Insect-based livestock feeds are unlikely to become economically viable in the near future

Abstract

Insect meal has been proposed as one way for the food system to reduce its reliance on fishmeal and soy meal, given the environmental and human rights problems associated with those inputs. However, insect meal is currently too expensive to compete with fishmeal and soy meal, hindering its adoption in large-scale agriculture. There is little indication that insect meal will become cheaper in the near future, especially as the insect industry encounters barriers such as a lack of large-scale production technologies, limited utilisation of food waste, and a lack of standardisation in insect meal quality. One solution may be to set up production facilities in tropical countries, where energy needs are lower and labour costs are cheaper, but this would mean sacrificing food self-sufficiency and potentially causing job losses. Another solution involves charging a premium for insect-fed meat, but studies reveal that consumers would be unlikely to pay such a premium. Overall, it is unlikely that insect meal will displace fishmeal and soy meal in the near future; it may be more realistic to address the challenges associated with forage fish depletion and soy production via increased agricultural efficiency and targeted domestic and transnational policy instruments. • To be a viable alternative, insect meal must be economically competitive. • Insect meal is several times more expensive than fishmeal and soy meal. • Most industry operators face significant challenges in scaling up and reducing costs. • Investors have become sceptical, and investment capital has decreased. • Insects are unlikely to become a part of large-scale animal feed in the near future.

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