Do you want to start a black soldier fly farm and need to write a plan? If YES, here is a sample black soldier fly farming business plan template & feasibility report.
Black Soldier Flies (BSF) is the type of flies that are slightly bigger than the normal flies and known for its extraordinary ability to consume and reduce organic waste. It is also sold to poultries and dairy farms as a new protein source. Black fly larvae alone can contain up to 43 percent of protein, and they are a great source of calcium and amino acids as well.
Table of Content
- Why Breed Black Soldier Fly?
- Industry Overview
- Executive Summary
- Our Products and Services
- Our Mission and Vision Statement
- Job Roles and Responsibilities
- SWOT Analysis
- MARKET ANALYSIS
- Our Target Market
- SALES AND MARKETING STRATEGY
- Publicity and Advertising Strategy
- Sales Forecast
- Financial Projections and Costing
- Sustainability and Expansion Strategy
- Exit Strategy
Why Breed Black Soldier Fly?
In modern America, any animal raised for its meat must be a clean source of food, both before and after being processed. For poultries or cattle, black soldier flies mean the process is a whole lot faster and easier, since no matter what they eat, a black soldier fly’s digestive process kills any bacteria they encounter in their food.
A black soldier fly can easily lay up to 500 eggs in one go, and since they only live for 6 weeks, be ready to get more eggs from the next generation of BSFL. Compared to that, a chicken usually lays only about 200 eggs in a year.
To further show how advantageous their reproduction rate is when compared to other animals, black soldier fly larvae excel at converting fodder into food. While you would need 10 kg of fodder to make 1 kg of beef, BSFL only need around 1.5 kg of feed to produce 1 kg of meat.
If you are seeking for a fresh, organic source of protein that you can easily farm, this is it. It is unique and stress free. Once you put a little ramp in their feeding area with a bucket at the end, the BSFL will harvest it selves: just before they enter the final stage of their growth, they will look for a dark and dry place, and climb into the bucket by themselves.
They also prefer to stay very close together. This means that what counts as cruel towards other livestock, is actually a humane, and practical solution here. In addition, they produce zero waste since their remains are fertilizer, and take a lot less space than other animals, so farming black soldier flies in environmentally sustainable.
A Sample Black Soldier Fly Farming Business Plan Template
According to industry reports, the global black soldier fly market will reach $2.57 billion by 2030 with a CAGR of 33.3 percent during the forecast period of 2019 to 2030. The high growth of the black soldier fly market is due to the growing global meat demand, growing aquaculture industry, and the demand from animal feed industry for alternative proteins due to rising prices of soy meal.
In addition, growing government support for the use of insect meal in livestock feed, and growing investments by the key players operating in the BSF industry is fuelling overall growth. Although, factors such as non-standardized regulatory framework across Europe and limited acceptance and approval for BSFL application in human diet are negatively affecting the growth of this market.
In terms of industry product, in terms of value, protein meal maintained the largest share of the overall black soldier fly market in 2019. Geographically, Europe will enjoy rapid growth during the forecast period. This rapid growth can be due to the government approvals for the use of BSF in animal feed and pet food; growing funding and investments in BSF industry; and the presence of a large number of start-ups.
Howbeit, factors such as growing demand for protein-rich animal feed; large supply of organic waste, including pre-consumer food waste from agriculture and food and beverage sectors; and supportive government policies for BSF farming conditions are also encouraging the BSF insect farming, and their consumption in food, feed, and other industrial applications.
Feed Special® Black Soldier Fly Farm, Inc. is a new Black Soldier Fly Farm and Animal feed Production facility in Chicago, Illinois dedicated to sustainable, profitable and unique products. Black solider flies are slightly bigger than the normal flies and known for its extraordinary ability to consume and reduce organic waste. We plan to sell them as new protein source used as animal feed.
Our mission at Feed Special® Black Soldier Fly Farm, Inc. is to breed these amazing flies, and use them to produce animal proteins to supply local poultries and consumers in Chicago. Our goals include high quality products and processes, and all our methods include new technology utilizing sustainable agriculture and best management practices.
Feed Special® Black Soldier Fly Farm, Inc. would earn revenue through the production and selling of the feeds for cattle, swine and poultry using the black soldier flies. Livestock animals are increasing in their numbers and there is increase in demand of feeds for livestock especially in winter.
