FLY COLONY

The fly colony is Africa's first digital circular economy platform for animal feed production.

The fly colony utilizes food waste in production of a protein rich animal feed ingredient i.e maggot meal through Black Soldier Fly (BSF) farming.

The colony addresses two main problems; food waste and environmental degradation.

The BSF does not transmit disease. Female lays about a 1,000 eggs close to a suitable feed source such as food waste. The eggs develops into larvae (i.e. maggots) while feeding voraciously on food waste. The larvae are then harvested, dried and used as feed for fish.

The fly colony has two platforms; the physical and digital platform.

The physical platform is made up of three key stakeholders’ i.e

1. The waste suppliers

2. The up cyclers

3. Farmers /feed manufacturers

The digital platform provides the following services:

1.  Data analytic services

 2. Feed formulation services 

1. Food Waste: In Africa, almost 50% of the food produced is wasted. According to the Food and Agricultural Organization (FAO), the amount of food wasted on the continent is enough to feed 300 million people.

2. High Cost of Protein Rich Animal feed: The price of soybean meal and fish meal has risen sharply over the last decade. This means that farmers have been paying a lot more to buy animal feed that contains sufficient protein (soybeans and fish meal) to grow their livestock to market size.

3. Environmental Degradation:

  Protein in animal feed comes mainly soybeans meal and fish meal. Soybean is the second largest agricultural driver of deforestation worldwide. Deforestation is responsible for about 15% of all global green house gas emissions caused by people. The problem with fish meal is that natural fish stocks in the oceans are reducing drastically.If we continue to harvest fish from the seas and oceans at the current rate, we could run out of fish in less than 30 years.

 Our target populations are farmers and feed manufacturers of poultry, fish and pig in Nigeria. The solution addresses their need by significantly reducing the cost of feeding their livestock by 20% and for profit maximization. The product is a good replacement for fish meal and soy bean meal.

They are more concern about reducing their cost of production. We are working with them on how to formulate low cost feeds by using the feed calculator on our digital platform. Maggot meal are grounded and blended with other feed ingredients and used as an inexpensive protein source in formulated diets for monogastric animals like fish, chickens and pigs.

Nigeria is endowed 7.1 million pigs, 145 million chickens, 100 million fishes, (National Agricultural Sample Survey, 2011) making Nigeria the top most livestock producer in West Africa. The country also has the high number of animal feed manufacturers (620) in Sub- Saharan, producing approximately 3.8 million tons of feed in 2000. The large number of feed mills can be attributed to the dominance of the sector by small –scale operators (59) percent of all feed produce between 0.5 -5 tons/hour).

The fly colony is a platform that utilizes food waste in production of a protein rich animal feed ingredient i.e maggot meal through Black Soldier Fly (BSF) farming.

The black soldier fly is not a vector of disease. Female lays about a 1,000 eggs close to a suitable feed source. The eggs develops into larvae (i.e. maggots) while feeding voraciously on food waste. The larvae are harvested at pre pupae stage, dried and grounded into maggot meal used as an inexpensive protein source in formulated diets for monogastric animals like fish, chickens and pigs. Maggots have crude protein content of 46% comparable to fish meal.

Producing insect-based protein (maggots) doesn’t come with the adverse environmental consequences of producing animal protein (fishmeal) and plant protein (soybean) which are leading drivers of ecological destruction around the world.

The fly colony has two platforms; the physical and digital platform.

A. The physical platform is made up of three key stakeholders:

1. The waste suppliers: These are independent suppliers of food waste to the colony.

2. The up cyclers: They perform the core fly farming activity by utilizing food waste for fly farming to produce larva meal.

3. Farmers /feed manufacturers: These are customers that utilize the maggot meal produced in the colony for animal feed.

B. The digital platform. The fly colony (www.flycolony.com) is Africa’s first digital circular economy platform for animal feed production.

The digital platform provides the following services:

• Data analytics services:  The platform uses Big Query to provide a managed data analytics services for food waste suppliers. Using Artificial intelligence (AI) the platform provides insights needed for efficient food waste collection and supply. Such insights include type of waste, location, suitability, peak periods, price and location of food waste etc.

This project makes use of data in a new and exciting way by digitizing the various sources of food waste. The process involves the conversion of information on food waste usually available in a physical form into an online, real time form thereby facilitating the collection, movement and eventual up cycling of waste by the fly colony and other fly farms.

This process requires that both waste generators and suppliers sign up on the digital platform

2. Feed Formulation: The platform is integrated with a feed calculator that helps customers formulate the best feed at lowest cost using maggot meal as a protein recipe.

