Aiming to foster a more sustainable and resilient aquaculture supply chain, insect-based ingredients producer Entobel and Vinh Hoan - one of the world's largest producers of pangasius - have today announced the signing of an expanded strategic partnership. The partnership includes an offtake agreement by Feed One, a subsidiary of Vinh Hoan, to purchase a substantial volume of insect protein produced at Entobel’s Vung Tau factory in 2024.
Through the partnership, the companies hope to develop a more sustainable food system with a lower environmental impact, while accelerating the adoption of insect protein in aquaculture.
In addition to the offtake for 2024, through this agreement, Vinh Hoan will purchase a minimum of 15,000 metric tonnes of insect protein from Entobel over the next three years .
“Today, in collaboration with Entobel, we are creating a more sustainable and resilient aquaculture value chain with the added benefit of incorporating nutritious aquaculture feed ingredients with demonstrated health and immunity benefits,” said Nguyen Ngo Vi Tam, chief executive officer of Vinh Hoan.
“Vinh Hoan recognizes that a crucial element in feeding the world’s growing population while protecting the ocean’s ecosystem and biodiversity is to ensure that aquaculture feed ingredients come from sustainable sources. Accelerating the adoption of Entobel’s insect protein in pangasius production will make it possible for Vinh Hoan to source aquaculture feed ingredients in a more sustainable way and use feed ingredients that are not in direct competition with human nutrition, facilitating a more responsible aquaculture industry,” she added.
In November 2023, Entobel scaled up its production plant in Vung Tau, Vietnam, setting an industry record as the largest insect protein production plant in Asia.
“Entobel’s expanded partnership with Vinh Hoan is a decisive boost of confidence in Entobel’s ability to produce insect protein at scale and at cost levels that are competitive to fish meal. This partnership will further strengthen our capacity to deliver Entobel’s insect protein to our global customers,” said Gaëtan Crielaard, co-founder and co-chief executive officer at Entobel.
Plans to expand
Entobel is targeting the launch of its Series C funding round in Q2 2024 to support its regional growth plans
as it prepares to build new facilities in key markets, including Vietnam, Indonesia and Malaysia. The startup says that it has now "successfully de-risked the operational and technological aspects of the business model while demonstrating strong commercial traction for its products".
