Entrophy Farm

Entrophy Farm: Transforming Organic Waste into Value

Entrophy Farm is revolutionizing waste management and sustainable agriculture through innovative insect farming. Our mission is to convert organic waste into valuable products like insect-based animal feed and organic fertilizers, creating a sustainable and profitable business model.

Business Purpose

Our goal is to establish a pilot plant that turns organic waste into profit. By charging for waste removal and using the collected waste to produce high-quality, insect-based animal feed and fertilizers, we address significant waste management issues.

Our Products

Entrophy Farm is offering fishmeal alternative products as well as organic fertilizers from insect frass.

The products are:

1. Insect-based animal feed.

2. Organic fertilizer (insect frass).

Entrophy Farm aims to research and develop in efficient protein extraction systems and larvae post processing (insect oil, insect protein powder).

The Problem

Traditional animal feed, such as fishmeal, is unreliable, costly, and environmentally damaging. Its price depends on finite fish stocks, which are depleting and increasingly expensive. Fishmeal production is energy-intensive, contributes to carbon emissions, and faces geopolitical supply challenges.

The Solution

Our solution is a pilot plant producing insect-based animal feed to displace fishmeal. Leveraging local supply and demand, we start small and scale up. Insect-based feed is cost-effective, reliable, available year-round, and environmentally friendly. Main challenges include organic waste availability and market awareness.

The automated pilot plant will validate the market, mitigate risks, and achieve profitability even at low margins. It provides space to test our financial model, develop methods, build a brand, and partner with larger firms. Our equipment supplier is considering equity in our startup. A private agricultural company with a R&D department in Crete will support us with the MVP, a fruit processing company from Thessaloniki is interested in investing, and a Venture Capital has invited us in a pitching event in October 2024.

Pilot Plant Operations

Our plant will process 365 tons of organic waste annually, producing 288 tons of insect-based fertilizer and 72 tons of live Black Soldier Fly larvae. We also offer organic waste removal services. At full capacity, we expect a 48% gross profit margin.

Revenue Model

Our revenue will primarily come from the sale of insect-based animal feed, supplemented by income from waste removal services and fertilizer sales. The pilot plant will prove the profitability of replacing fishmeal with insect-based feed. As we scale, our marginal profits are expected to increase from 48% to 95%. 

Market Opportunity

Greece's annual demand for fishmeal in aquaculture and livestock is around 13,000 tons, and it purchases at least 140,000 tons of fertilizer annually. These markets provide ample growth opportunities. We plan to start in Greece and expand abroad.

Market Landscape

We aim to pioneer automated insect farming in Greece, using abundant organic waste and investing in innovative insect-based protein bars, protein extraction methods, and machinery development.

Financial Requirements

We require €642,274, while offering 15% equity. We aim to cover the capital expenses and operating costs for the first 2 years, which includes securing organic waste contracts and sourcing real estate. Year 1 will involve high expenses and low revenue as we build the plant. By Year 2, we expect to achieve full capacity and a 48% gross profit margin, supported by pre-arranged wholesale agreements.

Risk Mitigation

We will achieve small-scale profitability, setting the stage for scalable growth. Our strategy includes leveraging partnerships, maintaining low complexity, and focusing on wholesale opportunities, supported by regulatory support and subsidies.

Our Team

Our team includes Patrick Hurley with a background in investment banking, Miltiadis as our mechanical engineer, and Vasilis, an expert in entomology and insect physiology.