Source: BETA HATCH INC. submitted to
RURAL MICROFARMING: MOBILE ON-FARM PRODUCTION OF INSECTS AS ANIMAL FEED FROM AGRICULTURAL WASTE
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
1026103
Grant No.
2021-33530-35354
Cumulative Award Amt.
$106,470.00
Proposal No.
2021-00666
Multistate No.
(N/A)
Project Start Date
Aug 15, 2021
Project End Date
Apr 14, 2023
Grant Year
2021
Program Code
[8.12]- Small and Mid-Size Farms
Project Director
Emery, V.
Recipient Organization
BETA HATCH INC.
12611 PROWELL ST
LEAVENWORTH,WA 988269015
Performing Department
(N/A)
Non Technical Summary
By 2050, our human population will reach 9 billion people, presenting new challenges for food production and straining the planet's limited resources. Current yield trends will not be able to keep up with our global food needs. Demand for animal protein is poised to increase by 70% to 80%. This places enormous pressure on the global food system to develop alternative, sustainable sources of food for both animals and humans. As nature's most efficient, diverse, and prolific bioreactors, insects will be a critical part of future food security. Most animals can select their diets based on nutritional needs to optimize nutrient intake balance. Insects are readily eaten by wild swine, poultry, and fish, suggesting that insects provide desirable nutrients. The insect feed market is emerging, but poised for incredible growth, valued at $268M in 2018 and forecasted to reach $2.4B by the end of 2029, a CAGR of 22%. Insects pose unique advantages when compared to the traditional sources of animal feed, including sustainability, year-round supply and pricing stability.As this emerging industry develops, we anticipate insect farms around the country will provide jobs where they are most needed. Due to the seasonal nature of agriculture and increasing automation, most rural areas face serious labor challenges. The insect industry has a potential to stimulate job creation in rural areas. Insect production happens continuously and year-round, which can help buffer farmers against seasonal labor limitations of other crops.Beta Hatch grows insects for animal feed at industrial scale - we are among the top 10 global producers and are currently the 2nd largest producer of insects as commercial animal feed in the United States. We innovate on biological and engineering principles that allow us to produce insects at commercial tonnage and low cost to meet agricultural prices for animal feed. Our insects are a nutritious protein and lipid rich feed ingredient for poultry, swine, and fish.In this Phase 1 SBIR, we are proposing to develop a mobile insect processing unit that can be easily deployed in a barn, poultry house or warehouse. This would enable additional revenue for farmers who already own this infrastructure and, paired with our existing mobile growing unit, create economic opportunity at considerably larger margins to what they would receive for a poultry or swine contract. Beta Hatch systems can be adapted to a wide range of facilities including old warehouses and barns, revitalizing old infrastructure. Insect farming generally has a direct need to be located close to agricultural production or food processing, as a source of inputs. This project will develop mobile and modular insect processing units, supporting not only the development of a nascent edible insect industry; as mass insect rearing improves, other markets such as production of biocontrol agents will be markedly improved and expanded. The work proposed here will develop technologies to address the development of a modular insect processing system synchronized with our existing modular rearing unit that can be used on small- and mid-size farms, particularly those already outfitted for poultry production.This licensable technology is one option to efficiently scale mealworm production. The proposed work will develop a rapidly deployable mobile unit that enables rural and urban insect farmers to profitably establish operations and diversify on-farm revenue. With a low capital entry point, and high potential return on investment, the mobile insect farming systems developed in this project will enable ranchers around the country to supplement their on-farm income or establish a new farming business producing insects. These mobile systems are also affordably sized for on campus use as instructional units, for laboratory or experimental use in developing new rearing systems or feed formulations, and could inform the design of units for rapid pest management response, among other functions.
Animal Health Component
20%
Research Effort Categories
Basic
0%
Applied
20%
Developmental
80%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
30731101060100%
Knowledge Area
307 - Animal Management Systems;

Subject Of Investigation
3110 - Insects;

