Ecodudu

The animal feed industry today relies on 33% of global arable land, driving deforestation, calories waste and land abuse. At the same time, farmers in Sub-Saharan Africa only use 13kg of nutrients per hectare.

Ecodudu is a waste-to-value company that leverages the black soldier fly to produce bio-fertilizer and insect protein. Ecodudu is revolutionizing fertilizer and protein production by including smallholder farmers in a circular production model that starts and ends with organic waste and allows farmers to generate additional income.

If scaled globally, Ecodudu’s solution would allow feed manufacturers to rely on alternative protein, freeing up arable land for crop production for human consumption. Furthermore, bio-fertilizer would become more available to African farmers, allowing them to boost crop yields. As a result, the global food system would become more efficient and sustainable, strengthening food security and increasing smallholder farmers’ resilience to climate change induced reduction of crop yields.

Ecodudu has set out to solve a number of problems at once. Farmers in Sub-Saharan Africa only use around 13kg of nutrients per hectare, whereas the global average lies around 120 kg/ha according to IFA (1). This can be attributed to low availability and high prices of fertilizer. The results are suboptimal crop yields and increased vulnerability of smallholder farmers to climate disaster induced reduction of crop yields. Meanwhile, the synthetic fertilizers that dominate the market contain environmentally harmful components such as nitrogen, potassium, and sulfur which deplete soil quality in the long run.

Furthermore, the feed production industry relies on 33% of global arable land to produce protein sources such as soybean (2). While 70% of the world’s soy production is fed to animals, soy cultivation has been highlighted by the Union of Concerned Scientists as one of the four major commodities contributing the most to deforestation, land abuse and calories waste (3). 

Finally, 44% of waste in Sub-Saharan Africa remains uncollected according to the World Bank (4). As the waste decays openly or is burned in densely populated areas, it causes public hygiene and environmental issues.

(1) https://www.fertilizer.org/Public/Media/Fertilizers___Agriculture/Public/Media/F_and_A_Newsletter/2018_February_03-2_Article_Fertilizers_in_Africa.aspx

(2) https://timeforchange.org/are-...

(3)https://www.ucsusa.org/resources/whats-driving-deforestation

(4)http://documents.worldbank.org/curated/en/697271544470229584/pdf/132827-PUB-9781464813290.pdf; p.33

Ecodudu is a waste-to-value company that leverages the black soldier fly to produce bio fertilizer and insect protein for animal and fish feed manufacturers through a circular production model while including smallholder farmers in the process. 

Ecodudu collects organic waste from in and around Nairobi and uses it to feed black soldier fly larvae. Consequently, their excretions are composted and transformed into a bio fertilizer named Shamba Mix. At the same time, the grown larvae are processed to produce the Dudu Meal, a highly nutritious insect protein product. As both products are employed to make food production more efficient and sustainable, Ecodudu has created a circular value chain starting and ending with organic waste.

Smallholder farmers are partaking in the production through a unique outgrower model. The model allows farmers to recycle their own organic waste and generate additional income while enhancing Ecodudu’s production capacity. To coordinate and interact with the farmers, Ecodudu drives innovation by employing data analytics and mobile technology to manage logistics, interact with farmers and process payments.

Ecodudu strives to revolutionize the fertilizer and feed industry by putting smallholder farmers in the driver's seat of a more sustainable, insect-based production model.

Ecodudu has a direct impact on the lives of Kenyan smallholder farmers and their families through the company’s outgrower model. Ecodudu continues to engage with farmer cooperatives to onboard farmers and optimize production processes and the supply chain. Once onboarded to the outgrower model, Ecodudu conducts site visits to ensure production quality and an efficient cooperation.

Farmers partaking in Ecodudu’s outgrower model generate $168 per month on average from producing insect-protein and bio-fertilizer. This not only is a source of additional capital to invest in their farms but renders them more resilient to climate change induced reduction of crop yields.

Furthermore, the bio-fertilizer produced by Ecodudu is offered at prices affordable to farmers, enabling them to strengthen their agricultural productivity.

Overall, Ecodudu has a direct impact on the Kenyan food system by driving more sustainable and efficient farming and feed production practices. As a result, Ecodudu is contributing to food security on a country level and thus creates positive impact for the Kenyan population overall.

Ecodudu’s insect protein allows for more sustainable supply chains in the meat/fish production industry. At the same time, farmers increase their agricultural productivity by using our bio-fertilizer to boost crop yields and earn additional income by partaking in Ecodudu’s outgrower model. As a result, Ecodudu is supporting food systems to feed a growing population, serve the increased meat consumption, reduce GHG emissions and strengthen the resilience of smallholder farmers to climate change. As Ecodudu collects and recycles organic waste, it is driving circular production and zero-waste principles which makes the farm-to-mouth supply chain more energy efficient.

