Insect 4 Feed- Nigeria
The animal feed production industry in Nigeria underdeveloped, largely due to high production cost. Over 70% -90% of the cost of animal production in the aquaculture, poultry and livestock industry goes to feed. The animal feed industry in Nigeria was estimated in 2019 to reach 2 billion USD. Also, a market research was conducted in Nigeria by NGN in 2016, one of the insect 4 feed impact cluster partners. The study constituted visits to small medium and large scale animal feed producers. The results of the study indicated that there was great need for affordable, and high quality substitute for costly animal feed protein sources.
Contextual Background
Nigerian imports 96% of the fish meal used in the production of animal feeds mostly from Europe. The use of insect as food and feed is not alien to Nigerians. There have been both academic studies and industry application of insects like houseflies, and the likes in the animal protein value chain as feeds. Thus, the potential value in a well-developed insect protein value chain for the animal feed industry is huge. However, the industry is yet to scale the production and utilization of these insect meals despite the strong public and private sector interest.
Impact Cluster driving systemic change
The impact cluster a vehicle that has the mostly potential to foster NL and Nigerian collaboration in promoting this circular agricultural solution to animal feed industry. Impact Clusters are collaboration modules that forms part of RVO’s PSD Apps programme. It is designed to provide multiannual support to groups of businesses (and knowledge institutions/NGOs) that see specific opportunities in a market/sector combination and that can contribute to local development in one or more of the countries on the Ministry of Foreign Affairs’ PSD country list. The following organization are involved in the insect 4 feed impact cluster in Nigeria. NGN pro-active, Single Spark BV, Pro-ento, Nigerian Breweries, Quality Insect for Feed and Food Association, University of Ibadan and IITA Business incubation platform limited.
Insect 4 feed Impact Cluster –Nigeria
Insects 4 Feed impact cluster in Nigeria aims to address the growing need for a local, sustainable and affordable animal protein source for the fish and poultry feed industry. The cluster aims to kick-start the production of insects through an incubation programme, encouraging young entrepreneurs to build the insect sector. These insects are then linked to the feed, aquaculture and poultry markets as a raw material for effective and affordable feed production. The main objective of the Insect 4 Feed Impact Cluster is the development of a sustainable local insect production sector that provides a high quality and affordable feed resource to the domestic Nigerian aquaculture and poultry industry in Oyo state, and to stimulate local job creation.
The cluster aims to support development of the Nigerian private sector through local adaptation of international expertise, training, incubation and market linking to assist in the growth of the Nigerian insect production sector. Insect rearing is already conducted in Nigeria, however these initiatives are scattered and there is a need to increase volumes, quality, cooperation and the competitive environment. By supporting the insect production sector, the surrounding industries are also lifted, for example in logistics, material supply and waste management.
The end products, insect larvae, directly boost domestic aquaculture and poultry production chains by providing a local feed source that is affordable, far more sustainable than conventional imported alternatives (fishmeal, soya). By supporting the insect production sector, opportunities arise not only for Nigerian entrepreneurs, service and material providers, but also for Dutch companies with expertise in insect rearing technologies and equipment that can be implemented as production is scaled up. This aligns with Dutch government’s aims to improve the sustainability of production chains, promote sustainable and inclusive growth and to facilitate the success of Dutch companies abroad.
The main programme activities to boost the Nigerian insect production sector are divided into ‘5 Horizons’, each focusing on a specific part of the ecosystem that will be built to support the sector.
Horizon 1 – Insect & Input Screening Centre
This horizon comprises research activities to adapt existing insect rearing systems and potential substrates to the local Nigerian context, dependent on the climate, resources available and optimization of rearing for Nigerian conditions.
Horizon 2 – Business Development
To support new insect production businesses, an incubation programme for insect entrepreneurs will be set-up and implemented. The programme will comprise practical rearing training, business support and facilitation of finance and access to materials and a start-up location for the selected participants.
Horizon 3 – Input industry
Horizon 3 will focus on the development of the supporting input industry that feeds into and surrounds the insect production sector. This includes the set-up of a technical backstopping service for long-term knowledge embedding and technical support, material suppliers, egg supply, substrate supply and related logistical services.
Horizon 4 – Markets & Scaling.
In order to open the market for insects as a feed ingredient, horizon 4 will focus on the engagement of relevant sector stakeholders such as feed millers, poultry producers and fish producers to introduce insects as a feed ingredient, and to assess the required quality properties and standards expected by these stakeholders, and therefore as potential buyers.
Horizon 5 – Industry Development
To ensure long-term collaboration and coordination within the Nigerian insect industry, a user group will be set-up to form a central platform through which industry wide challenges can be addressed, and experiences can be shared between producers.
You can contact the agricultural team in West Africa to learn more about this programme:
Netherlands Ministry of Agriculture Nature and Food Quality
Team West Africa
Tel +234 (0)1 460 1404
M:+234(0)8036590906