Catalysing a $10m Australian Insect Industry - An industry-led RD&E plan
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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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Catalysing a
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$10m Australian An industry-led
dissemination is encouraged. Requests and inquiries concerning
reproduction and rights should be addressed to AgriFutures Australia
Communications Team on 02 6923 6900.
Insect Industry RD&E plan
Researcher Contact Details
Name: Sarah Nolet
Phone: (+61) 401 705 697
Email: svnolet@agthentic.com
In submitting this report, the researcher has agreed to AgriFutures
Australia publishing this material in its edited form.
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Primary Industries Research and Development Act 1989.
004 005
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
Concerns around IP prevent foundational industry knowledge sharing
Lack of regulatory clarity and consistency for insects as feed
028
028
028
Catalysing a
Getting to scale
Production at scale
Access to colonies for research
028
029
029
$10m Australian
Lack of consumer acceptance and social license risks
Justifying research
029
029 Insect Industry
008 009
Insect farming in Australia is a nascent industry, but one
Excutive Summary
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. This report will also serve to guide future investment
industry-led RD&E roadmap
into this emerging industry, ultimately helping the industry to toward a $10 million industry.
achieve its potential.
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
Methodology
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
Insect Farmers
23 Domestic
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
30
Related and other industry experts 7 1 8
Total
Total other stakeholders 11 5 16
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
$3.1B annually2.
Insects as food markets currently include direct-to-consumer Insect farming technology and equipment
(e.g., online/e-commerce) and Fast Moving Consumer Goods
12 (FMCG) insect products. The latter are sold into retail and food There is an emerging global supply chain for dedicated insect
service channels (e.g. restaurants). farming technology and equipment manufacturers. A summary of
commercially available insect farming technology and equipment,
10 identified from this project, is provided in Appendix 2. However,
Australian insect farming research a large proportion of technology and equipment used for insect
projects and capabilities farming in Australia is proprietary, due to the fact that commercially
8 available technology is either very expensive, or is difficult to
Market size ($B)
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
6 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.
research capabilities in livestock, and agriculture more broadly
4 (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 Chicken Eggs Aquaculture Pork Beef Lamb 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
exploratory research.
Figure 2: Size of downstream markets for insects as feed3
018
Key
Figure 3: Insects as food
Australian insects
Insects as feed
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
doing things differently at each step of Insect
Insect
the supply chain. Figure 3 shows the key 3 by-product
Breeding
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 7 Processing Marketing
Sourcing Processing
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
Pharmaceutical020 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 applications022 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.
Labelling024 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 the industry to AHC. Table 8, summarises the proposed feed
Name and Programs Description
to be fed to recommendations.
Ruminants Animal Health Restricted Animal Material
Unclear if insects are allowed In summary, the Task Group recommended that commonly
(e.g. cattle, Australia (RAM) cannot be fed to ruminant
to be fed to produced insects (i.e., BSF and mealworm) be approved for
sheep, national livestock species (e.g. cattle,
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 provided that they meet swill feeding legislation and general
or deer) relevant state defined as any material taken
not allowed to be fed to stockfeed requirements (i.e., they don’t contain residues,
authorities. from a vertebrate animal
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
regulations in poultry as they do
regulation status across Australia.
for pigs. This table highlights the large
degree of variation across the
Aquatic and Relevant state Aquatic or animals other than
other authorities ruminants, pigs and poultry.
different states and territories, and
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.026 027
Industry Opportunities
The Australian insect industry is well-placed to
capitalise on the following opportunities.
Australia is uniquely well-suited to Industry convening to catalyse collaborations
insect farming
and Challenges
Given the early and fragmented nature of the industry, investing
Australia presents some unique opportunities for insect in industry convening events is an opportunity to increase
farming compared to overseas. For example, Australia has some collaboration among producers, researchers, and other
Opportunities
unique strains of insects that potentially perform favourably stakeholders (e.g., investors, regulators, downstream industries).
compared to strains available overseas. Furthermore, seasonal Such events allow stakeholders to discuss common challenges
conditions enable Australian farmers to grow insects year and shared interests, as well as collect information that can be
round, whereas European farmers, for example, cannot grow provided as a unanimous “voice” from the industry to regulators
year round as it is too cold. Finally, Australia’s strict biosecurity and other industries.
policies, including a strict import ban on live insects, and the
fact that Australia is free of diseases such as Mad Cow Disease, Baseline guidelines to build confidence
create favourable conditions for local producers. and be proactive
Industry alignment and prioritisation There is an opportunity to support the development of national
is key to achieve impact guidelines for use by Australian insect farmers, and to guide
regulators and researchers. For example, national guidelines on
Insights from discussions with overseas insect industry bodies biosecurity, welfare, environmental management, antimicrobial
and experts, including the IPIFF and the NACIA, highlighted a management, food safety, and OH&S need to be developed.
strong requirement for the Australian insect industry to come Learnings from other Australian livestock industries suggest that
together and set clear industry goals and priorities. Examples supporting the development of such guidelines would provide a
could include industry alignment on what markets to target, stepping stone for the industry to begin to collaborate and share
or identifying the research, regulations, and guidance required foundational industry knowledge as well as proactively manage risk.
to enter specific markets. Clear goals and priorities will help
the industry achieve both quick wins, as well as work toward High downstream demand from feed industries
strategic, longer-term initiatives.
