How to Start a Insect Farm

Part 1 - How to start an Insect Farm business - Background

An insect farm, which can be managed on both a small and large scale, is a farm that breeds and raises insects. The commodities these insects produce can be used to make everything from candles to silk. Additionally, insect farmers sell their “product” as farm feed, for human consumption, as pollinators, and as natural pesticides.

Our guide is in 3 parts:

• Part 1 - How to start an Insect Farm business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a insect farm?

Another benefit of choosing this as a business venture is that it requires very little start-up capital. You will need to purchase your first batch of “breeders” from a reputable insect farm. The habitat specifics vary depending upon what insect you decide to breed, but most new insect farmers start small, operating out of vertically stacked bins in their garage or shed. New farmers are encouraged to join the North American Coalition for Insect Agriculture (NACIA) with membership fees ranging from $100 to $500 annually.

What are some insider tips for jump-starting an insect farm business?

While insect farming is not complicated, industry leaders recommend that new farmers conduct thorough research, paying close attention to the challenges their colleagues have faced on their journey. In your research, pay close attention to market needs in your area. If the ladybug market is oversaturated, but there is a need for mealworms, focus your energies on perfecting that niche before adding other insect breeds to your farm.

What are the ongoing expenses for a insect farm?

Like the start-up costs, ongoing expenses for an insect farm are minimal. Insects need two to six times less feed than other farm animals and require very little space to grow. And, since just one female insect has the potential to lay hundreds or even thousands of eggs, you will rarely have to purchase additional breeder sets once you have developed an effective process.

Who is the target market?

Historically, the target market for insect farmers was limited to zoos, reptile owners, and pet stores. Recent knowledge regarding the myriad of ways insects can be used, however, has expanded the market. Farmers now sell to:

• Wildlife parks and rescues

• The food industry – restaurants and for manufacturers of high protein food products, such as protein bars and flour

• Fish and vegetable farms for aquaponics

• Animal farms – as a protein supplement to offset the cost of their feed

The key is to identify local market needs and provide the products consumers are lacking.

How does a insect farm make money?

Insect farmers generate revenue through the sale of each insect. The specifics will be determined by the kind of insect you raise and the market need in your region.

How much can you charge customers?

Prices vary, depending upon the type of insect and number being sold. Overhead and time costs, market demand, and competitor pricing are all factors to be considered when setting your prices. For example, cricket prices are approximately $15 for one thousand crickets, while mealworms go for slightly less, averaging $13 for one thousand. High shipping costs to deliver live insects should also play a factor when determining your pricing.

How much profit can a insect farm make?

While many insect farmers choose to remain small, limiting their service to the local community, the sky’s the limit when it comes to potential profit. The five leading insect farming companies report profits upwards of $2 million annually.

How can you make your business more profitable?

Like a majority of environmentally friendly businesses, long-term growth comes from maintaining a pulse on industry innovations and trends. Your involvement in educating others on the green movement will ensure you make mutually beneficial connections and increase your organization’s visibility.

Day-to-Day and Growth

What happens during a typical day at a insect farm?

When first starting your farm, you will need to set aside time each day to clean, feed, and breed your insects. Depending upon the insect you decide to breed, this could include spraying eggs, separating the bugs, and topping off food and water containers. Most successful insect farmers have found, however, that they can develop a low-maintenance system over time that only requires a few hours a week for this process.

Once you have a healthy environment set up and a low-maintenance plan in place, the rest of your time will be spent implementing a marketing strategy, identifying buyers, filling orders, and conducting ongoing research on how to expand your business and/or continue your mission to go green.

What are some skills and experiences that will help you build a successful insect farm?

To maximize output and profit, business owners are encouraged to learn as much as they can about the insects they breed. For those just starting, the Vertical Farming Academy and the North American Coalition for Insect Agriculture (NACIA) are excellent resources.

Like every business, production is only part of the recipe for success. Entrepreneurs should also possess strong leadership skills, business acumen, and have a firm understanding of their market. You can build on these skills through free local workshops and by fully immersing yourself in the movement towards ensuring a greener future

What is the growth potential for a insect farm?

While the human consumption of insects has only recently gained traction in the United States, sources indicate that more than two billion people consume insects as part of their regular diet. As we face growing concerns of overpopulation, climate change, and food and land scarcity, an increasing number of consumers are beginning to recognize the multitude of advantages to insects as a sustainable livestock option. They are a healthy alternative protein to standard farm feed, emit fewer greenhouse gases than most farm animals, and require a fraction of the land. 

As we learn more about how our presence has affected our planet and what we must do to ensure our future here, the greater the need will arise for this unique green practice, making it a future-proof business investment.

What are some insider tips for jump starting a insect farm?

Historically, the target market for insect farmers was limited to zoos, reptile owners, and pet stores. Recent knowledge regarding the myriad of ways insects can be used, however, has expanded the market. Farmers now sell to:

• Wildlife parks and rescues

• The food industry – restaurants and for manufacturers of high protein food products, such as protein bars and flour

• Fish and vegetable farms for aquaponics

• Animal farms – as a protein supplement to offset the cost of their feed

The key is to identify local market needs and provide the products consumers are lacking.

How and when to build a team

Unless you plan on building the business on a very large scale, this venture does not require a team of employees. Most business owners are able to manage most aspects of the business themselves. However, it is important to recognize your weaknesses and hire accordingly. If bookkeeping isn’t your strong suit, hire an accountant to manage the books. If you find you do not have the time or knowledge to steadily market your products, consider hiring a marketing firm or adding a team member to handle those responsibilities.

Part 2 - Is an Insect Farm business the right fit for you?

Part 3 - Action plan to launch your Insect Farm business in 90 days