Recently I was told that to be successful in the Black Soldier Fly market a company must think about expanding overseas. This makes sense not only because of the short life cycle but also for shipping concerns .I recently did an interview with a company called Betsol in Malaysia. He gave me some insight into the market but I will also include outside sources to validate and investigate this market.
Consumption of Meat
Malaysian consumes a few different sources of meat such as Beef, Pork, Salomon Sheep but none more so than Chicken. It is predicted that in 2020 Poultry will remain the lead as the most consumed meat per capita within Malaysia at 49.35Kg per person. For a comparison the global consumption of poultry in 2015 was 13.8Kg per capita.
It is also good to mention that Malaysia has a rather high seafood per capita rating but this is somewhat negligible because 80% of seafood were wild caught while only 20% are from aquaculture.
Feed Cost for Farmers
Next let's look at the supply chain and see how feed costs are affecting poultry farmers in Malaysia. It's estimated that farmers spend 74% of their cost on feed and less than 10% of ingredients can be sourced locally. By weight 50-55% of poultry feed is corn meal and 25% is soybeans. These two commodities are closely tied to the end price of poultry. If these two commodities fluctuate so will the price of poultry.
Moving forward Malaysia has a waste problem. It's estimated that 31.9 % of waste was disposed of by open burning and 6.5% were dumped into a river system. Most municipalities had a tough time in finding new disposal sites as, the existing disposal sites are nearly exhausted. Malaysia creates more than 3000 tons of food waste per day with less than 5% of this being recycled. (Yu Lim, 2019).
Companies Solving These Problems
Luckily there are some really great companies working on these problems in Malaysia. There are Betsol, Life Origin and finally Nutrition Technology
In conclusion the Black Soldier Fly would be a great fit for this industry there are definitely some challenges ahead for the poultry industry but the Black Soldier Fly could be a major mitigator. Thanks for reading make sure to share!
Yu Lim, G. (2019). Soldier on: Malaysian start-up turning to black soldier flies as sustainable protein for Asia. Retrieved 19 August 2020, from https://www.foodnavigator-asia.com/Article/2019/12/11/Soldier-on-Malaysian-start-up-turning-to-black-soldier-flies-as-sustainable-protein-for-Asia#
Hirschmann, R. (2020). Malaysia: meat consumption per capita by type 2020 | Statista. Retrieved 19 August 2020, from https://www.statista.com/statistics/756920/malaysia-meat-consumption-per-capita-by-type/
Malaysia - Seafood Trade Intelligence Portal. (2018). Retrieved 19 August 2020, from https://seafood-tip.com/sourcing-intelligence/countries/malaysia/
Shane Lim, B. (2015). Poultry farmers face spectre of high feed cost. Retrieved 19 August 2020, from https://www.theedgemarkets.com/article/poultry-farmers-face-spectre-high-feed-cost