18 Oct 2023 --- Tyson Foods has entered a two-fold investment with Netherlands-based insect ingredient formulator Protix to upcycle its by-products such as Black Soldier Fly Larva (BSFL) into high-quality, sustainable insect proteins and lipids.

The deal gives the food giant a minority stake in Protix, in addition to the construction of a BSFL production facility in the US, which is poised to be the “first at-scale facility” of its kind.

The investment shows how the meat giant continues to diversify its operations. 

Protix will leverage its technology and Tyson Foods’ global scale, connections and experience to meet current market demand and bolster the production of insect ingredients, which is increasing in line with the global push toward finding alternative proteins to feed the world’s growing population. 

Protix will leverage its technology and Tyson Foods’ global scale, connections and experience to meet current market demand and bolster the production of insect ingredients, which is increasing in line with the global push toward finding alternative proteins to feed the world’s growing population. 

“We identified the insect ingredient industry as a developing market with exponential growth potential that would ultimately propel our growth strategy forward. Through our partnership with Protix, we will be able to activate full circularity within our value chain by upcycling food manufacturing by-products into high-quality insect proteins,” John R. Tyson, chief financial officer of Tyson Foods, tells Food Ingredients First. 

He also flags that the proposed US plant will be an enclosed system to “support all aspects of insect protein production, including breeding, incubating and hatching insect larvae.”

Financial details of the deal have not been disclosed.

A reusable protein source
BSFL can eat up to twice their body weight daily, which the companies will use to enable a closed-loop recycling system by creating a reusable protein source to reduce land and water resources demands through effective use of animal by-products.

“Tyson Foods’ investment is particularly focused on the development of high-quality proteins for use within premium pet food and as protein alternatives for aquatic organisms,” underscores Tyson.

To upcycle its food manufacturing by-products, the company processes its premises’ by-products, such as the stomach contents of processed cattle, into a viable feed source for insects, he tells us.

“Insects are then processed into high-quality protein products utilized primarily by the aquaculture and pet food industries.”

According to Protix, it uses waste from the food industry as feed for the black soldier fly (BSF). Then, the insects are processed into valuable nutrients such as proteins and lipids, which can be used as ingredients within livestock and plant feed.

Moreover, residual streams from the insects are used as organic fertilizer. This way, insects close the loop and bring the food system back in balance with nature.

“We can immediately use their existing byproducts as feedstock for our insects. This agreement is a major milestone for Protix and significantly accelerates our ambition to grow through international partnerships,” says Kees Aarts, CEO of Protix.

Moving toward a sustainable food system
According to Tyson, the insect life cycle provides the opportunity for full circularity within the value chain, to build a more sustainable food system for the future.

“Although still a nascent market in the US, the global insect ingredient industry is a multi-billion-dollar market highly recognized throughout Europe for its sustainable opportunities to reduce waste within the global food chain.”

He views the company as a “catalyst” in creating a more equitable, sustainable food system for future generations.

“Partnerships with those across industries are an important part of that journey, working together to advance our collective sustainability ambitions and transform the global food system,” he adds.

The emergence of insect protein
As innovation in the alternative proteins space continues, the spotlight has also shifted toward insect protein, with the nclick="updateothersitehits('Articlepage','External','OtherSitelink','Tyson Foods enters insect protein industry with Protix black soldier fly investment','Tyson Foods enters insect protein industry with Protix black soldier fly investment','337217','https://www.foodingredientsfirst.com/news/consumers-are-well-informed-about-insect-based-foods-says-european-commission.html', 'article','Tyson Foods enters insect protein industry with Protix black soldier fly investment');return no_reload();">European Commission declaring that consumers are already aware of insects as food ingredients. To keep consumers informed and to avert allergic reactions, it has urged food processors to display the Latin names of the insects on the packaging.

In June, the EU allowed the use of UV-treated nclick="updateothersitehits('Articlepage','External','OtherSitelink','Tyson Foods enters insect protein industry with Protix black soldier fly investment','Tyson Foods enters insect protein industry with Protix black soldier fly investment','337217','https://www.foodingredientsfirst.com/news/efsa-opens-door-for-yellow-mealworm-powder-as-novel-food.html', 'article','Tyson Foods enters insect protein industry with Protix black soldier fly investment');return no_reload();">yellow mealworm powder in cakes and bread, pasta, mashed potatoes and vegetables, following a novel food application by Nutri’Earth back in 2019. Final authorization on this is expected later this year or early 2024.