Field Of Science
1060 - Biology (whole systems);
Goals / Objectives
The overall major goal of the project is to establish a portable, modular processing suite for insect ranchers, and a program to evaluate operating costs. If successful, the proposed work has the potential to:(a) provide new opportunities for small- and mid-sized farms to diversify their revenue and recapture nutrients for agricultural coproducts or byproducts,(b) improve food security in the livestock and feed sectors by supplying a year-round nutritious feed ingredient that can be produced locally,(c) improve the carbon footprint of animal feed by developing a sustainable alternative feed ingredient, powered by renewable energy, and(d) enhance insect production generally, such as the production of biocontrol species which would target local pests.The main objectives of this project are:1) to develop a modular unit for mealworm processing (the mobile processing unit or MPU)Questions: What is the best layout, throughput, and equipment specifications for the MPU? How can the needed functions best be integrated into one mobile unit?2) to test the performance of the modular processing unitQuestions: What is the throughput, energy requirement and operating limitations of an MPU?3) to model operating costs of the MPU in geographies with different inputs, labor and climateQuestions: What are region specific-costs for the micro-ranches?
Project Methods
Methods for objective 1)The benchmark for the success will be to create a processing unit that can operate with the use of equipment that allows for the most critical process to be mechanized. Each layout will be staged and mock operated by a worker. Estimated throughput of each process will be calculated based on known or tested speeds. Energy requirement and heat production will be calculated based on needs. The ergonomics of running the MPU and access to cleaning will be assessed. All these considerations will then be put to the test and measured in the constructed MPU.Methods for:Objective 2a) A pallet worth of production trays of 4-week old larvae will be split into two: 27 trays will pass through the normal processing line and the other 27 will pass through the MPU. These 27 trays, when redistributed to lower densities, should expand close to 250 trays per treatment, or about 4.5 pallets. The first test, then, is to determine how many trays are actually produced to assess how accurate the MPU redistributes the mealworms compared to the proven processing line. These pallets will then be kept in the same grow room and treated the same for the next 6 weeks. The pallets from the treatments will be run individually on the main processingline for metrics, and the total biomass and number of mealworms per tray will be calculated. Weexpect no more than 5% reduction in survival and biomass.Objective 2b) A pallet worth of production trays of 10-week old larvae will be split into two: 27 trays will pass through the normal processing line and the other 27 will pass through the MPU. Assessment of product quality at harvest will be assessed in two ways: measuring the actual weight of debris in the isolated mealworms, and the quality of the mealworms after being dried in the microwave. Mealworms that are not free of debris tend to clump when dried, an undesirable feature for our customers. To quantify this, subsamples of dried mealworm will be run through large sieves which will catch clumped mealworms but allow single mealworms to fall through. We expect the MPU to produce the same quality product as the main processing line, albeit as a slower speed. That said, the needs of the rancher will also be considered: if mealworms are to be further processed by grinding or pressed into a meal, or if the whole dried mealworms are destined to be fed to livestock onsite, such superficial qualities of the product may not be important.Objective 2c) For two consecutive weeks, a pallet of newly seeded larvae (week 0) willbe removed from production and placed in the modular rearing unit. At 4 and 10 weeks, they willbe processed as described above, and compared to their counterparts processed on the main line and kept in the main grow room.Metrics to be tracked: growth rate (biomass accumulated over time), feeding efficiency (amount of feed required per unit biomass gained); manure production rate (frass produced per unit biomass gained); and survival (mortality of larvae as measured by the difference between seeded and harvested mealworms).Methods for:Objective 3a)We will identify a rancher with low-value by-products or wastes not previously tested as a diet ingredient for mealworms. Examples may include hemp meal, pomegranate pomace or other leftover materials of niche products. Viable ingredients for mealworms diets will be subjected to the following tests: 1) Proximate analyses of main ingredients will be conducted by an external lab (e.g., Midwest Laboratories) to assess for content of crude protein, fiber, starch, total carbohydrates, fat, and vitamins; 2) A nutrition-based calculator, developed in collaboration between the USDA and Beta Hatch, will be used to predict the optimal percentage of a given feedstock ingredient into the diet (in combination with other available ingredients). Several diets will be formulated, and their costs (for the rancher) will be calculated; 3) Formulated diets will be made into pellets, and if cost-effective, other forms. Control (standard) and experimental diets will be given to 4-week-old mealworms, and they will be assessed 5 weeks later or until the first pupae emerged, whichever occurs first. These experiments will be set-up both with and without a weekly provision of wet feed available year-round to the rancher. Each treatment will consist of 10 replicates of 300 mealworms. Assessments include growth rate, feeding efficiency; manure production rate; and survival. The step-by-step approach to maximizing the use of by-products as ingredients for mealworms will be documented in detail and translated into a user-friendly e-manual and print manual that can be understood by a lay farmer. The quality and usefulness of the manual will then be tested through simulations with independent prospective ranchers who will perform the work off-site, using Beta Hatch mealworms. Beta Hatch also reserves the right to maintain such a protocol as a paid for service in establishing our rancher network.Objective 3b)We will identify the ideal locations for microranch deployment by calculating BTU load and associated electrical costs. We have calculated previously the metabolic heat produced by mealworm biomass at various stages, and we will use the existing model and formulas to calculate the costs of maintaining required environmental conditions for mealworm rearing.Objective 3c)We will use the local environmental data and economic conditions todevelop a map of potential sites. We will use publicly available data for current labor and energy costs, local taxes, and fees for shipping and handling of products. Along with the estimates for developing feedstocks from the local sources and requirements for mealworm rearing, we will have a model that allows us to estimate the costs of total micro-ranch operations at the exemplary locations, and which can be easily applied to emerging locations.

