Catalysing a $10m Australian Insect Industry - An industry-led RD&E plan

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Catalysing a m Australian Insect Industry - An industry-led RD&E plan
Catalysing a
$10m Australian   An industry-led
Insect Industry   RD&E plan

27 March 2020
Catalysing a m Australian Insect Industry - An industry-led RD&E plan
Emerging Industries
© 2020 AgriFutures Australia
All rights reserved.

ISBN 978-1-76053-104-1
ISSN 1440-6845

Catalysing a $10M Australian Insect Industry:
an industry-led RD&E plan
AgriFutures Australia Publication No. 20-059
AgriFutures Australia Project No. PRJ-011909

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                                                                                            Catalysing a
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                                                                                            $10m Australian   An industry-led
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Communications Team on 02 6923 6900.
                                                                                            Insect Industry   RD&E plan
Researcher Contact Details
Name: Sarah Nolet
Phone: (+61) 401 705 697
Email: svnolet@agthentic.com

In submitting this report, the researcher has agreed to AgriFutures
Australia publishing this material in its edited form.

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Catalysing a m Australian Insect Industry - An industry-led RD&E plan
004                                                                                                                                005

Foreword

                                                                                                                                                                                       Acknowledgements
The emergence of the insect farming industry in Australia has                                                                      AgThentic acknowledges the financial
created a new option to influence food and nutrition challenges.                                                                   assistance of AgriFutures Australia in completing
The United Nations, Food and Agriculture Organisation views                                                                        this research. AgThentic would also like to thank
rearing edible insects for human consumption, “insects as food,”                                                                   the industry stakeholders, business operators,
as key to reducing environmental impact and feed a growing                                                                         and researchers who participated in interviews
population which is set to expand to over 9 billion by 2050.                                                                       as part of the research for this project. In
                                                                                                                                   particular, AgThentic acknowledges the valuable
                                                                                                                                   input from the Insect Protein Association of
Insects have the potential to transform Australian                This report has culminated from extensive activities,            Australia (IPAA) throughout this project.
agriculture and will be a key contributor in Australia’s $100     including domestic consultations with key industry
billion farming economy ambitions. AgriFutures Australia          stakeholders across food, feed and waste management,
has identified insect farming as an emerging industry             such as farmers, start-ups, investors, consultants, experts,
with high potential to reach $10 million per annum in the         academics, industry bodies and related industries.
next five years, a core driver of the AgriFutures Emerging
Industries Program.                                               Consultations with select international experts have also
                                                                  enabled the collection of international data and examples
Growth of insect farming is underpinned by its potential to       that can inform future RD&E priorities for Australia.
address several challenges, such as pressure on natural
resources, climate volatility, a growing global population, and   This report pulls together specific recommendations for
increased protein demand. Insects are vital to addressing         future investment to support the long-term growth and
these challenges because they are the most numerous and           competitive advantage of Australian insect farmers.
successful creatures on Earth. Furthermore, they are more
efficient converters of ingested food to body weight than         This report has been produced as part of AgriFutures
traditional livestock.                                            Australia’s Emerging Industries Program. It is an addition to
                                                                  AgriFutures Australia’s diverse range of over 2000 research
There is also considerable potential for use of insects           publications and forms part of Arena 4 which focuses on
as feed, especially for poultry and fish, due to their high       new industries with high growth potential. Emerging animal
nutritional values, and because they naturally form part of       and plant industries play an important part in the Australian
some livestock diets. Other applications for insects are being    agricultural landscape, they contribute to the national
explored globally, such as waste management, biofuels,            economy and they will be key to meeting changing global
and pharmaceuticals. Yet in Australia insect farming is           food demands.
still an immature industry with significant challenges to
overcome for it to scale and thrive. Challenges fall into the     Most of AgriFutures Australia’s publications are available for
following categories: commercial viability; foundational R&D;     viewing, free downloading or purchasing online at:
protocols, standards and regulations; and social license and      www.agrifutures.com.au
consumer perceptions.

The purpose of this project is to support the long-term
growth and competitive advantage of Australian insect
farmers by developing a practical, industry-led RD&E plan.        Michael Beer
The goal of this roadmap is to identify industry challenges       General Manager, Business Development
as well as opportunities for Australian insect farmers, and       AgriFutures Australia
present practical recommendations for overcoming the
challenges and capitalising on the opportunities.
Catalysing a m Australian Insect Industry - An industry-led RD&E plan
006                                                                                    007

Contents

            Foreword                                                             004   Section 5       Industry Roadmap                                                               030

            Acknowledgments                                                      005                   Recommendation 1: Implement industry convening initiatives                     032
                                                                                                       Recommendation 2: Develop and implement industry guidelines                    033
            Contents                                                             006
                                                                                                       Recommendation 3: Conduct prioritised foundational industry research           033
            Executive summary                                                    008                   Efficacy and downstream market confidence                                      034
                                                                                                       Marketing and social licence                                                   034
                                                                                                       Regulatory                                                                     034
Section 1   Introduction                                                         010

                                                                                       Section 6       Conclusion                                                                     037
Section 2   Research Methodology                                                 012

Section 3   Australian Insect Farming Industry Overview                          014                   Appendices                                                                     038

            Australian insect industry overview                                  014
            Industry value chain                                                 017               1   Australian insect farming research projects and capabilities                   038
            Australian insect farming research projects and capabilities         017               2   Insect farming technology and equipment                                        041
            Insect farming technology and equipment                              017               3   Industry prioritisation survey results and other potential research projects   043
            Australian insect farming regulatory landscape                       017               4   Other potential industry convening initiatives                                 046
            Australian insect farming                                            021
            Insects as food                                                      022
            Insects as feed                                                      023
            Current regulatory landscape                                         023
            Recommended future insects as feed regulatory landscape              025

Section 4   Industry Opportunities and Challenges                                027

            Industry opportunities                                               027
            Australia is uniquely well-suited to insect farming                  027
            Industry alignment and prioritisation is key to achieve impact       027
            Industry convening to catalyse collaborations                        027
            Baseline guidelines to build confidence and be proactive             027
            High downstream demand from feed industries                          027
            Industry challenges
            Concerns around IP prevent foundational industry knowledge sharing
            Lack of regulatory clarity and consistency for insects as feed
                                                                                 028
                                                                                 028
                                                                                 028
                                                                                       Catalysing a
            Getting to scale
            Production at scale
            Access to colonies for research
                                                                                 028
                                                                                 029
                                                                                 029
                                                                                       $10m Australian
            Lack of consumer acceptance and social license risks
            Justifying research
                                                                                 029
                                                                                 029   Insect Industry
Catalysing a m Australian Insect Industry - An industry-led RD&E plan
008                009

                   Insect farming in Australia is a nascent industry, but one
Excutive Summary
                   that is poised for growth with high potential to reach,
                   or exceed, the five year $10 million per annum industry
                   target set by AgriFutures Australia. However, there are a
                   number of challenges to overcome, and opportunities to
                   take advantage of for the industry to reach this target.

