February 27, 2024

Entobel signs agreement with Vietnam's Vinh Hoan to supply insect protein for pangasius production

Singapore-based Entobel, a producer of insect-based ingredients for animal feed and plant nutrition, and Vietnam's Vinh Hoan, the world's largest producer of pangasius fish, 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, Vietnam factory in 2024. It builds upon the global leadership of both companies in developing a more sustainable food system with a lower environmental impact and accelerating the adoption of insect protein in aquaculture, Entobel said.

In addition to the offtake for 2024, Vinh Hoan will purchase a minimum of 15,000 metric tonnes of insect protein from Entobel over the next three years, from 2025 to 2027.

"...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 recognises 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."

In November last year, Entobel set an industry record with the successful commissioning and scale up of its production plant in Vung Tau, said to be 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, today," said Gaëtan Crielaard, co-founder and co-CEO at Entobel. "This partnership will further strengthen our capacity to deliver Entobel's insect protein to our global customers."

The company 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.

Entobel's plan for rapid regional expansion is underway as the company has successfully de-risked the operational and technological aspects of the business model while demonstrating strong commercial traction for its products, Entobel said.

- Entobel