In Kenya, Ecodudu is the biggest in terms of operations and output. Other companies dealing with insect protein are: InsectiPro, Biobuu and Sanergy. While InsectiPro is earlier-stage, Biobuu is Tanzania focused, with a recent small facility in Mombasa, and Sanergy is a waste collection company venturing into agric inputs using insects to recycle their waste while selling to smallholder farmers and not commercial feed producers like Ecodudu.

Ecodudu’s unique value proposition lies within the combination of its products, the decentralised production model and a tech enabled supply chain. The decentralised production model allows Ecodudu to boost its production, at the same time enabling smallholder farmers to generate an additional income which in turn eases Ecodudu’s geographical expansion. The supply chain is tech enabled by mobile technology for payment processing and a Kenyan logistics partner who provides on-demand deliveries through an online platform. This combination has allowed Ecodudu to set up and expand a network of insect protein and bio-fertilizer producing farmers. This is easing sales at minimal GHG emittance and logistical costs and improves access of farmers to bio-fertilizer and the adoption of sustainable circular production processes.

While Ecodudu’s core technology is the Black Soldier Fly, the company has improved its production and supply chain through additional technology. On the one hand, that includes hardware machinery for the processing of organic waste, separation of waste from insect protein und formulation of Ecodudu’s final products. On the other hand, Ecodudu uses mobile technology to interact and coordinate with smallholder farmers, process payments and analyse production performance of outgrower farmers. Furthermore, Ecodudu has recently secured a partnership with a Kenyan logistics company that provides cost-effective, on-demand delivery services through an online platform. 

While the use of the Black Soldier Fly for feed and fertilizer production is relatively new to Kenya, it has been present in Europe for a number of years. 

Researchers at Wageningen University have conducted research and prooven the viability of insect protein in feed production in Kenya, as well as the inclusion of smallholder farmers in production processes (Chia, Tanga, Joon & Dicke: 2019).

Besides this, Ecodudu has reached profitability in 2019 and continues to grow its sales. This also validates the viability of Ecodudu's tech. Furthermore, through continuous interaction with offtakers and researchers at Kenyatta University, Ecodudu has constantly improved its production processes and techonology over the years.

Problem 1: Commercial feed mills rely on soy bean and fishmeal for feed production which cause negative environmental effects. 

Activity 1: Ecodudu produces and sells cost-effective and sustainables alternative protein for commercial feed mills.

Output 1: Commercial feed mills improve the sustainability and energy efficiency of their supply chains.

Outcome 1: Animal and fish feed production is less relying on arable land for feed production and causes less GHG emissions, deforestation and calories waste.

Problem 2: Smallholder farmers are disproportionally affected by Climate Change due to climate induced reduction of crop yields and low fertilizer usage which increases food insecurity.

Activity 2: Ecodudu produces affordable bio-fertilizer and includes smallholder farmers its overall production process.

Output 2: Smallholder farmers gain access to an additional revenue stream, invest additional capital into their farms and families while boosting their crop yields with bio-fertilizer.

Outcome 2: Smallholder farmers' resilience to Climate Change is improved and food production is boosted improving food security.

Ecodudu has onboarded 13 farmers (57 persons at 4.4 average household size in Kenya) to its outgrower model and is directly impacting them as they generate over $100 per month in revenue (exact amount not to be publicly disclosed). Furthermore, Ecodudu is impacting its 10 employees by offering decent jobs. Finally, the company impacts the Kenyan population indirectly through improved efficiency of the local food system which results in decreased food prices and improved food security. 

Over the next year, Ecodudu plans to onboard an additional 30 farmers to the outgrower model. In two years, Ecodudu aims to have expanded to at least one additional country. In five years, Ecodudu will have onboarded around 500 farmers to its outgrower model and will run operations in at least three African countries.

Within the next year, Ecodudu’s aim is to have increased production capacity and produce an average of 8 tons of insect protein per month. In order to achieve this, Ecodudu would like to onboard 30 additional farmers through its unique outgrower model by the end of the year, thereby increasing the adoption rate of the principles of circular economy. 

Furthermore, Ecodudu aims to have established the groundwork for a more efficient supply chain, meaning to have secured partnerships with large waste suppliers, thus being able to collect more than 63 tons of waste and produce 9 tons of bio-fertilizer per month by the end of the year. 

By the end of the year, Ecodudu would like to start to develop a farmer facing app, in order to ensure more efficient interaction and coordination with smallholder farmers. 

Within the next five years, Ecodudu aims to become a recognised player, thought leader and advocate for alternative protein sources, insect protein in particular, for animal and fish feed manufacturing in Kenya. 

Ecodudu strives to not only increase the size of its current rearing facility, but to establish strategically located facilities throughout the country. This will enable Ecodudu to further decentralize its production capacity, onboard outgrower farmers across the country and supply feed millers more efficiently. 

By the end of 5 years, Ecodudu would like to have expanded to at least two neighbouring countries and export to the European and Asian market. 

