About

Tiny Farms CEO and co-founder Andrew Brentano thinks cricket protein will ensure future food security. Tiny Farms is an AgTech and Precision Farming company that produces food grade cricket protein for use in pet food and animal feed applications offering a sustainable, safe, reliable protein source for pets, livestock animals, and people.Transcript:Lisa:This is Method To The Madness, a biweekly public affairs show on KALX Berkeley, celebrating Bay Area innovators. I'm your host Lisa Kiefer. Today, I'm speaking with Andrew Brentano, the Co-Founder and CEO of tiny farms. Welcome to the program, Andrew.Andrew:Oh, thank you.Lisa:You are the perfect guest for a show about innovation. Co-Founder of Tiny Farms. First of all, tell us what Tiny Farms does, and what is the problem you're trying to solve.Andrew:We are basically, precision ag company. What we're doing, is we're trying to grow a whole lot of crickets. The big problem we're addressing is that we basically cannot produce enough animal protein to keep up with the demand. We've got growing population, growing per capita consumption and also a really huge growing pet food market, which is consuming a huge amount of meat. Traditional meat consumption, your livestock, your pigs, your chickens and your cows, is a hugely resource-intensive endeavor.You're concentrating huge amounts of feed, 25 30% of all the crop lands on earth are just growing feed for animals. Then we're also grazing about 25% of the earth's surface for cattle. There's really not any room to expand. We really have to find these higher efficiency ways to supply that animal protein that people need.Lisa:You have found, what I think is a pretty unique niche in this market of cricket farming, protein farming. I know the argument about cattle using energy and all of that, but what you're saying is that dogs, chickens, all of these other animals. If we can feed those animals your product, we can make equivalent savings, maybe?Andrew:Yeah. We can offset these huge resource environmental footprints. If we take the pet food example, in the US, we're feeding about 30 billion pounds or more of meat just to dogs and cats every year. That market is growing like 6% year over year. If we can, instead produce crickets, which use just a tiny fraction of the food and the water and the space required, we can essentially get more from less. We can meet this demand without just completely overextending our current resources.Lisa:Okay. When did you start this company?Andrew:We started in late 2012. We initially got the idea ... of course it took a while for markets to actually developed. We were a little bit ahead of the curve. We've been-Lisa:Do you mind if I ask how you came to this? Were you doing market analysis studies or looking at big data? How did you figure out that this was a niche?Andrew :In that moment, what we were doing was really just thinking about big existential problems. We were trying to decide what should we be spending our time and energy on and had really started drilling into food production. Everyone's got to eat. It's the largest and most resource-intensive endeavor that humans do on this planet and also one of the most immediately going to be effected by climate change, population growth, et cetera. What we realized when we were diving in was that meat production was this huge concentration of where all the resources were going, It was the most inefficient place and also the highest demand. Everyone wants to eat meat. We thought, wow, this is-Lisa:Yes. Especially with incomes going up.Andrew:Exactly.Lisa:First thing they want to do is have the steak that you and I have.Andrew :Exactly.Lisa:Right?Andrew:This westernization of diets around the globe, all these trends were pointing to essentially meat crunch in really the relatively near future. People need this protein, but how do we produce protein more efficiently but that still has a high-quality nutritional profile? We're looking at agriculture. We were looking at algae and fungus. Then we came across a body of research about insects and their nutritional values and their production efficiencies, historical uses around the world, and it just made so much sense.Lisa:Who's using crickets? I assume some of these countries have been using crickets for thousands of years, is that correct?Andrew:Yeah. Particularly in Oaxaca, in Mexico and some other Central American cultures. There are long traditions of eating crickets and grasshoppers, both interchangeably. A number of African cultures also like different types of crickets that are native, crickets and katydids. Then in Thailand, more recently, I think there's been a long tradition of eating different insects. Very recently, there's been quite a growth in, particularly the cricket market there. The Thai government has even, for the last 10, 20 years been sponsoring and promoting this. There's now tens of thousands of small backyard cricket farms supporting those largely street markets.Lisa:How did you start? Were you right out of college, or what was your motivation here?Andrew:I guess, I was about two and a half years out of college. I went to University of British Columbia, studied absolutely unrelated to agriculture, a program called cognitive systems. It was AI information systems, linguistics. What that did instill was this mindset of systems thinking. I'd worked an AI startup. My Co-Founder Jenna, who's now is my wife, had been working for an