Our breeding and production would go on around the year since there is availability of key resources all time of the year. At Feed Special® Black Soldier Fly Farm, Inc., we hope to increase production by 20 percent and sales by 30 percent in the next five years. Thomas and Patricia Kent own Feed Special® Black Soldier Fly Farm, Inc.
The farm and facility will be located on 3 acres of land belonging to the family and has two round style greenhouses for production and the reduction of production risk. The Kent family have been farming for 4 years and is relatively new to the industry although Thomas grew up on a ranch.
From our market research, it is evident that consumers are interested in high-end speciality products. There is a move toward health and local that will benefit our operation. Few limitations to our business include time and labour to devote to the operation and feed production.
Feed Special® Black Soldier Fly Farm, Inc. is well prepared to grow into one of the leading commercial BSF farms in the united states of America. We have organised the processes and strategies that will enable us employ best practices within the proximity of the law.
Our Products and Services
Cattles are one of the major contributors in the livestock market across the United States and they are a significant component of the American dietary system that includes the dairy products like butter and cheese. Poultry also remains one of the important livestock components in this modern age.
Animal feed plays a vital role in the food chain, as feed is one of the most crucial contributors in ensuring safe, abundant and affordable animal protein. Incessant population growth and rising affordability has surged demand for animal protein in the United States.
Feed Special® Black Soldier Fly Farm, Inc. will leverage extensive farming practices to bred black solider flies for both the United States’ market and the world as a whole.
We also plan to produce both animal feed and fertilisers in very large quantities to meet the demand for clean protein source for livestock farmers and organic efficient fertilisers for crop farmers. We will also produce dried larvae, larvae oil, and chitin and chitosan. We plan to market them to the feed, agriculture, pet food, and other segments.
Our Mission and Vision Statement
- The Vision of Feed Special® Black Soldier Fly Farm, Inc. is to grow to become one of the leading commercial insect farms in the whole world, starting from the United States.
- Our mission at Feed Special® Black Soldier Fly Farm, Inc. is to provide unique and wholesome animal feeds that are affordable and sustainable.
- We work harmoniously with nature to grow quality black soldier flies to supply local poultries, cattle and swine in Chicago, Illinois
Our Business Structure
Feed Special® Black Soldier Fly Farm, Inc. is a black soldier fly farm that will be offering a wide range of animal feed and fertilizer produce. We plan to hire a number of employees to help us build a farm that will be able to meet the demand in the Chicago livestock industry.
We would also be hiring workers at intervals to help us deliver on our promise to provide sustainable options to our customers. Outlined below is the business structure of Feed Special® Black Soldier Fly Farm, Inc.:
- Chief Operating Officer
- Farm General Manager
- Business Accountant
- Black Soldier Fly Farming Manager/Supervisor
- Field Employees
Job Roles and Responsibilities
Chief Operating Officer
- Will be in charge of providing direction for the business
- Well be In charge of Creating, communicating, and implementing the farm’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall farm’s strategy.
- Will be in charge of the day to day running of the farm
- Will be in charge of handling high profile clients and deals
- Will be in charge of fixing prices and signing business deals
- Will be in charge of signing checks and documents on behalf of the company
- In charge of calculating the success of the farm at regular interval
Farm General Manager
- Will be in charge of the planning, management and coordinating all farm activities across the various sections on behalf of the farm
- Ensures compliance during project executions
- Obligated to provide advice on the management of farming activities across all section
- Should be able to use IT systems and software to keep track of people and progress of the growth of the insects
- In charge of overseeing the accounting, costing and sale of farm produce after harvest
- Is charged with representing the farm’s interest at various stakeholders meetings
- Makes sure that farming goals desired result are achieved, the most efficient resources are used and different interests involved are satisfied.