Progress 08/15/21 to 04/14/23

Outputs
Target Audience:Beta Hatch is an insect farming company based in Washignton State. We have been collaborating with food system stakeholders throughout our project, and work with a fruit processing company called CrunchPak as one of our main vendors, sourcing apple cores and other food waste as inputs for our insects. The audience of this effort was our insect farming community (connected to through the North American Coalition for Insect Agriculture, of which Beta Hatch is a founding member), the food processing community (such as our vendors CrunchPak and Wilbur Ellis, who supply us with food waste and co-products as inputs), and the general academic community interested in sustainable food systems. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?This project engaged many indivduals across our organization including quality control staff, scientists and engineers. The project allowed us to train those staff in experimental design, reporting, and problem solving to address the objectives of the project. How have the results been disseminated to communities of interest?Unfortunately Beta Hatch is closing its doors operationally, and it is uncertain what will happen to this work going forward. We are however looking to share our findings with the North American Coalition for Insect Agriculture, so that this work can continue on to the benefit of our industry. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Objective #1: Develop a modular unit for mealworm processing HVAC design of MFTU CONDITIONED UNCONDITIONED UNCONDITIONED Objective #2: Test performance of modular processing feedstock testing unit (MFTU) Objective 2a: Impact of MPU in mealworm biology Summary Materials and Methods Results and Conclusions Environmental conditions of growing space From neonate to 4-week-old mealworms: impact of wet feed type and dispersal on mealworm growth From 4-week-old to 8-week-old mealworms ready for sale: impact of feedstock source and wet feed type and dispersal on mealworm growth Objective 2b: Impact of MPU on mealworm product quality Table 2.1. ab Different letters within a row indicate significant difference between treatment means (one way ANOVA; post Tukey-Kramer, P<0.05) Objective 2c: Validate operations of the modular growing and processing units together Objective #3: Model the operating costs of the MFTU in different geographies Objective 3a: Develop a protocol for assessing use of by-products in mealworm diets. Part 1: Testing of novel ingredient Summary Materials and Methods th Results and Conclusions Figure 3.1 The summary of key performance indicators during preliminary study testing the inclusion of a variety of yellow sorghum as a feedstock. Box plots show the median, upper and lower quartiles. A) Larval weight gain (LWG); B) LWG/frass produced; p<0.0001; C) FCR; D) LWG/Food consumed; E) individual mealworm weight (iMW); F) survival (%). Different letters indicate a significant difference between groups. (one way ANOVA; post Tukey-Kramer P<0.05. Part 2: Rearing mealworms using novel ingredients Summary Materials and Methods Results and Conclusions Tenebrio molitor Objective 3b: Develop the model for calculating the cost of the modular units' operations considering environmental conditions. Summary Heat Loss = (1/R-value)(surface area)(?T) . Results and Conclusions Heat loss. Annual Electricity Cost. Summary Materials and Methods Results and Conclusions Three total tiers were presented as the prices of live mealworms have a broad range (Fig. 3.6). The container is not profitable if the live mealworm value is set to $17.08/kg. At the second tier most of the MFTUs could generate profit. However, if the live mealworms were sold at the highest tier, the profit is much higher and brings revenue in all geographical locations. The MFTU unit will be the least profitable in Alaska (no profit from Tier 1 and Tier 2 sales). The profits are estimated to be low as well in Georgia, Hawaii, and Nevada mostly due to the cost of labor and electricity costs. The five most profitable states based on the model are North Carolina, Tennessee, Alabama, Indiana, and Oklahoma. These states produce large quantities of agricultural crops such as soybeans, corn, wheat, and peanuts. Oklahoma is also growing large quantities of sorghum. The processing of all these agricultural commodities results in various types of waste and by-products: while wheat products constitute basic conventional diets for mealworms, corn DDGS, peanut meal and sorghum have been used in experimental diets with positive outcomes for rearing mealworms. ?