                   Currently, all Australian insect farmers are startups or small      The roadmap includes three key recommendations. The first
                   businesses, many of which are yet to reach a commercial             two recommendations: 1) investment in Industry Convening
                   scale. However, the industry remains a highly attractive target     Initiatives; and 2) the development of Industry Guidelines,
                   for potential investors given unique characteristics of the         can be completed in parallel. These recommendations have
                   Australian market. For example, farmers experience favourable       been designed to provide the building blocks for a strong
                   conditions for raising insects compared to overseas, strong         Australian insect industry, thus laying the foundation for its
                   biosecurity measures already in place to protect the industry       success. Following the successful implementation of these, the
                   against pests and diseases, growing demand for insect               third recommendation is to make investments into prioritised
                   products, particularly from stockfeed industries, and the           Foundational Research initiatives, as developed through the
                   ability to leverage Australia’s world class agricultural research   implementation of the first two recommendations.
                   capabilities.
                                                                                       Together, these three recommendations provide a roadmap
                   Despite this potential, there are several challenges the insect     for the industry upon which collaboration can happen and
                   farming industry must overcome. For example, there is very          confidence can be built with key stakeholders, including
                   little public data available, domestically and globally, due to     regulators, investors, and downstream industries. Finally, and
                   high commercial sensitivities. Consequently, the industry is        most importantly, this roadmap will enable the Australian insect
                   experiencing challenges with respect to collaboration and           industry to be recognised as a legitimate and high-potential
                   foundational industry knowledge sharing between its members.        industry by customers, regulators, new industry entrants,
                   As a result, there is limited information to inform regulators,     researchers, and potential investors, globally.
                   provide guidance to industry, and give confidence to potential
                   customers and investors. These challenges are exacerbated
                   by the fact that insect farms, unlike most other farms, can
                   attract venture capital investment due to their high use of
                   technology and suitable economics. Though these are global
                   challenges, not unique to insect farming in Australia, they must         This report supports the long
                   be addressed for the industry to grow.
                                                                                            term growth and competitive
                   This report supports the long term growth and competitive                advantage of Australian insect
                   advantage of Australian insect farmers by developing a                   farmers by developing a practical,
                   practical, industry-led RD&E roadmap toward a $10 million
                   industry. This report will also serve to guide future investment
                                                                                            industry-led RD&E roadmap
                   into this emerging industry, ultimately helping the industry to          toward a $10 million industry.
                   achieve its potential.
Catalysing a m Australian Insect Industry - An industry-led RD&E plan
010                                                                                                                                    011

Introduction

Australian agriculture is poised for growth with a bold vision to   This roadmap will ensure that the Australian insect farming
achieve $100 billion in farm gate output by 20301. AgriFutures      industry is better placed to retain existing and attract new
Australia has identified insect farming as an emerging              members, as well as attract new forms of capital investment.
industry with high potential to reach $10 million per annum         By working closely with the insect farming industry and
in the next five years. However, the insect farming industry in     related stakeholder groups to develop this roadmap, this
Australia is still in its early phases of development with both     project will support the industry to reach $10 million (and
challenges to overcome and opportunities to take advantage          beyond), as well as contribute to this bold, national vision for
of, for the industry to reach this target.                          Australian Agriculture.

Though insect farming and consumption have long been
common practice across Asia and Africa, insect farming
has gained in popularity globally in the last 20 years. This
has been driven by an increasing number of entrepreneurial

                                                                                                                                             Introduction
companies (i.e., startups) around the globe that are developing
innovations for insects as feed, as food, and in various other
applications. As a result, there is a high proportion of insect         The purpose of this project is to
farmers who are startups or small businesses that have not              support the long term growth
yet reached commercial scale.
                                                                        and competitive advantage
This dynamic is true in Australia as well, as the domestic              of Australian insect farmers by
industry is in its early stages of formation and growth.                developing a practical, industry-
However, there is high potential for the industry to grow due
to some unique opportunities in Australia. For example,
                                                                        led RD&E roadmap to guide future
Australian insect farmers can take advantage of favourable              investment into this emerging
climatic conditions for raising insects, strong biosecurity             industry, and ultimately help the
measures, a growing downstream demand for insect products,
and strong agricultural research capabilities to leverage.
                                                                        industry to achieve its potential.
                                                                        The goal of this roadmap is to identify
Despite the opportunities, the nascent nature of the industry,          the specific industry challenges as
and the fact that the industry is an attractive venture
capital investment option, has meant that it is experiencing            well as opportunities for Australian
challenges. For example, collaboration and foundational                 insect farmers and present practical
industry knowledge sharing between its members is not                   recommendations for overcoming
well-established. Furthermore, there is very little public data
available globally due to high commercial sensitivities.                the challenges and capitalising on
                                                                        the opportunities.
The purpose of this project is to support the long term growth
and competitive advantage of Australian insect farmers by
developing a practical, industry-led RD&E roadmap to guide
future investment into this emerging industry, and ultimately
help the industry to achieve its potential. The goal of this
roadmap is to identify the specific industry challenges as well
as opportunities for Australian insect farmers and present
practical recommendations for overcoming the challenges and
capitalising on the opportunities.
Catalysing a m Australian Insect Industry - An industry-led RD&E plan
012           013

              Methodology
              This project followed a highly consultative, collaborative,
              and industry-led approach to ensure that the report and
              recommendations are practical and valuable in helping
              achieve the goal of a $10 million per annum industry.

              30 interviews were conducted with Australian and international     This desktop research was used to support and augment
              insect farmers, researchers, consultants, industry body            consultations with industry stakeholders.
              representatives, experts from related, and other emerging
Methodology

              industries (see Table 1).In addition to interviews, a desktop      To refine and prioritise the RD&E opportunities identified
              review of literature and publicly available sources was also       during consultations and desktop research, an insect
              conducted, including: company websites; global insect              industry prioritisation survey was prepared and shared with
              research; industry organisations globally (e.g., Insect Protein    all Australian insect farmers and the IPAA board. 88% of the
              Association of Australia (IPAA), International Platform of         industry completed this survey, and subsequent consultations
              Insects for Food and Feed (IPIFF), North American Coalition for    with the IPAA took place to review the final recommendations.
              Insect Agriculture (NAICIA)); and related industry publications.

              Table 1:
              Summary of interviews conducted to date

              Interview Category                      Domestic        International         Total

              Insect Farmers
                                                                                                                      23              Domestic

              Insects as food                                 4                  1             5

              Insects as feed                                 8                  1             9

              Total Insect Farmers                           12                  2            14                        7         International

              Other stakeholders

              Industry body                                   2                  3             5

              Expert, consultant or researcher                2                  1             3

                                                                                                                    30
              Related and other industry experts              7                  1             8
                                                                                                                                          Total
              Total other stakeholders                       11                  5            16

              Grand Total                                    23                  7            30
Catalysing a m Australian Insect Industry - An industry-led RD&E plan
014                                                                                                                                     015

Australian Insect Farming
Industry Overview

                                                                                                                                              Industry Overview
The Australian insect industry is in its early stages of formation.   exclusively on insect farming or primarily on insect based
In 2017, the IPAA was formed to support its Australian farmer         product manufacturing. Of the insect farmers, 10 are producing
members and increase the profile of insect farming. The IPAA is       insects for animal feed (“insects as feed”) and 4 are producing
currently the only insect industry body in Australia.                 insects for human consumption (“insects as food”). One farmer
                                                                      is producing both insects for both food and feed. In addition
There are currently only 14 active Australian insect farming          to these producers, there are also 5 active insect product
businesses operating across Australia (see Figure 1). It is worth     manufacturers (food and feed).
noting, for the purposes of this report, that Australian insect
industry members have been defined as any business focused

                                                        Australian insect
                                                            industry

        Insects as feed                                  Insects as food                               Insect Product
          Producers                                        Producers                                   Manufacturers
Catalysing a m Australian Insect Industry - An industry-led RD&E plan
016                                                                                                                                                   017

