Best So Far (BSF)

Approx 90-92% of the global production of products follows a linear economy “Take-Make-Dispose” model. Resources are effectively used only once, which cannot be sustained long term. 

A growing world population during the next three decades will place further pressure on manufacturers, to find additional resources if existing materials remain non-renewable.

Biovert Protein was formed with the mission to rebalance linear economy waste into circular products. Our waste to resource (WTR) business model uses the black soldier fly (BSF) to convert organic waste into sustainable resources (such as animal feed protein and biofuel) for use by industrial customers. By using this widely found insect to prevent finite resources going to an end of life “dispose” step, and industrializing this technology, we create value at scale for our customers as we improve both the security and sustainability of resource’s they use in their supply chain.

Globally the main model used in the production of goods is to take resources, make a product for consumers to use and dispose of any waste that occurs along the process. We all recognize the pollution created when food or organic waste is disposed of improperly. However, we continually fail to realize that the amount of food produced is higher than the amount of food we actually need to consume. The next three decades, will not only see this imbalance worsen as the world population grows, and demand for food containing animal proteins increase, but there will also be economic, environment, and social consequences in maintaining the disposal of food or organic waste into landfills, from the continuation of this model.

Using a Waste to Resource (WTR) approach to treat food waste instead of disposing into landfills, changes the dispose step in the Take-Make-Dispose model and provides a circular solution to a linear problem. 

Biovert Protein uses the larvae of the black solider fly (BSF) insect to feed on food waste, efficiently reduce the volume, and grow into a protein-rich biomass while leaving behind a nutrient-rich residue. BSF are widely found in regions between latitude 45˚N and 40˚S and are not a vector for disease, as only the larvae eats, while the adult fly focuses on reproduction of the species.  

The BSF biomass when harvested can be separated into both a protein meal and oil product. The BSF protein meal can substitute into feed formulations used for mono-gastric animals such as poultry, fish and pigs. Scientific research evidence shows that the lipid profile of the BSF oil product is suitable for use as a biodiesel. The waste residue from the BSF rearing process can be used as a valuable soil conditioner 

This WTR model used by Biovert Protein is a cost-effective, safe, and scalable alternative to the common TMD model used today in food production. 

• The Food Agriculture Organization (FAO) 2000 to 2030 statistics show demand for poultry in South East Asian diets increasing by 725% (~25% per year); 
• Thailand is seeing increasing demand for affordable nutritious animal protein per capita, as the middle class (~35% of 66.5 Million population) grows and becomes more affluent; 
• Poultry and swine animal feed accounts for 85% (17 of 20 Million metric tons) of the total volume, growing at a rate of 3.9% (~800,000 tons) per year;
• This suggests an animal protein supply gap exists in the market to match the demand;   
• Feed formulators are searching for cost effective nutritious protein solutions to fill this gap.  

The following market research hypothesis has been developed to confirm our assumptions:

• Hypothesis#1 assesses the competitive price point(s) for circular products that we must achieve to be financially viable.
• Hypothesis #2 is that our protein meal nutrient profile is able to consistently achieve the target product specification.

By delivering these assumptions, the customer value proposition created is an improvement to both the security and sustainability of resource’s used by customers in their supply chain

• The rearing of insect larvae on organic food waste to later be harvested as a feed ingredient in animal feed lots is widely practiced throughout South East Asia. 
• In rural communities, organic waste is treated as a resource. 
• While urban residents are inclined to dispose and ignore the environmental consequences.
• By combining the economic efficiency in treating organic waste using insect technology to produce a nutritious food resource, with the low carbon footprint along the food supply chain that results, this resilient WTR circular economy model is a blueprint that creates a plus for sustainability at scale. 

