Like many animal feed manufacturers in the country, one of the biggest challenges Adan Mohammed and Starlin Farah faced while starting their animal feed business years ago was finding an affordable source of protein.
While there were many products in the market containing the protein they needed, it was very difficult for the entrepreneurs to find a product whose cost would not exceed more than half of their total production cost.
“Of all the sources of protein, omena was the best option, the challenge with this is when we ordered a bag from the lake region, half would consist of scales and soil,” said Farah in an interview with Powering SMEs.
This meant that they had to buy more than what would ordinarily be needed for their production activities, to account for the half that was lost as soil or scales, something that spiked their operational costs.
Leveraging their resources as well as the support of relatives and friends, the duo began doing research in partnership with the International Centre of Insect Physiology and Ecology (ICIPE) on alternative sources of protein.
After feeding on organic waste materials, the black soldier fly leaves behind a by product known as frass that can be used to make fertiliser.
Photo credit: Pool
“We discovered we could substitute omena with insect protein, so we started doing research on mealworms, earthworms, even houseflies, but there were a number of health-related issues with those insects, we also experienced difficulty in rearing them,” noted Farah.
As they were doing their research, they came across the black soldier fly (BSF), an insect rich in protein that grows by feeding on easily sourced organic waste materials, making it cheap to rear.
“BSF can not only provide a good source of protein for use in animal feed, it can also help in managing organic waste. Whatever is left of the waste that BSF consumes can be converted into a fertiliser,” said Farah.
In 2017, the entrepreneurs were fortunate to secure funding of approximately Sh10 million at the African Entrepreneurship Award, environment category, backed by BMCE bank of Africa in Morocco. In 2018, they incorporated the company Ecodudu and set up a manufacturing plant in Murang’a. Here, the company grows and processes the BSF into an insect protein and organic fertiliser.
They feed the BSF larvae to organic waste materials, which they source from third parties such as fruit farms, food and fruit processing factories, coffee estates, small farmers and kitchen gardens. Once they grow into mature pupa, the BSF is harvested for conversion into a product called Dudu Meal, which can be mixed with other nutrients to produce balanced animal feed.
What remains of the waste that the BSF feeds on, a by-product called frass, is mixed with other materials to produce a fertilizer they have called Shamba Mix. This fertiliser, according to the proprietors, is not only rich in nutrients, it can also hold more water in the soil, thus reducing the watering needs for farmers significantly.
“We have done research on a farm that reduced its watering needs by 33 percent once they started using Shamba Mix, compared to other seasons when they used other fertilisers,” explained Farah.
The company focuses more on producing the fertiliser because of the unit economics involved, however, they still produce the Dudu Meal for clients who may require small volumes of insect protein. Due to concerns over the health and quality of products made using insects and organic waste, convincing new customers to try out their products has not been very easy for the company.
Indeed, they have had to invest heavily in sensitising the public about the processes involved in production, to allay fears that the final products may not be fit for consumption.
Fortunately, through a partnership with the Kenya Climate Innovation Centre (KCIC), they have managed to get an organic certification that has enhanced the credibility of their work and opened up better markets for them.
“Getting certified as an organic company can be expensive for small firms. KCIC has helped in getting certifications that were out of reach for us. They have also offered much-needed technical support and mentorship,” noted Farah.
From producing two tonnes of fertiliser a month, the company now produces 150 tonnes in a month, which they sell to various clients including fruit farms from where they source their raw materials.
“The demand is a lot more than we can produce, but we hope to grow our production capacity by five times in the foreseeable future, as well as roll out other higher value products made out of the BSF,” stated Farah.
Having optimised their operations, the firm is able to meet its production needs with a lean team of seven individuals. Working with a small team has enabled them to save on salaries and pass on the cost benefit down to the consumer.
“We still struggle with talent because it is not easy to get someone equipped with the skills we need straight out of campus, so we have to invest significant resources in training staff,” noted Farah.
