World newsOleksii Abasov

Oleksii Abasov: Ukrainian entrepreneur, CEO of AAcheta Ukraine, founder of the investment fund "TOT"

20:47 17 янв 2024.  958Читайте на: УКРРУС

Oleksii Abasov believes that one developing industry can alleviate issues of hunger and global warming.

According to the United Nations and the Washington University, the global population could reach 11 billion by 2100, despite events such as wars and earthquakes. The Population Reference Bureau (PRB) estimates that the global population is expected to increase by 75 million people annually, or by 1.1% per year. It is projected that by 2050, the world population will reach 9.9 billion, a 33% increase from approximately 7.4 billion in 2017. Such population growth is expected to create pressure on food demand. This means that the world will be seeking ways to combat hunger on a global scale.

Oleksii Abasov is confident that traditional food sources such as animal husbandry will not disappear, but due to significant emissions into the atmosphere and environmental pollution, it will be equated to excisable goods such as cigarettes and alcohol. Meat production requires a significant amount of resources - land and energy, leading to greenhouse gas emissions, particularly carbon dioxide, methane, and nitrous oxide. Additionally, meat production requires a substantial amount of water and the use of large territories. The greenhouse gas released by meat production retains heat in the atmosphere. This industry emits more greenhouse gases into the atmosphere than airplanes, trains, and cars combined. Taking into account the issues of global warming, such products will be replaced by alternative directions. One such direction that has been studied for a considerable amount of time is the production of food products from insects.

There have been ongoing research and discussions worldwide on this, but the European Union was the latest to allow its use for human consumption. After extensive trials of using insects such as crickets and mealworms, it was recognized as completely safe for humans and animals. Research on the use of flies is still ongoing, and currently, they are only allowed to be used for animal consumption.

It is expected that by 2027, the global edible insect market will reach $4,631.0 million, compared to $893.6 million in 2020, with an annual average growth rate of 26.5% during the forecast period. According to Oleksii Abasov, the growth of this market is primarily driven by factors such as increasing greenhouse gas emissions from livestock and poultry, the high nutritional value of insects, minimal environmental impact throughout their life cycle, and a low risk of transmitting zoonotic diseases.

What makes the cricket-based food market so attractive, entrepreneur Oleksii Abasov asks? It is the fact that cricket flour contains 65 to 70% protein and fully satisfies the human protein requirement.

Currently, the majority of protein is obtained from livestock. About 70% of agricultural land and 30% of the total land on Earth are used for livestock farming to meet the protein demand. Thus, increasing the land area required for animal husbandry is impractical and impossible.

Rearing insects has ecological advantages due to low greenhouse gas emissions, water pollution, and land use impact. To produce the same amount of protein as cattle, crickets require 12 times less feed, 15 times less land, 2000 times less water, and they produce 100 times fewer greenhouse gases. Crickets can be fed with food waste such as banana peels or rice husks. Furthermore, insect flour can also replace some expensive ingredients such as soybeans and fish meal used in animal feed, potentially reducing the cost of animal products and freeing up feed crops. As a bonus, insects can be fed with animal waste and manure, so insect farms can increase global protein supplies while simultaneously reducing and recycling waste.

Еленка Коваль, [17.01.2024 20:38]
According to Oleksii Abasov, as edible insects are an important alternative protein source for traditional livestock production or other animal-based protein sources for human consumption, there is a growing demand for edible insects and insect-based products worldwide. Insects are the most numerous group of animals on the planet, constituting 80% of all animals. They are one of the primary sources of nutrients. The human body can absorb these nutrients more quickly than from beef or wheat. Many developing countries still face serious hunger and malnutrition issues, and the lack of adequate consumption of dietary energy in many cases is associated with the absence of available fat sources. For example, in 2020, nearly 690 million people were undernourished, and 144 million children suffer from stunted growth, which is malnutrition.

Various edible insects are rich in beneficial fats and easily convert into energy. Additionally, insects are a rich source of protein and vitamins, and they contain high levels of calcium, iron, and zinc. In countries combating malnutrition, such species can become an integral part of their diet, continues Oleksii Abasov.

Some people cannot digest soy, milk, or egg protein due to allergic reactions associated with them. For example, lactose triggers serious allergic reactions such as bloating and diarrhea. However, insects can be a good alternative as they contain amino acids and high protein levels. Moreover, insect proteins are devoid of artificial colorings, fillers, and sweeteners.

In developing countries, the growing population exacerbates the issue of food security. Additionally, the changing socio-demographic situation will exert increased pressure on global resources necessary to provide various types of food products. By 2025, at least 1.8 billion people will be living in regions with inadequate freshwater supplies, and two-thirds of the world's population will reside in areas experiencing water source depletion (source: FAO).

Sweet-tasting insects are a part of numerous traditional dietary regimes in more than 113 countries, including Asia, Africa, and South America. Currently, 2 billion people consume over 2000 registered sweet-tasting insects. However, in many countries, the recognition of sweet-tasting insects is low due to a lack of knowledge about their various health and environmental benefits and their use in the food and feed industries. There are knowledge gaps and uncertainties regarding potential hazards associated with using insects as food or feed.

The consumer perception is that consuming insects is dangerous because they are often associated with pests. Ordinary people do not know how insects are farmed, processed, and used as food. They are also unaware that people have been eating insects for thousands of years. Therefore, the lack of knowledge leads consumers to perceive insect products as unsafe, and this scenario creates a problem for sweet-tasting insect producers.