                                                                                                                                                                                                                       Insect protein              Total insect
     In some cases, insects producers are also exploring the                         To quantify the addressable insects for feed market in Australia,     Sector                          Tonnes/annum 4              inclusion rate              tonnes                        Annual value
     production of insects for other applications, these include:                    it is helpful to look at the annual stockfeed use within the
                                                                                     applicable livestock sectors, as well as the inclusion rate for       Poultry                         2,942,415                   10% 6                       294,242                       $588,483,000
     •              utilising insect by-products to produce fertiliser;              insect protein (i.e., the percent of a ration that can be replaced
     •              farming insects for integrated pest management                   by insect protein). The inclusion rate for insects as feed is an      Layers                          793,336                     7.5% 7                      59,500                        $119,000,400
                    (IPM) in agriculture;                                            active area of research as there are several variables at play. For
     •              waste management; and                                            example insect species vary in protein content between 40-70%         Aquaculture                     136,500                     10% 8                       13,650                        $27,300,000
     •              for use in pharmaceutical products.                              and fat content between 10-40%. Similarly, the composition of
                                                                                     the ration, and the amount of insect protein required, changes        Pork                            1,406,675                   5% 9                        70,334                        $140,667,500
     No other markets or applications for insect products were                       depending on which commodity in the feed ration is being
     identified in the industry.                                                     replaced (e.g., soy vs. fishmeal). Based on 2015-16 stockfeed         Beef                            3,175,950                   Not known                   N/A                           N/A
                                                                                     numbers, the total addressable insects for feed market in
     While these other insect applications remain in early-stage                     Australia is approximately $875 million, excluding the pet food       Sheep                           173,554                     Not known                   N/A                           N/A
     exploratory and trial phases, insects farmed for food and feed                  and waste management segments (see Table 2). The exclusion
     appear to be the main focus for Australian insect farmers.                      of ruminants in this analysis is based on the current regulatory      Dairy                           3,111,008                   Not known                   N/A                           N/A
     Insects as feed producers are selling into the livestock feed and               status (see Tables 7 and 8).
     pet food markets. Livestock feed markets include aquaculture
     and poultry stockfeed, as well as pet food via direct-to-                                                                                             Total                                                                                                      $875,450,900
     consumer, pet store, and supermarket retail channels. Figure
     2, shows sizes of these downstream markets, in terms of gross
     value of production. It is worth noting that the food waste market,                                                                                   Table 2: Analysis of the total market for insects for feed market
     which is being targeted by at least one producer, is valued at
     $3.1B annually2.
                                                                                                                                                           Insects as food markets currently include direct-to-consumer          Insect farming technology and equipment
                                                                                                                                                           (e.g., online/e-commerce) and Fast Moving Consumer Goods
                   12                                                                                                                                      (FMCG) insect products. The latter are sold into retail and food      There is an emerging global supply chain for dedicated insect
                                                                                                                                                           service channels (e.g. restaurants).                                  farming technology and equipment manufacturers. A summary of
                                                                                                                                                                                                                                 commercially available insect farming technology and equipment,
                   10                                                                                                                                                                                                            identified from this project, is provided in Appendix 2. However,
                                                                                                                                                           Australian insect farming research                                    a large proportion of technology and equipment used for insect
                                                                                                                                                           projects and capabilities                                             farming in Australia is proprietary, due to the fact that commercially
                    8                                                                                                                                                                                                            available technology is either very expensive, or is difficult to
Market size ($B)

                                                                                                                                                           Given the early nature of the Australian insect industry,             implement, and adapt to Australian conditions. For example, there
                                                                                                                                                           research efforts to date have been minimal, and are                   are challenges with achieving labour savings and efficiencies
                    6                                                                                                                                      fragmented. However, there are some strong emerging                   with off-the-shelf buckets and nets developed for use in overseas
                                                                                                                                                           capabilities in this industry, drawing on Australia’s strong          countries where the cost of labour is less of a challenge.
                                                                                                                                                           research capabilities in livestock, and agriculture more broadly
                    4                                                                                                                                      (e.g., entomology, integrated pest management). A summary             Australian insect farming regulatory landscape
                                                                                                                                                           of Australian insect farming current research projects, and
                                                                                                                                                           existing industry research capabilities, identified from this         The following section provides an overview of the current
                   2                                                                                                                                       project, is provided in Appendix 1.                                   regulatory status of insect farming in Australia. Table 3, shows
                                                                                                                                                                                                                                 the status of regulation in the insects as food, feed and other
                                                                                                                                                                                                                                 insect markets. Overall the status of regulation in insects as
                   0
                                                                                                                                                                                                                                 food is clear for industry members to follow. The insect as
                                Pet food      Chicken           Eggs         Aquaculture     Pork           Beef          Lamb            Dairy
                                               meat                                                                                                                                                                              feed industry, however, is causing some confusion for industry
                                                                                                                                                                                                                                 members, due to some inconsistencies between states and
                                                                          Segment                                                                                                                                                across different feed markets. There is currently no regulation
                                                                                                                                                                                                                                 known to exist for any other market applications for insect
                                                                                                                                                                                                                                 products, however, these markets are still in early stages of
                                                                                                                                                                                                                                 exploratory research.
     Figure 2: Size of downstream markets for insects as feed3
Catalysing a m Australian Insect Industry - An industry-led RD&E plan
018

                                                                                                            Key

Figure 3:                                                                                                         Insects as food

Australian insects
                                                                                                                  Insects as feed
                                                                                                                  Other insect applications

industry value chain                                                                                              All insect farming

Australian insect farming businesses all        Wild insects live catch       Chitin
run their farms slightly differently to one     Insect type                   Oil
another, as there is no publicly known          Genetics                      Frass
method or blueprint for how to successfully
raise insects under Australian conditions.
Consequently, a number of farmers are
doing things differently at each step of                                         Insect
                                                     Insect
the supply chain. Figure 3 shows the key                                  3    by-product
                                                    Breeding
elements of the insect industry value chain                                    processing
for food, feed, and other market applications
as the industry currently stands.
                                                                               6

                1
                                            2                                                                 8

        Substance                    Pre-
                                                     Rearing                    Harvesting   7 Processing          Marketing
         Sourcing                 Processing

                                                                     4
                                                                                         5

      Pre-consumer food waste    Heat           Husbandry                     Freezing        Washing         Human consumption
      Post-consumer food waste   Ferment        Standard Operating            Drying          Blanching       Pet food
                                                Procedures
      Agricultural waste         Grinding                                     Grinding        Rendering       Livestock (poultry, aquaculture)
                                                Welfare
      Animal manure                                                           Other           Dehydrating     Fertilizer
                                                OH&S
      Livestock feeds/grains                                                                  Roasting        Compost
                                                                                              Microwaving     Waste management
                                                                                                              Pest management
                                                                                                              Pharmaceutical
020                                                                                                                                      021

Australian insect farming
regulatory landscape

It is worth noting that Animal Health Committee (AHC) has formed a Task Group, which includes representatives from the IPAA,             A summary of regulatory status for Australian farmed insects is provided in Table 4. The table highlights that while regulations on
Department of Agriculture, Animal Health Australia, and other industry representatives, to look at the biosecurity risks of insects as   importing and pest insect species are clear, guidance on good rearing practices for industry do not exist, and guidance on rendering
livestock feed to help address the lack of clarity with regulation. This Task Group submitted a white paper with recommendations for     insects is unclear from not being specific to insects, only animals more broadly.
the industry and are awaiting a response from the regulator.

