products (e.g., protein, chitin and oil) market applications for use in other markets, including but not limited to, 1. Insects as food consumer acceptance research: to inform regulators pharmaceutical products, nutritional supplements Market and social licence research aimed at helping the (e.g., aged care, and sports nutrition), packaging insects as food industry to overcome consumer acceptance applications, fertiliser, compost, waste management, A number of other potential research projects and initiatives were also identified as part of this project. Details of these are provided challenges with their products, and therefore increase and IPM in agriculture. in Appendix 3. Key measures of success for this recommendation are provided in Table 11. 036 Conclusion the $10millionthe target. insect industry exceed Australianthe help This roadmap will Conclusion 037 enable theAustralian insect industry to berecognised foundational research initiatives. This roadmap willalso and provide aroadmap to guide future investments in the building blocks for astrong Australian insect industry, recommendations have beendesignedto both provide based onextensive consultations withindustry. These been developed, withthree key recommendations, To catalyse thisgrowth, anindustry roadmap has industry in the nextindustry inthe five years. insect industry reach a$10million perannum Australian insect industry, andhelpthe Australian term growth andcompetitive advantage of the a practical, industry-led plan to supportthe long The primary objective of project this was to develop the Australian insect industry exceed the$10milliontarget. investing strategically inRD&Epriorities, thisroadmap willhelp By developing strong foundations for collaboration and investors globally, thuslaying thefoundation for itssuccess. regulators, new industry entrants, researchers, andpotential as anhigh-potential industry by downstream industries,
038 039
Australian insect farming research projects and capabilities Appendices 1
Australian insect farming research projects and capabilities
The table below, provides a summary of current insect farming research projects and existing industry research capabilities, identified to date.
Project Type/ Relevant Capability Name Project Partner(s) Description Links Value
Government/ Closing the Loop, Australian Pork Limited This project will investigate the Rural R&D $4.2m public research Black Soldier (project applicant), development of Black Soldier for Profit Fly technology University of Western Fly Farming (BSF) castings and program to convert Australia, Dairy Australia, larvae into high quality, low-cost, agricultural waste Fisheries Research slow-release, granulated fertiliser Future into high quality & Development products, that are safe to handle, Green fertiliser and soil Corporation, Australian transport and apply. Solutions improvers Eggs Limited, Future website Appendices Green Solutions, Department of Agriculture and Fisheries Queensland, AgriFutures Australia, Australian Meat Processor Corporation
Government/ FRDC 2016-114: Fisheries Research Black soldier fly feed trial on barramundi ABC article $1.0m public research Insect feed for and Development and rainbow trout to determine if (approx) aquaculture Corporation, Future BSF can achieve the same or improve project Green Solutions. on the performance or fish meal (or combinations of both). Trial to determine the nutritional benefits of the insect- based diets for trout and barramundi compared to traditional feed.
Private Swine feeding University of Western Feed performance and gut health in pigs None $50,000 industry/ trials Australia, Murdoch fed insect based feed products. (approx) research University, Future Green collaboration Solutions. project
Private Black Soldier The University of Explore the use of pre-consumer Uni Melb Unknown industry/ Fly feed in Melbourne (Dr Kristy food waste in the production of black article research ruminant diets Digiacomo) via a veski soldier fly larvae which could be used collaboration Agriculture Fellowship, to feed ruminants and reduce the cost HATCH project Hatch Biosystems of animal feed. biosystems website
Private Impact of CSIRO, Goterra CSIRO’s farming experts have been CSIRO Unknown industry/ environmental testing lighting, temperature, moisture, news research conditions on surface texture and diet in a bid to find article collaboration insect breeding the perfect combination of conditions project that will encourage flies to mate 040 041
Existing insect farming technology and equipment Appendices 2
