Economic impact of inclusion of black soldier fly products in broiler diets: A comparison between conventional and higher animal welfare production systems in the Netherlands

The primary objectives of this study were to analyze economic feasibility of incorporating black soldier fly products in broiler feed and to compare the viability of alive (alive grown larvae (AGL)) or processed (defatted larvae meal (DLM) and insect oil) insect inclusion into the two Dutch broiler welfare systems: conventional and better life one star (BLS). An existing simulation model for insect production was adapted to build an economic model for the insect-fed broiler breast meat supply chain. Amounts, full costs, and breakeven prices of different production setups were compared and the impacts of specific input parameters were tested by sensitivity and breakeven analyses. Results indicated a hypothetical demand of 2.15 million tons wet matter of raw substrate to meet the total Dutch breast meat production (BLS broilers and 10% AGL inclusion). In case of 10% processed insect inclusion, the conventional broiler breast meat price increased from 3,947 to 6,069 €/t (53.7%) and the BLS breast meat price from 6,493 to 9,662 €/t (48.8%). Alive insect inclusion resulted in a smaller cost increase (42.2%) by skipping the costly processing step. To become price competitive, DLM or AGL must cost 618 or 801 €/ton dry matter (tDM), respectively, requiring a raw substrate mix price of -109 €/tDM. High input amounts and costs currently hinder the widespread adoption of insect products in Dutch mass poultry feed. However, in the long run, using negative value substrates or targeting niche markets for broiler welfare with low AGL inclusion levels could become viable business models. Research is needed on the impact of negative value substrates on insect production performance and contamination risks. Furthermore, the impact of varying AGL composition requires special attention.