Why Are Edible Insects Still So Expensive?

Eating insects, also known as entomophagy, has been around since the dawn of humankind. Meanwhile, when growing beef became easier than collecting insects, this delicious protein source got forgotten in many parts of the world. But now insects are returning to the menu when humankind is searching for alternative and more sustainable ways to produce protein. However, despite the potential benefits of edible insects, they remain relatively expensive compared to other protein sources such as meat and poultry. There are several reasons why edible insects are currently so expensive, which we can broadly categorize into production and demand-side factors.

The EU Favors Inefficient Meat Production Over Sustainable Insect Farming

The EU lavishly subsidizes the production of beef, pork, and chicken, turning a blind eye to the immensely more resource-efficient insect protein farming. This blatant favoritism undermines an eco-friendly revolution in food production.

Adding insult to injury, countries like Germany slap a hefty VAT on insect-based foods, categorizing them alongside luxury items like lobsters rather than offering the reduced VAT rates typically granted to essential foods.

Consumers across the EU unknowingly benefit from artificially cheap beef, pork, and chicken, oblivious to the fact that these prices don’t reflect the true environmental and production costs. Consequently, insect-based foods, priced to account for their actual sustainable production costs, appear disproportionately expensive.

In essence, the EU’s policy promotes resource-guzzling meat production, blatantly neglecting the superior efficiency of insect farming. The production of edible insects uses less than one-tenth the feed, one-hundredth the space, and about two-ten-thousandths the water required for beef production. This stark contrast highlights the EU’s failure to champion a sustainable and efficient future in food production.

The small scale of insect breeding operations

On the production side, one major factor contributing to the high cost of edible insects is the relatively small scale of current insect farming operations. Insect farming is a relatively new industry, and the vast majority of edible insects are still produced on a small scale, often by individual farmers or small companies. This small production scale makes production costs high, as the income from a small number of products must cover the overhead costs of running a farm or production facility.

Lack of standardized production methods

Another factor contributing to the high cost of edible insects is the lack of standardized production methods. Currently, there is a wide variety of approaches to insect farming, ranging from small-scale, low-tech operations to more industrialized, high-tech facilities. This diversity in production methods means that there is no one-size-fits-all approach to insect farming, and farmers must develop their own systems and processes, which can be time-consuming and costly.

Limited consumer demand for edible insects

In addition to these production-side factors, demand-side factors contribute to the high cost of edible insects. One such factor is the limited consumer demand for insects as a food source. While edible insects have gained some popularity in recent years, they still remain a niche product, and the market for insects is much smaller than the demand for more traditional protein sources such as meat and poultry. This limited demand means that the price of edible insects can be relatively high, as fewer consumers are willing to purchase them.

Limited availability of edible insects

Another demand-side factor contributing to the high cost of edible insects is the lack of widespread distribution and availability. Currently, edible insects are only widely available in some parts of the world, and they can be difficult to find in mainstream retail outlets. This limited availability means that consumers who want to purchase edible insects may have to go out of their way to find them, which can be inconvenient and time-consuming.

Regulatory and cultural barriers to edible insects

Finally, regulatory and cultural barriers can contribute to the high cost of edible insects. In many countries, strict regulations govern the production and sale of food products, including insects. These regulations can be time-consuming and costly to comply with, adding to the overall cost of producing and selling edible insects. In addition, there may be cultural barriers to adopting insects as a food source, particularly in regions where insects people don’t traditionally consume insects. These cultural barriers can limit the demand for edible insects, which in turn contributes to their high cost.

Conclusion

In conclusion, there are several reasons why edible insects are currently so expensive. These include the small scale of current insect farming operations, the lack of standardized production methods, limited consumer demand, limited availability, and regulatory and cultural barriers. While the potential benefits of edible insects as a sustainable protein source are significant, it will likely take time for the industry to overcome these challenges and bring down the cost of edible insects to a more competitive level.

Party Bugs produces its insect snacks in Finland, an EU country, and buys its insects from EU countries where all breeders must follow the strict EU regulations for food safety.