The world’s largest vertical insect farm, located in Amiens, is facing major financial challenges. Ynsect, the pioneering company behind this ambitious project, is going through a critical period. Despite considerable investment and promising innovations, the start-up now finds itself in a delicate situation. Let’s take a closer look at the challenges and prospects of this unique industrial adventure.
An innovative project facing financial difficulties
The Ynfarm plant in Poulainville, near Amiens, represents a colossal investment of between 100 and 150 million euros. This impressive infrastructure, standing 35-40 meters high over a surface area of 40,000 to 45,000 m², embodies Ynsect’s ambition to transform the production of alternative proteins.
However, economic reality has caught up with the company. On September 25, 2024, Ynsect was placed under safeguard proceedings by the Evry Commercial Court. This decision was taken against a worrying financial backdrop:
- A loss of 89.7 million euros in 2022
- Sales of just 3.23 million euros in the same year
- An urgent need for new investments to ensure the long-term viability of the business
The safeguard procedure offers Ynsect a 12-month respite to turn things around. During this period, the company can continue its operations while freezing its liabilities. This measure is designed to give Ynsect the time it needs to find new investors and restore its financial situation.
From ambition to reality: the challenges of production
The Amiens plant, billed as a flagship of innovation, started production later than planned. The first fertilizers were not produced until early 2024, followed by the start-up of protein production in the summer of the same year. This delay had a significant impact on the company’s financial projections.
The targeted production capacity is impressive: between 100,000 and 200,000 tonnes of ingredients per year. But achieving this level of production is proving to be a major challenge. The following table illustrates production targets in relation to current reality:
| Aspect | Initial target | Current reality |
|---|---|---|
| Jobs created | 500 | About a hundred |
| Fertilizer production | Start-up scheduled for 2023 | Early 2024 |
| Protein production | Start-up planned in 2023 | Summer 2024 |
These gaps between initial ambitions and operational reality illustrate the challenges inherent in industrializing innovative technologies. Producing proteins from beetles on a large scale is a complex process requiring meticulous fine-tuning.
Prospects and support for Ynsect’s future
Despite these difficulties, Ynsect has a number of major strengths. The company has obtained crucial authorizations to market its products for both animal feed and human consumption. These certifications open up potentially lucrative and rapidly expanding markets.
Local authorities seem determined to support this innovative project. Amiens Métropole, the Region and the French State plan to support the company in this critical phase. This support could prove decisive in attracting new investors and ensuring the plant’s long-term future.
Ynsect has already proven its ability to raise significant funds, with a total of around 645 million euros since its creation in 2011. This experience could prove invaluable in the search for new capital. The company claims to be in advanced discussions with potential investors.
A market-proof vertical farming model
Ynsect’s adventure in Amiens represents much more than a simple industrial project. It embodies a bold vision of the agriculture of the future, focused on the sustainable production of alternative proteins. The vertical insect farm promises to modernize our approach to food and agriculture.
However, the challenges faced by Ynsect underline the complexity of turning an innovative idea into a viable economic reality. The company must now prove that its model can be profitable on a large scale. The next few months will be crucial in proving the viability of this revolutionary approach.
The outcome of this adventure will have implications far beyond Amiens. It could influence the future of the alternative protein industry and vertical farming as a whole. Ynsect’s success or failure will serve as a barometer for the sector as a whole, potentially guiding future investment and policy in this emerging field.
As Ynsect seeks to overcome its current difficulties, the attention of the agri-food world remains riveted on Amiens. Time will tell whether this ambitious vertical insect farm will succeed in establishing itself as a sustainable and profitable model for tomorrow’s agriculture.
