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.

The newly completed 13,000 square metre plant will receive 60 tonnes of raw material per day, 18,500 tonnes per year, of which 3,000 tonnes of soil improver granules, 1,400 tonnes of feed protein and 300 tonnes of feed fat will be produced per year.

To feed the insects at the farm, they are relying on local suppliers. “Our policy is to source the majority of our raw materials from within a 100-kilometre radius,” says Rajmond Percze, General Manager of Agroloop.

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They are reusing pomace from the apple juice industry, or other by-products of brewing such as malt stalks, unused parts of maize, or even wheat bran.

In recent months battery factories and their enormous water consumption were in the focus of public debate. However, the new factory of Agroloop will be run in a much more eco-friendlier way.

One kilogram of soy protein concentrate requires 500 litres of water. The new factory will require only 10 litres of water for an equivalent amount of insect protein.

“Gas emissions should not be forgotten. To make soy, the rainforest is first cleared. Then it is shipped to Europe, and fed to the animal, which digests it inefficiently. Now the agricultural industry is beginning to understand how important circularity is” – said Mr Percze.

Source: forbes.hu