Singapore-based animal feed maker Entobel, a global leader in the production of functional insect protein for animal and plant nutrition, opened its new black soldier fly (BSF) production plant in Vietnam on Thursday.
The factory, located in the southern province of Ba Ria-Vung Tau, also the largest of its kind in Asia, was constructed in 12 months. It features 50 levels of vertical rearing, incorporating automation via robotics, cutting-edge sensors and data analytics that enhance productivity.
The facility marks Entobel’s second industrial-scale production unit in Vietnam and has an annual production capacity of 10,000 tons of insect protein. It was leveraged by a $33 million Series B funding round raised in 2022 and backed by Mekong Capital, Dragon Capital, and the International Finance Corporation (IFC).
“Successful commissioning of the Vung Tau plant, one of the largest globally as measured by insect protein production capacity, has de-risked the operational and technological aspects of the business model, enabling the plant to serve as a blueprint for Entobel’s rapid regional expansion,” said Sandy Singh Sandhu, CFO of Entobel.
Entobel strategically selected Vietnam as its initial scale-up market given the country’s tropical climate, which is the ideal environment for BSF to reduce capital and operational expenditures; the country’s position as one of the largest aquaculture hubs globally; and easy access to a stable supply of high-quality feedstock.
In Vietnam, Entobel also established a strategic collaboration with brewer Heineken, a key feedstock supplier. The cooperation aims to create a circular ecosystem by upcycling by-products of Heineken Vietnam’s production process into high-quality proteins, oils and organic fertilizer, while simultaneously forging a stable supply of high-quality and traceable feedstock for Entobel.
Aquaculture is the fatest-growing animal protein sector in the world and the most promising solution to the sector’s over-reliance on fish meal is functional insect-based ingredients, Entobel said.
Vietnam spent $4.27 billion on importing animal feeds and materials in the first 10 months of this year, down 5.17% year-on-year, according to customs data. Argentina was the biggest supplier with $1.21 billion, down 10.07%; followed by Brazil with $816.2 million, down 11.72%; the U.S. with $603.7 million, up 3.93%; and India with $461.1 million, up 89.43%.