Recipient Organization
CLEMSON UNIVERSITY
(N/A)
CLEMSON,SC 29634
Performing Department
Agricultural & Environmental Sciences
Non Technical Summary
This proposal outlines a research strategy to generate information on the economic dimensions of Black soldier fly (BSF) [hermetia illucens] larvae to reduce organic waste streams while producing valuable animal proteins, biodiesel feedstocks, soil amendments, and industrial/pharmaceutical products at the farm, non-farm commercial, and community/municipal level. Organic waste products constitute a significant percentage of collected waste that is typically landfilled or disposed of in other ways that are costly and often detrimental to the environment. Restaurants, institutional cafeterias, and households produce a significant amount of these organic wastes. Simultaneously, on-farm production of manure, spoiled feed, and dead livestock also presents nutrient storage, processing, application, and disposal challenges. Further, the increasing price of petroleum and petroleum-based fertilizers and pesticides for conventional producers and the high price of organic fertilizers and soil amendments for organic producers mean that producers are constantly seeking lower-priced alternatives. Finally, projected world food demands for protein, especially from poultry and aquaculture sources, coupled with increasing demand for production of plant-based food and feedstocks, are placing increasing pressure on conventional production systems. Concomitant increases in energy prices will likely continue to exacerbate the situation. This project will generate new knowledge on expected startup/capital and ongoing maintenance costs along with revenue forecasts for BSF larvae production at various scales of production and under three possible industrial organizational structures: Autonomous, self-supporting, closed system focused on producing on-farm or household feed supply for livestock or aquaculture operations; Networked, small open systems focused on producing BSF larvae for sale as either intact/complete animals or for further value-added processing; and, large-scale commercial, public, or public/private partnership operations focused on producing BSF larvae for sale as either intact/complete animals or for further value-added processing. BSF larvae production for the extraction of alternative energy and feedstock purposes presents a promising approach to dealing with many of these issues simultaneously. In order to achieve significant results, BSF production must achieve scale economies. The current state of production of BSF is characterized by small-scale and fragmented facilities with only a few examples of serious large-scale commercial production, many in the early testing stage. The timing for this project is fortuitous. Large-scale production of BSF is not yet fully realized, though some pioneers are beginning to invest in these enterprises. Small-scale production is already occurring, and this production is currently fragmented and diffuse. Finding approaches to organize this industry to benefit from scale economies is appropriate if the potential benefits from BSF production are to be realized.
Animal Health Component
20%
Research Effort Categories
Basic
80%
Applied
20%
Developmental
(N/A)
Goals / Objectives
Goals: 1.Increased adoption of on-farm and household BSF larvae production enterprises 2.Increased net farm income, resulting in increased farm viability and positive spillover effects on rural economies 3.Decreased dependence on purchased fertilizer and bio-diesel inputs and reduced risk due to energy price fluctuations 4. Increased opportunities for producers to market their production as "green" products 5.Increased awareness among local governments about possible ways to decrease the need for additional landfill space, reduce nutrient runoff, and produce a green fuel product 6.Increased adoption of BSF larvae production units at all scales will likely result in additional experimentation with production techniques, increasing the knowledge base over time 7.Increased successful adoption of BSF larvae extraction and successful utilization of the extracted components is likely to enhance acceptability by the public, increasing the availability of an alternative fuel source Objectives: 1:Create typologies of industrial structures for 3 different potential BSF larvae production schemes including a) autonomous, small-scale, with little value-added potential; b) networked, small-scale, with value-added potential; and c) autonomous or networked, large-commercial, public/private/public-private, with much value-added potential. 2:Produce feasibility plan templates and enterprise budgets for these 3 different schemes 3:Conduct feasibility studies using these templates and enterprise budgets to foster the sustainable development of BSF larvae production 4:Organize and deliver workshops and document adoption when feasible Expected Outputs:1)Primary data from existing BSF larvae production/extraction enterprises 2)Enterprise budgets for BSF larvae production/extraction enterprises 3)Feasibility plan templates for potential BSF larvae production/extraction enterprises. 4)Workshop materials and presentations focused on the feasibility of BSF larvae production/extraction facilities 5)Case studies
Project Methods
Creating a set of typologies that clearly describe important dimensions of BSF production schemes is the first step in the process of better understanding the economic dimensions of the sector. As no known secondary data currently exists for these enterprises, a combination of surveys, telephone interviews, and case studies will be conducted to gather data that describes existing as well as potential future enterprises. It will be necessary to conduct interviews with BSF larvae production operations in other states/countries, esp for more complicated, larger-scale operations. Three production scenarios will be considered. 1.Autonomous, self-supporting, closed system focused on producing on-farm or household feed supply for livestock or aquaculture operations. 2.Networked, small open systems focused on producing BSF larvae for sale as either intact animals or for further value-added processing. 3.Large-scale commercial, public, or public/private partnership operations focused on producing BSF larvae for sale as either intact/complete animals or for further value-added processing. These large-scale operations could potentially be organized as a cooperative, partnership, or other legal business entity. Enterprise budgets and feasibility plan templates for various scales of production will be developed and tested during interviews with BSF production unit managers. Where feasible, group interviews will be conducted to encourage sharing of information and cross-verification of data. These templates will serve to illuminate important situational issues like assessment of the existing and projected available organic waste streams, market conditions and prices for value-added products, the opportunity costs for labor and other non-priced inputs, and values for alternative sources of produced outputs retained for internal use. Research on other industries that have employed similar organizational structures (e.g. milk, honey, recycling, anaerobic digesters) will be used to help inform the development of these prototype templates.In order to encourage sustainable adoption of BSF larvae enterprises, feasibility studies (fee-based)will be encouraged using the templates developed. Funding will be sought to support the development of case studies of both successful and failed business enterprises. Workshops will be organized and delivered to potential BSF larvae businesses to introduce the concepts and assess the potential market for BSF larvae in South Carolina. Potential funders will be involved in the organization and delivery of the workshop in an effort to inform them of the potential involved in BSF larvae production/extraction and to help facilitate important relationships between technical funders and producers. Potential technical service providers will be involved in order to help build the knowledge base and to provide information relative to successful production techniques. External expertise will be involved where feasible and appropriate, but attention will be given to building in-state capacity.