According to the Zhongtong Finance APP, meat giant Tyson Foods (TSN.US) is entering the insect protein industry for the first time in an effort to diversify its business. The American meat producer announced on Tuesday that it has agreed to acquire a partial stake in Protix BV, based in Doetinchem, Netherlands, to assist with its expansion. The two companies will also establish a joint venture to build and operate a factory in the United States, producing insect-based food and oil, which are commonly used in fish feed and dog food. The financial terms of the transaction were not disclosed.
Currently, food giants including Cargill Inc. and Archer Daniels Midland (ADM.US) are facing stricter environmental scrutiny and are increasingly viewing insects such as black soldier flies, which are bred by Protix, as a low-carbon protein source. For Tyson Foods, this move represents a new avenue for expansion and provides new raw materials for the billions of chickens and pigs it raises each year. It is reported that Tyson Foods, headquartered in Springdale, Arkansas, produces about 20% of the total beef, chicken, and pork consumed in the United States.
John Tyson, Chief Financial Officer of Tyson Foods, said in an interview, &#34;This is a billion-dollar industry opportunity with tremendous growth potential, and we believe Protix will become a leader in this field.&#34; &#34;In the long run, adding insect protein to animal feed could be a real thing and could be beneficial to humans, the planet, and animals.&#34;
It is worth mentioning that Protix was founded in 2009 and is supported by Aqua-Spark Management BV and the private equity division of Rabobank, a Dutch cooperative bank. For Protix, cooperation with Tyson Foods means the opportunity to expand its business faster. The company supplies insect protein to pet food manufacturers such as Nestle SA and Mars Inc.
Kees Aarts, Founder and CEO of Protix, said, &#34;This is definitely a huge opportunity for us to enter the international arena.&#34; &#34;This is indeed a turning point that we have been working towards.&#34;
Aarts stated that although the location of the new factory in the United States has not been determined yet and it will not be completed before 2025, the scale of the factory will be four times that of Protix's existing facility in the Netherlands, accommodating all stages of insect protein production, including breeding, hatching, and incubation of insect larvae. In addition, the waste from Tyson Foods' meat processing plants will be used to feed these flies.

Meat giant Tyson Foods is making its first foray into the insect protein industry, seeking to achieve business diversification.

Meat giant Tyson Foods has agreed to acquire a partial stake in Protix to enter the insect protein industry.