Feedback from downstream feed industries (e.g., livestock;
For example, IPIFF started with a focus on gaining regulatory feedstock; pet food) has been positive and enthusiastic
clarity in the EU for use of insect feed in the aquaculture overall, with many companies actively monitoring the progress
industry. The IPIFF began by lobbying for policy and clarity and status of insect based protein industries globally and in
around regulations, then worked with industry to develop best Australia. This is largely due to the fact that these industries
practice guidelines for the industry to follow. By setting a clear are looking for sustainable, protein-based feed sources that
priority and getting buy-in from the insect industry as a whole, provide an alternative to traditional feedstocks. Drivers here
foundational industry knowledge was then able to be collated include challenges relating to traditional feed sustainability
or generated from targeted research and directed towards (e.g., fishmeal for aquaculture), and challenges with reliability of
achieving the industry’s common goal. There is a significant supply (e.g., price volatility, droughts, fires, biosecurity).
opportunity to support similar initiatives for the Australian
insect industry, underpinned by clear priorities. Though this interest presents a significant opportunity for the
Australian insect industry, the lack of scale in the insect industry,
and the lack of clarity around insect feed regulations and
nutritional value, represents a key barrier for insects to scale into
these industries. There is an opportunity for the insects industry
to therefore partner with these downstream stakeholders, for
example on feed trials or other initiatives, to provide clarity and
confidence for these companies.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
and equipment and the knowledge of how to implement
These challenges are common for emerging agricultural Lack of regulatory clarity and consistency Consumer perceptions, specifically around acceptance of
in a commercially viable way (e.g., on-farm automation to
industries globally, and are partly due to the unique 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
sustainable sources of energy, and suitable packaging and 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
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 social licence to operate. Though claims have been made about
• Lack of paying customers for sub-scale quantities of
The nascent nature of the industry, and the fact that the ambiguity around the interpretation of specific wording in the the environmental impact and sustainability of insect farming
product.
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,
• there are concerns that industry level collaboration insect pet food regulation, however, improved clarity around biosecurity, OHS, and other on-farm processes.
Acceptance of insects as food,
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
the industry to follow to help it grow.
Australia. Results from the insect industry prioritisation survey, farmers either do not have the scale to supply researchers with 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
employees, with the remainder of the industry having just 1 to 3
size of the domestic market for
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 of030 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 in Industry 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 success032 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
convening initiatives and projects recommended include:
Recommendation 2: Develop and implement
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:
develop a prioritised research agenda and deliver industry- 1. How to farm insects, including guidelines on biosecurity, Once recommendations one and two have successfully been
It is recommended that support be provided for industry
led projects and initiatives. This could be done either OH&S, food safety, and insect welfare; implemented, as described, investment into foundational
events to be run in Australia (e.g., an Australian insect
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 It is important to note that the final order of priority for
markets; and
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
It is recommended that this project be conducted by a 3rd-party pending the outcomes of recommendations one and two.
Table 9:
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 industry034 035
Efficacy and downstream market confidence demand for insects as food products. This would involve Table 11:
consumer perception research, marketability, and sensory Foundational research measures of success
The aim of the following research priorities is to demonstrate
(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, Recommendation Measures of Success
downstream markets. Specific proposed projects include:
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. Pet and livestock Increased demand for insect products due to their health and nutritional benefits for
Efficacy and
different Australian strains of insects farmed for feed, feed trials to assess pets, and livestock. Increased consistency in the quality of insect for feed products
2. Marketing and social licence research trials into other Downstream
and substrates (e.g., pre-consumer, post-consumer, performance, health, produced by industry. Validate and illustrate that insect feed products can be fed
markets for insects: Market Confidence
agriculture waste, and effluents). and nutrition safely to livestock and pets, while optimising their performance (e.g. average daily
Research trials to determine what are the consumer
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 Research trials Increased demand and sales growth of insect products into other markets,
other markets could include, but are not limited to,
that insects as feed are most likely to enter first, together into the efficacy and applications, including, but not limited to, use in pharmaceuticals,
pharmaceuticals, nutrition supplements (e.g., aged care,
with the fact that they have the highest level of industry of alternative uses nutrition, packaging, fertiliser, waste management, and integrated pest
and sports nutrition), packaging applications, fertiliser,
and downstream market acceptance. Following the for insects in other management in agriculture
compost, waste management, and integrated pest
successful execution of this research, similar research market applications
management in agriculture.
can begin for pigs, and ultimately, ruminants.
2. Research trials into the efficacy of alternative uses for Research trials into The goal of this project will be increased demand for insects as food products from
Regulatory the nutritional and demonstrating health, and nutritional benefits
insects in other market applications: Research trials
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:
to, pharmaceuticals, nutrition (e.g., aged care, and Insects as food Increased consistency in the quality and nutritional composition of insects for food
Research trials to inform regulators about the safety of
sports nutrition), packaging, fertiliser, compost, waste substrate trials products produced by industry.
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
• New insect substrates (e.g., different types of food Social Licence food consumer acceptance of insects
and health benefits of various insect food products (e.g.,
waste, farm waste and effluents) for use in already acceptance research
protein, chitin, and oil) for human consumption. Factors
to consider in such research include insect: antibacterial approved insects as feed markets (e.g., pets,
aquaculture, and poultry); Marketing and social Increased demand and sales growth of insect products into other markets,
benefits; vitamin and mineral profiles; and long term
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, to inform regulators
1. Insects as food consumer acceptance research:
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 A number of other potential research projects and initiatives were also identified as part of this project. Details of these are provided
applications, fertiliser, compost, waste management,
challenges with their products, and therefore increase in Appendix 3. Key measures of success for this recommendation are provided in Table 11.
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