                                                                                                                                         Table 4:
                                                                                                                                         Regulation for all farmed Australian insects10
The following key relates to Tables 3, 4, 5 and 6
                                                                                                                                                                 Name of Regulator(s)
                                                                                                                                         Industry Practice       or any relevant guidance           Description                                                    Status
Status                         Key
                                                                                                                                         Importing               The Australian Government          When importing insects for either human consumption
                               Regulatory clarity
                                                                                                                                                                 Department of Agriculture,         or animal feed, the insects must be dead and heat-
                                                                                                                                                                 Water and the Environment          treated with supporting documentation. Insect species
                               Some regulations exist, but they are either                                                                                                                          also must not be listed on the CITES list of endangered
                               not clear, inconsistent or incomplete                                                                                                                                species. DAWE may require additional information on an
                                                                                                                                                                                                    import declaration, together with an import permit. Each
                               Regulations do not exist                                                                                                                                             application is assessed on a case-by-case basis.

                                                                                                                                         Pest Species            Relevant state or territory        Certain insect species are declared as pests in various
                                                                                                                                                                 Primary Industries and             states across Australia. Insect farmers must therefore
                                                                                                                                                                 Biosecurity regulator.             obtain written approval, from their relevant authority, for
                                                                                                                                                                                                    each proposed live insect species farmed.
                                                                                                                                                                 Subject to regulations under
                                                                                                                                                                 the Biosecurity Act 2015.
Table 3:
Australian insect industry regulatory status                                                                                             Good Rearing            IPAA guidance                      The IPPAA provides general adequate rearing conditions
                                                                                                                                         Practices                                                  recommendations for producers to use as a starting
                                                                                                                                                                                                    point, however this is not regulated. Furthermore, the IPAA
Application of insects         Status
                                                                                                                                                                                                    recommends that producers record and retain insect feed
                                                                                                                                                                                                    substrate records.
Insects as food

                                                                                                                                         Rendering11             Australian Standard for            It is unclear how suitable the Australian Standard for
Insects as feed
                                                                                                                                                                 Hygienic Rendering of Animal       Hygienic Rendering is for insects. Not specific to insect
                                                                                                                                                                 Products - AS5008:2007             species, animals only.
Other insect applications
022                                                                                                                                            023

Insects as food                                                                                                                                Insects as feed

Table 5 provides a snapshot of the current regulatory status for insects as food in Australia. The table shows that guidelines on food         Current regulatory landscape: An overview summary of the current regulatory status for insects as feed is provided in Table 6. The
safety, food hygiene and country of origin labelling are clear for the industry to follow. The only key area where regulation is lacking for   table highlights that there is a large degree of confusion, or in one instance no guidance, on insects as feed farming. This includes a
insects as food is in the processing of the insects.                                                                                           lack of clarity in what substrates insects are able to be fed, which animals insects can be fed to, how to process insects as feed, and
                                                                                                                                               guidance on country of origin labelling for insects as feed products. A summary of current state and territory-level regulations is also
                                                                                                                                               provided in Table 7.

Table 5:
Insects as food regulation12
                                                                                                                                               Table 6:
                         Name of Regulator(s)
                                                                                                                                               Insects as feed regulation overview13
Industry Practice        or any relevant guidance             Description                                                      Status
                                                                                                                                                                     Name of Regulator(s)
Food Safety              The Food Standards Australia         Three insect species in Australia were assessed and                              Industry Practice     or any relevant guidance                    Description                                                   Status
                         & New Zealand (FSANZ)                categorised as ‘non-traditional’ and ‘not novel’ foods
                         Advisory Committee on Novel          in Australia and New Zealand. There were no safety                               Substrate (what       Relevant regulations relative to each       Guidance relative to what can be fed to insects in each
                         Foods (ACNF)                         concerns for human consumption for super mealworms,                              you can feed          state or territory 14                       state and territory can be determined, based on the
                                                              house crickets and mealworm beetles.                                             insects)                                                          relevant information for feeding livestock in each state.
                                                                                                                                                                                                                 National regulation is unclear as it varies by state. The
Food Hygiene             Standards 3.2.2 and 3.2.3 of         Any business processing food for human consumption                                                                                                 IPAA recommends that all insect for livestock feed
                         the Australia New Zealand            must comply with these standards on cleaning and                                                                                                   farmers consider both the waste management and
                         Food Standards Code (the             hygienic practices to prevent the spread of disease or                                                                                             handling regulations relative to their state or territory,
                         Code).                               cross-contamination.                                                                                                                               in addition to the relevant livestock feed regulations
                                                                                                                                                                                                                 relating to Restricted Animal Material (RAM) and other
Processing               IPAA guidance                        The IPAA provides general guidance for producers to                                                                                                labelling standards and regulations.
                                                              process their insects before sale for consumption, via
                                                              freezing, as part of the slaughter process, or application                       Livestock feed        All insects destined to commercial          All insects destined to commercial livestock feed or
                                                              of heat (e.g., blanching, roasting, microwaving or cooking)                                            livestock feed or pet food must meet        pet food must meet the regulation requirements for
                                                              to remove bacteria, viruses or fungi. However this is not                                              the regulation requirements for these       these products as outlined by feed regulation, labelling
                                                              regulated.                                                                                             products as outlined by feed regulation,    and processing laws outlined by each state. National
                                                                                                                                                                     labelling and processing laws outlined      regulation is unclear as it varies by state.
Country of Origin        Australian Consumer Law              All insect products sold in Australia must comply by                                                   by each state, as well as the Stock Feed
Labelling                Standard via The Australian          this code, and clearly label whether the food was grown,                                               Manufacturers Council of Australia
                         Competition and Consumer             produced, made in, or packaged in Australia.                                                           FeedSafe accredited manufacturers QA
                         Commission (ACCC) as of July                                                                                                                program.
                         2018. All warning statements         If a food is grown, produced, made or packed in Australia,
                         and declarations must be             it’s country of origin labelling must (unless stated                             Pet food15            Currently, the pet food industry in         PFIAA members are encouraged to take care when
                         made in accordance with              otherwise) disclose the proportion of Australian content in                                            Australia is self-regulated by the Pet      sourcing their raw materials to ensure they are fit for
                         Standard 1.2.3 of the Code.          the product. This requirement is optional for all other food.                                          Food Industry Association of Australia      purpose, safe and nutritious.
                                                                                                                                                                     (PFIAA)

                                                                                                                                               Feed Safety           Unclear                                     The IPAA provides some guidance for insects as food,
                                                                                                                                                                                                                 but it is unclear if guidance applies to insects for feed.

                                                                                                                                               Processing            Unclear                                     The IPAA also provides some guidance for insects as
                                                                                                                                                                                                                 food, but it is unclear if these apply to insects for feed.

