You would never guess what industry Hungary is a major power in

In the near-future Hungary could become one of the major players in the insect protein market. A new industrial facility is being built in the vicinity of Budapest, which would use environmentally friendly practices to tap into a new market segment.

The insect protein market is predicted by experts to grow considerably in the years ahead. A Hungarian enterprise, which received HUF 7 billion (EUR 18 million) investment, is getting ready to exploit the potential of the new market. The directors were interviewed by forbes.hu.

István Nagy established Agroloop six years ago and received support from Climate KIC, The EU’s main climate innovation initiative. As a former mechanical engineer, who became disillusioned with the corporate world, he started to study the industrial opportunities of insects at Wageningen University & Research in the Netherlands.

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After discussing the project with a former classmate of his at a class reunion party, they established a research base. There they tried to learn about animal behaviour and experiment with technologies, engineering and different feed mixtures.

Several new investors later the firm is establishing a new factory near Budapest. Instead of targeting consumers, which could be risky in Hungary, they are trying to position themselves as an alternative feed provider to farms and domestic pets.

Replacing unsustainable import

As they noted, half of the feed protein used in Hungary comes from imports, such as GMO soy from South America. To grow soy South American farmers are deforesting the Amazonas. Agroloop provides a more sustainable and environmentally friendly alternative.