- In charge of overseeing the smooth running of HR and administrative tasks for the farm
- It’s obligated to define the job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- In charge of training, evaluation and assessment of employees
- In charge of overseeing the smooth running of the daily farming activities across the various farming sections
- In charge of overseeing the smooth running of HR and administrative tasks for the farm
- Tasked with defining job positions for recruitment and managing interviewing process
- In charge of training, evaluation and assessment of employees
- In charge of preparing financial reports, budgets, and financial statements for the farm
- In charge of financial forecasting and risks analysis
- In charge of developing and managing financial systems and policies
- In charge of administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Black Soldier fly Manager/Supervisor
- In charge of managing the black soldier farming section of the farm
- Tasked with supervising other workers within the department
- Works closely with the General Manager to achieve the farms’ goals and objectives
Field Workers/Contract Staff
- In charge of feeding flies
- Helps in carrying out task in line with the stated job description
- Help in transport working tools and equipment from the farm and back to the designated store room
- Handles any other duties as assigned my the line manager
- Tasked with Receiving Visitors / customers on behalf of the farm
- Tasked with receiving parcels / documents for the company
- Tasked with handling enquiries via e-mail and phone calls for the farm
- Tasked with handling any other duties as assigned by the manager
- In charge of protecting the farm and its environs
- Controls traffic and organize parking
- Tasked with giving security tips when necessary
- Patrols around the farm on a 24 hours basis
- Presents security reports weekly
Feed Special® Black Soldier Fly Farm, Inc. will compete favourably with leading feed production businesses in the United States of America. We will be offering a good number of agricultural resources, have properly analysed our market and our possibility for success.
Our SWOT analysis is to be analysed with a keen eye to capitalize on our strengths and make adjustments based on findings. Properly explained below is a summary of the result of the SWOT analysis of Feed Special® Black Soldier Fly Farm, Inc.,
- Devotion to the farm business
- Off farm income is helpful for start of the farm enterprise
- Well known in the community and reputation for quality
- Commitment to quality and success
- Constant trainings and workshops for management and production
- Do not have some of the machinery for feed production
- Lack of farm experience and new to black soldier fly farming
- Off farm jobs take precedence over farm
- Time and labour are an issue at peak time
- Local livestock movement is growing
- Promotion of Farmers Markets and coupon programs by state
- Lack of quality and affordable animal feed
- Local Farms and feed production businesses are Competitors
- Consumer preferences vary
- Product liability insurance are required by some potential clients
- Market Trends
In North America and Europe, black soldier fly prices are enormous compared to Asian countries, especially South Korea, Japan, Malaysia, and Vietnam, given the production cost differential between North America and Europe and Asia. In addition, in the US, the prices for BSF products are higher than in European countries, especially due to standardized regulatory framework and low BSF production units compared to Europe.
At Feed Special® Black Soldier Fly Farm, Inc., we also understand that the availability of fishmeal has become increasingly limited with the expansion of the aquaculture industry, causing volatility in the price of the ingredient. There are growing concerns about the deforestation link with soybean meal, and it is fuelling industry’s search for sustainable alternatives, leading to growing interest in insect derived protein.
Insect species that are mass-reared such as black soldier fly (BSF) have received significant attention mainly due to their ability to feed on different substrates including organic waste streams. Coupled with increasing demand from the feed industry for alternative proteins, we also understand at Feed Special® Black Soldier Fly Farm, Inc. that the growth of the BSF market stems from a hike in global demand.
Our Target Market
Poultry, cattle and swine are the fastest growing livestock sectors in the United States. These livestock need adequate feed to obtain high quality, improved growth rate and lower mortality rate. Although the feedstock is of different types depending on the product such as for eggs or meat, Black soldier fly feedstock are important feeding component in almost every livestock farm owing to its cost effective and desired results.
Our market at Feed Special® Black Soldier Fly Farm, Inc. is a part of the vast animal feed market that makes an important part of it as meat and livestock products consumed in most parts of the country.
At Feed Special® Black Soldier Fly Farm, Inc., we aspire to deliver quality products that would be beneficial for the health of the livestock and improve their longevity and productivity. It is expected that there would be a demand-pull at the customer end.
This can be further strengthened through innovative promotional strategies. The demand-pull is estimated to be significant thereby ensuring lowering of costs through economies of scale. It is expected that some of the competition would eventually be eliminated.
SALES AND MARKETING STRATEGY
At Feed Special® Black Soldier Fly Farm, Inc., we perfectly understand the importance of a well-detailed marketing plan and we have perfected ours by networking with livestock merchants and companies that rely on animal feeds for their farms. Properly aligned below are the basic sales and marketing strategies we will be adopted ongoing at Feed Special® Black Soldier Fly Farm, Inc.:
- We will be introducing our farm and products by sending introductory letters alongside our brochure to poultries, cattle ranches, crop farmers and industry businesses.
