Numerous insect breeders are experiencing financial difficulties, as reported by the Financieele Dagblad. The newspaper highlights that the expected rapid increase in insect consumption hasn't materialized as breeders had hoped. Significant investments were made in insect businesses with the anticipation that consumer demand for insects would rise quickly, but this growth has been disappointing. Beyond human consumption, other markets are also proving challenging. Livestock feed producers find insect-based options too costly, and the pet market is difficult to penetrate.
Two major players in the insect breeding industry are the Dutch company Protix and the French company Ÿnsect. Both have attracted substantial investments. However, Ÿnsect has been facing bankruptcy since February, and several insect businesses in Denmark, Ireland, and the Netherlands have gone bankrupt in recent years. The fact that Protix is still operational suggests it is outperforming many of its competitors, the newspaper notes wryly.
However, the company from Bergen op Zoom also claims to be struggling with high costs for energy, raw materials, and personnel, as well as stringent regulations prohibiting the feeding of certain food scraps. Additionally, the company is facing 'difficult capital markets due to bankruptcies in the sector'. A similar situation can be seen in the vertical farming market, which the Protix factory in Bergen op Zoom somewhat resembles.
Source: FD (€)