A Canadian company EcoSpace Engineering Ltd. perfected and patented a system for processing of organic waste (manure) by fly larvae, called Milinator (http://www.ecospace-eng.com). The technology is based on the space project originally developed in Russia during the Soviet era. Main products of the company are the nutrient-rich larvae and organic fertilizer (Cyclorganic).
While several studies have documented the potential for this technology and several companies have entered the market, the primary impediments to its commercial adoption include regulatory barriers to larvae and larvae products as a feedstuff, as well as a lack of established (publicly reported prices and reasonable estimates of quantities) markets for compost and vermicompost. The uncertainties of these output prices make financial forecasting difficult and as a result, potential investors are reticent to venture into this technology.
It is worth noting that two American livestock producers interviewed for this paper (who wish to remain anonymous) view feeding BSF larvae as a “gray area” in terms of regulation. That is, even though BSF larvae have not been formally cleared as a livestock feed for swine, poultry, or fish in the US, it is not expressly prohibited. Moreover, larvae are a natural food source for these species. These producers reason that even though feeding BSF larvae is a perfectly legitimate and defensible practice in their eyes, the lack of formal government clearance makes any acknowledgment that they utilize this technology to feed food animals financially risky.
We posit that this mindset is not uncommon in the US among pasture-based alternative and sustainable livestock producers. In fact, given the growing local, natural, and pasture-raised livestock sector (Martinez et al., 2010), we assert that there is actually a small but growing “gray market” for fly larvae in these types of systems.