Development of an economic prediction tool for hatchery residue valorisation systems through fermentation and black soldier fly bioconversion in Quebec

Abstract Hatchery residue valorisation through fermentation and black soldier fly larval bioconversion offers a promising alternative to conventional management. However, assessing the technical and economic feasibility of such systems is essential before implementation. While financial planning tools already exist, they require adaptation to specific production models, scales, and regional contexts. This study aimed to develop a feasibility assessment tool designed for a Quebec-based valorisation system. The tool incorporates two production models: centralised (110 tonnes per week (tpw)) and decentralised (10, 15, or 25 tpw), while evaluating the use of two fermentation co-products (dry or liquid whey permeate), two integration levels for reproduction (in-house or external supply of neonates), and two packaging options (bulk or retail). In total, 32 theoretical production scenarios were analysed. Infrastructure and equipment requirements were derived from supplier quotations and a pre-engineering report for black soldier fly processing facilities. The tool estimates operational costs, including labour, inputs, energy, and maintenance, as well as financial considerations such as loan repayments for capital expenditures. Revenues from the sale of dried larvae (pet food market) and composted frass (organic fertiliser) are included, enabling the calculation of annual profits based on the production model and site capacity. Although secondary processing scenarios are excluded, the tool provides a comprehensive overview of the costs associated with implementing and operating such a system. It considers regional factors, including the availability of inputs and the challenges posed by Quebec’s northern climate, making it a relevant tool for producers exploring alternative ways of managing hatchery residues.