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Farming and food · Business Ideas for Nepal

Feed from Fly Larvae

Black soldier fly larvae eat food waste and turn it into protein feed for chickens and fish, and fertiliser for fields.

To start
No reliable figure
First income
About 2 months
Where
Village, Town
How hard
Takes some skill
Black soldier fly larvae crowded on pieces of yam
Zenyrgarden, CC BY-SA 4.0, Wikimedia Commons

The idea

The larvae of the black soldier fly, a harmless fly that doesn’t bite or spread disease, eat almost any food waste. In about two weeks they grow fat on vegetable peels and market scraps. Dried, they are a protein feed for poultry and fish; what they leave behind, called frass, is a fertiliser. One business solves two problems at once: food waste that towns must get rid of, and feed that farmers find costly and Nepal mostly imports.

How it’s done elsewhere

Protix Netherlands
Since 2019 its plant has raised larvae on food factories’ leftovers, about 14,000 tonnes of live larvae a year (2023), and sold them as feed ingredients. In 2023 Tyson Foods, the American meat company, bought a share in Protix to build a plant in the USA.

InsectiPro Kenya, since 2018
Raises black soldier flies on waste and sells the dried insects as animal feed and the frass as fertiliser; it also raises crickets as a protein snack. It says it has turned 22,000 tonnes of waste into products and trained 20,000 farmers to use frass.

Loopworm Bengaluru, India, since 2019
Started by two graduates of IIT Roorkee, it grew from a pilot that made 50 kg of insects a day. In 2022 it raised US$3.4 million from investors to build a large plant; the news report called it India’s first insect farming start-up.

Where and how in Nepal

Feed is about 70% of what it costs to raise poultry in Nepal, and up to 70% of feed ingredients are imported, including 99% of the soybean (Kathmandu Post, 2025). Meanwhile the Kathmandu Valley throws away about 1,200 tonnes of waste a day, and over half of Nepal’s municipal waste is organic. A larvae farm fits best near both: beside a vegetable market or a town’s waste collection, close to poultry and fish farms, in a warm place like Chitwan or the Tarai, since the larvae grow slowly in the cold. It has started here: seven women in Bhardeu, Lalitpur opened Nepal’s first such farm in 2023, after months of training, with larvae brought from Chitwan. Agriculture and Forestry University researchers first recorded the fly in Nepal in 2020. The National Innovation Center lists training and young larvae for new farms, but marked them not available in October 2026.

Possible outcomes

  • A small farm selling feed and frass to nearby poultry and fish farmers.
  • A contract with a municipality or market to take its food waste.
  • A larger plant supplying feed mills, replacing some imported soybean.

Feed from Fly Larvae · 1 of 2 · science-playground.com/learn/business-ideas/black-soldier-fly-feed

How it makes money

Two things to sell: dried larvae as feed, and frass as fertiliser; a town might also pay you to take its food waste (no Nepali figure found). The costs are a warm room, trays, drying, transport and your time. The Bhardeu farm sold dried larvae at Rs 70 a kilo and expected 3,500 kg from one 45–60-day cycle (2023): about Rs 2.45 lakh a cycle before costs. It began with a US$110,000 grant; we found no cost for a smaller farm.

Opportunities

  • Poultry and fish farmers want cheaper feed made in Nepal; a fish farmer near Bhardeu said he would buy 50 kg a day.
  • Towns pay to get rid of waste and are short of landfill.
  • Frass can be sold to vegetable and flower growers as a second product.
  • Few farms exist yet, so an early farm can become the local supplier.

Risks

  • Larvae grow slowly in the cold; hill farms need warm rooms.
  • Farmers don’t know insect feed yet: show them it works.
  • Waste must be sorted: plastic and glass spoil it.
  • Feed sellers need a licence (Feed Act), but no rule covers insects, so buyers may hesitate.

What to learn

Raising larvae: ask the National Innovation Center about its training, young larvae and farm designs. Feed and animals: CTEVT’s 18-month Pre-Diploma in Livestock Production and Animal Health (JTA) covers animal nutrition, poultry and entrepreneurship. Business: Cottage and Small Industry Offices run 10-day Entrepreneurship Development Trainings.

Learn it abroad, bring it home

Nobody goes abroad to farm insects, but many go to farm. In 2024, 4,559 Nepalis were set to sign contracts for South Korea’s farms and livestock sheds under the EPS, and Japan’s specified skilled worker visa has an agriculture field. Both teach the daily care, feeding and hygiene a larvae farm needs.

Try it small

In a warm month, raise one batch of larvae in a crate on scraps from a vegetable seller. Dry a few kilos and take them to three poultry or fish farmers: will they buy, and at what price?

Then

  1. Visit a poultry farm and ask what feed costs and where it comes from.
  2. Contact the National Innovation Center or the Bhardeu farm and visit if you can.
  3. Ask a nearby market how much food waste it throws away each day.
  4. Register the farm, get a feed licence, and agree a waste supply with the market before you grow.

Registering, loans for young people and returnees, and borrowing safely: Starting a Business in Nepal (science-playground.com/learn/business-ideas/starting-in-nepal).

More than the printed sheet

The businesses elsewhere, in full

Protix (Netherlands). In 2019 Protix opened, in Bergen op Zoom, what it calls the world’s first industrial insect plant. It feeds the larvae on leftovers from food factories and sells the protein and fat made from them to companies that make pet food, fish feed and livestock feed. In October 2023 Tyson Foods, the American meat company, bought a minority share; with the existing investors it put in €55 million, and the two agreed to build a plant in the United States, three to four times the size of the Dutch one. The site had not been chosen then; the plant was meant to start towards the end of 2025, and we found no report that it has. Protix itself expects its income to reach about €1 billion only by 2035: even the biggest insect farms are a long bet.