The fly colony's competitive advantage lies in the adoption of a circular economy model in animal production.

A Circular economy is one that is regenerative and improves the society ecologically and socially. It's a system that supports economic growth, social well being and sustainability.

In 2018, the global demand for resources was 1.7 times what the earth can support in one year and it's only expected to rise.

The best part of producing insect-based protein such as maggot meal is that it doesn’t come with the adverse environmental consequences of producing animal protein (fish meal) and plant protein (soybean meal) which require more land, water and energy resources.

For each ton of fish meal or soybeans meal replaced by our maggot feed, an environmental saving of between $2,550 and $3,250 per ton is achieved in the form of avoided fossil fuel consumption , land use and carbon emissions.

This project makes use of data in a new and exciting way by digitizing the various sources of food waste. The process involves the conversion of information on food waste usually available in a physical form into an online, real time form thereby facilitating the collection, movement and eventual up cycling of waste by the fly colony and other fly farms.

The fly colony's competitive advantage lies in the adoption of a circular economy model in animal production.

A Circular economy is one that is regenerative and improves the society ecologically and socially. It's a system that supports economic growth, social well being and sustainability.

In 2018, the global demand for resources was 1.7 times what the earth can support in one year and it's only expected to rise.

The best part of producing insect-based protein such as maggot meal is that it doesn’t come with the adverse environmental consequences of producing animal protein (fish meal) and plant protein (soybean meal) which require more land, water and energy resources.

For each ton of fish meal or soybeans meal replaced by our maggot feed, an environmental saving of between $2,550 and $3,250 per ton is achieved in the form of avoided fossil fuel consumption , land use and carbon emissions.

This project makes use of data in a new and exciting way by digitizing the various sources of food waste. The process involves the conversion of information on food waste usually available in a physical form into an online, real time form thereby facilitating the collection, movement and eventual up cycling of waste by the fly colony and other fly farms.

Our solution addresses the following problems:

1. Food Waste     

2. High Cost of Protein Rich Animal feed

3. Environmental Degradation:

 The solution addresses these problems by turning food waste into valuable resources for animal feed production. It also provides an inexpensive and sustainable replacement for fish and soybeans meal.

For each ton of fish meal or soybeans meal replaced by our maggot feed, an environmental saving of between $2,550 and $3,250 per ton is achieved in the form of avoided fossil fuel consumption , land use and carbon emissions.

The solution also facilitates waste collection and up cycling by digitalizing the various sources of food waste for data analytics purpose. The digital platform is integrated with a feed calculator that helps farmers formulate low cost feed using maggot meal as part of the ingredient.

The project is presently in its pilot stage and there are over 3 farmers using our maggot meal. In the next one year, we project to be serving  50 farmers within our target market and up to 200 farmers/ feed manufacturers (with total monthly utilisation of 20,000 tons) within the next 5 years.

Other beneficiaries are the food waste suppliers that leverge on the data analytic function of the digital platform for supply of waste collected from post consumers (i.e household, hotels, cafteria, market etc).  This is in its pilot stage  and we project to serve 100 waste suppliers within the next one year, 1000 suppliers within the next 5 years.

1.Fully digitising the various sources of food waste in our target market i.e Lagos, Nigeria within  a year.

 2.Upclycing 50% of food waste from our target environment in the next 12 months.

2. Production of at least 200 tons of maggot meal within the next 12 months.

3. Sustaining a minimum profit margin of  $150 per ton from sales of our product.

4. Creation of over 200 new jobs; direct and indirect - 40% women within the next 24 months

5. Achieving a minimum net profit of N8, 880,000 or $24,000 profit within the first 12 months.

6. Actively engaging up to 1,000 waste suppliers for the data analytics service on the digital platform within the first 12 months.

7. Engaging up to 50 farmers/ feed manufacturers for the food formulation service on the digital platform within the next 12 months.

5 Years Plan

1.Upclycing 95% of food waste from our target environment in the next 5 years.

2. Production of at least 10,000 tons of maggot meal within the next 5 years 

3. Creation of over 1000 new jobs; direct and indirect - 40% women within the next 24 months

4. Achieving a minimum net profit of  $138,000 profit within the first 12 months.

5. Engaging  1,000 waste suppliers for the data analytics service on the digital platform within the first 12 months.

6. Engaging up to 1000 farmers/ feed manufacturers for the food formulation service on the digital platform within the next 5 years.

 First year challenges:

Market Barriers: The traditional sources of protein in animal feed are mainly soy bean and fish meal. Convincing farmers to change from known sources to the new feed ingredients may not a easy task.