Publications


    Progress 08/15/21 to 08/14/22

    Outputs
    Target Audience:Current effort has not reached an external audience - we will be working with commercial clients in the final phase of the work. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Several professionals in our research, engineering and operations departments were invovled in this work, gaining new skills. How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

    Impacts
    What was accomplished under these goals? Objective #1: Develop a modular unit for mealworm processing As mentioned in the previous progress report (PR#1), we have modified our work on this objective slightly: instead of designing an all-in-one modular processing unit for mealworms, we have developed designs for an all-in-one modular feedstock testing unit (MFTU). The unit will not only house processing equipment but will also feature spaces devoted to diet and insect preparation, cleaning, storage, and feature an environmentally controlled grow space. This unit alone could be transported and setup for testing by prospective insect ranchers looking to upcycle organic wastes. The original design had 4 separate rooms (see PR#1) and the container was loaded with machines and temporary walls to get a better sense of the space allowances and flow of materials through the rooms. The first room from the door is the diet preparation room that contains a pelletizer along with storage and workspace to make and store diets. The second room is the cleaning room and supply storage, and it includes a sink, a refrigerator (for wet feed), and a freezer (kill step). All cleaning supplies would also be kept here. The third room is the processing and QC area. A repurposed screen-based separation table will be used to split tray contents into frass, dry feed, and insects. The insects will then go through a second separation step to sort out life stages on a separation table. This room also accommodates a desk for data collection. The fourth and final room is the grow room. The room is designed to fit 16 dollies of 12 trays, and these trays would house the insects. Each week a technician would enter this room and feed each tray a supplemental wet feed or, when the trays are ready for harvest, a dolly of trays would be removed from the grow space into the processing room to be processed and data recorded. Insects would then be culled via the freezer in the second room and the empty trays would be stored back inside the grow room. This above mock-up was then vetted by a new set of trained technicians to ensure best working conditions. We highlighted several concerns that were assessed by the technicians: Would 16 dollies (i.e., stacks of rolling trays) inside the designated grow space lead to constraints in movement and flow? Is the division between room 1 and 2 important? Combining these two rooms would allow for equipment to be condensed and the processing room to be expanded. How can we change the arrange the equipment in the processing room to allow for better flow of materials from the grow room? After mock uses and discussion, it was decided that there was no need to separate the first two rooms from each other. The removal of the wall that divided these rooms afforded the rearrangement the equipment to maximize use of the space. Originally the wall was in place to keep dry diet ingredients separate from excess humidity stemming from the washdown area. Tray washing will now be kept to a minimum and used trays can be kept inside the grow room until the feed trial is over. The sink will now be used for cleaning equipment and cleaning the container on a weekly basis along with rinsing of wet feed. The risk of dry feedstock being ruined are now minimal. Combining these two rooms also allowed for the expansion of the processing space by several feet. The screen-based separation table was then moved from the corner of the processing room to the center of the room against a wall. This allows for both outlets to be positioned to either side and allows for the center of the room to be used by the technician for processing. Another key modification was to place the screen-based