Impossible Foods Must Ask Harder Scientific Questions

Techcrunch posted a very interesting interview on 22nd of May 2017, titled “Impossible Foods CEO Pat Brown says VCs need to ask harder scientific questions”. After reading the article, I had to check that I wasn’t reading The Onion.

In the interview, Pat Brown attacks the clean meat industry and VCs with claims that were all proven untrue in a great reply by VC Seth Bannon. The aggressive tone of the interview did not bother me as much as the lack of knowledge shown by Mr Brown. Yes, answering the question “Why not try clean meat?” by saying “The simple answer is because that is one of the stupidest ideas ever expressed” already makes you sound like Donald Trump, but when you back up your claim with untrue statements, things start to look very bad.

Mr Bannon did good job at answering the false claims, but I will continue by looking at two additional points of the interview.

Mr Brown said that with clean meat technology, “you buy into, at best, the same limitations that a cow has.” This statement is very interesting when looking at Impossible Foods’ product. The company is trying to mimic meat as much as possible using plant based raw materials. Isn’t this approach buying into the limitations of the cow? It’s possible the company is looking to go beyond meat at some point, but to an outsider it seems that the product development’s main goal is not to make the best tasting or the best nutritional value having product, but a product that looks, tastes and feels like cow. Yes, the way Impossible Foods are aiming to do it is more efficient and ecological cow rearing, but they share the same goal with the clean meat companies.

The second thing that especially struck my eye was Mr Brown’s demand that VCs should ask harder scientific questions to understand e.g. that clean meat “is one of the stupidest ideas ever expressed”. While demanding deeper studying and understanding from VCs, Mr Brown himself obviously has limited understanding of substitute technologies that his own company is using.

I think the founder has more tendency to have skewed view on his or her business than the outsider. Maybe it is actually Impossible Foods and Mr Brown who need to ask the harder scientific questions?

ps. While you are here you might want to read my related post 5 Questions an Investor Should Ask Before Investing into a Insect Farm from June 2015.

Cricket Is Just a Better Chicken

One of the main arguments insect food companies bring out in their communication is comparing the environmental impact of  insects to conventional meats like beef, pork, fish and chicken. There is no denying that insects are clearly the best choice from this group, but in most cases comparing insects to other animals is not relevant.

paras

The example picture above is from LEAP Pure Cricket Powder- Facebook page. 

The most relevant category to place insects is not “the environmental impact of animal based foods”, but wider “environmental impact of high protein foods” that includes a large variety of plant based foods as well.

In this more relevant category, whether the comparison is about consumption of water, creation of green house gases or feed conversion rate, crickets show up just as a better chicken. From environment’s perspective best options are plant based options like pulses and plant based protein products. Additionally, plant based proteins clear out of many other issues like ethical questions related to animal farming, use of antibiotics and cultural acceptance.

It is important to understand that we are now talking about industrial scale farming where using of bio waste as insect feed is not possible for multiple reasons. For low scale farming where using of bio waste is possible insects are excellent option even over plants.

You might have noticed that in the given infograph it is said that insect consume less water than pulses. This might be true, but it depends on how the water is delivered to crickets. Is it open water or through feed? When comparing the water consumption of animals the combined impact of drinking water and the water used in the farming of the feed should be considered.

There are plenty of reasons to eat insects, but if you are looking for the best environmental choice, industrially farmed insects are not the one.

Further reading:

Semi-Automatic Water Station for Crickets

In 2015 I was working on multiple projects to find ways to help insect farmers with their two main issues: Farming requires too much manual work and that there are too many risks in farming. One solution to fight these two issues was a prototype of Semi-Automatic Water Station for Crickets. I designed the following prototype with one great engineer, but due to lack of time we did not push the design further. The prototype has been tested in couple of farms the basic functionality has been confirmed, but for sure, there are details to improve in all aspects.

The problem of high risks and need of manual labor.

Here is an example of a regular cricket farm. Picture taken from Entomo Farms’ Instagram.

entomofarms

UPDATE 30.4.2017: New updated picture from Entomo Farms was uploaded USAID- Medium profile. Very interesting set-up! Photo courtesy of Stewart Stick, Entomo Farms. Link to the article.