• The perception of organic waste is often one of low economic recovery value, compared to plastics, glass, metal
• Traditional recovery technologies used for organic waste are composting or anaerobic digestion
• In developing countries, these technologies are hindered by limited financial resources, lack of political support, poor legislative frameworks and legal barriers, poor marketing and lack of viable business models 
• On the other hand, the innovative valorization of organic waste by BSF bio-conversion requires only low cost inputs making it an economically viable business solution 
• This unique approach can replicate and scale, providing an impact boost to reducing greenhouse gas emissions, while filling a gap in the supply of sustainable resources

• The core of this approach is a biotechnology solution integrated with manufacturing processes used in the production of oils and food 
• Manufacturing software and hardware architecture, protocols and standards will be based on the Internet of Things (IoT) technology such as sensors, actuators and processors
• Human machine interfaces (HMI) on key process machines and a supervisor control and data acquisition (SCADA) system linked to IoT, will allow us to develop a plant wide platform for an integrated manufacturing execution system (MES)   
• The MES system records plant data while controlling processes from receipt of materials to storage of finished product prior to delivery to customer 
• Plant data from MES can later be integrated into a company enterprise resource planning (ERP) system via Factory Floor Middle-Ware (FFMW) programs.
• FFMW programs provide information security and controls between MES and ERP, enabling accurate real time plant data to flow to the logistics and planning control, and match the customer demand to the operation supply capacity

• The BSF technology process is a relatively simple design in the production of protein meal and oils
• Equipment for the Biovert Protein plant will most likely be sourced “off the shelf” from original equipment manufacturers (OEM) 
• In comparison, human processed food often has unique product characteristics such as texture, appearance, taste which can be complex and capital intensive to produce
• Globally, there are a handful of companies already producing industrial scale BSF insect products. 
• The technology used in pilot scale or prototype BSF production is shown in the attached links
• There is no standard manufacturing blueprint published that can be referred to for the scaling of BSF technology
• However, we do not see this as a technical barrier, as we have the experience and technical expertise in our Biovert Protein team to overcome this issue

• BSF Larvae in Vincent Screw Press

• BSF oil extraction 

In August 2018, the Boston Consulting Group (BGC) issued an article titled “Tackling the 1.6 Billion Ton Food Waste Crisis*” in which they identified that food loss or waste occurs at all stages in the supply chain. To understand the scale and scope of the problem, BGC created a food loss and waste model, that showed an annual upward trend line in both volume and value. 

Further research uncovered five drivers of the problem: 

• lack of awareness and possible solutions to this issue; 
• inadequate supply chain infrastructure; 
• supply chain efficiency efforts with little focus on food loss and waste; 
• weak collaboration across the value chain; and
• insufficient regulations. 

Global, coordinated action to address all five drivers, can slash the value of food lost and wasted every year by $700 Billion - close to the Y2030 Sustainable Development Goal (SDG) target. To achieve this target is complex, as it requires commitment and collaboration among numerous players. 

A tall order and one that we recognize requires companies to approach the opportunity with a new business model, designed for impact. Designed along these lines, Biovert Protein’s mission is to rebalance linear economy waste into circular products, with a vision to use the Black Soldier Fly to convert organic waste into sustainably produced resources for industrial customers. Implementing this purpose will deliver an outcome to produce upcycled quality materials to meet customer demand while reducing organic waste into landfill. To achieve this outcome, will require us to work collaboratively with key players within the organization of our customers. We have developed a behavior map to predict the behavior journey of each player and analyze what obstacles or barriers may exist for the behavior. This will guide us to either systematically eliminate what we can, or provide approaches to nudge in the right direction while still providing choice and freedom.

*https://www.bcg.com/publicatio...

