Agronutris, a French company specializing in Black Soldier Fly-based meal and oil for aquafeed and pet food, is experiencing financial difficulty.
The company has been placed under protection by a commercial court as it seeks to stabilize its financial situation.
Founded in 2018 in Toulouse, Agronutris inaugurated a production plant in Rethel, Ardennes, in the summer of 2022. However, on January 23, the company announced that the Sedan Commercial Court had initiated a safeguard procedure for its holding company, EAP Group. The move is intended to strengthen its financial structure and support its continued development. The procedure will last for six months, with the possibility of a six-month extension.
EAP Group stated that this decision aligns with its objective of gaining time to renegotiate debts with creditors while ensuring business continuity.
The situation mirrors that of Ynsect, a mealworm protein producer, which was placed under safeguard protection in September 2024 due to financial challenges.
Agronutris attributes its struggles to a difficult economic climate. The company cited challenges in securing financing, as investors have been hesitant due to recent setbacks in the sector.
Investor hunt
Ynsect, meanwhile, has launched an investor search as part of its safeguard process. According to a report in Les Echos, a call for bids to attract investors or potential buyers was issued on January 17, with a submission deadline set for February 17.
Industry experts have weighed in on the struggles faced by Ynsect and the broader sector. Matthieu Vincent, a partner at DigitalFoodLab, commented on social media that Ynsect’s financial troubles highlight a broader issue in France’s approach to industrial investment. He argued that excessive public funding—whether through direct investments from Bpifrance (BPI) or indirectly through state-backed funds—has fueled ambitious projects without ensuring their profitability, market demand, or scalability.
Bart Roszkowski, co-CEO of Proteine Resources, took a different view, asserting that Ynsect’s struggles stem from its business model rather than public funding.
“Their operating costs were extremely high, their product quality was average, and they entered a market dominated by cheaper alternatives like soy and fishmeal,” he said. “From the start, this wasn’t a sustainable business. They compounded their challenges by rapidly building a massive hyper-facility. What could possibly go wrong?”
The challenges faced by both Agronutris and Ynsect raise questions about the long-term viability of insect-based protein ventures, given the increasingly challenged investment landscape.
Credit: feednavigator.com
