Tyson Foods Buzzes Into Insect-Protein Trend with Netherlands-Based Startup
Tyson Foods (NYSE: TSN), a major US meat processor, is diversifying its investments by entering the insect protein market.
The company recently announced a strategic partnership with Protix, a Netherlands-based insect ingredient manufacturer. Tyson will not only take a minority stake in Protix but is also collaborating to establish a manufacturing facility in the United States.
The newly planned factory will harness animal waste to nourish black soldier flies, which will subsequently be processed into pet, poultry, and fish food. While the financial details of the deal remain undisclosed, it’s clear that Tyson aims to leverage this venture to address the growing interest in insect-based ingredients for animal feed.
According to John R. Tyson, the company’s Chief Financial Officer, their current focus is on utilizing insect protein as an ingredient, rather than in consumer applications. This move aligns with an industry trend where insect protein is gaining traction as a sustainable and nutrient-rich source for animal feed.
A 2021 report from Rabobank, cited by CNN, predicts that the demand for insect protein, primarily for animal feed and pet food, may surge to half a million metric tons by 2030. Recognizing this potential, Tyson’s collaboration with Protix not only aims to reduce waste by utilizing animal byproducts but also presents a new revenue stream for the company.
Related: The Trudeau Government Spent Millions in Grants for Developing Insect-Based Food
Christine Johanna Picard, a biology professor at Indiana University–Purdue University Indianapolis School of Science, described the market for insect ingredients as growing at an exponential pace. Startups are increasingly entering this space to meet the soaring demand for insect protein.
For Protix, partnering with Tyson represents a significant opportunity to scale its operations and expand globally. Kees Aarts, Protix’s CEO, emphasized the importance of such partnerships to bring insect-based solutions to a wider audience.
Information for this story was found via CNN, Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