artist. She went to Rhode Island School of Design. She was managing an artist business in LA. We'd been living in LA for a couple of years and decided this wasn't fulfilling. This wasn't really where we wanted to be or what we wanted to be doing.That was where we took a summer, went and started doing freelance web development just to pay the bills and took this time to decide what are we going to do with our lives that's can be meaningful. That's what led us into this. It was important that, you we found something that we could do that would apply our creativity and actually be meaningful. HLisa:You know how we're all about organic and sustainable. How does that fit into the cricket industry? What do they eat? How do you follow the path to make sure they're sustainable and that they're organic?Andrew:Yeah. The great thing about crickets is they'll eat anything, pretty much. I mean, they're basically omnivorous. Anything you could feed a pig, or a chicken, or a cow, or basically any other kind of animal, they can eat. They really have a very high, what's called feed conversion ratio, which is basically the amount of food they have to eat to grow a certain weight as a ratio. With crickets, it's about 1.7:2 pounds of food to get 1 pound of cricket. To give comparison, chickens are more like 3:1. Pigs are between 4 and 6:1. Cows can range from 8:20:1, depending on what the diets are. Even if you fed them the exact same thing you fed a commercial chicken, you're using much less of that feed.You've got this corresponding, way much smaller land and water footprint. Then because they are so efficient converting that feed and they'll eat anything, we can then take food by-product streams and agricultural by-product streams and incorporate that into the feed formula. That can range anything from stale bread, which commercial bakeries, large scale ones are producing millions of pounds of stale bread or excess bread. They essentially overproduce by about two what they actually sell. Then we can also go to agricultural processing. There are huge streams of by-products, like dried distiller grains that come out of ethanol production, spent brewer's grain, juice pulp from the citrus industry.Lisa:The wine industry.Andrew:The wine industry. Exactly. Almond holes are huge one in the United States, or in California alone, we're producing 150 million tons of almond holes every year.Lisa:They're kind of like goats in the insect world.Andrew:Yeah.Lisa:They'll clean everything up.Andrew:Right. All we have to do is balance the different inputs, so we get the nutritional profile that grows the cricket efficiently We understand that pretty well. We can basically say, okay, we'll take 20% of this, 30% of that, 50% of that, blended altogether, and then we can just grow our crickets.Lisa:You been able to notice differences in tastes of your crickets by what you're feeding them?Andrew:One of the reasons crickets are so good, is they have a pretty mild and generally pleasant taste regardless what you feed them. You definitely can tell different things. You'll get either a nuttier cricket. Sometimes it'll be because the cricket is a little fatty or a little leaner.Lisa:What would you feed it to make it fatty?Andrew:You could feed it, for one, more fat or a higher carb diet. You can make it leaner by having more of a protein and fiber formulation. We've fed them carrots in the past and they turn just a tiny hue, more orange. They actually pick up a tiny bit of that sweeter carrot taste.Lisa:Do you ever feed them chocolate?Andrew :We've never fed them chocolate. It's a bit expensive.Lisa:How do your vegetarian or vegan customers feel about this product? Do they have any concerns?Andrew:There's two camps. There's one camp where folks are vegetarian and vegan primarily because of sustainability issues, humane treatment of animals, ethical issues. Those are exactly the issues that we're targeting and trying to address with cricket production. Those folks are generally very, very receptive to incorporating insect protein into their own diets. What's really exciting for these people is when we say, yeah, did you know there's dog and cat food you can get with insect protein? You've got vegetarians and vegans, but they still have a pet cat that they have to feed meat too.It creates a real dissonance for them. It's an amazing solution for those folks. Then there's folks that maybe have a religious or spiritual aversion to actually eating living animals. For those folks, that's fine. That's a different set of issues. Insects are living things, and if they decide that's not what they want to eat, it's not the product for them. We generally think that we have a great solution for the folks that really see the fundamental environmental and ethical issues around meat production.Lisa:If you're just tuning in, you're listening to Method To The Madness, a biweekly public affairs show on KALX Berkeley, celebrating Bay Area innovators. Today, we're speaking with Andrew Brentano, the Co-Founder and CEO of Tiny Farms. Tiny Farms is building the infrastructure for a new category of our food system, cricket protein, one that will play a big part in ensuring future food security. Talking about your products, and you just covered one, which is feeding pets. What other products do you have, and who are your customers?Andrew:Our core business is the design and development of a high-efficiency cricket production facility. That's really