Insect Farming: A Worm in the Fruit of French Innovation?
Opinion piece published in Les Echos on November 6, 2024
The insect farming industry is struggling, as evidenced by the setbacks of the startup Ÿnsect. Despite its promising start, the sector is facing consumer rejection and is less sustainable than anticipated, warns Corentin Biteau, president of the ONEI.
The industry leader in trouble
The recent safeguard procedure undertaken by Ÿnsect, the leader in insect farming, highlights deep financial troubles and raises questions about the future of the sector in France. Since its founding in 2011, this symbol of French Tech has raised $600 million with substantial support from Bpifrance and the French state. However, last year, the startup was forced to lay off 20% of its workforce and close its Dutch factory.
The early days looked promising. A 2013 FAO report presented insect farming as a potential solution to environmental challenges associated with conventional livestock farming, which is recognized as a major cause of deforestation. France positioned itself at the forefront of this sector. However, recent studies, some co-authored by the National Observatory of Insect Farming (ONEI), reveal a much more nuanced reality.
Economic difficulties
Economically, the sector faces significant obstacles. Insect meal costs two to ten times more than conventional livestock feed, creating a major barrier to adoption. Additionally, several major companies have recently faced financial difficulties, underscoring the economic fragility of the model and heightening investor scepticism.
Most companies in the sector face serious structural and technological challenges. Although certain innovations, such as genetically modified insects for faster growth, are under development, they are not yet available on a large scale.
Environmental benefits called into question
From an environmental perspective, the initially advertised benefits should be toned down. Contrary to expectations, the use of food waste to feed insects remains limited, mainly due to logistical, regulatory, and health constraints. Most of these farms therefore use agricultural by-products based on grains, thus directly competing with conventional animal feed, or even human food, often resulting in a greater environmental impact.
The same applies to insect-based pet food, which accounts for more than half of the market. A 2021 study estimates that insect-based products emit two to ten times more greenhouse gases than traditional pet foods, which are often made from slaughterhouse byproducts.
The human food market is also in question, as substituting meat with insects faces consumer rejection. Its market share is considered negligible. Compared to plant-based alternatives, insects have a much lower acceptability and a higher environmental impact.
What about the public funding of the sector?
In light of these setbacks, how can we not question the relevance of massive public investments in an industry whose long-term viability is uncertain? This industry is also highly vulnerable to offshoring, which undermines its potential contribution to food sovereignty. This is because insects require temperatures between 25 and 30°C to grow quickly. Countries with cheaper labor and a warmer climate are therefore likely to be more economically competitive than France.
Other solutions offer more promising and less risky prospects for achieving our sustainability and food security goals, such as reducing animal protein consumption through support for research on plant-based alternatives.
Given the gap between the industry’s discourse and scientific reality, there is a concern that insect farming may be used as a greenwashing tool. Before continuing with massive investments, it is urgent to consider the economic realities: supporting this sector with public funds is a highly risky bet in a context of budgetary debt.
To find out more, read our detailed article on the environmental impact of insect farming.