“INVESTMENT POTENTIAL

OF INSECT FARMING FOR

FOOD AND FEED IN BICOL
REGION”

AVILA , JESSA M.

CONTANTE , SHEENA MAE G.

LAGASCA , ANGELICA D.

INTRODUCTION:
In recent years, insect farming has emerged as a promising alternative solution to address
global food security, environmental degradation, and the rising demand for sustainable protein
sources. The Food and Agriculture Organization (FAO) of the United Nations has recognized
edible insects as a viable component of future food systems due to their high nutritional value,
low environmental impact, and efficient feed conversion rates (FAO, 2013). In particular, insect-
based products are increasingly being explored for both human consumption and as a protein-
rich feed ingredient in livestock, aquaculture, and poultry industries.

The Bicol Region, located in the southeastern part of Luzon in the Philippines, presents a
unique opportunity for the development of insect farming. With its rich biodiversity, agricultural
economy, and growing awareness of sustainable practices, Bicol has the potential to become a
key player in the country's edible insect industry. However, there remains limited research on
the region-specific suitability, market acceptance, and financial viability of insect farming
ventures.

This study seeks to explore the investment potential of insect farming for food and feed in the
Bicol Region by addressing three main objectives: (1) to identify the most suitable insect
species for farming based on environmental and ecological conditions; (2) to determine the level
of market acceptance for insect-based products among consumers and feed producers; and (3)
to assess the financial feasibility of insect farming operations, including cost analysis, revenue
potential, and overall profitability.

The research is grounded in a conceptual framework that integrates financial viability,

environmental factors, market factors, and economic considerations. Financial viability
examines the startup and operational costs, potential returns, and investment risks (van Huis et
al., 2013). Environmental factors assess the sustainability of insect farming, including its
resource efficiency and ecological footprint. Market factors consider consumer preferences,
awareness, and willingness to pay, which are critical for product adoption (Verbeke, 2015).
Lastly, economic factors involve broader regional conditions such as infrastructure, labor
availability, and policy support that can influence investment outcomes.

By evaluating these interconnected elements, the study aims to provide evidence-based

insights for entrepreneurs, policymakers, and investors interested in the sustainable
development of the insect farming industry in the Bicol Region.

OBJECTIVES OF THE STUDY

This study aims to evaluate the investment potential of insect farming in the Bicol Region
through the following objectives:

1. Identify the most suitable insect species for farming in the Bicol Region.

2. Determine the Market Acceptance for insect - based food and feed products in the Region.

3. Determine the Financial Feasibility of insect farming, including production costs, revenue
generation, and profitability.
SIGNIFICANCE OF THE STUDY

The significance of this study lies in its potential to contribute to sustainable agriculture and
economic development in the Bicol Region by exploring the investment potential of insect
farming for food and feed. As global concerns about food security, environmental degradation,
and resource scarcity grow, alternative protein sources such as insects have gained attention
for their low environmental impact, high feed conversion efficiency, and adaptability to various
climates (van Huis et al., 2013). This study provides valuable insights for local farmers,
entrepreneurs, and investors by identifying viable insect species suited to the region’s
environmental conditions and by evaluating market acceptance and financial feasibility.
Furthermore, it supports policymakers and development planners by offering evidence-based
data that can guide initiatives in sustainable food systems, rural enterprise development, and
environmental management (Halloran et al., 2016). The research also contributes to academic
literature by addressing consumer attitudes and market dynamics in the Philippine context,
where entomophagy is still emerging as a commercial practice (Verbeke, 2015). Overall, the
study emphasizes the relevance of insect farming as a feasible and sustainable livelihood option
that aligns with both local needs and global sustainability goals.

CONCEPTUAL FRAMEWORK

Financial viability

● Environmental
● Market
● Economic

Discussion:

The conceptual framework centers on financial viability, which refers to the ability of a business
to sustain itself economically over time while generating profits. In the context of insect farming
in the Bicol Region, financial viability is shaped by an interplay of environmental, market, and
economic dimensions.

Environmental factors are crucial because the success of insect farming depends on favorable
climatic conditions, sustainable use of local resources, and minimal environmental impact.
Insects such as black soldier flies and crickets are known for their efficiency in converting
organic waste into high-protein biomass, thereby supporting circular economy models and
reducing agricultural waste (van Huis et al.,2013). The ecological adaptability of insect species
to the local environment also reduces input costs and increases resilience.