• Currently at pre-seed fund raising stage, our solution has yet to serve any customer 
• Despite the COVID-19 Pandemic delaying our work in developing our minimum viable product (MVP) prototype, we are planning to accelerate our efforts from now to end August
• The last week of June 2020, we will visit Kasetsart University (KU) Chalermphrakiat Sakon-Nakhon province campus, in north east Thailand (1 hour flight from Bangkok)
• The university pilot scale BSF rearing facility is available for research and development (R&D).
• Visits to different sources of food waste are also planned during the same business trip 
• We will investigate the feasibility to trial the different food waste sources at the KU BSF facility
• A nutrition profile will be determined for BSF larvae grown on each food waste type
• Target to have this data on hand by end July
• During July, market research analysis will be done to confirm the nutrition target design required by the customer 
• By beginning September, we will have the nutrition target design and product samples for the MVP to then approach potential customers

Thailand animal feed sector growth rate is ~800,000 tons per year:

• In one years time, we plan to provide 5,000 tons of protein meal to 1-2 industrial customers by end 2021
• In 2026, our yearly supply will be 80,000 tons to 3-5 Thai animal feed customers 

We are currently working on our project concept document for the design and construction of our BSF plant. This document contains project milestones and goals. For example

During the next year, our “Biovert Protein Project Team” goals are:

• To achieve an acceptable MVP for customers by end August 2020, that can be scaled
• To receive a seed fund grant of USD $250K by end October 2020
• To develop an R&D partnership program with one Thailand university by end December 2020
• To raise USD $10.6 Million funds for capital and operations start-up of the new BSF plant, by end January 2021
• To complete the start-up team hire and training program by end July 2021
• To complete the dry commissioning of the BSF plant by end August 2021
• To complete the wet commissioning of the BSF plant by end September 2021 
• To develop ongoing collaborative partnerships with suppliers, customers and other stakeholders in our ecosystem

The "initial" Five-Year Master Plan goals are:     

• To build our company domestically by replicating our WTR manufacturing model to two other locations in Thailand
• To build our company internationally by replicating our WTR manufacturing model to two other countries in Asia 
• To establish sales offices in five Asian countries
• To incorporate our NGO Foundation which will serve as the main vehicle for our social good program in our regional operations.

However the founders recognize the need for strategic agility as existing business models can be disrupted so fast that long term goals will probably change.

• The use of insect protein to feed animals is so far prohibited in the European Union “feed ban rules” of the “TSE Regulation’ (Article 7 and Annex IV of Regulation 999/2001).
• Many other countries don’t have any regulation regarding animal feeding with insect protein.
• A lack of clear legislation and standards for regulating the use of insects as animal feed is an important barrier to industrial development of insect rearing for feed production in developed countries.
• Insects used as a feed ingredient in animal fodder is a common practice in developing countries and is used mainly by small farm or household plots.
• There is no pending legislation or other types of barriers that may hamper the start up of our Biovert Protein operations in Thailand or later expansion into other areas of Asia.

• Based on research thus far, we do not see any legal or other types of barriers that could prevent us from launching our solution into other developing countries, after we start up in Thailand
• The use of feed ingredients derived from BSF larvae has been recently authorised in aquaculture in Europe
• But most conventional feed stocks to feed BSF larvae are prohibited for use as feedstock to rear BSF larvae
• Europe would possibly be investigated once changes to existing legislation are made 
• In the USA and Canada, some BSF larvae based feed ingredients have been approved as feed for certain fish and poultry species  

Not applicable

We have four full-time associates, which includes our two founders, and we are currently in the formation stage of establishing a Board of Advisors (3-4 people)

• Our full-time team of four (two founders and two associates) is a melting pot of leadership and technical talents with expertise in the high-volume production of globally recognized food brands. 
• We understand each persons management and leadership style with three out of four of us having touched paths previously across our careers in the same organization. 
• Our fourth team member has previously worked with one of founders.
• Although our company was formed in early 2020, collectively we have prior experience in operations excellence in food manufacturing across Oceania, Asia and Africa. 
• In addition, one of our startup founders has previous experience in the hiring and training of new employees to commission a greenfield manufacturing plant in China and then another plant later in Thailand.
• Successfully managing projects whilst implementing a Lean startup are already proven skills firmly embedded within our team.