Increasing complexity of supply chain: As Ecodudu onboards additional farmers to its outgrower model, its supply chain will become increasingly complex, which could potentially limit quality assurance of its products and increase overhead costs for supply chain managment.

Waste supply: As internal production is scaled up, Ecodudu will need to collect increasing amounts of waste. 

Financial: While Ecodudu has already achieved profitability in 2019, operating capital continues to be a barrier that limits Ecodudu's speed of expansion

Increasing complexity of supply chain: Ecodudu is already using technology to ensure efficiency of its increasingly complex supply chain. By the end of 2020, Ecodudu plans to start developing a farmer-facing application for improved supply chain management.

Waste supply: Ecodudu recently has secured long-term partnerships with suppliers of the most suitable oranic waste for fertilizer and protein production. These and future partnerships will enable Ecodudu to continuously drive up internal production. 

Financial: Ecodudu has continuously improved its profit margins. The now optimized production model allows for further profit margin growth. By further driving the use of mobile technology and data analytics, Ecodudu will be able to scale at decreased relative cost.

6 full-time staff

4 part-time staff

Having started as a sales agent at a feed company, Adan (CEO) quickly realized the dire need for alternative protein. Adan has been able to design and execute biological processes that are modular and optimizable. Such deep knowledge of production has provided Ecodudu with an engineering edge whereby he is able to design, optimize and grow the facility while meeting demand. Together with Starlin (COO), whose background in soldier fly larvae research is very deep as acknowledged by the International Center for Insect Physiology and Ecology (ICIPE), the company exerts a sharp combination of market knowledge, engineering competence and insect nutrition R&D that we believe is a driving force to achieve our goals.

As Ecodudu grows its team of motivated people and a network of experts such as Dr. George Kosimbei, who is a member of the member of Health Economics and Policy Network in Africa (HEPNet) and a senior lecturer at the Kenyatta University School of Economics, Adan and Starlin further cement their confidence in achieving more goals. 

Ecodudu has partnered with Greentec Capital Partners in order to help the company manage its growth stage. The partnership is allowing Ecodudu to benefit from the operational and strategic expertise Greentec Capital has to offer.

Ecodudu is running a B2B business, selling two main products (both produced within the same production process): organic fertilizer and insect-based protein for animal feed. 

Ecodudu collects organic waste from food growers, distillers, brewers and open air markets. At the rearing facility, black soldier fly eggs are added to the waste, so that they can grow into mature larvae. Through this bio-conversion, the initial waste is decomposed, and after being separated from the larvae and composted for additional 40 days, can be sold as organic fertilizer. The so-called Shamba Mix is sold to farmers and agriproduct distributors.

At the same time, 90% of the separated matured “wet” larvae will be sterilized, dried and packaged into the protein product named Dudu Meal. Currently Dudu Meal is sold to commercial feed manufacturers. The other 10% of wet larvae continue to grow into new black soldier flies, which can then be used to produce new eggs. This allows for a cost-effective circular production activity, only requiring additional organic waste to continuously produce both products.

In order to scale and decentralise production, the company has designed an outgrower model, in which smallholder farmers get eggs from Ecodudu and grow them into mature larvae, which are then picked up and processed at Ecodudu’s facility. For each onboarded farmer in the outgrower model, Ecodudu is able to increase its production capacity by a minimum of 150kg of larvae and a minimum 500kg of fertilizer per month.

By applying to Solve, Ecodudu is hoping to gain acces to further guidance on a number of issues. 

Firstly, as Ecodudu is expanding its outgrower model and thus will manage an increasingly complex supply chain, Ecodudu hopes to gain support on how to best implement and execute quality control processes at larger scale. Furthermore, as Ecodudu is further developing tech solutions to interact with farmers and manage bigger supply chains, support and contacts to teams experienced in mobile tech development would be highly beneficial.

Secondly, as Ecodudu is scaling up its production overall, mentorship on soft & hard skills for sales, comms and marketing would be an asset.

Finally, input on how to structure and execute effective M&E practices would be beneficial for Ecodudu to continuously measure its impact in the long run.

Building on the experience of Solver Teams will be a great asset as these teams have undergone the same growth stage at which Ecodudu is today. As Ecodudu plans to scale exponentially over the next 5 years, receiving guidance on how to structure the decentralised production model - which is one of Ecodudu's biggest assets - will be detrimental. 

Furthermore, Ecodudu will profit from any mentorship on marketing and comms as we feel like this is one of our weaknesses at the moment.

As Ecodudu is continously expanding its outgrower model, outreach to farmers and farmer cooperatives is of increasing importance. As ColdHubs is working with fishermen, we would be interested in any insights into their customer acquisition strategy. From this we hope to learn about best practices concerning how to systematically reach out and communicate the value Ecodudu offers smallholder farmers.

Insights from researchers at MIT into the application of Black Soldier Fly in fertilizer production would also be interesting to us. Generally, receiving support from MIT faculties on further product testing could bring additional value to Ecodudu.