In recent years, there has been a significant increase in the demand for quality meat in developing economies such as Southeast Asia, the Middle East, Africa, and Latin America, largely driven by population growth in Asia and Africa and the strengthening urbanization process. According to analysts, the total meat production volume is forecast to increase by approximately 48 million tons (annual growth in meat production) by 2027 compared to the previous year, reaching almost 367 million tons, mainly in developing countries, accounting for approximately 76% of the total production volume. Meat. To meet this demand, meat producers continue to focus on increasing value through high-quality feed containing protein. These factors are prompting meat producers to shift to feeds derived from insects. Thus, it is expected that the high demand for insect feeds in developing countries will compel insect producers to invest in these regions. As a result, the market opportunities in this sector are expanding for major market players.

Еленка Коваль, [17.01.2024 20:38]
Oleksii Abasov: Ukrainian entrepreneur, CEO of AAcheta Ukraine, founder of the investment fund "TOT."

Oleksii Abasov believes that one developing industry can alleviate issues of hunger and global warming.

According to the United Nations and the Washington University, the global population could reach 11 billion by 2100, despite events such as wars and earthquakes. The Population Reference Bureau (PRB) estimates that the global population is expected to increase by 75 million people annually, or by 1.1% per year. It is projected that by 2050, the world population will reach 9.9 billion, a 33% increase from approximately 7.4 billion in 2017. Such population growth is expected to create pressure on food demand. This means that the world will be seeking ways to combat hunger on a global scale.

Oleksii Abasov is confident that traditional food sources such as animal husbandry will not disappear, but due to significant emissions into the atmosphere and environmental pollution, it will be equated to excisable goods such as cigarettes and alcohol. Meat production requires a significant amount of resources - land and energy, leading to greenhouse gas emissions, particularly carbon dioxide, methane, and nitrous oxide. Additionally, meat production requires a substantial amount of water and the use of large territories. The greenhouse gas released by meat production retains heat in the atmosphere. This industry emits more greenhouse gases into the atmosphere than airplanes, trains, and cars combined. Taking into account the issues of global warming, such products will be replaced by alternative directions. One such direction that has been studied for a considerable amount of time is the production of food products from insects.

There have been ongoing research and discussions worldwide on this, but the European Union was the latest to allow its use for human consumption. After extensive trials of using insects such as crickets and mealworms, it was recognized as completely safe for humans and animals. Research on the use of flies is still ongoing, and currently, they are only allowed to be used for animal consumption.

It is expected that by 2027, the global edible insect market will reach $4,631.0 million, compared to $893.6 million in 2020, with an annual average growth rate of 26.5% during the forecast period. According to Oleksii Abasov, the growth of this market is primarily driven by factors such as increasing greenhouse gas emissions from livestock and poultry, the high nutritional value of insects, minimal environmental impact throughout their life cycle, and a low risk of transmitting zoonotic diseases.

What makes the cricket-based food market so attractive, entrepreneur Oleksii Abasov asks? It is the fact that cricket flour contains 65 to 70% protein and fully satisfies the human protein requirement.

Currently, the majority of protein is obtained from livestock. About 70% of agricultural land and 30% of the total land on Earth are used for livestock farming to meet the protein demand. Thus, increasing the land area required for animal husbandry is impractical and impossible.

Rearing insects has ecological advantages due to low greenhouse gas emissions, water pollution, and land use impact. To produce the same amount of protein as cattle, crickets require 12 times less feed, 15 times less land, 2000 times less water, and they produce 100 times fewer greenhouse gases. Crickets can be fed with food waste such as banana peels or rice husks. Furthermore, insect flour can also replace some expensive ingredients such as soybeans and fish meal used in animal feed, potentially reducing the cost of animal products and freeing up feed crops. As a bonus, insects can be fed with animal waste and manure, so insect farms can increase global protein supplies while simultaneously reducing and recycling waste.

For example, AgriProtein plans to build several plants in Africa, the Middle East, and Asia, primarily due to the growing demand for a sustainable protein source for animal diets.

It is expected that by 2025, the global demand for fish and shellfish will reach nearly 180 million tons. However, dried and powdered fish feeds, such as anchovies, used in aquaculture, are becoming insufficient. By 2025, instead of fish meal, 1.2 to 1.6 million tons of raw material for fish feed will be required. This opportunity has attracted significant attention, investments, and strategic developments in developed countries to the small but growing insect farming sector. For example, in 2017, Cargill and InnovaFeed, a French producer of insect-based protein, entered into a partnership agreement for the supply of insect protein-containing fish feeds. In 2017, Protix, an insect protein producer, opened its first commercial black soldier fly larvae production plant in the Netherlands. The company Ÿnsect is building one of the world's largest vertical farms in Amiens, France. Moreover, by 2023, Enterra (Canada) plans to expand its commercial capabilities in North America through funding from Avrio Capital in Calgary and the British Wheat Sheaf.

Thus, the growing expansion, investments, and strategic development in developed countries are opening excellent opportunities for businesses interested in edible insects - concluded Oleksii Abasov.

Note: AAcheta Ukraine is Ukrainian company jointly developing a business in the production of insect-based food products for humans and animals, medical supplements based on insects, and plant fertilizers with European partners.

Oleksii Abasov is a Ukrainian entrepreneur.

Иван Сергиенко

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