                                                                                                                                               Country of Origin     None                                        None provided for insects as feed.
                                                                                                                                               Labelling
024                                                                                                                    025

                                                                                                                                                                            Recommended future insects as feed
Table 7:
                                                                                                                                                                            regulatory landscape17
National stockfeed regulation current stocktake by state16                                                               The following key relates to Tables 7 and 8.
                                                                                                                                                                            As mentioned above, the AHC formed a Task Group in 2017-18
National stockfeed regulation                                         Insects as Feed Current Regulation Status          Status            Key                              to look at the biosecurity risks of insects as livestock feed.
                Regulators                                                                                                                                                  This Task Group submitted a paper with recommendations for
                                                                      QLD   NSW   VIC   TAS   SA   WA    ACT      NT                       Clear that insects are allowed   the industry to AHC. Table 8, summarises the proposed feed
Name            and Programs     Description
                                                                                                                                           to be fed to                     recommendations.
Ruminants       Animal Health    Restricted Animal Material
                                                                                                                                           Unclear if insects are allowed   In summary, the Task Group recommended that commonly
(e.g. cattle,   Australia        (RAM) cannot be fed to ruminant
                                                                                                                                           to be fed to                     produced insects (i.e., BSF and mealworm) be approved for
sheep,          national         livestock species (e.g. cattle,
goats           definition and   sheep, goats or deer). RAM is                                                                                                              use as a feed for aquaculture, poultry, and pigs nationally,
                                                                                                                                           It is clear that insects are     provided that they meet swill feeding legislation and general
or deer)        relevant state   defined as any material taken
                                                                                                                                           not allowed to be fed to         stockfeed requirements (i.e., they don’t contain residues,
                authorities.     from a vertebrate animal
                                 other than tallow, gelatin, milk                                                                                                           heavy metals, etc.).
                                 products or oils.
                                                                                                                                                                            It is important to note that at the time of writing, the AHC
                                                                                                                                                                            have not yet come out with a policy in response to the
Pigs            Animal Health    Prohibited Pig Feed (PPF)                                                                                                                  recommendations made by the Task Group.
                Australia        or Swill means material of
                national         mammalian origin, or any                                                              Table 8:                                             Another recommendation made by the Task Group was
                definition and   substance that has come in                                                            Proposed national stockfeed                          to progress the draft Australian Feed Standard for Food
                relevant state   contact with this material unless                                                     regulation for insects                               Producing Animals, and potentially include insect protein in
                authorities.     otherwise specified.*                                                                                                                      this standard. This is currently underway, but it is unclear
                                                                                                                       Status              Key
                                                                                                                                                                            when it will be completed and how insects will be included
                                 In all states insect meal can                                                                                                              in it. AHC are considering this standard at present and are
                                                                                                                                           Aquaculture
                                 be fed to pigs, as long as it                                                                                                              looking to progress this once their concerns have been
                                 is not PPF. Insects fed plant                                                                                                              addressed. It is not currently known what these concerns
                                 material would not be swill                                                                               Poultry                          might be, nor if they are material or not. Once done to the
                                 even if raw. Insects fed anything                                                                                                          satisfaction of the AHC, this standard will progress to
                                 containing swill/meat need                                                                                                                 SAFEMEAT for review and consideration by its members. It is
                                                                                                                                           Pigs
                                 to be appropriately treated to                                                                                                             hoped that this process will conclude by the end of 2020.
                                 make it non-swill (e.g. meet the
                                 Rendering Standard), as a result                                                                          Ruminants
                                 there are restrictions if swill is
                                 fed to the insects.
                                                                                                                                                                                 Table 7 provides a snapshot of
Poultry         Relevant state   Insects as a feed source for                                                                                                                    the current national stockfeed
                authorities      poultry. QLD and SA have similar
                                 regulations in poultry as they do
                                                                                                                                                                                 regulation status across Australia.
                                 for pigs.                                                                                                                                       This table highlights the large
                                                                                                                                                                                 degree of variation across the
Aquatic and     Relevant state   Aquatic or animals other than
other           authorities      ruminants, pigs and poultry.
                                                                                                                                                                                 different states and territories, and
animals                                                                                                                                                                          the lack of clarity in what substrates
                                                                                                                                                                                 are able to be fed to insects, and
                                                                                                                                                                                 subsequently, what livestock insects
                                                                                                                                                                                 are able to be fed to.
026              027

                 Industry Opportunities
                 The Australian insect industry is well-placed to
                 capitalise on the following opportunities.

                 Australia is uniquely well-suited to                                    Industry convening to catalyse collaborations
                 insect farming
and Challenges
                                                                                         Given the early and fragmented nature of the industry, investing
                 Australia presents some unique opportunities for insect                 in industry convening events is an opportunity to increase
                 farming compared to overseas. For example, Australia has some           collaboration among producers, researchers, and other
Opportunities

                 unique strains of insects that potentially perform favourably           stakeholders (e.g., investors, regulators, downstream industries).
                 compared to strains available overseas. Furthermore, seasonal           Such events allow stakeholders to discuss common challenges
                 conditions enable Australian farmers to grow insects year               and shared interests, as well as collect information that can be
                 round, whereas European farmers, for example, cannot grow               provided as a unanimous “voice” from the industry to regulators
                 year round as it is too cold. Finally, Australia’s strict biosecurity   and other industries.
                 policies, including a strict import ban on live insects, and the
                 fact that Australia is free of diseases such as Mad Cow Disease,        Baseline guidelines to build confidence
                 create favourable conditions for local producers.                       and be proactive

                 Industry alignment and prioritisation                                   There is an opportunity to support the development of national
                 is key to achieve impact                                                guidelines for use by Australian insect farmers, and to guide
                                                                                         regulators and researchers. For example, national guidelines on
                 Insights from discussions with overseas insect industry bodies          biosecurity, welfare, environmental management, antimicrobial
                 and experts, including the IPIFF and the NACIA, highlighted a           management, food safety, and OH&S need to be developed.
                 strong requirement for the Australian insect industry to come           Learnings from other Australian livestock industries suggest that
                 together and set clear industry goals and priorities. Examples          supporting the development of such guidelines would provide a
                 could include industry alignment on what markets to target,             stepping stone for the industry to begin to collaborate and share
                 or identifying the research, regulations, and guidance required         foundational industry knowledge as well as proactively manage risk.
                 to enter specific markets. Clear goals and priorities will help
                 the industry achieve both quick wins, as well as work toward            High downstream demand from feed industries
                 strategic, longer-term initiatives.
                                                                                         Feedback from downstream feed industries (e.g., livestock;
                 For example, IPIFF started with a focus on gaining regulatory           feedstock; pet food) has been positive and enthusiastic
                 clarity in the EU for use of insect feed in the aquaculture             overall, with many companies actively monitoring the progress
                 industry. The IPIFF began by lobbying for policy and clarity            and status of insect based protein industries globally and in
                 around regulations, then worked with industry to develop best           Australia. This is largely due to the fact that these industries
                 practice guidelines for the industry to follow. By setting a clear      are looking for sustainable, protein-based feed sources that
                 priority and getting buy-in from the insect industry as a whole,        provide an alternative to traditional feedstocks. Drivers here
                 foundational industry knowledge was then able to be collated            include challenges relating to traditional feed sustainability
                 or generated from targeted research and directed towards                (e.g., fishmeal for aquaculture), and challenges with reliability of
                 achieving the industry’s common goal. There is a significant            supply (e.g., price volatility, droughts, fires, biosecurity).
                 opportunity to support similar initiatives for the Australian
                 insect industry, underpinned by clear priorities.                       Though this interest presents a significant opportunity for the
                                                                                         Australian insect industry, the lack of scale in the insect industry,
                                                                                         and the lack of clarity around insect feed regulations and
                                                                                         nutritional value, represents a key barrier for insects to scale into
                                                                                         these industries. There is an opportunity for the insects industry
                                                                                         to therefore partner with these downstream stakeholders, for
                                                                                         example on feed trials or other initiatives, to provide clarity and
                                                                                         confidence for these companies.
028                                                                                                                                         029

