Tuesday June 15, 2021

Alternative ways to invest in insect farms

trading online

As already mentioned, there are no insect shares in the sense that investors can simply invest in companies from this sector via the stock exchange. At least not directly. Therefore, investors need to continue to keep an eye on the IPO calendar to see if anything is happening.

It is also hard to invest in insect farm investors. Most of them are private equity firms where only well-heeled investors get access. Often, investors there would have to put in sums in the good 6-digit range. At the same time, the shares are by no means liquid. There are also no ETFs that invest specifically in insect food stocks. How could there be? If there are no listed companies in this segment, ETFs cannot invest there either. At most, ETFs that focus on special topics such as sustainability in the food segment would be conceivable.

Another form of investment would be direct investment in start-ups that operate or want to start insect farming. There are platforms where investors can invest in start-ups for as little as 100 euros (crowdfunding). However, it is questionable whether insect farms try to raise capital there.

It is true that investors could also buy shares in companies that indirectly have something to do with insects. For example, insect farms need certain cooling systems and LED lamps. Only recently, Ÿnsect invested 3.5 million euros in lighting. Companies like Osram in particular benefit from this. However, the business is also only a side business for the outfitters and by no means are insect farms the main customers.

Food shares as profiteers from insect farms

Perhaps the most obvious alternative is to invest in food shares, if there are no insect shares in exness login. After all, these have the closest thing to a product. Fish farm shares are a good example. Since a large part of the production from insect farms is used for fish farming, fish farms could profit from this. Possibly from better feed for the fish. On the other hand, from lower costs, provided that this feed is cheaper than the conventional fish feed.

trading online

The following stocks could be considered:

  • Mowi (merger of Marine Harvest and Fjord Seafood; largest farmed salmon company in the world).
  • Leroy Seafood Group (second largest salmon and trout farmer in the world; also farms shrimp and seafood)
  • Grieg Seafood
  • Norway Royal Salmon
  • Bakkafrost 

Fish farming in Norway. Insects are the best alternative to conventional fishmeal. And at the end of the day, the very big companies in the food industry could also be bought as an alternative to insect shares. These include, for example:

  • Nestlé
  • Mondelez
  • Danone
  • Tyson Foods
  • JBS 

The Brazilian company JBS is the largest meat producer in the world. Tyson Foods is one of the largest marketers of pork, chicken and beef in the world. If insect proteins are approved for feeding these animals, it could revolutionise this market as well.

 
1ba1233ea71256f9dc785ed52332404e