What's Happening?
Danish insect agriculture company ENORM has been declared bankrupt following a six-month court-supervised restructuring process. The company, which raised €50 million ($57 million) in 2022, had opened
a factory in Jutland in 2023 to supply the animal feed market with protein and oil derived from black soldier fly larvae. The facility was designed to produce approximately 11,000 tons of protein meal annually, positioning it as one of Europe's largest insect agriculture sites. Despite initial interest and premium pricing potential, the company faced waning momentum by late 2024, leading to the court-ordered reconstruction process in April 2025. On October 30, ENORM was formally issued a bankruptcy decree, with attorney Henrik Selchau Poulsen appointed as trustee. Claims against ENORM must be submitted by the end of the month.
Why It's Important?
The bankruptcy of ENORM highlights the challenges faced by the insect agriculture sector, which has been struggling despite its potential for sustainable protein production. The closure of ENORM, along with other companies like South African startup Inseco and Canadian cricket farmer Aspire Food Group, underscores the financial difficulties within the industry. However, the sector continues to attract investment, as evidenced by recent funding for nextProtein and Volare. The situation reflects the mixed picture for insect agriculture, where innovative approaches to protein production are met with significant operational and financial hurdles.
What's Next?
The bankruptcy proceedings will involve the submission of claims against ENORM by the end of the month. The equipment and management from ENORM may be integrated into other industry contexts, as suggested by Toke Munk Schou, head of biological R&D at ENORM. Meanwhile, other companies in the insect agriculture sector, such as Innovafeed, continue to pursue expansion plans, including a commercial-scale facility in the U.S. The industry may see further consolidation and restructuring as companies navigate financial challenges and seek new investment opportunities.
Beyond the Headlines
The closure of ENORM raises questions about the viability and scalability of insect agriculture as a sustainable solution for protein production. The industry's struggles may prompt a reevaluation of business models and market strategies, potentially leading to innovations that could overcome current obstacles. Additionally, the integration of ENORM's knowledge and equipment into other contexts may contribute to the sector's long-term development, despite immediate setbacks.