- We will also advertise our farm and products in livestock and agricultural related magazines and websites
- We will strive to attend related agriculture expos, seminars, and business fairs et al
- We also plan to make use of the internet to promote our business
- We also plan to engage in direct marketing
- We will also Encourage the use of Word of mouth marketing (referrals)
Publicity and Advertising Strategy
At Feed Special® Black Soldier Fly Farm, Inc., we boast of the zeal to grow our farm into a market leader in the industry. We have perfected plans to grow our brand awareness and create a corporate identity.
After our due market research, we know the critical points to leverage when deciding on the best strategies that will help us boost our brand awareness and to create a corporate identity for our farm. Summarized below are the strategies we have decided to use to boost our farm image:
- We plan to encourage our loyal customers to help with Word of Mouth mode of advertisement (referrals)
- We also plan to advertise our black soldier fly farm business in relevant magazines (agriculture and livestock related magazines), local newspaper, local TV and radio stations
- We will also promote our farm online via our official website and other farmers market publication
- We will list our farm business on local directories (yellow pages ads)
- We will make use of the internet and social media platforms like; Instagram, Google+, LinkedIn, Badoo, Facebook , twitter, et al to promote our farm business
- We plan to distribute our fliers and handbills in target areas (farm markets) at regular intervals.
Sources of Income
Feed Special® Black Soldier Fly Farm, Inc. is a privately owned farm that was established with the aim maximizing profits. Therefore, we have decided to leverage all available opportunities within our range to make Feed Special® Black Soldier Fly Farm, Inc. break even in the nearest possible time.
Feed Special® Black Soldier Fly Farm, Inc. would earn revenue through the production and selling of black soldier larvae and flies as feeds for cattle, swine and poultry.
We also plan to produce fertilisers in very large quantities to meet the demand for clean organic efficient fertilisers for crop farmers. We will earn revenue by selling dried larvae, larvae oil, and chitin and chitosan. All these products will be marketed to the feed, agriculture, pet food, and other segments.
We at Feed Special® Black Soldier Fly Farm, Inc. after our extensive research and feasibility studies have been able to discover what our sales might look like over the next three years. We believe in our strength and the products we offer from our farm, and we believe we will achieve these goals and figures.
We have also perfected our sales and marketing strategies to help us achieve our aim and goals, we have employed experienced hands and individuals we believe can help us be what we want, when we want.
Our sales forecast was actually based on what we believe is attainable for a new entrant in this industry and we have made everything possible in order to achieve it within the specified time or year. Outlined perfectly below is the three years forecast for Feed Special® Black Soldier Fly Farm, Inc.:
- First Year: $125,000
- Second Year: $449,000
- Third Year: $1,082,000
Our Pricing Strategy
To get the right pricing for our farm resources, we need to make sure that we reduce the cost of running our farm to the smallest minimum and make sure we attract buyers, as against taking our products to the market to source for buyers. With this, we would have successfully removed the cost of transporting the goods to the market and other logistics from the equation.
We believe the nature of the industry has made it possible for farmers to place prices on their products based on their discretion without any outlined procedure in the industry. We plan to price our products efficiently to buttress its quality and nutrients.
- Payment Options
We all at Feed Special® Black Soldier Fly Farm, Inc. after our extensive research and thorough discussion are aware that different customers prefer different payment options as it suits them. We plan to make sure that we provide them with payment options that will make their transactions less stressful and very open. Listed below are the payment options we are making available to our customers:
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
Financial Projections and Costing
As a farm that will be offering a good number of agricultural resources, we have properly analysed our market and our possibility for success. Our goals include high quality products and processes, and all our methods include new technology utilizing sustainable agriculture and best management practices.
We plan to offer a wide variety of services at Feed Special® Black Soldier Fly Farm, Inc. and we know what we need to make this farm profitable in no time.
The business would have only one production line with the production of feeds for cattle, swine and poultry. The production requires four types of machineries, which includes crusher machine, mixer machine, pelleting machine and conveyor machine, which works simultaneously one after the other accordingly. Outlined below are some of the basic areas we plan to spend our start up fund for Feed Special® Black Soldier Fly Farm, Inc.