Industry challenges

                                                                                                                                            challenging for the industry to meet consumer demands for              Queensland Alliance for Agriculture and Food Innovation (QAAFI)
Despite the significant opportunities, the insect industry                                                                                  insect products. Barriers to scale for producers include:              is an example.

faces a number of challenges.                                                                                                               •    Access to capital;                                                Lack of consumer acceptance and
                                                                                                                                            •    Access to (and in some cases, existence of) technology            social license risks
                                                                                                                                                 and equipment and the knowledge of how to implement
These challenges are common for emerging agricultural                Lack of regulatory clarity and consistency                                                                                                    Consumer perceptions, specifically around acceptance of
                                                                                                                                                 in a commercially viable way (e.g., on-farm automation to
industries globally, and are partly due to the unique                for insects as feed                                                                                                                           insects as food, is a major challenge that the industry must
challenges related to insect farming having the potential to                                                                                     reduce labour costs, cost-effective and environmentally
                                                                                                                                                 sustainable sources of energy, and suitable packaging and         overcome if it is to grow. Western diets are not accustomed to
attract investment from new sources (e.g., venture capital).         There is currently a lack of regulatory clarity, as well as lack of
                                                                                                                                                 distribution processes);                                          insects, and there is a concern about the size of the domestic
                                                                     consistency between states, in the Australian insect industry.                                                                                market for insect-based food products.
Concerns around IP prevent foundational                              This is especially true with respect to insects as livestock           •    Lack of knowledge of how to successfully breed and rear
industry knowledge sharing                                           feed. Currently, regulations often vary between states and for              insect colonies; and                                              In addition, the insect industry is yet to test and validate its
                                                                     different livestock sectors (see Table 7). In addition, there is                                                                              social licence to operate. Though claims have been made about
                                                                                                                                            •    Lack of paying customers for sub-scale quantities of
The nascent nature of the industry, and the fact that the            ambiguity around the interpretation of specific wording in the                                                                                the environmental impact and sustainability of insect farming
                                                                                                                                                 product.
industry is an attractive venture capital investment option,         regulations between states, as there is currently no national                                                                                 versus traditional proteins, many of these claims have not been
has meant that it is experiencing challenges with respect to         standard for industry to follow.                                                                                                              validated for Australian insect production at scale. Further,
collaboration and foundational industry knowledge sharing                                                                                   A number of off-the-shelf insect industry technology and               concerns have been raised around the ethics of insect products,
between its members. Farmers are often reluctant to share            As stated above, it is important to note that AHC formed a Task        equipment providers were identified from this project (refer to        and whether communities and/or individuals will express
foundational industry knowledge to help inform regulations           Group to look at the biosecurity risks of insects as livestock         Appendix 2). These have the potential to assist insect farmers         resistance to the production of insects at scale (e.g., locations of
(e.g., the techniques and equipment used to rear and process         feed. This Task Group has submitted its recommendations,               in getting to a commercial scale. However there is a perception        insect farms, ethics of certain processing methods, etc.).
insects), as this is their own intellectual property that has been   as outlined above, to AHC in relation to these issues. At the          in the industry that these solutions are often very expensive,
developed over many years from their own research and trial          time of writing, the Task Group is still awaiting a response           therefore are difficult to justify investment in, given a large
                                                                                                                                                                                                                   Justifying research
and error. As a result, the industry has struggled to determine      from the regulator. Based on the current regulations, it is            proportion of Australian producers are startups with limited
and communicate foundational industry best practices and             likely that aquaculture and poultry will be the easiest markets        access to capital. Therefore, a large proportion of technology
                                                                                                                                                                                                                   The exact size and turnover of the industry is unknown,
standards to inform policymakers and help new entrants get           for the industry to enter without additional research, while           and equipment used in the industry is proprietary, from
                                                                                                                                                                                                                   therefore it is difficult to quantify the potential impact from
started in the industry. Further, the companies in the industry      policymakers are likely to require additional evidence to              producers either developing their own, or modifying technology
                                                                                                                                                                                                                   funding various research or project initiatives for the industry.
today are often too small to fund their own RD&E, and given          finalise regulations for pigs, ruminants, and use of effluent          and equipment adopted from other industries.
                                                                                                                                                                                                                   Furthermore, there are no industry benchmarks for the industry
concerns around IP and a competitive funding environment,            as a substrate. On the other hand, insects as food are not
                                                                                                                                                                                                                   to monitor its progress against. As a result, justifying research
lack incentives to fund collaborative RD&E for industry-wide         experiencing any significant challenges in relation to food safety,    Production at scale                                                    funds can be a challenge. The foundational industry IP concerns
benefit. The implications of this lack of sharing of foundational    food hygiene, and product labelling.
                                                                                                                                                                                                                   outlined above contribute to this challenge, as producers
industry knowledge, as opposed to commercial company IP, are                                                                                In addition to the above challenge of getting to scale, there is
                                                                                                                                                                                                                   may not be willing to share this data, even if requested and
as follows:                                                          Finally, the pet food industry is currently self-regulated.            lack of foundational research for how insect farming can best be
                                                                                                                                                                                                                   maintained anonymously.
                                                                     Therefore, at present, Australian insect farmers selling into          done at scale. For example, research has not been done on how
                                                                     the pet food market are proceeding with a focus on openness            to raise Australian insect strains at scale. This includes insect
•    there is often no evidence base nor industry consensus
                                                                     and transparency about the quality and safety of their pet food        breeding, husbandry, pest and disease management, suitable
     to inform industry best practices, and guidelines for
                                                                     products (e.g., positioning insect based pet food as a premium         substrates, and welfare. Additionally, there is a lack of guidelines
     regulators;
                                                                     product). There is currently no material concerns in relation to       to inform insect farmers about issues such as quality control,
•    there are concerns that industry level collaboration            insect pet food regulation, however, improved clarity around           biosecurity, OHS, and other on-farm processes.
                                                                                                                                                                                                                         Acceptance of insects as food,
     on research will lead to unfavourable outcomes (e.g.,           regulation will help the industry continue to grow.                                                                                                 is a major challenge that the
     cause competitive advantages for some, for example if                                                                                  Access to colonies for research                                              industry must overcome if it is
     the IP generated from a project is limited to the private       Getting to scale                                                                                                                                    to grow. Western diets are not
     companies involved with the research); and                                                                                             Researchers in Australia currently do not have access to insect
                                                                     Currently there very few commercial scale insect farms in              colonies on which to conduct research. This is because insect                accustomed to insects, and
•    there is no clear foundational industry research agenda for
     the industry to follow to help it grow.
                                                                     Australia. Results from the insect industry prioritisation survey,     farmers either do not have the scale to supply researchers with              there is a concern about the
                                                                     showed that only 35% of the industry has between 3 and 15              insects without incurring commercial consequences, or are
                                                                     employees, with the remainder of the industry having just 1 to 3
                                                                                                                                                                                                                         size of the domestic market for
                                                                                                                                            not incentivised to do so (i.e., no funding available, or perceived
                                                                     employees (e.g., they are either startups or still in the process of   lack of benefit). Consequently, there is a shortage of published             insect-based food products.
                                                                     scaling up). Just the 1 farmer has between 8 and 15 employees.         research on breeding and raising Australian insect strains.
                                                                     This high proportion of insect farmers who are startups is a           Researchers often rely on their own research colonies, which
                                                                     unique challenge faced by the insect industry. As a result, it is      often are not the strains used commercially. The University of
030                                                                                                                                     031

Industry Roadmap
To catalyse growth of the Australian insect industry

                                                                                                                                              Industry Roadmap
toward the $10 million target, an industry roadmap has
been developed with three key recommendations.