the big problem. We want to get crickets out into the market, but how do you do that? How do you produce enough crickets cheap enough that it can actually become this bulk commodity that could reasonably offset traditional meats. In a way, our core product is actually this method for producing them and then also how do you process them into palatable ingredient.Lisa:I read that your method was unique in that it avoids the monoculture of most agriculture.Andrew:Yeah. One of the fundamental problems that we see in traditional livestock production, farming in general, is that you have these huge centralized productions, whether it's, say 10 thousand acres of soy beans or if it's a mile-long chicken house with 4 million chickens in it. When you think about ecosystems and biology, that's a really unhealthy ecosystem. Also, it's incredibly risky because if something comes in there that's a blight, or past, or a disease [ 00:10:48], it just can, wipe out everything very quickly.The approach that we take is a more distributed model where we'll set up smaller production units, and then we'll put them around in a cluster, in a region. That way, you never have this just huge, enormous centralized population issues of just having a lot of animals in place, breathing and pooping and eating and all of that mess and the potential for pollution. Also, that you significantly reduce this biological risk.Lisa:Crickets get disease and die out like other ...Andrew:We've been lucky. We've never had a blight. We have a very tightly controlled environment, keep the biosecurity levels pretty high. There have been, in actually a different species of cricket than when we grow, there is a disease. It only affects crickets. There's no risk to any people or animals but that have gone around and wiped out some of the cricket farms that have existed in the US. One of the cool things about insects, again, too, is that biologically they're so different from people that you don't have the same zoonotic transfer of diseases the way that you've got your swine flu or your bird flu, which can jump to humans. It's this huge health risk.Every animal has diseases and parasites that can affect them. The cricket is so different. Its life cycle's so different. They don't carry that kind of disease that could jump to a human. It's much safer. Even with a mosquito or a tick, they're transmitting a disease, because they're actually holding some like human blood, Mammalian blood in them. It's not that that animal itself actually gets a disease that can transfer to a human.Lisa:You have a cricket powder, but that's primarily for feeding animals. Does it also go into human-Andrew:We produce this cricket protein powder. It's completely food grade. It's completely perfect to use in human food products or pet food products. We focus on the pet food market, because we see a really, really big opportunity to offset a lot more of the consumption in that space. There are a ton of human food products out on the market, and a bunch of being produced right here in the Bay Area. Chips and snack foods and energy bars and baking flour mixes and stuff that-Lisa:With cricket powder.Andrew:With cricket flour. Yeah. Exactly. In that market, it's awesome. It's a really great way to start introducing to people this idea that they can eat crickets. Long-term, the best possible thing is we stop eating animals as much and we eat much more insect protein. Put it in something that people want to eat anyways, crunchy, healthy snacks.To really have the big impact we want to have, we have to figure out how we can start really replacing the meat that we're using as quickly as possible and as big of volume as possible. That's where we're really focusing on the pet angle. There's actually another company here in Berkeley called Jiminy's. They've released a line of dog treats. The only animal protein in that dog treat is cricket protein. Dogs love this stuff.Lisa:You don't have any retail human products yourself as a company.Andrew:We do supply another brand that is currently distributed at the Oakland Days Coliseum and it's called Oaktown Crickets. In the cricket production, get more into how that works. You harvest most of the crickets at a certain stage in their life when they've got the optimal protein content to make into the protein powder. Then you maintain a chunk of your population to go through adulthood and breed your next generation. Those breeders, we call them, they've got a higher fat content because they're, particular the females, are full of eggs. They're really, really tasty.In Thailand, those are the prized ones that people want. They'll fry them up and sell them in the market. For the protein powder application, they're not very useful. What we do is, those get sold for culinary use. We had local chefs use them in different specials, and then they're being fried and seasoned and packaged in little snack packs and distributed at the Colosseum. [crosstalk] Extra tasty.Lisa:One of your main goals is to address the challenges that are facing agriculture, what we just talked about. Are there any other challenges that you've experienced as you enter this marketplace?Andrew:One of the big fundamental things about how the agricultural system is set up is it's very linear. You extract resources, you dig up phosphorous, you create nitrates and nitrites for fertilizers. You pour them on the fields, you grow these plants, you harvest them out, you