Project Type/ Relevant Insect farming technology and equipment Capability Name Project Partner(s) Description Links Value The following table, contains a summary of existing insect farming technology and equipment, identified from around the world Existing Edible Insect CSIRO, Dr Rocio The CSIRO hosted an international Edible Insect N/A throughout this project. It is worth noting that this is not an exhaustive list. industry Symposium Ponce-Reyes (CSIRO symposium in Brisbane on 28-30 Symposium event Land and Water), August, 2019, exploring developing Dr Bryan Lessard, Australia’s edible insect research and National Research industry to improve environmental, Industry Practice Company / Guidance Name Description Relevant Links Collections health and cultural outcomes. Australia Black Soldier Fly (BSF) Eawag – Swiss Federal A step-by-step guide to help get EAWAG Black Soldier Fly Biowaste Processing Institute of Aquatic Science started with BSF farming, including farming overview and Technology photos and descriptions of some Researcher Dr Bryan CSIRO researcher Entomologist at CSIRO’s National CSIRO page N/A basic equipment needed to perform Lessard Research Collections Australia the work at various stages of the researching the taxonomy and production process. Blueprints of evolution of medically important flies the basic equipment needed are also and mosquitoes. Research interests provided. lie in biodiversity discovery, having identified new species. Entire insect supply chain Bühler Insect Bühler Insect Technology Solutions Bühler Insect Technology from feedstock handling Technology Solutions provides modular systems for the Solutions Researcher Dr Cate Paull CSIRO researcher Dr Cate Paull leads the Pest CSIRO page N/A to rearing, separation industrial-scale transformation Suppressive Landscapes Team. and extraction of organic residues into quality Bühler Insect Technology Research interests include insect products such as protein and lipids Solutions brochure behaviour and population and for animal feed applications as well community ecology, with special as fertiliser suitable for agricultural emphasis on using ecological and horticultural use. This automated concepts in the application of classical process solution meets the safety and conservation biological control and quality standards required by of agricultural pests in food and fibre the feed industry and will help to crops. sustainably feed the planet.
Researcher Dr Peter James Researcher, The Main area of interest is in the biology QAAFI page N/A Bühler joined forces with leading University of and control of parasites, disease insect production company Protix Queensland Alliance vectors and nuisance flies associated to form Bühler Insect Technology for Agriculture and with domestic livestock species. Solutions. Food Innovation (QAAFI)
Researcher Professor Louw Researcher, The Currently investigating the use of QAAFI page N/A Hoffman University of maggots, locusts and other alternative Queensland Alliance proteins in a range of specialty foods QAAFI article for Agriculture and and researching the use of larvae Food Innovation (maggots) from the black soldier fly (QAAFI) as a dietary protein source for chicken production.
Private Edible Bug In-house research On-going research into insects that None N/A company Shop entomologists might be commercially viable for research farming, and research into feedstock for their insects 042 043
Australian insect industry prioritisation survey results Appendices 3
Industry Practice Company / Guidance Name Description Relevant Links Industry prioritisation survey results and other potential research projects Protein and lipid extraction GEA GEA offers basic technologies that GEA may be transferred to insect farming Prioritised project categories from the Australian insect industry category are also provided below. This is a complete summary along virtually all stages of the value GEA Annual Report 2019 prioritisation survey are provided below. These opportunities of all of the key research projects and initiatives identified from chain. In November 2018, when GEA have been ranked by Australian insect farmers and the IPAA. this project as potentially being able to grow the Australian put into operation its first industrial GEA Insect protein insect industry. However, it is worth noting that not all were plant on behalf of the world’s largest information sheet The categories were prioritised based on the total number of put forward as recommendations in this final report. The other fly larvae producer in South Africa, top 5 ranking points received in the insect industry prioritisation potential foundational research projects below, should be further which produces protein and fat from survey. Survey participants were also asked to prioritise specific investigated following the successful implementation of the black soldier fly larvae to fortify initiatives within each category. The top initiatives within each foundational research projects (recommendation 3). fish feed. GEA supplied decanters, separators, pumps, heat exchangers, valves, the cleaning unit as well as plant automation technology and will Category Total Ranking Points Project or Initiative Description Rating %* Average Rating** continue to optimise and streamline the processes on site. Industry policies 11 Industry guidelines on how to process, 78% 4.7 and procedures to slaughter and render insects GEA is also conducting a