- The price for registering our farm in United States of America – $750
- Our budget for key insurance policies, permits and business license – $4,000
- The cost of preparing our production facility – $55,000
- The budget for preparing the farm– $25,000
- The price for acquiring the required working tools and equipment / machines / et al– $600,000
- The price of Launching an official Website – $600
- The budget for paying our workers for 1 year – $500,000
- Other business requirements (Business cards, Signage, Adverts and Promotions et al) – $2,000
- Miscellaneous – $5,000
As you can see from our above cost analysis, we will need $1,192,350 to start Feed Special® Black Soldier Fly Farm, Inc. and make the farm ready to serve the needs of our customers.
Generating Funding/Start-up Capital for Feed Special® Black Soldier Fly Farm, Inc.
Feed Special® Black Soldier Fly Farm, Inc. is owned and operated by Thomas and Patricia Kent. The farm and facility will be located on 3 acres of land belonging to the family that has two round style greenhouses for production.
Feed Special® Black Soldier Fly Farm, Inc. is a privately owned farm that will be solely finance by the owners and their immediate family. Outlined below are the possible means we plan to raising funds for Feed Special® Black Soldier Fly Farm, Inc.,
- Raising part of the startup capital from personal savings and sale of his stocks
- Raising part of the startup capital from family members and friends (soft loans and gifts et al)
- Raising a larger chunk of the start-up capital from the banks (loan facility)
Sustainability and Expansion Strategy
Although Feed Special® Black Soldier Fly Farm, Inc. should try to focus much in winters to serve the farmers as there will be scarcity of natural feed during this period. Nevertheless, for institutional side, we have to focus on meeting up the demand all throughout the year.
Our sales team, headed by the Chief Operating Officer, should have clearly spelt out responsibilities for team members to address the above segment with a properly devised sales plan. As our work forces are mostly unskilled, there is a need to develop their skills according to the need of the industry.
Workshops or on-site short-term trainings will be organized by the farming alignment with suppliers of machineries on how to control the temperature, operate machineries etc. The training would be a combination of theory sessions, on-the-job coaching sessions and on-the-job supervision.
For people joining with no relevant experience, training in their respective functional area would be mandatory. There would be a periodic skill assessment done by the farm management based on observation of on-the-job performance. Based on the findings, a training calendar needs to be drawn up;
One of the most common complaints associated with insect farms and feed production are the odours produced. The odours that feed production emits are a complex mixture of ammonia, hydrogen sulphide, and carbon dioxide, as well as volatile and semi-volatile organic compounds.
These odours are worse than smells formerly associated with smaller livestock farms. The anaerobic reaction that occurs when manure is stored in pits or lagoons for long amounts of time is the main cause of the smells. Odours from waste will be carried away from farm areas to be disposed according to water management laws in the region.
- Insect Vectors
Feed production and their waste can be breeding grounds for insect vectors. Houseflies, stable flies, and mosquitoes are the most common insects associated with feed production. Houseflies breed in manure, while stable and other flies breed in decaying organic material, such as livestock bedding.
Mosquitoes breed in standing water, and water on the edges of manure lagoons can cause mosquito infestations to rise. Flies can change from eggs to adults in only 10 days, which means that substances in which flies breed on need to be cleaned up regularly at our facility.
Antibiotics are commonly administered in animal feed in the United States. Antibiotics are included at low levels in animal feed to reduce the chance of infection and to eradicate the need for animals to expend energy fighting off bacteria, with the assumption that saved energy will be translated into growth.
The main purposes of using non-therapeutic doses of antimicrobials in animal feed are so that animals will grow faster, produce more meat, and avoid illnesses.
Supporters of antibiotic use say that it allows animals to digest their food more efficiently, get the most benefit from it, and grow into strong and healthy animals. The trend of using antibiotics in feed has increased with the greater number of animals held in confinement. The more animals that are in close quarters, the more likely it is that infection or bacteria can spread among the animals.
Thomas and Patricia Kent will like to retire in 15 years and turn the farm over to their Son Austin. They have decided not to put more than $260,000 of their cash reserves at risk at anytime in the farm business. They want to work as a family unit in decision making regarding insects, enterprises, marketing and finances.
They also plan to invest in the farm business and hope to have a positive cash flow in 5 years. If not they will re-evaluate the farm business practice, market and product. At that time, they will decide to keep the farm in production or not.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts : Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress
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