Over the past decade, the average American’s protein consumption has increased by 25%. This surge in demand has led to unsustainable livestock farming, producing millions of tons of food waste each year. A significant portion of this waste ends up in landfills, producing greenhouse gases.

FAO estimates that the global livestock industry produces 14.5% of all human-caused greenhouse gas emissions. As the world seeks more sustainable and efficient protein sources, alternative proteins, including insect-based options, are gaining traction for their lower environmental impact and higher feed efficiency.

A foodtech startup, Nambu Group, uses insects to turn food waste into a valuable source of protein for livestock feed. Their insect-based livestock feed reduces reliance on traditional feed sources like soy and fishmeal.

We interviewed Nambu Group’s CEO, Lowell Scarr, to understand their vision and products. 

This interview is part of GreyB’s Scouted series. In this series, we spotlight innovative startups and talk to their founders about how their solutions can revolutionize the industry by solving problems. Readers get insider knowledge on the principal technologies and working principles behind pioneering startups like Bonumose, Better Juice, Axial3D, Skin Gourmet, etc., shared by the CEOs themselves! Explore all those interviews here in text and video format.

Author’s Note: Explore five more startups, like Nambu Group, working on insect protein products.

Traditional feed sources like soy and fishmeal are unsustainable. Our insect-based protein transforms food waste into an eco-friendly alternative, reducing carbon emissions and land use

– Lowell Scarr

Overview: Nambu Group’s Circular Approach to Livestock Feed Using Insects

Nambu Group produces protein by using insects, particularly the black soldier fly, as a sustainable source of livestock feed. With roots in South Africa, Nambu Group is among the pioneers of the emerging insect protein industry. Their approach addresses critical global issues such as food waste, sustainability, and the need for alternative protein sources. They offer products derived from insect proteins and provide farmers with the tools and knowledge to integrate this technology on their farms, helping drive industry-wide growth.

Watch the full conversation here.

Here are some highlights from the interview.

Can you explain what Nambu Group does?

The idea behind Nambu Group came from my background in agricultural economics, where I explored how insects could control invasive pests in agriculture. This led me to see the broader potential of insects as a sustainable source of protein, especially for livestock feed. The black soldier fly stood out because it produces a highly efficient protein and tackles food waste. We focus primarily on providing insect-based protein for livestock feed, but as the market evolves, there’s potential for human consumption, too. The black soldier fly offers a much better feed conversion ratio than traditional protein sources like fishmeal or soy, making it a more sustainable option regarding efficiency and environmental impact.

What makes Nambu Group’s livestock feed unique compared to other insect-based protein producers?

Our approach is designed for the African context. We’ve developed a low-cost and labor-intensive production system, making it accessible for local communities with limited infrastructure. We also use a distributed model with multiple smaller facilities rather than large centralized ones. This allows us to be more adaptable to the geography and logistics of waste sourcing. In contrast to other companies that may focus on large-scale, high-tech solutions, we prioritize flexibility and sustainability, using local resources to keep costs down and ensure long-term viability.

How does Nambu Group help companies reduce their carbon footprint, and how do regulations support your work?

We help companies, especially in the food and beverage sector, by reducing carbon emissions through more sustainable waste management. Instead of sending food waste to landfills or using more carbon-intensive methods like composting, we process that waste into protein. Legislation in South Africa is moving towards banning food waste in landfills, which works in our favor. Globally, carbon taxes and credits are pushing companies to seek out greener waste treatment solutions, and we’re positioned as one of the best options available.

How does Nambu Group plan to expand, and what challenges have you faced?

Our expansion is both geographic and strategic. We currently operate three sites in South Africa, with more planned soon. One of our strategies is to enable others by training farmers and livestock owners to implement insect farming on their land. This distributed model allows us to scale without building massive centralized facilities. One major challenge is developing systems that adapt to different environments and conditions. Initially, little knowledge or technology was available for insect protein production, so we had to innovate our solutions, from breeding systems to waste management processes.

What are your thoughts on patents and intellectual property, especially considering your innovativeness in this space?

Instead of solely pursuing patents, we’ve focused on keeping our production process proprietary, like specific feeding regimes or processing techniques. These are our “trade secrets” that provide us with long-term defensibility. We believe that by keeping some knowledge internal and fostering solid relationships with clients, we can maintain our competitive edge in a way that aligns with our overall philosophy.

Meet our Interviewer – Shabaz Khan, Marketing Manager at GreyB

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Authored By: Hemanth Shenoy, Market Research