In the heart of Singapore, Organic Fertilizers are in motion. A startup armed with $28 million in funding is challenging traditional perceptions of flies and insects in agriculture. Nutrition Technologies A pioneer in the agritech industry, is turning black soldier flies into a valuable resource for animal feed and fertilizers. This innovative approach has caught the attention of investors, earning the company a spot on Forbes Asia 100 to Watch list and paving the way for a sustainable agricultural future.
Black Soldier Flies as Organic Fertilizers
Founded in 2015, Nutrition Technologies has embraced the opportunity that lies in the often-overlooked black soldier fly. Typically associated with pests, disease, and decay, flies are now at the center of a transformative agricultural movement. Martin Zorrilla, CTO at Nutrition Technologies, explains, “People approach insects with a lot of baggage, a lot of fear and disgust. 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.”
Operating from a two-hectare factory in Malaysia, the company processes black soldier fly larvae into high-value products, including Hi.Protein, a protein powder for animal feed, and Vitalis, a liquid fertilizer claimed to prevent fungal diseases and enhance plant health. This approach is not only innovative but also aligns with the growing demand for sustainable alternatives in the agriculture sector.
Investor Confidence and Strategic Partnerships
Nutrition Technologies has attracted significant investment, raising a total of $28 million to date. In 2022, a $20 million funding round led by PTT Ventures, the venture capital arm of Thailand’s state-owned oil and gas giant PTT, underscored the company’s potential. U.S. agricultural giant Bunge and Japanese trading house Sumitomo Corp. have also joined forces with Nutrition Technologies in strategic partnerships, indicating a global recognition of the startup’s impact on the industry.
Buranin Rattanasombat, Chief New Business and Infrastructure Officer at PTT, acknowledges the company’s potential, stating, “They are not early-stage; they are in their early commercial stage. If they can improve in terms of efficiency and product quality, they can be cost-effective in the Thai market or overseas market.”
A Sustainable Process
Nutrition Technologies stands out in the insect-as-feed sector due to its proprietary fermentation process and low-cost facilities. The company’s investment from PTT involves collaboration with Mekha V, PTT’s AI robotics arm, for operational projects such as automating production tasks. The focus on sustainability aligns with PTT’s broader vision of transitioning from fossil fuels to future energy to address global climate change.
The company’s unique approach involves bacterially fermenting raw agricultural waste, such as palm oil fibers or coffee grounds, to feed black soldier fly larvae. This process takes up to 10 days, after which the larvae are processed into products like protein powder for animal feed and liquid fertilizer. The resulting biofertilizer, known as Diptia, contains living microorganisms that can benefit plant health.
Challenges and Future Expansion
While Nutrition Technologies has seen success, challenges persist. Regulations for the use of insects in animal feed vary worldwide, posing potential obstacles for manufacturers. However, the company remains optimistic about its future. Co-founder and co-CEO Thomas Berry emphasizes the importance of understanding biological limitations and addressing unknown variables, emphasizing the company’s commitment to overcoming these challenges.
Looking ahead, Nutrition Technologies plans to unveil new black soldier fly biofertilizers and raise a combination of debt and equity for building a larger industrial plant in 2024. This expansion aims to support local economies and enhance food security in Southeast Asia, reflecting the company’s broader vision for sustainable agriculture.
In conclusion, Nutrition Technologies is not just a startup; it’s a trailblazer in the agritech sector, demonstrating how a shift in perspective can unlock untapped potential in insects for the betterment of agriculture and the environment. As the world grapples with the challenges of feeding a growing population sustainably, Nutrition Technologies provides a beacon of hope with its innovative and sustainable approach to farming with black soldier flies.