This was closely followed by the UK Edible Insect Association declaring that nclick="updateothersitehits('Articlepage','External','OtherSitelink','Tyson Foods enters insect protein industry with Protix black soldier fly investment','Tyson Foods enters insect protein industry with Protix black soldier fly investment','337217','https://www.foodingredientsfirst.com/news/uk-novel-food-approval-for-crickets-edges-closer-after-fsa-greenlights-first-validity-stage.html', 'article','Tyson Foods enters insect protein industry with Protix black soldier fly investment');return no_reload();">Acheta domesticus (house cricket) has been deemed “within the scope of novel foods regime and valid.”

Meanwhile, Nutrition Technologies partnered with Bunge Ventures to scale up insect protein by leveraging BSFL to nclick="updateothersitehits('Articlepage','External','OtherSitelink','Tyson Foods enters insect protein industry with Protix black soldier fly investment','Tyson Foods enters insect protein industry with Protix black soldier fly investment','337217','https://www.foodingredientsfirst.com/news/bunge-ventures-becomes-investor-for-nutrition-technologies-to-scale-up-insect-protein.html', 'article','Tyson Foods enters insect protein industry with Protix black soldier fly investment');return no_reload();">bio-convert food waste diverted from landfills with its patent-pending fermentation technology.

Singapore-based Protenga also uses the BSF to formulate sustainable, nclick="updateothersitehits('Articlepage','External','OtherSitelink','Tyson Foods enters insect protein industry with Protix black soldier fly investment','Tyson Foods enters insect protein industry with Protix black soldier fly investment','337217','https://www.foodingredientsfirst.com/news/insect-protein-industry-bites-back-at-climate-change-and-malnutrition-despite-dietary-limitations.html', 'article','Tyson Foods enters insect protein industry with Protix black soldier fly investment');return no_reload();">circular nutrient cycles, while in Vietnam, it is crickets that Cricket One deems a significant source of protein, vitamins and minerals.

Business moves
Tyson Foods has also been investing in food companies to support other protein sources. Last year, it shelled out nclick="updateothersitehits('Articlepage','External','OtherSitelink','Tyson Foods enters insect protein industry with Protix black soldier fly investment','Tyson Foods enters insect protein industry with Protix black soldier fly investment','337217','https://www.foodingredientsfirst.com/news/weekly-roundup-tyson-foods-invests-us355m-in-bacon-producing-factory-spellegrino-strikes-deal-with-actor-stanley-tucci.html', 'article','Tyson Foods enters insect protein industry with Protix black soldier fly investment');return no_reload();">US$355 million for a bacon production facility in Kentucky, US, to meet rising retail and foodservice demand for bacon products.

The company was also one of the investors in nclick="updateothersitehits('Articlepage','External','OtherSitelink','Tyson Foods enters insect protein industry with Protix black soldier fly investment','Tyson Foods enters insect protein industry with Protix black soldier fly investment','337217','https://www.foodingredientsfirst.com/news/future-meat-scores-us347m-in-largest-ever-cultured-meat-investment.html', 'article','Tyson Foods enters insect protein industry with Protix black soldier fly investment');return no_reload();">Future Meat Technologies, which raised US$347 million in a series B round of financing for cultivated meat.

Moreover, to aid cell-based meat’s growth, Tyson Foods was one of the global lenders in a US$400 million series C funding round for nclick="updateothersitehits('Articlepage','External','OtherSitelink','Tyson Foods enters insect protein industry with Protix black soldier fly investment','Tyson Foods enters insect protein industry with Protix black soldier fly investment','337217','https://www.foodingredientsfirst.com/news/upside-foods-raises-us400m-to-commercialize-cell-based-meat-at-scale.html', 'article','Tyson Foods enters insect protein industry with Protix black soldier fly investment');return no_reload();">Upside Foods last year.

Earlier this year, Tyson Foods felt the impact of nclick="updateothersitehits('Articlepage','External','OtherSitelink','Tyson Foods enters insect protein industry with Protix black soldier fly investment','Tyson Foods enters insect protein industry with Protix black soldier fly investment','337217','https://www.foodingredientsfirst.com/news/tyson-foods-ceo-concedes-tough-quarter-as-high-inflation-and-low-meat-demand-eats-company-margins.html', 'article','Tyson Foods enters insect protein industry with Protix black soldier fly investment');return no_reload();">high inflation and low meat demand, which plunged its stocks by 45.36% from a year ago, even though the FAO analyzed that meat prices are the least impacted by inflation of all food categories. This even led to the food giant closing two of its US chicken plants in March