1-Tr1AR3YolqDUdJutvvVPBQ

What you can see from the picture is that there is wooden plate for the cricket feed and black plastic “river” where water flows for the crickets to drink. The water system has multiple problems. Well, before going in to the problems it must be said that this river-thing is a lot better than the other traditional drinking device: “the sponge-thing”, sold e.g here:

wateringdevice

Both of the shown methods of bringing fresh water to crickets suffer from the same problems of crickets dying and dropping feces into the water. What the river-method has better that the sponge is that you don’t need to be filling up the water tank frequently.

The Solution: Semi-Automatic Water Station

Here below I present my concept of low manual labor that has minimized the risk of crickets touching the fresh water. In the first picture below I show the basic unit of the system. The shape and size of the pipe can be basically anything, in this case the pipe is made for a regular plastic container. There are small  drinking holes in the long sides of the pipe and for each hole there is an individual ramp. The ramp has such surface that the crickets are able climb on it, but the pipe itself is so slippery that they cannot move on it. This way the crickets will only move to the drinking hole and no where else. Additionally, the holes are so far away from each other that the while the head of the cricket is at the drinking hole, the other end does not reach the neighboring hole.

The pipe is filled with plastic mesh that has tiny holes. The mesh is rolled and pushed into the pipe. This way the mesh is exposed at the drinking holes and capillary action offers fresh drop of water for the thirsty animal. When the small drop has been drank, the capillary action will bring a new one.

taponen1.png

 

In the next picture the flow of water is explained. The water enters the system from the left by a drip hose that is either connected to water line (best option), or a separate tank. In this example. the rearing boxes are piled on top of each other. Water enters the top most box from the left and exists from the right. To the next one the water enters from the right, exists from the left and so on. Under the last one there is a overflow tank that collects the water that was not drank during water’s way through the system. In large scale operation the water would go to the drain or possibly pumped back to circulation.

img_2577

The system is calibrated in two steps. First of all, it is essential that the system is level, if tilted the water can overflow on one side and leave the opposite side with no water at all. The correct flow of water can be confirmed by in the beginning checking how much water comes out to the overflow tank. If you can get e.g one drop every 10 min, you know that there is water throughout the system and that the water is not stagnant either.

taponen3

Service and cleaning of the system is essential. The boxes can be taken out from the system by lifting out the flexible pipes connecting the boxes from the hard plastic that is inside the boxes.This way you can even taken out one of the boxes in the middle of the pile without touching the ones below and above. The hard plastic pipes are removable as well. As you can see from the first picture the pipe is connected by two holders. When you click the pipe out from the holders the pipe can be taken out completely, or just pushed out of the way when e.g the cartons are changed. The plastic ramps are connected to the pipes by clicking action as well.

I believe the system will remain clean for the duration of one life cycle of crickets, so the cleaning would happen in the same time when the crickets are harvested. The pipes, hard and soft, can be placed inside a dishwasher and the plastic mesh can be taken out easily before that. One could also try running strong alcohol through the system to clean out bacteria.

Please feel free the take this idea to your farm and let me know what if it works or not. And especially if it doesn’t, I would love to hear what are the reasons.

Starter Kit for Ento-Entrepreneurs

Lately, quite a few people have reached out for me for tips for starting a new Insect for Food and Feed- companies. I am very happy to see the industry growing and it is my pleasure to help out. To make your starting easier I have here collected some links and tips on how to get started and how to avoid some of the pitfalls.

I believe strongly in the Lean movement, not only in daily work but also larger projects that starting a new company is. To prevent unnecessary work and loss of resources, start by collecting data and objectively evaluating the potential of your business plan.  To learn more about Lean and modern business management check out the great Lean Startup- book by Eric Ries.

Study the literature. Unfortunately, there are only very few publications on the business side of IFF- business, biological knowledge can be found much easier. My thesis that I wrote in 2015 is still one of few publications looking at the production and supply chain side of this specific industry. The thesis comes with full list of references that can you use to dig deeper into all the discussed topics. Here below are some links I recommend you to read. Other than the links listed here you might want to check also the Directory from the menu bar, from there you can find all my blog posts e.g about how to choose the best species to farm.

Get connected with insect entrepreneurs. The largest database online with contact information can be found from this website, just click the “Entomology Company Database” from the menu bar. I also recommend that you will contact your local association of IFF companies, here are some links:

By getting connected you will get essential tips from more experienced people and you can team up to work on topics that you the concerns about (health of genetic pool, fighting horizontal integration issues etc).

Contact your local Food Safety Authority. In the USA it is the FDA, in EU- level its EFSA. In other words, the one that interprets the national laws regarding food and feed. They are there to serve you and they will tell you the status of insect food and feed in your environment. A nice collection of the legal status’ can be found here.