The first two recommendations, investment in Industry               IPAA. Refer to Appendix 3 for a summary of the insect industry
Convening Initiatives and the development of Industry               prioritisation survey results.
Guidelines, can be completed in parallel. Together, they will lay
the foundations for a strong Australian insect industry upon        The purpose of this roadmap is to provide the Australian insect
which collaboration can happen and confidence can be built          industry with a strong footing to grow and compete domestically
with key stakeholders, including regulators and downstream          with other alternative proteins and animal feed sources, and
industries. Following that, the third recommendation is to make     be taken seriously as an industry by downstream industries
investments into prioritised Foundational Research initiatives.     and markets. Furthermore, it will fast-track the Australian
                                                                    industry towards being recognised as a global leader in insect
This roadmap has been informed by consultations with domestic       farming and enable producers to capitalise on Australia’s unique
and international stakeholders, results from the insect industry    opportunities and competitive advantages.
prioritisation survey, and numerous discussions with the

                                                          Industry
                                                          Roadmap

      Recommendation 1                             Recommendation 2                             Recommendation 3
     Industry Convening                           Industry Guidelines:                        Foundational Research:
          Initiatives:
                                                National Industry Guidelines on            Research trials into alternative uses for
   Foundational projects to                     how to:                                    insects in other market applications (e.g.
   catalyse industry collaboration              • Process                                  pharmaceuticals, nutrition, packaging,
   and knowledge sharing:                       • Slaughter                                fertiliser, waste management and
   • Industry Resourcing Support                • Render                                   integrated pest management). Efficacy
   • Industry Event Support                     • Biosecurity                              and Downstream Market Confidence:
                                                • OH&S                                     • Pet and livestock feed trials to
                                                • Food Safety                                 assess performance, health and
                                                • Insect welfare                              nutrition livestock initial focus of
                                                • Substrates                                  poultry and aquaculture
                                                                                           • Research trials into nutritional and
                                                                                              health benefits of insects for humans
                                                                                           • Insects as food substrate trails
                                                                                           Marketing & Social Licence:
                                                                                           • Insects as food consumers
                                                                                              acceptance research
                                                                                           Regulatory:
                                                                                           • Substrate trials to inform regulatory
                                                                                              decisions
Figure 4: Australian insect industry roadmap to success
032                                                                                                                                     033

Recommendation 1: Implement industry                                     that the following cornerstone projects be conducted first,         brand reputation of the Australian industry. Such events        some quick runs on the board for the Australian insect industry
convening initiatives                                                    as part of this initiative:                                         would help the industry keep informed and up-to-date, as        to catalyse it’s growth; further, and most importantly, it will
                                                                                                                                             well as generate domestic and international collaboration,      stimulate increased industry collaboration and knowledge
To catalyse industry collaboration and foundational industry              •    Support the development of national industry
                                                                                                                                             education, and research project opportunities.                  sharing on future foundational research projects. Finally,
knowledge sharing, it is recommended that support be                           guidelines (see Table 10); and
                                                                                                                                             Supporting the projects and initiatives described above         guidelines will also build confidence for industry, regulators and
provided for projects, convening events, and initiatives that             1.   Engage with producers and key industry stakeholders           will be a key enabler for future growth and prosperity of the   downstream industries (e.g., potential customers), attract more
help Australian insect producers to develop a unanimous                        to prioritise the Foundational Research projects and          Australian insect industry.                                     new entrants to the industry, and ensure that industry risk is
“voice” for the industry to potential customers, regulators, and               initiatives (see Table 11).                                                                                                   proactively managed.
other related industries. This support will encourage industry
                                                                                                                                             Key measures of success for this recommendation are
members, and other stakeholders in the value chain, to discuss                 Several other potential industry-led projects and             provided in Table 9.                                            Key measures of success for this recommendation are provided
common challenges and shared interests, as well as develop                     initiatives identified through consultations have been                                                                        in Table 10.
clear foundational research priorities. Specific industry                      provided in Appendix 4. It is recommended that these
convening initiatives and projects recommended include:
                                                                                                                                        Recommendation 2: Develop and implement
                                                                               be prioritised by industry once the above projects and   industry guidelines                                                  Recommendation 3: Conduct prioritised
1.   Support a dedicated industry resource:                                    initiatives have been successfully implemented.
                                                                                                                                        Support the development of national industry guidelines on:          foundational industry research
     Provide support for a dedicated industry resource to           2.   Support industry events:
     develop a prioritised research agenda and deliver industry-                                                                        1.   How to farm insects, including guidelines on biosecurity,       Once recommendations one and two have successfully been
                                                                         It is recommended that support be provided for industry
     led projects and initiatives. This could be done either                                                                                 OH&S, food safety, and insect welfare;                          implemented, as described, investment into foundational
                                                                         events to be run in Australia (e.g., an Australian insect
     directly through the IPAA, or through a 3rd-party contractor                                                                                                                                            industry research projects and initiatives can commence.
                                                                         conference) to attract overseas experts to Australia.          2.   What substrates can be fed safely to insects and for what
     or consultant. If a 3rd-party is hired to conduct the work,         Further, support for industry members to attend global                                                                              It is important to note that the final order of priority for
                                                                                                                                             markets; and
     it is recommended that the IPAA be closely consulted and            insect conferences (e.g., Insects to Feed the World 2020                                                                            these foundational industry research projects and initiatives
     involved with the work throughout, such that the industry           Conference) or other relevant international events on insect   3.   How to process, slaughter, and render insects to                will be determined by the industry as described above in
     body builds capability for the future. It is recommended            farming is recommended to build capacity and increase the           optimise the quality, safety and consistency of various         recommendation one. A preliminary roadmap for the order of
                                                                                                                                             insect products produced, while maximising the                  priority of projects and initiatives is based on IPAA and industry
                                                                                                                                             welfare of the insects.                                         feedback; however, the order of priority is likely to change
                                                                                                                                        It is recommended that this project be conducted by a 3rd-party      pending the outcomes of recommendations one and two.
Table 9:
Industry convening initiatives measures of success                                                                                      contractor, with the support of the IPAA, leveraging frameworks      The foundational research projects have been divided into
                                                                                                                                        and best practices from other industries where possible (e.g.,       3 streams of research: 1) research to demonstrate efficacy
Recommendation                                  Measures of Success                                                                     poultry, livestock, mushrooms). Industry guidelines will provide     and build downstream market confidence; 2) marketing and
                                                                                                                                                                                                             social licence research; and 3) research to inform regulatory
1. Industry Convening Initiatives                                                                                                                                                                            decision making.
                                                                                                                                        Table 10:
Industry                                        •    Dedicated industry resourcing to drive research agendas and industry
                                                                                                                                        Industry guidelines measures of success
Resourcing                                           initiatives
Support
                                                •    Increased industry foundational knowledge sharing                                  Recommendation                                   Measures of Success

                                                •    The successful execution of the Industry Guidelines project, and
                                                                                                                                        2. Industry Guidelines
                                                     prioritisation of the Foundational Research projects