process them. You throw away the byproducts. Then you feed the animals, and the animals create a huge amount of poop. You don't know what to do with that. It just sits there. Then the animals get eaten. It's this very just linear extractive system of production.That's part of why we're having so many issues with soil degradation and waterway pollution. We're also just running out of phosphorus, which is its whole own problem. What we really see is an opportunity for insects is to help start close some of these loops and create more of a circular system. If you've got your wheat industry and it creates all of this chaff when you process the wheat into flour ... well if you can efficiently convert that, instead of just say composting it or throwing it out there or using it more inefficiently to feed dairy cow, you can turn that into a really high-quality protein, putting that through the base of the cricket as a bio converter.We've spent the same amount of nutrients and water to produce all parts of that plant. If you only eat a little bit of it, that's not very helpful. Then the cool thing about the crickets is, the waste they produce is completely dry and stable. They're not releasing-Lisa:The cricket poop.Andrew:The cricket poop.Lisa:What is it called?Andrew:It's called frass. That's the technical term for insect poops. It's basically the consistency of sand. If you go by Harris ranch or the big feed lots, and they're just-Lisa:Hold your nose.Andrew:Exactly. Producing huge amounts of nitrous oxide and methane and ammonia. These are greenhouse gas emissions that are many, many times more potent than CO2. Instead, you've got this very, stable, safe product that can be applied directly as soil. It's actually produced dry. You can cost effectively transport it. You-Lisa:And amend your soil with it.Andrew:Exactly. Yeah. You can take it back to the source of production, or you can put out into gardens, community gardens, home gardens, anywhere. The frass, which is our by-product, we've just recently gone through the approval process with the California Department of Agriculture to sell that as a retail fertilizer. We now have one pound and five pound bags of that.Lisa:Where could I find that?Andrew:We've just listed on Amazon, and we're starting to starting in the Berkeley area. We're getting it out to some of the local gardens stores. We're hoping that we'll have a chance to really take on a life of its own. Besides that, we're also able to sell that wholesale to bigger garden and farming operations in the area.Lisa:How did you find the funding to start all these operations?Andrew:Definitely, financing is the least fun and hardest part of starting a business. We were able to bootstrap the first several years. We were just actually building websites on the side while the initial pieces came together. Then when we realized that we really understood what the business model was going to be and what the growth plan was, we were able to go out and convince a handful of angel investors to come in and put enough money that we were able to launch our first R&D farm down in San Leandro.That was really just a process of getting out there, both going to pitch events, networking, going to basically the places where the kind of people are who care about sustainability and the food system, who understood the issues. Actually, a number of our investors found us, which was great. We had enough of a presence on social media and had been featured at a few events that they said, "Hey, I really believe in what you're doing." They understood why, and they knew it was going to be a long road to get there.They were very supportive. Then, from there, once you've got initial traction, then as you need more funding, you go out, find ways of getting in front of the right people and being able to tell that story and show how the payoff is going to happen down the road.Lisa:Everybody's pretty aware. It's a huge problem.Andrew:It's amazing how the awareness and focus changed from 2012 to now, because when we started and we're going out there saying, hey, insect protein is this amazing solution. People just raised eyebrows. Now, we go out there and people say, "Yeah, we know, but how are you going to implement it?" Which is much better conversation, because we actually get right into the meat of what we're doing and how we're solving the problem. We don't have to worry about spending half an hour just convincing someone that they should even take us seriously.Lisa:Who are your major competitors?Andrew:The industry is so new, The demand for the product keeps growing at a rate that, essentially, we're not able to directly compete, because we're all just trying to keep up with the scaling of demand. There's a farm down in Austin, Texas, which has gotten some great funding and done some cool stuff, building their operation. There's a big operation up in Ontario, Canada that's been one of the major suppliers in North America.Lisa:Internationally?Andrew:They're a good number of companies in Thailand and Southeast Asia, starting to be a little more presence in Mexico. When we think about it, for us to saturate this market, they're going to have to be thousands of cricket farms, right? We have this concept of a benign competition. When they have a win, that's good for us, because we're growing this opportunity together. It's much less cut throat than you find in more matured and saturated markets.Lisa:There's room