Thu, 19 Apr 2018
There have been recurring news stories about the use of dried maggots as protein supplement in animal feed. For example Insects could feed the animals of tomorrow’s meat industry (maggots fed on slaughterhouse waste, particularly blood) or Insect farms gear up to feed soaring global protein demand (maggots fed on rotten fruit). Then they dry the larvae and either use them whole or grind them into meal. In particular the fly meal can be used as a replacement for fish meal, which is ground dried fish that is used as feed for fish in fish farms. (Yep, we grind up fish we don't like, to feed to other, better fish.)
I was referred to that second article by Metafilter and The Google, in its infinite wisdom, decided to show me an advertisement for dried fly larvae. The ad was for NaturesPeck, which sells bagged fly larvae and fly meal for use as poultry feed or wild bird feed. They have a special “value pack” that contains 16 pounds of dried larvae for $88. That is $5.50 a pound! Holy cow, WTF? How can that even be possible when my local grocery store is selling boneless center cut pork chops for $2.50 per pound?
Okay, I thought maybe NaturesPeck was some sort of boutique operation, charging a high markup for small quantities, maybe they claim to have sustainably-harvested fly meal from free-range organically-fed flies or something. So I went looking for an industrial wholesaler of bulk fly meal and quickly found Haocheng Mealworms Inc. in Xiangtan, China. This is definitely what I was looking for; they will be glad to sell you a standard 40-foot shipping container full of dried maggots or other larvae. The quoted price for dried mealworm larvae is $8400 per metric tonne, plus shipping ($170–200 per tonne).
Prices, converted to U.S. dollars per pound, are as follows:
So it wasn't just that NaturesPeck was marking them up. Even the least expensive product costs as much as retail pork chops.
I don't get it. There must be some important aspect of this that I am missing, because a market failure of this magnitude is impossible.
BTW, Haocheng recommends that:
Not at those prices, buddy.
[ Addendum 20180502: Some possible explanations ]