No formal partnership agreements currently exist

Meetings have been held with prospective partners for:

• Food waste collection and processing
• Investment Funds
• Research and Development
• Self sufficiency economy as promoted by the late King Rama IX

We are still in an exploratory stage with all of these discussions.

Biovert Protein will operate as a hybrid (For Profit/Non Profit) business after we commercialise our BSF operation. The non-profit arm will be a Foundation

• We have an "informal verbal agreement" with an NGO based in the Philippines (Mahintana Foundation) 
• We will formalise this agreement once we have incorporated our Foundation in Thailand
• Mahintana is a likely fiscal partner as we seek funds for our Foundation 
• Mahinatana is able to provide guidance to us in preparing policies, guidelines and procedures for a non-profit
• We have also opened discussions with the Chaipattana ("Victory of Development") Foundation, Thailand 
• Chaipattana works on projects and activities that aim to alleviate poverty and improve the well-being of farmers and marginalised groups
• And we have opened discussion with the IREDF (International Resources and Environmental Development Foundation), Thailand
• The discussions with the two foundations in Thailand are to understand how our Foundation can connect and contribute into the self sufficiency economy model

• The Biovert Protein WTR business model initially targets industrial customers operating in the animal feed and biofuel markets with product sold via B2B channels (using an online sales portal or our sales team).
• Biovert Protein creates value by supplying circular products which improves the security and sustainability of resources that customers use in the production of their products
• Our business revenue will be based on our product brand strategy. We will segment our products into premium and economy brand offerings.
• Interruptions in the supply chain for agricultural materials can occur due to unforeseen climatic events, which are becoming more acute and chronic in frequency.
• Our process is in a “closed loop” environment so we are isolated from these events.
• We differentiate ourselves from traditional suppliers of resources to these customers, as we provide circular products, which may carry a ‘market’ premium for our customers products 
• For Thailand customers we are a local producer, providing a shorter lead time for material delivery compared to import raw materials
• For animal feed customers we provide flexibility in their animal feed recipes, as they can make adjustments in the overall nutrition content of their complete and balanced feeds.   
• We can supply customers in bulk format and reduce the amount of packaging used  
• We technically produce “organic” products as there are no pesticides or veterinary medicines used in the production of these products

Our WTR business model is scalable, replicable, economically viable and designed for impact across large parts of the world. By participating in this program we get the opportunity to showcase our business concept to the network of SOLVE partners or program sponsors and obtain:

• Methods or suggestion on ways to reduce our start-up costs
• Possible future funding support as we move towards commercialization of our concept
• Mentoring in effective models/methods to overcome business challenges commonly found in food and biotechnology solutions
• Exposure to recent trends in the Future of Food and the Future of Work (eg Digitalization)

We also believe this program will strengthen our team culture as we work and collaborate with fellow cohorts on preparing our individual business pitches to the program sponsors and MIT network

Our partnership goals are shaped by our strategic blueprint:

1. To create a shared partnership vision and road-map
2. To gain insights on the latest business trends eg Food of the Future and the Future of Work 
3. To leverage domain knowledge and expertise to improve our business processes
4. To increase customer loyalty while growing revenue with new markets and new customers
5. To continually improve our internal company culture
6. To establish a fiscal partnership between our Foundation and an internationally recognised US based NGO

During the next 6-12 months, our priority partnership’s are:

1. While securing a seed fund grant, funding and revenue model with angel investors and/or venture capitalists either through an investment round(s) or investor networks, to secure growth funds for our commercial start-up.
2. Talent recruitment by partnering with a regional human resource business partner (HRBP) in Thailand and/or South East Asia to support the scaling and culture development of our organization
3. Marketing, media and exposure by partnering with a regional marketing and media agency to support our strategic growth plans for new customers and markets
4. Solution technology in digital systems with a technology company that can support developing a digital tool/app/SaaS portal for tracking different types of “losses” throughout the supply chain
5. Monitoring and evaluation of the applications of circular products from BSF technology in other industries, that we may not serve in our initial years of operation, by partnering with a university in an R&D program