to grow in it. Yeah. For sure.Andrew:Huge, huge opportunity.Lisa:Have you had any negative response?Andrew:Certainly. Particularly early on, you got a lot of ew, yuck. What are you doing? What's great about people, is that we really quickly get used to ideas. The same folks we would talk to six years ago and say, "Hey, we think you should try eating crickets." They'd say basically, "No way in hell would I do that." My test is based. I'm sitting on an airplane and the person next to me says, "Hey, what do you do?" How does that conversation go? Six years ago, went one way. Now, Lyft drivers or just folks out of the coffee shop I say, "Hey, we do cricket protein." Almost immediately, people now start telling me why it's a good idea. I mean, it's amazing how the public perception has shifted. I think it's really just a consequence of exposure.Lisa:If you can find a tasty way to get protein and not have to pay what you pay for meat ...Andrew:The market's so young. It's still a pretty premium product. The price point is similar to that of an equivalent meat product. So like the cricket protein powder is basically a dried ... It's 60% protein, 20% fat. It's this really nutrient dense product. It costs similarly as if you bought meat and dehydrated it. What that would cost, 15 to $20 a pound, which seems like a lot. Then you think you're reducing that down. You can get your fresh crickets. The costs of production is similar to your higher-end meat now. What's great is that's with really barely any R&D that's been done over the last few years.Lisa:Barely anybody in the marketplace.Andrew:Barely anyone in the marketplace. You think about what the price of chicken and beef is right now. That's the result of 50 years and trillions of dollars. Our industry, with five years and a few million dollars of development, is already getting competitive with meat. In the next few years, it's just going to soar below that, which is great. Up until very recently, there'd never been really any indication of actual opposition to the idea. It was just niche enough. No one was really worried about it. We did interestingly have the first high-profile shot across the bow.What happened was, late in July when the Senate was starting to go through their appropriations bill process, Senator Jeff Flake actually introduced a amendment that would specifically ban federal funding for research projects around insects for food use. This really caught us all off guard, what seemed to come out of absolutely nowhere.It was very strange and essentially someone had brought to the senator's attention that a handful of small innovation grants had gone out from the USDA to companies that were developing food products with insect protein. It's not the kind of thing that someone like Jeff Flake would just pick up. Someone out there suddenly cared enough to bring that to his attention. We don't really know exactly what went on there.Lisa:You don't know what went on.Andrew:Not yet. Yeah. We have an industry group. There's over 90 companies in the United States, Almost every state, there are companies working with insect protein, whether it's for pet food or animal feed or for human food, both on the production side and the product side. This is actually an amazing opportunity for American economic growth, American leadership. It's very surprising that something would come along like this that you would want to block federal research funding. Specifically, it's the small business innovation research grants that were being referenced. We've received some of the same grants as well.Lisa:Was that this year?Andrew:This was just a few months ago. Now, very luckily, that amendment was not accepted into the final version of the appropriations bill. We realize like, oh, there are people that care enough to start throwing up some roadblocks. That's actually a good sign for us that we're being taken seriously in that way.Lisa:That's a positive way to look at it.Andrew:For us, anytime that we have a conversation with someone and I convinced someone that they should take this seriously or they should go to A's game and buy a pack of crickets or they should go to the pet store and get some Jiminy's treats that they can feed their dog. That's a huge win for me.Lisa:Yeah.Andrew:Every time I'd ride in a Lyft or sit on an airplane, that's an opportunity. Yeah. I mean, there's already been this level of engagement, which is great.Lisa:I wanted to ask you about other projects. One of them I'm intrigued with is the Open Bug Farm.Andrew:In a earlier stage of our business development, we actually developed an open source mealworm farming kit, basically for people at home who are interested in this. The could either buy the kit from us or the designs were online. It was all off-the-shelf components, so they can make it themselves.Lisa:Like having chickens in your backyard.Andrew:That was the same kind of idea.Lisa:Instead, it's crickets.Andrew :Exactly how we were modeling it. In fact, a lot of the people who were interested in that, wanted to grow the mealworms to feed their chickens. That project didn't end up being really good business model for us. We didn't keep selling the kits, but we kept the designs for it out there. What was really great was around that project, we just launched a forum and a huge number of people came to that forum and asked questions and provided expertise. We were able to share some of our expertise on the topic.Now, there's