MEALWORM FARMING OPERATION BUSINESS PLAN

I. Executive Summary

Company Description

Based in the United States and launching in 2026, we are an agriculture company producing sustainable, high-quality mealworm protein from Tenebrio molitor. We operate a vertically integrated, climate-controlled vertical farm that manages breeding, rearing, harvesting, and final processing under one roof. Our key outputs are three product lines: frozen and dried mealworm protein for animal feed, refined protein ingredients for human food formulation, and spent-frass organic fertilizer. What makes us competitive is full traceability, year-round climate control, and advanced automation for feeding, environmental management, and harvesting that deliver consistent quality and lower operating variability. One clear aim: deliver reliable, domestic alternative protein at commercial scale.

Primary activities include controlled breeding, automated feeding and environmental control, mechanized harvesting, and onsite processing and packaging to food and feed safety standards. We target feed manufacturers, food ingredient buyers, and organic agriculture suppliers in the domestic market. Short-term goals are to achieve commercial production capacity in 2026, secure pilot customers, and validate regulatory compliance; long-term goals are national scale-up, product diversification, and leadership in the domestic alternative protein industry. Our stated edge: integrated operations plus automation that cut variability and improve margins.

Problem

Conventional protein supply chains are increasingly fragile: they cause high land and water use, emit greenhouse gases, and expose food manufacturers and premium pet-food brands to price spikes and supply disruptions from climate events, pests, and trade shocks.

Buyers face limited availability of fully traceable, non-GMO protein ingredients that meet modern food-safety and transparency standards, leaving corporate sustainability goals and audit requirements unmet and creating regulatory and reputational risk.

There is a clear need for a reliable, year-round domestic protein source that reduces resource use, provides full traceability, and stabilizes supply and pricing—solutions our U.S.-based mealworm protein operation, launching in 2026, is designed to deliver.

Solution

Traditional protein systems are straining land, water, and greenhouse gas limits while B2B buyers in pet food and aquaculture face price volatility and scarce, traceable ingredients. Buyers also demand non-GMO, locally raised inputs that meet modern safety standards.

We operate a vertically integrated U.S. mealworm farming facility that delivers a reliable, traceable year-round supply of high-protein insect powder, frozen mealworm blocks, and dried whole insects, and converts residuals into zero-waste organic frass fertilizer. One facility provides consistent, local protein and a secondary fertilizer revenue stream.

Mission Statement

Our mission is to transform the protein supply chain by producing sustainable, high-quality, and traceable insect-based protein for animals and humans through vertical farming and circular-economy practices. We commit to reducing agriculture’s environmental footprint, supplying consistent locally-raised protein, and delivering measurable value to partners through scientific rigor and operational integrity. We aim to make insect protein a reliable cornerstone of a resilient, eco-friendly food system.

Key Success Factors

Success hinges on scaling production, controlling costs, securing stable buyers, and running a highly efficient facility.

• Scale colony: grow breeding females from 50,000 to 750,000 while keeping yields high and mortality low.
• Vertical integration: control feed, breeding, processing to reduce COGS and ensure quality.
• Long-term offtake: secure multi-year B2B contracts with major buyers for revenue stability.
• Automation: operate the $1.16 million facility with advanced automation to lower cost per kg.
• Diversified revenue: sell into feed, food, and fertilizer markets to reduce market-specific risk.

Financial Summary

One-line: The operation reaches breakeven in February 2028 and scales to $10.77M EBITDA by 2035.

Financial requirements: minimum cash shortfall of $2.91M (Jan‑2028). Anticipated returns: IRR 2.75% and ROE 36.67% over the forecast; payback in 67 months; breakeven Feb‑2028 (26 months).

Outlook: the business moves from initial losses to sustained profitability as production mix and efficiencies drive EBITDA growth.

Funding Requirements

We require USD 4,070,000 to fully equip, automate, and operate the mealworm facility through a 26-month ramp to breakeven (Feb 2028); the plan targets EBITDA improving from -$769,000 in Year 1 to $524,000 in Year 3, reaching $10,770,000 by 2035, with an expected IRR of 2.75% and ROE of 36.67% over the forecast period.