research guide farmers and project with the Australian animal regulators (R) feed start-up, Future Green Solutions, Development of national standards and 56% 4.6 which commenced in late 2018. procedures to guide insect farmers and Following successful trials in the regulators on biosecurity year under review, a pilot plant, which includes centrifugal separation, technology is to be built by GEA. Development of national standards and 56% 4.6 procedures to guide insect farmers and Entire insect supply chain Alibaba Alibaba is a Chinese multinational Equipment and technology regulators on OH&S technology company with insect from various Chinese technology and equipment sourced manufacturers including for Development of national standards and 56% 4.4 from various suppliers mealworm and BSF procedures to guide insect farmers and regulators on food safety
Complete black soldier fly Insect Systems Insect Systems is a technology and Insect Systems Development of national standards and 56% 4.3 egg production facilities engineering company that specialises procedures to guide insect farmers and in commercial egg production regulators on Insect welfare technology, delivering complete black soldier fly egg production facilities. Insect health, 10 Research trials into the nutritional and 70% 4.6 nutrition and other health benefits of insects for animal feed Insect Systems also helps with market applications technical and financial up-scale research (R) plans, concept and basic engineering, Research trials into alternative uses for 50% 4.4 protocols and specific breeding insects in other market applications equipment. Research trials into the nutritional and 30% 4.1 health benefits of insects for humans
Note: Project categories marked with ‘(R)’ below have been incorporated into the final recommendations from this project, all other projects are potential future research projects for the industry to investigate. 044 045
Category Total Ranking Points Project or Initiative Description Rating %* Average Rating** Category Total Ranking Points Project or Initiative Description Rating %* Average Rating**
Industry convening 8 IPAA support 78% 4.4 Centralised 5 Collaborative industry research facility 25% 3.9 initiatives to catalyse research collaborations and collaboration foundational industry Support industry events in Australia 50% 4.3 initiatives knowledge sharing (R) Foundational 5 Insect life cycle research trials 0% 3.5 Support industry to attend global insect 50% 4.2 insect breeding and conferences and events performance research Insect life cycle research trials 9% 3.8 Marketing and 7 Consumer acceptance extension and 64% 4.4 social licence education Rearing insects at 4 Industry guidelines to communicate how to 63% 4.6 research and scale guidelines farm insects at scale - Insect husbandry extension (R) Consumer acceptance and social licence 64% 4.3 on husbandry, research technology and Industry guidelines to communicate how 63% 4.5 equipment to farm insects at scale - Technology and Rearing insects at 6 How to rear insects for food and feed at 70% 4.5 equipment scale: husbandry, scale - Insect husbandry technology Foundational and 3 Livestock feed trials (e.g., aquaculture, 75% 4.7 and equipment New technology and equipment trials to 60% 4.4 applied substrate poultry, pigs, ruminants) using insects for foundational research farm insects at scale research (R) feed raised on different waste substrates (e.g., pre-consumer, post-consumer, Existing insect technology and equipment 60% 4.3 agriculture waste and effluents) trials to farm insects at scale Insects as feed substrate trials with 67% 4.5 Centralised 6 Collaborative industry education hub 17% 4.0 different waste substrates (e.g., pre- education initiatives consumer, post-consumer, agriculture waste and effluents) with Australian Substrate regulation 5 Insect product safety certification industry 75% 4.8 strains of insects farmed for feed, for guidance initiatives (R) standard various market applications
Industry guidelines and best practices on 63% 4.6 Insects as food substrate trials with 58% 4.3 insect substrates different human-grade pre-consumer waste, and other feed sources (e.g., Insect, substrate and 5 Substrate and insect processing trials 63% 4.5 chicken feed, grain) with Australian strains insect by-product of insects used for human consumption processing research Insect rendering equipment trials 50% 4.5
* Percentage (%) of respondents from the insect industry prioritisation survey who rated these as a “significant priority” for industry (5 on a scale of 1-5). Insect welfare processing trials 38% 4.0 ** Average rating on a scale of 1-5, where 5 is a “significant priority” for industry. 046 047
Other potential industry convening initiatives Appendices 4
The following projects and initiatives are other potential industry-led projects and initiatives potentially requiring support to be implemented by industry, after the successful implementation of the projects and initiatives described above.