                                                •    Reduced new business failure and dropout rates, in addition to attracting          National industry guidelines on how to           •    Development of industry guidelines to inform industry and regulators
                                                     an increasing number of new industry entrants                                      farm, process, slaughter and render insects           on how to farm, process, slaughter, and render insects, leveraging
                                                                                                                                                                                              frameworks and best practices from other industries where possible
                                                •    Development of a unanimous industry strategy
                                                                                                                                                                                              (e.g., poultry, livestock, mushrooms)

Industry Event Support                          •    Increased industry collaboration and foundational knowledge sharing                                                                 •    Growth in insect farming production and demand for insect products
                                                                                                                                                                                              from increased clarity on safe insect substrates
                                                •    Reduced new business failure and dropout rates, in addition to attracting
                                                     an increasing number of new industry entrants                                                                                       •    Industry and regulator acceptance of guidelines

                                                •    Improved global and domestic industry recognition                                                                                   •    Increased number of insect farmers producing commercially viable
                                                                                                                                                                                              volumes of insects
                                                •    Increased interest from potential investors, and consequently investment
                                                     into the industry                                                                                                                   •    Increased number of new entrants into the industry
034                                                                                                                                     035

Efficacy and downstream market confidence                                 demand for insects as food products. This would involve       Table 11:
                                                                          consumer perception research, marketability, and sensory      Foundational research measures of success
The aim of the following research priorities is to demonstrate
                                                                          (e.g. blind tasting) research to determine the key drivers
the efficacy of insect products, and build confidence in
                                                                          behind consumer decision making (e.g. taste, palatability,    Recommendation                                   Measures of Success
downstream markets. Specific proposed projects include:
                                                                          price, sustainability), along with a consumer demographic
1.   Pet and livestock feed trials to assess performance,                 analysis, from which the insect industry can develop a        3. Foundational Research
     health, and nutrition: Research trials to assess                     strategy to target, and overcome consumer perception
     nutritional, health, and performance benefits across                 challenges accordingly.                                                              Pet and livestock         Increased demand for insect products due to their health and nutritional benefits for
                                                                                                                                        Efficacy and
     different Australian strains of insects farmed for feed,                                                                                                  feed trials to assess     pets, and livestock. Increased consistency in the quality of insect for feed products
                                                                     2.   Marketing and social licence research trials into other       Downstream
     and substrates (e.g., pre-consumer, post-consumer,                                                                                                        performance, health,      produced by industry. Validate and illustrate that insect feed products can be fed
                                                                          markets for insects:                                          Market Confidence
     agriculture waste, and effluents).                                                                                                                        and nutrition             safely to livestock and pets, while optimising their performance (e.g. average daily
                                                                          Research trials to determine what are the consumer
                                                                          acceptance and social licence barriers for the insect                                                          gain and feed conversion efficiency), health, and well-being across seasons
     The initial target markets from this research are pet food,
                                                                          industry to overcome to enter into other markets. These
     poultry, and aquaculture, given these are the industries                                                                                                  Research trials           Increased demand and sales growth of insect products into other markets,
                                                                          other markets could include, but are not limited to,
     that insects as feed are most likely to enter first, together                                                                                             into the efficacy         and applications, including, but not limited to, use in pharmaceuticals,
                                                                          pharmaceuticals, nutrition supplements (e.g., aged care,
     with the fact that they have the highest level of industry                                                                                                of alternative uses       nutrition, packaging, fertiliser, waste management, and integrated pest
                                                                          and sports nutrition), packaging applications, fertiliser,
     and downstream market acceptance. Following the                                                                                                           for insects in other      management in agriculture
                                                                          compost, waste management, and integrated pest
     successful execution of this research, similar research                                                                                                   market applications
                                                                          management in agriculture.
     can begin for pigs, and ultimately, ruminants.

2.   Research trials into the efficacy of alternative uses for                                                                                                 Research trials into      The goal of this project will be increased demand for insects as food products from
                                                                     Regulatory                                                                                the nutritional and       demonstrating health, and nutritional benefits
     insects in other market applications: Research trials
     to assess the nutritional, health, and performance              The aim of the proposed research is to inform regulatory                                  health benefits of
     benefits of various insect products, (e.g., protein, chitin,    decision making. Specific proposed projects include:                                      insects for humans
     and oil) for use in other markets such as, but not limited      1.   Substrate trials to inform regulatory decisions:
     to, pharmaceuticals, nutrition (e.g., aged care, and                                                                                                      Insects as food           Increased consistency in the quality and nutritional composition of insects for food
                                                                          Research trials to inform regulators about the safety of
     sports nutrition), packaging, fertiliser, compost, waste                                                                                                  substrate trials          products produced by industry.
                                                                          different substrates (e.g., pre and post consumer, farm
     management, and integrated pest management in                        waste and effluents) for various livestock and pet food                                                        Optimise edible insect performance (e.g., maximise growth, and minimise mortality
     agriculture.                                                         markets.                                                                                                       rates), health, and wellbeing across seasons

3.   Research trials into the nutritional and health benefits             The focus of this research will be on approving:              Marketing and          Insects as                Increased demand for insects as food products due to improved consumer
     of insects for humans: Research trials into the nutritional
                                                                          •   New insect substrates (e.g., different types of food      Social Licence         food consumer             acceptance of insects
     and health benefits of various insect food products (e.g.,
                                                                              waste, farm waste and effluents) for use in already                              acceptance research
     protein, chitin, and oil) for human consumption. Factors
     to consider in such research include insect: antibacterial               approved insects as feed markets (e.g., pets,
                                                                              aquaculture, and poultry);                                                       Marketing and social      Increased demand and sales growth of insect products into other markets,
     benefits; vitamin and mineral profiles; and long term
                                                                                                                                                               licence research          and applications
     toxicological impact studies from consumption.                       •   Use of already approved substrates (e.g., those already                          trials into other
4.   Insects as food substrate trials: Substrate trials with                  permitted to be used in aquaculture and poultry) in                              markets for insects
     different human-grade pre-consumer waste and other feed                  new markets (e.g., pigs, and ruminants); and
     sources (e.g., agriculture feed, and grain) across different         •   New insect substrates (e.g., different types of food      Regulatory             Substrate trials to       An increased number of substrates approved for use by insects as feed producers,
     Australian strains of insects used for human consumption.                waste, farm waste, and effluents) for use in new                                 inform regulatory         An increased number of markets insects as feed producers are allowed to sell to
                                                                              markets (e.g., pigs, and ruminants).                                             decisions
Marketing and social licence
                                                                     2.   Research trials into alternative uses for insects in                                 Research trials into      Approval for insect products to be used in other markets, and applications
The aim of the proposed research is to improve the foundational           other market applications to inform regulators:                                      alternative uses
industry knowledge base to inform marketing and social licence            Research trials to inform regulators about the safety                                for insects in other
industry initiatives. Specific projects include:                          of various insect products (e.g., protein, chitin and oil)                           market applications
                                                                          for use in other markets, including but not limited to,                              to inform regulators
1.   Insects as food consumer acceptance research:
                                                                          pharmaceutical products, nutritional supplements
     Market and social licence research aimed at helping the
                                                                          (e.g., aged care, and sports nutrition), packaging
     insects as food industry to overcome consumer acceptance                                                                           A number of other potential research projects and initiatives were also identified as part of this project. Details of these are provided
                                                                          applications, fertiliser, compost, waste management,
     challenges with their products, and therefore increase                                                                             in Appendix 3. Key measures of success for this recommendation are provided in Table 11.
                                                                          and IPM in agriculture.
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