this huge information resource that just has tons and tons of discussion about raising different kinds of insects at different scales, from commercial to home scale. We're really happy that exists out there. We get a lot of inquiries from people that say, "Hey, I just want to start growing some crickets for myself or some meal worms" or whatever it is. We don't have time to help every one of those people individually. We're able to say, "Hey, go over to the forum here, because there's just this huge drove information."Lisa:What do you see in the future?Andrew:Looking at the future, there's just so much room for growth. For us, the key thing is just get more commercial cricket farms built over the next years. Get the production ramped up, instead of just being able to have niche premium pet treats on the market. There can be full-diet pet foods and then maybe even your mainstream pet foods. If the Walmart brand of dog food could have even 5% cricket protein instead of meat, we'd be saving millions and millions of pounds of meat, hundreds of millions of gallons of water. It's all just about being able to grow the production volume to be able to meet those demands.For us, the path to doing that is not just building cricket farms ourselves but to be able to take the facility that we've designed and package that into a turnkey product that we could then license out to a production partner. Because we got a lot of inbound inquiry from folks that say, "Hey, I would love to start a cricket farm, but I don't really know how." There's great opportunity to leverage that and provide a ready-made solution where you can say, "Well, here's the setup and here's the training. We can provide the technical support." Then you can grow these crickets, and then we can help you process that into the protein powder that we can get out to the market."That's really the longer term growth strategy, is being able to engage with all these partners. Over the last several years, we've had hundreds and hundreds of people contact us, say, "I'm a dairy farmer, but I want to get into crickets." A lot of folks with agricultural backgrounds, maybe they grew up on a farm, but their parent's farm isn't quite big enough to support them coming back to work on the farm. They say, "Hey, maybe I could throw up an outbuilding and we could have a cricket farm there."There's a huge amount of opportunity for people that essentially have cricket production as their own business and be able to feed into the supply chain where we can have this huge impact offsetting meat. Fundamentally, what we are after is really converting, like I mentioned, this linear extractive food production system into a circular sustainable food production system. Right now, we're just so overextended on our demands, on the very limited resources that we have available in terms of water and soil and arable lands and even just nutrients available to grow crops.We're going to stop being able to produce food. When we talk to folks in the chicken industry or the beef industry, they're actually all very interested in the potential for the insect protein in the feed for their animals. Because all these animals are not just eating plant-based proteins. Almost all the animal feeds out there also have some amount of fishmeal in them, which supplements key amino acids and fats that you don't find produced in plants. Fishmeal production is a really shocking industry. We basically send out ships that scoop up indiscriminately, all the small fish. Particularly, they'll go scoop up whole schools of anchovetas and anchovies. Then they just grind that up into a powder and send it off into the animal feed formulations.Essentially, all that farmed salmon is basically eating wild fish that's been caught and ground up and pelletized and then fed back to that salmon. Something like 90% of fisheries are on the verge of collapse or have already collapsed. There's a huge amount of interest in introducing insect proteins into animal feeds. The FDA and AAFCO, which is the organization that controls what can go into animal feeds, have already approved soldier fly proteins, which is another insect that's being widely grown for use in salmon feeds. Now, the FDA has also just indicated that they think that should also be allowed in poultry feed. Poultry feed is one of the biggest consumers of fishmeal in the land-based agriculture.Lisa:Do you have a website that people can go to?Andrew:Our company is Tiny Farms. The website is just www.tiny-farms.com. Yeah. You can check out our basic offering. You can contact us through the contact form.Lisa:Are you selling tiny farm hats, like you have on? [crosstalk]Andrew:We've printed short-runs of shirts and had these hats made just for the team. There's enough interest that I think we'll get those listed up there soon. We just have to start thinking about the food system, in terms of a self-sustaining system and not like feel good sustainability. This has to be a system that can continue to produce food forever.Lisa:There are a lot of us living here, and we'll need every tool we can use if we want to keep enjoying it.Andrew:Yeah. Exactly.Lisa:Thank you, Andrew, for being on program.Andrew:Thank you. This was fun.Lisa:You've been listening to Method To The Madness, a biweekly public affairs show on KALX Berkeley, celebrating Bay Area innovators. You can find all of our podcasts on iTunes University. We'll be back again in two weeks.