separation table on wheels so that it can be moved around. This allows for the space to be temporarily transformed to allow for dolly flow into the processing space for either harvest or weekly wet feeding. Originally, we envisioned standard doors for each room. To save space, sliding pocket doors were determined to be to be more efficient and eliminates the need to accommodate space for the opening of a door inside an adjacent room. This also allowed for the door leading to the grow room to be moved to the center of the wall to accommodate additional equipment and better flow between rooms. Once the above decisions were made, we added new walls and placed equipment inside. Figure 1 provides a photograph of the inside of the newly constructed MFTU. Objective #2: Test performance of modularfeedstock testing unit This work awaits completion of the construction of the MFTU Objective #3: Model the operating costs of the MFTU in different geographies Sorghum was identified as a novel feedstock that can be used for mealworms rearing. There is great interest in bio-converting the crop into feed for fish. Most of the USA sorghum is grown in just a few states: Colorado, Kansas, Nebraska, Oklahoma, South Dakota, and Texas. We have gathered data on electricity costs, agricultural labor, taxes, and environmental data in these states to run cost estimate scenarios on rearing mealworms in the containerized units. We will keep these data confidential and create a model to identify the best location for a MFTU trial. We tested the inclusion of a variety of yellow sorghum as a feedstock for mealworms using three different diets: 100% whole grain sorghum (SR-100G), 100% sorghum that was ground, mixed with distilled water and baked to form a 'cookie' (SR-100), and 85% millrun with 15% sorghum cookie (MR-85/SR-15). These were set up alongside two controls: 100% millrun cookie (MR-100) and 85% wheat bran with 15% dried potato cookie (MR-85/P-15). Sorghum has a similar crude nutrient profile to potatoes, and the inclusion of potatoes in mealworm diets is known to boost performance in the adult stage. Sorghum is more affordable than potato, and so Beta Hatch is interested to fully evaluate its inclusion in mealworm feed. Mealworms gained the most weight on the millrun diet supplemented with 15% sorghum (MR-85/SR-15; Fig. 2A), although this larval gain weight (LWG) did not differ significantly from the control diets (MR-100, MR-85/P15). Generally, mealworms fed on the MR-85/SR 15 performed similarly to the controls in terms of LWG per frass produced (Fig. 2B), FCR (Fig. 2C), LWG per food consumed (Fig. 2D) and the individual mealworm weight (Fig. 2E). Although the lowest LWG was achieved by the mealworms fed exclusively on 100% sorghum (SR-100G) as unprocessed grain, this diet showed the best values for LWG per frass produced (Fig. 2B), FCR (Fig. 2C), and LWG per food consumed (Fig. 2D). The significant difference in survival was only found between SR-100 and MR-100 (Fig. 2F). Interestingly, both the addition of sorghum and preprocessing (i.e., SR-100 'cookie') impacted the macronutrient composition and caloric content of mealworms (Table 1). This suggests that sorghum can be a tool for optimizing insect meal nutrient content as an aquafeed ingredient, and that different sorghum varieties, based on nutritional content, endosperm, kernel hardness and tannin content should be evaluated. These early results show that sorghum as a novel feedstock for insect rearing is a promising ingredient when supplemented with the conventional feedstock such as millrun. It shows that at 15% supplementation, the basic larval weight and development is the same as the controls and results in similar output metrics. These data demonstrate that sorghum is a viable ingredient for use in insect diets, warranting further investigation with more varieties and forms. Indeed, Beta Hatch was recently contacted by a sorghum producer to discuss the potential of sorghum as a sustainable substrate for insect production that can create a value-chain from a sustainable commodity to a sustainable protein ingredient to sustainably grown fish.?

    Publications