InsectiPro (Kenya). Talash Huijbers studied food and agribusiness in the Netherlands and set out to farm fish. She found that feed, and above all the protein in it, was what made fish farming costly, so in 2018 she started raising black soldier flies instead, on one leased acre at Red Hill, Limuru, with her first flies from icipe, the insect research centre in Nairobi. By 2024 it ran more than 2,000 crates in over 12 greenhouses and took in over 60 tonnes of waste a day; it sold its feed at 130 Kenyan shillings a kilo, through depots in Meru and Bomet and had added crickets as a snack. It has needed more than US$2 million of investment and is still looking for more.

Loopworm (India). Ankit Alok Bagaria and Abhi Gawri, graduates of IIT Roorkee, began in 2019 by talking to fish and poultry farmers. For three years they lived on government grants and foundation money while a pilot made about 50 kg of insects a day and they tested feed recipes. In 2022 they raised US$3.4 million for a factory in north Bengaluru. Since then they have added silkworms to the black soldier fly, run a plant that can process 6,000 tonnes a year, and sell mostly abroad, to makers of fish, salmon and pet feed in Europe, South America and South-East Asia. Their income in 2024–25 was ₹4.5 crore, small next to the US$6.65 million raised: insect feed takes years to pay.

What a famous failure teaches

France’s Ÿnsect raised over US$600 million and built a giant factory before it had shown it could make insect protein cheaply. Feed is bought on price, and buyers would not pay more because it was greener; its insects ate grain by-products that could already go into feed, so they added a costly step; then energy and interest costs rose. In December 2025 a French court ordered the company to be wound up. A rival that started small and grew step by step is reported to be doing better.

For a farm in Nepal the lessons are the same at a smaller size: feed the larvae on waste nobody else can use, ideally waste someone pays you to take; sell to the farmers next door first; and grow only once each batch pays for itself.

The money, worked through

Step 1: what comes out of a tonne of waste. A guide by Eawag, the Swiss water research institute (2021), says larvae come to about 10–20% of the waste’s weight, and drying takes away about 70% of the larvae’s weight. So 1,000 kg of waste gives 100–200 kg of fresh larvae, and 100–200 × 0.3 = 30–60 kg of dried larvae.

Step 2: what that sells for. The Bhardeu farm sold dried larvae at Rs 70 a kilo (2023). 30–60 kg × Rs 70 = Rs 2,100–4,200 from each tonne of waste.

Step 3: how much waste a real farm needs. Bhardeu expected 3,500 kg a cycle. If that is dried larvae, by the same rates it needs 3,500 ÷ 0.06 = about 58 tonnes to 3,500 ÷ 0.03 = about 117 tonnes of waste a cycle: roughly 1–2.6 tonnes every day over a 45–60-day cycle. A small farm must first find a steady supply of waste.

Step 4: the second product. The same guide says each tonne of waste also leaves 200–400 kg of frass. We found no reliable price for frass in Nepal: ask agrovet shops what compost or vermicompost sells for.

Step 5: the costs. No reliable figure for a small farm: price the shed, crates, winter heat, drying, carrying the waste and wages yourself.

Step 6: is it cheaper than what farmers use now? We found no reliable current price for soybean meal or fishmeal in Nepal; ask a feed shop. Dried larvae are about 30–40% protein (Eawag), so compare the price of a kilo of protein, not of a kilo of feed.

Other places in Nepal it could fit

Chitwan. In the government’s 2015 poultry survey, Chitwan had 1,923 commercial poultry farms and laid 68% of Nepal’s eggs; its poultry trade was worth about Rs 10 billion a year. Feed buyers are close together, it is warm, and the Bhardeu farm’s first larvae came from there. The charity behind Bhardeu was considering Chitwan or Kailali for its next farm because their climate suits the larvae better (Reuters, 2023).

Bara. A fisheries “super zone” under the government’s agriculture modernisation project, with 4,340 fish ponds on 1,765 hectares, where the warm water allows three harvests a year. Nepal doesn’t make enough fish feed, so Bara’s farmers buy costlier feed from India (Kathmandu Post, 2018).

The Kathmandu Valley has the most waste, about 1,200 tonnes a day, but its winters are cold for the larvae, which grow best at 24–30 °C. Bhardeu keeps them in cages with heating panels, and its backers were still testing how well the larvae do in the cold.

Questions people ask

Isn’t it dirty? Will the flies spread disease?
The adult flies don’t eat at all and live about a week; they only need water. Studies show feeding waste to the larvae kills disease bacteria such as Salmonella (Eawag, 2021). The women at Bhardeu first found the larvae disgusting and handled them with confidence after training.
Can I do it in a hill town?
Yes, but you must keep them warm. The larvae grow best at 24–30 °C; when it is colder they eat less and grow slowly (Eawag). Bhardeu, in Lalitpur, uses cages with heating panels.
Where do I get my first flies?
Bhardeu’s came from Chitwan. The National Innovation Center lists training, young larvae and farm designs, though its page showed them as not available when we checked in October 2026, so ask before you plan around it.
Do I need a licence to sell insect feed?
Nepal’s Feed Act of 2033 BS (1976) says anyone who makes, sells or supplies animal feed needs a licence, and a committee sets feed standards. We found no rule written for insects, so ask the livestock office before you sell.

Related

Sources for this part

The sheet’s own sources are listed on it, above.