Stay up to date. The following links are for news sites and social media channels that keep you up to date with the latest news in the field.

  • 4ento is a news center for everything around the topic.
  • Robert Nathan Allen is the founder Little Herds- association. Follow him on Twitter for the latest especially in North America.
  • Food Navigator is news center for Food & Beverage industry, follows closely also IFF- industry.
  • All About Feed is similar to Food Navigator, just with the feed aspect.
  • Facebook-group Food Insect Newsletter.

2016 Was a Successful Year!

It is the time of the year to look back and anticipate a little bit the future as well. The amount of visitors and pages viewed on this site more doubled even though I was able to contribute less on writing. The reason to the slowing pace of blog posting was that I started my current full-time job at Gold & Green Foods Ltd. G&G Foods is company in search for the perfect protein and so far we have brought one product to the market: Pulled Oats. If you are interested to learn more, see our website at http://www.goldandgreenfoods.com

Here below are some graphics and numbers from this blog. I am really happy Finland is not anymore the number one country from which the visitors are coming from (can’t say anymore its just my mom reading my posts). Numbers that I not did put here are the downloading rates of the files I offer: Patent database was downloaded 120 times, the company database 540 times.

Other than working at G&G Foods I did few consultation works and I gave few speeches, maybe most interesting one was Woven network’s event in Nottingham. Link to the speech: https://www.youtube.com/watch?v=8V74_exxTGY&t=14s

Also, I published my thesis as audio book. I explained the publishing process in this blog: https://ilkkataponen.com/2016/05/08/how-i-created-and-published-an-audiobook/. What is crazy about this audio book is that in Audible, the most recognized audio book platform in the world, I am the most sold Finnish author with 34 books sold between April and November. What explains this status is that there pretty much aren’t any other Finnish books available there. That facts takes something out some of the fame, but anyway its a nice title, right?!

In the coming year I have already agreed to take part to one nice insect related publicity campaign here in Finland. I am also thinking of taking this blog more and more away only from insect-related topics towards the wider whole new-proteins, food security and climate change issue. Let’s see what happens!

Happy new year!

year-view

posts-pagescountries.JPG

 

The Entomology Industry is Entering a New Era

I have been updating the Entomology Company Database in this site now for 1,5 years and the list of active companies has been growing a month after a month until this summer. There was a two month break that I didn’t find a single new company and when I finally did find the summer’s first I had the feeling that there must be something happening in the background. I went through the complete list of the companies on 20th of August and this is what I found out:

25 companies had their status changed from active to  not active.

8 companies had their status changed from active to unknown.

Even though 25 up to 33 companies have left the industry it does not mean that the industry would have lost its potential, but it tells of loss of the biggest hype and arrival of realism. The ones with no real potential are moving on.

What is worth noticing is that of the 25 closed down companies only four were farming companies. This change is a step towards healthier structure of the industry. Before this change, and also still today there are very little raw material producers (beginning of the supply chain) compared the end product manufacturers and sellers (end of the supply chain).

Would be really interesting to know the reason for the companies to quit. Are the end product companies quitting mostly because of:

  1. Difficult regulatory environment?
  2. Challenges entering the markets with insect products?
  3. Because of the lack of supply in the raw material side?

Any idea about this? Please leave a comment!

Check out the latest update of the Entomology Company Database here: https://ilkkataponen.com/entomology-company-database/

How I Created and Published an Audiobook

In April 2016 my thesis Risk Management in the Supply Chains of Entomology Farms was published as an audiobook in all major platforms like iTunes, Audiobooks.com and Audible.

I got the idea to do the audio version after hearing multiple sources that “yeah the thesis sounds really interesting, but I do not have the time to read it”… Well, now you have no excuse!

