Industry Overview
Black soldier fly larvae (BSFL) can consume organic substrates and grow their body weight by 13,300 times, thus, converting organic waste to high-quality biomass rich in protein and energy that can be used for animal feed. The excreta of the insects together with the undigested portion also forms a residue that is a valuable organic fertiliser often referred to by industry as frass.
The lipids (fats) of the BSFL can be used to produce biodiesel and bioplastics. The chitin (from the integument or skin) of the larvae can be used for biodegradable polymer packaging. Fractionation of the larvae produce higher value principal components i.e. protein, fat and chitin. Chitin can be deacetylated to chitosan, a valuable product showing potential for use in nano technology and in the pharmaceutical and cosmetic industries.
For this reason, the BSF has been hailed and developed worldwide as an environmentally and commercially acceptable silver bullet for organic waste amelioration in the circular economy.
Central Approach to BSF Commercialisation
The Western Cape has been a pioneer in the development of the BSF commercial industry globally. The focus has historically been a centralised approach where waste is transported to a large-capacity facility for processing. Globally there has been massive capital poured into this approach it has had mixed success with some companies now starting to establish and others failing.
Decentralised approach
A more recent development is in mobile climate control units, that provide the intricate balance required for the growing conditions that enable the mass-rearing of BSF at the source of the waste.
Companies have emerged overseas such as Flybox and Manna Insects that have developed containerised solutions, however, these are relatively expensive technologies for African environments and there has been little traction for presenting a decentralised solution in the western Cape. Despite this, decentralised solutions can be more energy efficient, are less capital intensive (therefore less risky), reduced transport costs and opens the potential to processing much larger volumes of waste which are inherently geographically scattered. However, the market is now evolving and there is a growing need in the exploitation of a decentralised approach to waste amelioration using black soldier flies.
The Opportunity for Organic waste producers
Generate income from waste with black soldier flies
Amesect (Pty) Limited has developed “Mobile automated grow-insect climate control chambers” MAGICCC) ranging in size and capacity from 3.8 t per month to 144t or more per month. These mobile and modular climate-controlled chambers that can be placed at the source of waste to use BSFL for organic waste amelioration. The founders of the business have combined experience of many years in the fields of mass insect rearing and animal nutrition with engineering expertise and practical commercial involvement in the BSF mass rearing industry.
They have also engaged in several years of research and development of BSFL-derived products that have good potential for use in animal feed and other industries. The founder involved in R & D, Elsje Pieterse, has written in excess of 30 peer reviewed articles relating and presented as many congress papers to the black soldier fly and derivative products and rearing and led in excess of 44 post graduate studies in the field.
The goals of the business in the first phase are to sell Mobile Magiccc units to ameliorate organic waste at source (decentralised approach) to customers and help them to make profits by producing black soldier fly larvae (protein) and organic fertiliser.
The Products of the BSFL
Farmers have a choice to sell the products Magicccs or utilitise them for their own purposes. The larvae can be fed live to chickens or other livestock, with studies showing promise for improved health and animal production. A nutritious feed mix can also be created, which Amesect has developed.
The frass or residue produced by the excreta of the feeding black soldier flies produces an excellent organic fertilizer which can be sold or used in their own activities.
The Magicccs can also be further refined for adding to the circular economy (for example, by harvesting water and carbon dioxide that can be utilised in related farming activities such as hydroponics and aquaculture).
Other producers (such as brewers or food packagers), who, unlike farmers would have no immediate use for the Magiccc production, can enter into offtake agreement with Amesect to ensure their production is sold seamlessly at market prices. Read more about selling BSFL production.
The ultimate vision is for further refinement into a business model could be targeted at different communities on small scale (such as townships and rural areas) or a large scale in cities and commercial farms and other industries.
Carbon Credits
Black soldier fly farming is carbon negative, meaning it has a net reduction in greenhouse gas emissions. The flies help divert organic waste from landfills, which would otherwise contribute to emissions. Hence, using black soldier fly larvae to process organic waste, the release of greenhouse gases into the atmosphere, is avoided. Carbon credits can therefore generate income but also give a company genuine green credentials. Amesect is working on a scheme whereby our customers can benefit from carbon credits.
Threats facing Organic waste producers
With new legislation requiring zero organic waste to landfill in the Western Cape by 2027 in South Africa, the cost of putting organic waste into landfill has increased pressure on organic waste producers to comply. Many farmers in the citrus and fruit industry as well as caterers, food packagers and breweries have expressed interest in the units and in some instances the waste they produce has been subjected to preliminary research on optimising diets for growing the BSFL.
The current practice of composting although playing a role in organic waste ameleioration will not be a total solution either as waste cannot be composted faster than it is produced which inevitably leads to pollution of ground and surface water.
Threats to exporters
Exporter face the added threat of the EU’s Corporate Sustainability Due Diligence Directive (CSDDD).
The CSDDD represents a significant regulatory shift aimed at promoting sustainable and responsible business conduct.
Although it is aimed at large companies above a certain threshold of turnover, the new due diligence requirements apply not only to the direct actions of a company, but also to their subsidiaries and “chain of activities.” Thus, exporters with relationships with larger companies in the EU will be forced to comply or risk losing their relationship.
While the CSDDD presents compliance challenges, it also offers opportunities for businesses to enhance their reputation and competitive edge. Companies that effectively implement these due diligence measures can position themselves as leaders in sustainability and corporate responsibility, potentially attracting more socially-conscious investors and customers. Larger companies must comply by 2027, and all other affected companies by 2029. Local legislation in EU member states will align with CS3D within two years.
Read more about the CSDDD impact.
In the long term, mobile BSF mass rearing could become a mainstream practice, with the potential to revolutionize the animal feed and food industry with more and more rural based farmers and food and packaging processors becoming part of the supply chain. You can read more about how black soldier flies can ameliorate your waste.
Conclusion
In the long term, mobile BSF mass rearing could become a mainstream practice, with the potential to revolutionize the animal feed and food industry with more and more rural based farmers and food and packaging processors becoming part of the supply chain.
Not only will eliminate many threats from new regulations on controlling organic waste but it also presents a real possiblity of generating income.
