Local Insect Protein and the Global Risks to Soy availability

Global animal feed supply chains are increasingly vulnerable due to heavy reliance on imported soybean. Tariff wars, climate shocks, and geopolitical tensions have all highlighted the fragility of soy availability. In this context, locally produced insect protein (such as black soldier fly larvae) is emerging as a strategic and commercially smart alternative or supplement to soy. Insect farming offers a way to diversify feed protein sources, enhance supply chain resilience, and reduce dependence on volatile global markets.

Global Risks to Soy Supply

Major threats are driving feed stakeholders to seek alternatives to soy protein:

Trade disputes and volatility: Tariffs and trade wars can whiplash soy prices, as seen when international standoffs involving big buyers like U.S. and China have caused unpredictable price swings. Farmers and feed buyers face a rollercoaster market due to these geopolitical disruptions. And looks like the turbulence is just starting…

Geopolitical instability and stockpiling: Export bans or strategic stockpiling by countries can tighten global supply. For example, China’s outsized demand influences soy markets, meaning any policy shift or hoarding by the top importer can ripple into worldwide scarcity.

Climate and crop shocks: Soy production hinges on a few regions, so droughts, floods, or other climate events in key exporters (Brazil, U.S. and Argentina) send shockwaves through supply. Recent dry weathers in South America, for instance, slashed harvests and underscored soy’s climate vulnerability.

Logistics and export bottlenecks: Long supply lines invite risk – shipping delays, port closures, or low river levels can choke off feed shipments. Reliance on distant suppliers means that any logistical hiccup or export restriction can leave local feed industries in a lurch. The very fragile and controversial situations of both Suez and Panama canals raise major concerns for all global logistics, including also soy.

These structural risks make it clear why diversifying away from sole dependence on imported soy is prudent. Insect protein produced regionally can act as a buffer against such shocks.

Nutritional Advantages of Insect Protein for Poultry

Insects offer a nutritional profile tailored for poultry. Insect meals provide high-quality protein with an amino acid spectrum comparable to fishmeal and even superior to soy in key areas (depends on substrate and processing factors). For example, black soldier fly larvae (BSFL) meal contains higher levels of essential amino acids like lysine, leucine, and valine than soybean meal. Such a rich amino acid profile is highly beneficial for chicken growth and egg production.

Additionally, insect-based feeds are highly digestible – studies show that including BSF larvae in poultry diets maintains or even improves birds’ digestion and growth performance compared to conventional protein feeds. In essence, insects can meet poultry’s nutritional needs (protein, amino acids, minerals) efficiently, supporting bird health and productivity. There is also evidence that insect ingredients can improve gut health and immunity in poultry, further boosting overall performance.

Local Production and Practical Benefits

On-farm insect production – such as containerized fly larvae production units – enables protein to be grown right where feed is used! This local model drastically shortens the supply chain: instead of importing soy across oceans, farmers can cultivate insect larvae on local agro-industrial waste streams. The result is a more resilient and responsive feed supply.

Producers are insulated from global price swings and shipping uncertainties, since protein is generated on-site or within the region. Not only does this reduce long-haul transportation costs and emissions, it also means feed availability is less subject to distant disruptions. In sectors like poultry, where 90-100% of soy is often imported and alternatives are few, having a nearby insect protein source is a game-changer for feed security.

Local insect farming contributes to protein self-sufficiency and aligns with circular economy principles by converting waste to feed.

Equally important are the practical feeding benefits of insects. Unlike soy meal that requires extensive processing, insects can be fed to chickens directly. Farmers can toss live larvae (for example BSF larvae) to their flocks, allowing birds to engage in natural foraging behavior. Hens eagerly consume live insects – a natural part of their diet – which improves poultry welfare and reduces the need for costly feed processing.

In fact, trials have shown that supplementing chicken feed with live larvae can sustain egg production and flock health, with insect-fed hens sometimes laying more eggs for longer periods than control groups. By incorporating insects, producers can bypass some processing steps (drying, milling) and deliver fresh, nutrient-rich feed on-site. This flexibility (using larvae either live or as processed meal) gives feed formulators more options and can simplify on-farm operations.

A Resilient, Sustainable Feed Solution

Insect protein’s advantages — from mitigating global soy supply risks to delivering strong nutrition and on-farm practicality — make it a compelling addition to the feed supply chain. It offers resilience in the face of trade and climate uncertainties by decentralizing protein production.

It offers sustainability by valorizing waste and cutting transport and land use. And it holds economic promise: while insect feed is a young industry, scaling up local production can stabilize feed costs and reduce exposure to imported soy price shocks.

In a world of unpredictable tariffs, weather, and geopolitics, investing in local insect protein production is not just an environmental nicety but a strategic business move. Forward-looking poultry and livestock producers, feed companies, and policymakers are thus increasingly viewing insect farming as a smart way to future-proof feed supply chains — ensuring both profitability and food security in the years ahead.

Do you already follow us in LinkedIn? We share insights and news about BSF farming and insect business daily in Manna Insect LinkedIn page, come and join the discussion!