Ynsect announces the construction of two production sites in the United States and Mexico
Ynsect, a specialist in insect-based animal feed, has announced the signing of two major partnerships on the other side of the Atlantic for a total amount of nearly 200 million euros. Construction of the two vertical farms is scheduled to begin in late 2023.
Heading West. French unicorn Ynsect, a specialist in insect-based animal feed, is continuing its development across the Atlantic. The company announced Tuesday, December 13, that it has signed two partnerships to export its vertical farm model. The first one is signed with Ardent Mills, an American company that is the largest supplier of flour in North America. An agreement worth more than 100 million dollars (94 million euros) has been signed for the construction of a vertical farm in the United States, similar to the one already built by Ynsect near Amiens (Somme). The work is scheduled for 2023.
Ynsect, whose director Antoine Hubert was part of the delegation of entrepreneurs present during President Emmanuel Macron’s trip to the United States, assures that it has not benefited “at this stage” from subsidies from Joe Biden’s IRA plan, the Inflation Reduction Act, this strong incentive for made-in-the-USA production that has provoked the ire of European leaders. In Mexico, the French unicorn has signed a partnership with Corporativo Kosmos, a leading player in the local food industry. It is both a wholesaler and a player in the catering industry. The two companies were already working together. Again, construction of the insect production site is scheduled to start in 2023, at a cost of over $100 million.
Finding raw materials
The challenge of these two partnerships, in addition to the financial leverage, is also to find food for the little beasts in the areas where it wishes to develop. The company is targeting its partnerships to “facilitate access to raw materials used to feed insects, such as co-products from the cereal industry,” it wrote in a press release.
Ynsect thus confirms that its development ambitions are also focused on the North American market: the company recalls that the United States is identified as the largest market for insects. In March, Ynsect had already announced the acquisition of Jord, an American company that breeds beetles for backyard poultry. The French nugget must also face the growing demand for its products by launching new units. Its ambition is to have built between 10 and 15 vertical farms worldwide by the end of the decade.