These could be supported either directly through the IPAA or 4. Development of a product safety certification industry via a 3rd-party contractor. These include, but are not limited to standard, national integrity system or an accredited the following: checklist, for the insect industry to certify that the insect products produced by an insect farmer are safe for the 1. Coordinate and collate existing foundational industry intended use upon delivery to processors and retailers; and information across various industry projects in collaboration with academia and industry, to be provided to industry e.g., 5. Development of a database of industry foundational via the IPAA’s website or Members Portal; resources, including research capabilities and technology and equipment. It is worth noting that a starting point for 2. Conducting an industry benchmarking project to determine this has been provided in the Appendix 1 and 2. key metrics of the Australian insect industry, to provide a baseline for improvement, and to inform potential investors about the industry;
3. Develop an insect farming consumer acceptance and social licence strategy to help the edible insect industry (insects as food) overcome consumer acceptance challenges with their products. This would involve collating results and available information from consumer perception and market research conducted globally, on the key drivers behind consumer decision making (e.g. taste, palatability, price, sustainability), from which the insect industry can develop a strategy to target and overcome consumer perception challenges This roadmap will enable the Australian accordingly. Such a strategy would inform industry insect industry to be recognised as an marketing, consumer extension, and education initiatives. high-potential industry by downstream industries, regulators, new industry entrants, researchers, and potential investors globally, thus laying the foundation for its success. 048
Footnotes
1National Farmers’ Federation (NFF) (2017) 7Mwaniki, Z., Neijat, M., & Kiarie, E. (2018). Egg production and quality responses of adding up to 7.5% defatted black soldier 2Pickin, J., Randell, P., Trinh, J. & Grant, B. (2018). National Waste fly larvae meal in a corn–soybean meal diet fed to Shaver Report 2018. Prepared for the Department of the Environment White Leghorns from wk 19 to 27 of age. Poultry science, 97(8), and Energy by Blue Environment Pty Ltd. 2829-2835.
3Sources for gross value of production data from: 8Chaklader, M.R., Siddik, M.A.B., Fotedar, R. et al. Insect larvae, Hermetia illucens in poultry by-product meal for barramundi, • Pet food: Ibisworld (https://www.ibisworld.com.au/ Lates calcarifer modulates histomorphology, immunity and industry-trends/specialised-market-research-reports/ resistance to Vibrio harveyi. Sci Rep 9, 16703 (2019). https://doi. consumer-goods-services/pet-food-production.html) org/10.1038/s41598-019-53018-3
• Chicken meat: AgriFutures Australia for 2018-2019 9Veldkamp, Teun. (2015). Insects: a protein-rich feed ingredient in pig and poultry diets. animal frontiers. Animal Frontiers. 45- • Eggs: Australian Eggs 2019 Annual Report for 2019 50. 10.2527/af.2015-0019.
• Aquaculture: Mobsby, D., Steven, A. & Curtotti, R. (2020). 10The Insect Protein Association of Australia (https://www. Australian Fisheries and Aquaculture Outlook 2020. insectproteinassoc.com/insects-as-food) ABARES. for 2019 11Animal Health Australia (https://www.animalhealthaustralia. • Pork: Australian Pork Ltd for 2013 com.au/
• Cattle: Meat and Livestock Australia for 2016-17 what-we-do/biosecurity-services/prohibited-pig-feed-swill- compliance-awareness-project/) • Lamb: Meat and Livestock Australia for 2017-18 12The Insect Protein Association of Australia (https://www. • Dairy: ABARES for 2017-18 insectproteinassoc.com/insects-as-food)
4(2015-6). JCS Solutions via Stockfeed Manufacturers Council 13The Insect Protein Association of Australia (https://www. of Australia. Available at: http://www.sfmca.com.au/info_ insectproteinassoc.com/insects-as-feed) centre/facts_and_figures/ 14Consultations with Animal Health Australia (Rob Barwell) 5Assumes a fishmeal price of $2,000/tonne, which is reasonable based on recently monthly averages from various 15The Pet Food Industry Association of Australia (PFIAA) https:// commodity prices indexes, including IndexMundi. Fishmeal is pfiaa.com.au/pet-food-standards/ accepted by the insect industry as benchmark for what insect protein will replace in a livestock ration. 16Consultations with Animal Health Australia (Rob Barwell)
6Moula, N., & Detilleux, J. (2019). A Meta-Analysis of the 17Consultations with Animal Health Australia (Rob Barwell) Effects of Insects in Feed on Poultry Growth Performances. Animals, 9(5), 201. https://www.ncbi.nlm.nih.gov/pmc/articles/ PMC6562956/ AgriFutures Australia is the trading name for Rural Industries Research & Development Corporation.
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