Now when the project is happily over I thought I should share some of the experience to help you out as well to make your own audiobook from an existing, ready written document:

  1. Edit the book to fit the new format. In the case of a thesis, academic references play a big role in the document, but in the audiobook format they are simply useless: No one wants their listening to be interrupted all the time for a list of names and dates. At the beginning of the audiobook, it is announced that the references have been removed, but are available accordingly in the written document. The second thing to modify is references to graphs and pictures in the written document, as obviously the listener cannot see them.
  2. Hire a professional narrator. I had access to professional recording gear, but even though I know English quite well, I am not a native speaker. I think I could have made a reasonable recording, but I think people would have lost the enjoyment of listening quite soon. One hour and 40 minutes is not a long audiobook, but it is a really long time to listen if the narrator is not really good.  I used the Fiverr- service to find the narrator. I contacted three people who all seemed very friendly and professional. In the end, I chose the person who answered me the first, and the result came out really nice. It really sounds like a real audiobook and the price was reasonable as well.
  3. Use a publishing service. This advice is not only a piece of advice but a must for all non-UK and non-USA based publishers. The main publishing platform is ACX that handles everything for iTunes, Amazon, and Audible. They do not accept private uploads if the person does not have tax-ID in either in the UK or USA. To go around this obstacle I contacted some publishing houses but found only one suitable one: Author’s Republic. They are a USA based company that offers similar service as Tunecore offers for bands and musicians: They will upload your copyright- materials to all agreed platforms and they will do all your paperwork for you against a fee/portion of your royalty income. I can only say positive things about the arrangement I have with Author’s republic: Very fast and friendly service and my audiobook was published in a very short time.

You can purchase the audiobook behind the following links:

http://www.audiobooks.com/search/author/Ilkka%20Taponen

https://www.overdrive.com/creators/1120533/ilkka-taponen

http://www.audible.com/search/ref=a_hp_tseft…

https://www.hoopladigital.com/title/11615148

The audiobook also available at iTunes, just search for “Ilkka Taponen”.

I am looking forward to hearing your thoughts about the work!

Entomology Patent Database Analysis

Some of you might have already noticed that I have opened a new tab to my page called “Entomology Patent Database”. This is a one more database project I have, this time I have collected insect rearing related patents to a file, analyzed them and put them into the right category.

The study of patents in an industry is one of the key tools to collect Competitive Intelligence, the topic I wrote about in my previous blog post. Looking at the patents you can learn many things: On what species are companies focusing on, what techniques they are using and how they feed their insects? Also by looking at the big data you can learn from which countries, companies and universities the patents are coming from and by looking at the publishing year you can see if the pace of new patents coming up is increasing or decreasing. Maybe one might also want to look for individuals behind patents for hiring purposes?

Here are some numbers from the database, any surprises for you? At the moment the database consists of 400 patents.

258 of them were originally filed in in China, 73 are originated in USA.

173 are granted patents, 227 are patent applications.

The patents are originating from 286 different companies, organizations and individuals.

36 of the patents were published in years 2015-2016, 109 in years 2013-2014.

79 different species are individually mentioned in the patents. 118 are related to more than one species. 26 patents are focusing only on Black soldier fly.

In the database there are five categories of patents: Methods (92), Apparatus (172), Insect feed (83), Separation / Collection (43) and Processing (67).

Before starting to study the patents, I did not realize that there is so big concentration of patents in China. USA being one of the main countries making patents to this industry (or almost any other industry) is no surprise. What surprised me as well was that so big number of patent applicants have applied only for one patent. The 400 patents have 286 different sources, giving the very low average of 1,4 patents per applicant. Though, must be noted that in the database for example a company A+ Individual B is considered to be different applicant as the company A alone.

Here are some of the most interesting patents in my opinion:

“Industrial scale farming apparatus for mealworm”  from China, 2014.

“A fast method of forming a fly pupae” from China, 2014.

“Antropod egg harvesting method and device” from USA, 2014.

“Continuous feeding device and harvesting of larvae of diptera insects” from Spain, 2015

” Automated insect breeding system” from Singapore, 2010.

This database is not available on my website, but if you are interested, more information is available at https://ilkkataponen.com/entomology-patent-database/ or just click on the top menu for Entomology Patent Database.

kirva

 

 

 

Competitive Intelligence in the Entomology Industry

Here is a text a I wrote some time ago for a project and I thought this would be of interest for a wider audience as well. It is about competitive intelligence especially in the entomology industry. What are the aspects you should look into and how to collect the relevant information? Enjoy!

How the intelligence is gathered

Competitive intelligence gathering can be divided to four steps; Planning and Direction, Collection, Analysis and finally Dissemination.

In the beginning of the process, the planning and direction, the company must define what the questions are, the Key Intelligence Topics (KIT), which the company must track and understand in order to be successful. Example KIT-questions could be for example “Where do you and your rival sell products, and to which target audiences”, “What products does your rival have in the pipeline, and how will they be marketed” and “How is your rival’s company organized and how well operations are performing”. The KIT- process is necessary so that the research done in the field will be done on the relevant topics because no matter how big or small the company there is only a limited amount of time and resources to be used on the research. Additionally, the overload of information can bury the relevant information under the irrelevant. Suggestions for the KIT’s of IFF-industry are presented later on.