 Infrastructure Challenges: This includes infrastructures like roads, electricity health. These facilities exist below average in Nigeria.

Human Capital Challenges: Attracting the  best brain to work with a start up in Nigeria is difficult. Most  top talents llove to work with established brands with lucrative  pay. 

5 Year challenges:

management 

Financial Challenges:  Finance is a major inhibiting factor affecting the implementation and fully pilloting of this project. We need more funds to    

 Infrastructure Challenges: We overcome this barrier by having a standby power generator for supply of electricity when there is none. We also ensure we purchase vehicles best suited for the kind of bad roads in Nigeria and taking a comprehensive insurance for the business.

Human Capital Challenges: We overcome this challenge by having an employment terms and condition that is favorable and attractive for top talents.

5 people made up of 2 permanent staff and 3 contract staff.

Mr Adenekan Olufemi: He is the Chief Executive Officer. He is a graduate of Economics and  Entrepreneurial Management . He has a certificate of technical competency on food waste  up-cycling  issued by International Livestock Research Institute (ILRI) and International Institute of Tropical Agriculture (IITA).

Mrs Adenekan Olukemi: She is a certified  associate member of two prominent financial institution: Institute of Chartered Accountant  of Nigeria and Certified Institute of Taxation of Nigeria. She has over 8 years working experience  in Financial accounting,auditing and taxation. She is the company finance controller.

Mr OPEYEMI SHOKUNBI :An IT specialist with 10 years experience.  He is the company IT  Controller. A graduate of computer engineering from Babcock University and has a  Masters in Network engineering from University of Lagos. He is the Company IT Director controller. His task is to coordinate and  ensure efficiency  of  the digital platform

Google: The platform leverages on google's big query to provide data analytic service 

Single Spark: The platform is integrated with their feed caluculator in formulating feeds

The platform i.e fly colony generates revenue through:

1.Sales of maggot (larva) meal: Revenue comes through sales of insect protein i.e maggot meal. A ton of maggot meal cost $833.

2.Data analytic service: the platform makes $10 on each query after users have  upgraded to the premium version of the analytic service.

3.Feed Formulation service:the platform makes $20 on each voucher purchase when upgrading to the premium version of the feed calculator.

The following are the social impact:

1. Ocean Impact:

Maggot meal can be substituted for fishmeal in fish feeds. For every tonne of maggot meal used  allows three tonnes of fish to remain in our ocean.

2. Carbon Impact

Fish meal and soybeans  are carbon intensive feed ingredients.The distance between the trawlers that ply the Atlantic seas to capture the fish, to its eventual point of use in USA, Europe or Asia is typically 10,000 KM. Maggot meal is made where its needed and has an environmental cost savings of $2,000 per ton compare to its fishmeal alternative.

 3. Landfills Impact

Waste management is a growing problem in most cities around the world. Our long term vision is to transform over 300 tons of food waste per day into valuable resources in animal feedstock production. Achieving this will have a material impact on local landfill sites. Reducing organics to landfills will help stop the degradation of aquifers and water tables through inevitable landfill leachate.

The key path to financial sustainability of this business is through:

1.Sales of maggot (larva) meal: Revenue comes through sales of insect protein i.e maggot meal. A ton of maggot meal cost $833.

2.Data analytic service: Food waste suppliers (to the fly colony) enjoy free trials when using the basic version of the data analytic service while the platform makes $10 on each query after users have  upgraded to the premium version of the analytic service.

3.Feed Formulation service: Feed formulators enjoy free trials when using the basic version of the feed calculator while the platform makes $20 on each voucher purchase when upgrading to the premium version of the feed calculator.

1. For funding opportunties

2. For networking purposes

3. For monitoring and evaluation

The human consumption of meat is tipped to soar, with the percentage growth in demand for animal protein worldwide between 2015 and 2035, by protein type. It is predicted that the global demand from 2015 to 2035, for eggs will grow by 50%, Poultry 65%, Pork 35%, Beef 30% and Seafood 30%.   The United Nations forecasts demand for meat, milk and eggs in Africa will almost quadruple by 2050, fueled by a ballooning population - expected to double to 2.4 billion - and a growing appetite for high-protein foods driven by rising living standards. This is despite the fact that more than 20 million people are currently struggling to feed themselves because of hunger crises spurred by drought, conflict and floods.

Furthermore, In 2018, the global demand for resources was 1.7 times what the earth can support in one year and it's only expected to rise.

We plan to use the GM prize on circular econony to reverse this trend by scaling the use of maggot meal as feed ingredients.