This startup pitched cricket protein bars on Shark Tank. Now, they’re taking on a whole new industry

You may have seen Chapul Farms pitching their cricket bars on Shark Tank, but these days, they’re trying to transform an entirely different industry.



In 2018, the Oregon-based business shifted from cricket protein to fertilizer—more specifically, fertilizer made using black soldier fly larvae (BSFL). Now, it’s set to embark on an ambitious expansion with a massive facility in North Dakota.



“With all the evidence of how powerful black soldier flies are as a premium feed, it’s just a no brainer,” said Michael Place, CTO of Chapul Farms. “There’s no real obstacles other than ramping up production and growing. But with crickets, you’re trying to change human behavior. That’s a tall order.”



[Photo: Chapul Farms]



The larvae of these inconspicuous looking flies have one exemplary feature: their ability to digest nearly anything—making it a prime facilitator of decomposing organic waste materials.



[Photo: Chapul Farms]



“You can feed practically [anything] organic to the soldier fly larvae and they’ll digest it, a lot of insects tend to be restricted about what they can eat,” said Jeffery Tomberlin, a professor at Texas A&M and director of its Center for Environmental Sustainability through Insect Farming.



This natural skill set enables them to create nutrient-rich frass, a type of insect manure that doubles as a fertilizer or soil additive. While traditional composting can take up to 10 months, BSFL can convert that material in just a few weeks. It’s also been shown to produce less greenhouse gas emission than some other types of composting. 



[Photo: Chapul Farms]



“They are a voracious saprophytic insect that have done this for hundreds of millions of years,” said Place. “They’ve dealt with so many putrefying waste streams, wet, mucky, mixed up . . . they’re so versatile. They can handle a broad range of feedstocks and turn it over in a matter of weeks.”



[Photo: Chapul Farms]



They are also extremely resistant to environmental conditions , like extreme temperature variations and low oxygen environments, and are naturally rich in lipids and minerals that make their way into the soil.



Chapul Farms is starting construction on a facility in Jamestown, North Dakota, this summer. When completed next year, it will be able to process up to 150 tons of organic waste per day. The final budget for the project hovers around $75 million, with $4.9 million coming from a USDA fertilizer grant.



[Image: Chapul Farms/Nexus PMG]



This waste will go to produce thousands of pounds of BSFL and frass, a nitrogen-rich fertilizer. 



It’s a sustainable alternative to synthetic fertilizers, which release nitrous oxide , a potent greenhouse gas. Synthetic fertilizer runoff also has adverse effects on the environment like harming insects, degrading wildlife habitats, and causing toxic algal blooms.



[Photo: Chapul Farms]



Chapul Farms is already employing its BSFL to fertilizer operation in its existing location, the Chapul Innovation Center, located in McMinnville, Oregon. The new space’s location is in close proximity to the farms it will collect organic waste from. It will utilize a custom-built technology to capture and leverage the heat produced by the insect larvae, and use that energy to maintain an optimal temperature inside the facility.



The company aims to build a network of 20 farms across the U.S. by 2032, which will make it easier—and more sustainable—to both source organic waste locally and distribute it nearby.



Black soldier flies have been researched for decades, with studies looking at their potential for biofertilizer dating back to 1979. The industry gained steam in 2013, when the UN’s Food and Agriculture Organization put out a white paper highlighting the importance of upcycling all types of biomass.



[Photo: Chapul Farms]



There are a handful of other companies working to scale BSF in fertilizer production around the U.S., though Place said North America lags behind both Europe and Asia.



Chapul is dedicated to implementing BSF technology on a small scale, collaborating with smaller farms to integrate these systems into their operations. They envision a future where BSF projects focus on low-value feedstocks and utilize highly contaminated biomasses, transforming them into valuable frass.



The global fertilizer market is estimated at $190 billion, and Place believes there are significant opportunities to scale up the usage of BSF. 



“It can stimulate economies, create economic stability, and protect the environment at the same time,” said Tomberlin.



Chapul Farms is currently sourcing its organic waste from six farms and a food waste company. The company trains its partners’ staff to use the frass outputs that their waste creates, and to create a plan for generating additional revenue if there’s more waste than they can use. Essentially, each partner farm gives its waste to Chapul in exchange for the frass it will receive in return, and Chapul’s role in the process is funded by the USDA grant.



The company does not yet have contracts for their frass outputs, though they expect it to be most suitable for farms that embrace and prioritize soil microbial health.



This organic fertilizer isn’t something that will necessarily supplant traditional fertilizer, as it would need to meet regulatory standards for fertilizers and gain acceptance among farmers. But it can definitely replace a portion of it with a less polluting, more microbially rich material, and one that will slow the release of nitrogen, according to Tomberlin. A slower releasing nitrogen is healthier for plants as it feeds them evenly, gradually, and requires less fertilizer.



And with fertilizer prices continuing to hover at near record high price points , there is plenty of incentive to search for alternatives.



“Capitalism can inspire a lot of creativity,” said Tomberlin. “There are entities out there that are environmentally-centric, and I don’t want to disregard the people that are doing it for the planet. But the capital returns are a great incentive. And the thing I love about it is not one individual owns this insect, it’s available for anyone in the world to use.”