Overload of data is a real danger so keeping the focus on the predefined questions is essential. Once the data is collected is time for the analysis. Here the relevant is separated from the irrelevant and the knowledge is looked into for pattern and a report is created.

The last step, dissemination, is the step where the analyzed data is given to the company management for them to adjust their plans accordingly if needed. It is likely that new questions will arise from the given analysis. The new questions require the cycle starting from the beginning. Because of the repetitive nature of the CI- collection it is collect a process and a project. Project is thing with a clear beginning and an end, but in this case the collection does rounds one after another so it is a Competitive Intelligence process.

Competitive Intelligence in IFF-industry

What is special about the IFF- industry compared almost every other industry is the novelty state combined with the rapidly growing interest. Before FAO-released their publication “Edible Insects” in 2013 to promote insects as food and feed there were only around 10 small companies rearing insects. At that time the products were sold in Asian markets and for pet animals. Now in 2016 there the number is somewhere around 200 and increasing all the time. You can look at the entomology database in the this site, just select the database from the top menu.

As the high scale insect farming has never been done is such extent and by Western regulatory requirements the technology, Good Manufacturing Practices (GMP), and logistics networks are missing. Additionally, the legal environment is not up to date. For example, it is unclear when EU will allow the insect to be sold for human food or is the slaughtering act of EU will concern insect in the same way as other animals. This is simply because there has never been interest on topic before. The missing data, operational standards and changing legal environment all increase the importance of Competitive Intelligence and they form the Key Intelligence Topics of the industry.

How to collect Competitive Intelligence in IFF-industry?

As mentioned earlier the industry is still in its infancy meaning that there are only a limited amount of operators in the field. As the number is limited keeping an eye on the identified competitors through news, social media and their homepages is not too big of a task. Though, the situation will change eventually.

Before the industry grows further networking is possibly the best way of gathering Competitive Intelligence. The circles are small so even if you would be missing a contract to a certain company, it is possible to reach a company that knows them well.

The biggest forum of the industry is IPIFF, the International Platform of Insects for Food and Feed. According to IPIFF’s webpage their goal is to “help the insect industry to prosper in Europe and worldwide by composing an industry network, encouraging collaboration amongst the members, gathering the interest of members for institutional representation and support high-level research and development”. Even though the description tells that they want to compose an industry network and encourage collaboration so obviously no secrets are shared, but the latest news and trends around the topic are discussed. It is essential for the ambitious company to be part of this knowledge database. One example topic could be the legal issues. It is in the interest of all the members of the IPIFF that the legal changes are tracked and lobbied for. As it serves the common good, the latest information is available for the members and they get a real upper hand against competitors who hear about the news only later on.

The IPIFF- forum only offers the “public” information, the information the industry players are willing to tell and what they consider will not harm their operations, but in IFF-industry the way companies see their competitors vary at least until certain extent from other industries. The lack of companies in the field increase the transaction cost of their clients, for example fish feed manufacturers. When there are only a limited amount of players, the fish feed manufacturer has limited options for horizontal integration meaning higher risks of price fluctuation and delivery difficulties. This leads to situation where the IFF-companies benefit from competitors as they bring more interest and new possible clients that see that relying on only few companies would too risky. This situation will change once the IFF- industry has established itself and once that will happen the companies will certainly co-operate more conservatively.

KIT 1. New competitors and business models

Because the market is very new the companies are still looking for the best business models and trying different approaches how to differentiate themselves from the competition. It can be said that once a company in the field find a successful model of operations, the competition will follow fast.

KIT 2. Technology and GMP

The technology used today by IFF-farms are either self-made or the machines and tools are not used in the farms to something else that they were originally designed for. For example the containers the insect are reared in are in many cases actually containers made for bread industry. Other example are the egg-cartons used for cricket farming. IPIFF says in the homepage that they are aiming to create “white papers” and standardize the best practices of the industry to promote high quality and this way the credibility of the industry. Before such standards are formed the companies are going their own directions looking for the best solutions, others succeeding better than others. The companies must be alert of the technological advantages in field to be sure that they are the one with the best solutions from all the used ways of operating.

