The insect farming sector is facing significant financial challenges, with Ÿnsect and Agronutris, two French pioneers, exploring options to overcome their economic difficulties. Ÿnsect is seeking investors or a potential buyout to avoid forced restructuring or liquidation, while Agronutris has filed a safeguard plan to restructure its debt and stabilize its operations. Although the insect meal market has strong demand, challenges related to industrialization and financing are hindering the growth of some players. Other companies in the sector, such as Innovafeed, are adopting more modular and robust models to succeed in this environment.
Ÿnsect needs 130 million euros to reach its goals by 2028 but may face a court-imposed restructuring if no investor comes forward. Agronutris has filed a safeguard plan to restructure its debt and continue its operations, focusing on aquaculture and pet food.
The insect meal market holds great potential, but this industry suffers from underinvestment. However, Agronutris’ products made from black soldier fly larvae offer a low-carbon solution and an alternative to fish. Innovafeed and other players like Protix have overcome industrial scaling challenges by adopting more modular models with the support of strategic partners.
Source: Agfunder