Also, by understanding the state of the technology and the expected developments in the near future the investments done today might be outdated tomorrow. For this reason especial care must be taken with this KIT right from the beginning.

KIT 3. Legal changes

The companies that are aware of the coming legal changes the best have a huge advantage in the planning of their operations. The main question in the legal and regulatory field is when EU will open the markets for food and feed. More specifically, in which order the products will be released, is it the fish feed or maybe poultry? These questions have huge impact on to which aspect of research and development the companies should focus on, and when the marketing campaigns are started. Just like in EU, also USA is still thinking of its approach to the topic. At the moment some states allow farming and selling for food and feed, while in the other end some states do not allow any of these activities.

Conclusion

Competitive intelligence is very important in the IFF-industry. Because of the three KIT-issues explained a conclusion can be made that for proper risk management and success in the future a company should do its utmost to find the latest CI. Additionally, the companies must to be flexible and agile to modify its technology and business model according to the latest information from the field.

In case you are looking for help with this topic, please contact me for quotation: ilkka@iffautomation.com

Database Analysis; The Chosen Species

I published my Entomology Company Database in this website about one week ago. I already got a lot of positive feedback and also people informed me of missing companies and mistakes, thank you for that! I will keep on updating the database from now on, if you spot a line that needs updating, let me know!

There are many ways to look at the data and I believe it can be used to serve multiple purposes, but what I will do here is to paint a picture of the insect species that are reared by the industry and what can we conclude from the findings.

Database analysis; The Chosen Species

To get started I first filtered out all companies that are not active. Then I selected companies that are involved in farming.  Also, I filtered out companies whose species are unknown.  This leaves us 69 companies (Note! I am using the database file version 08, uploaded on 14th of January).

Point 1. Most companies focus only on one species

First thing we can learn from this is that vast majority of companies, 43 out of 69, are focused only on one species. Putting the company’s focus to only one species brings many positives effects: R&D resources are better used, hardware investments and inventory carrying costs are lower. Also, benefits of economies of scale can be reached easier. There are negative sides as well; Focusing only on one species means higher environmental and supply risks. What if the chosen species are not among the most popular species when the industry grows? Or even worse, what if the species are not in the list of approved species when the legislation is going through big changes?

More on this you can read from my blog 5 Questions an Investor Should Ask Before Investing into a Insect Farm. https://ilkkataponen.com/2015/06/20/5-questions-an-investor-should-ask-before-investing-to-a-insect-farm/

Four companies have chosen the path of two species that might be a way to control the risks, but in the same time keep the costs low. The companies are Ynsect, Ofbug, Big Cricket Farms and Micronutris.

When looking at the “Multiple species” companies 12 of out 23 are companies that mainly focus on biocontrol or pet food manufacturing. When working on these segments of insect farming the higher production costs and loss of the benefits of economies of scale is justifiable as the companies get better price for their product. This is because their selling unit is rather pieces than kilos.  They operate in the a high-end segment, while when producing for food or feed the companies are competing e.g with soy bean that is extremely cheap.

Point 2. The most popular species

Looking at the most popular species is not easy as many companies talk only about “crickets” instead of the actual species of crickets. All the cricket companies make total number of 19. The black soldier fly (Hermetia illucens) farming companies are 21. Maybe surprisingly only seven companies are involved mainly with mealworm or lesser mealworm. Of course some of the “Multiple species” companies are rearing these as well.

Point 3. The lone wolves

Two companies stand out with the selected species: Steak Traz Traz are the only one to choose Grasshoppers so far and Fly Farm Systems only one with Musca Domestica. Being the only raises few issues and increases supply risks. How come these companies have chosen a different answer than others? Do they know something that majority does not, and are they really the one with the better option?  Surely every company is their own individual case and they could justify their chosen species from production and business perspective today, but the in the future the case will be different. One reason is because of the environmental risk explained in Point 1. The biggest risk is not the environmental, but the supply risk that is very significant in the case of the lone wolves. Companies rearing e.g the most popular species black soldier fly will benefit from the wide vertical integration that they build together with other similar companies. This will not only bring security against the supply risk of the company but benefits in increased sales as the demand risk is reduced for the downstream of the logistic chain.

More on the supply risk briefly from my presentation here: https://ilkkataponen.com/2015/10/29/presentation-in-insect-business-and-research-meeting-in-seinajoki-finland/

Or with detail from my thesis here: https://ilkkataponen.com/2015/05/20/thesis-supply-chain-risk-management-in-entomology-farms/