Market factors determine the potential for revenue through the sale of insect-based products.
Consumer attitudes toward entomophagy (the practice of eating insects) are evolving, but
market acceptance remains a challenge in some regions. Studies show that acceptance
improves when products are processed in familiar forms (e.g., flour or feed pellets) and
marketed effectively (Verbeke, 2015). Understanding local market trends, consumer
perceptions, and distribution opportunities is vital to capturing demand and scaling production.

Economic factors encompass the practical financial aspects of starting and sustaining an insect
farming business. These include capital investment, production and labor costs, expected
revenues, and long-term profitability. Studies highlight that insect farming can be economically
viable due to low feed costs, high reproduction rates, and diversified market opportunities
(Miech et al., 2016). However, access to financing, infrastructure, and technical know-how
remains a barrier, especially for small-scale farmers.

SCOPE AND DELIMITATION

This study focuses on assessing the investment potential of insect farming specifically within the
Bicol Region of the Philippines. It covers the identification of suitable insect species for farming,
evaluating market acceptance of insect-based food and feed products, and analyzing the
financial viability of insect farming enterprises. The study primarily considers the current market
trends, consumer perceptions, and financial data relevant to the region from 2023 onwards.

Delimitations:

● The research is limited to selected provinces within the Bicol Region and may not
represent the whole region's diverse agricultural and economic conditions.
● Only commercially viable insect species such as crickets, mealworms, and black soldier
flies are considered.
● The study relies on existing market data, surveys, and interviews conducted within the
timeframe of 2023, which may limit the scope of consumer acceptance analysis.
● The financial analysis focuses on small to medium-scale insect farming operations and
does not extensively cover large-scale industrial farms.

Academic Journals & Articles: Search platforms like Google Scholar, ScienceDirect, or JSTOR
for studies on insect farming, market acceptance, and financial feasibility in the Philippines or
Southeast Asia.

Government Reports: Check reports from the Department of Agriculture Philippines, the Food
and Agriculture Organization (FAO), or local government units in Bicol.

Industry Publications: Look for publications or market analyses from agribusiness and insect
farming associations.

Market Surveys: Conduct or review existing consumer surveys on acceptance of insect-based

food and feed products in the Philippines.

This study focuses on assessing the investment potential of insect farming for food and feed in
the Bicol Region of the Philippines. Specifically, it aims to identify the most suitable insect
species for farming under the region’s environmental conditions, evaluate the level of market
acceptance for insect-based products, and determine the financial feasibility of such ventures,
including production costs, revenue potential, and profitability. The research is limited to
commonly farmed insect species such as crickets, mealworms, and black soldier flies, which are
known for their high protein content and adaptability (van Huis et al., 2013). The geographical
scope is confined to selected provinces within the Bicol Region, and market data will primarily
be gathered from local consumers, feed producers, and agricultural stakeholders.

Delimitations of the study include its exclusion of large-scale industrial farming models and
export market analysis. Additionally, while the study considers environmental and market
factors, it does not include a comprehensive life cycle environmental impact assessment.
Despite these limitations, the study provides a foundational understanding of the local viability
and acceptability of insect farming as an alternative protein source, offering insights that can
inform regional agricultural development and sustainability planning (Halloran et al., 2016;
Verbeke, 2015).

REVIEW OF RELATED LITERATURE

In recent years, insect farming has gained global recognition as a sustainable and efficient
alternative to traditional livestock systems for both food and feed production. Edible insects are
rich in protein, fats, vitamins, and minerals, making them a viable substitute for conventional
animal products (van Huis et al., 2013). Studies have highlighted the high feed conversion
efficiency of insects, such as crickets and black soldier flies, which require significantly less
land, water, and feed to produce the same amount of protein as poultry or cattle (Miech et al.,
2016). Furthermore, insect farming contributes to circular agriculture by utilizing organic waste
as feed, thereby reducing environmental impact and supporting waste management systems
(Halloran et al., 2016).

Market acceptance, however, remains a critical barrier to the adoption of insect-based products,
particularly for human consumption. Consumer perceptions are shaped by cultural norms,
awareness, and product presentation. Research has shown that consumers are more willing to
accept insect-based foods when they are processed into familiar forms such as flour or protein
bars (Verbeke, 2015). In the Philippine context, interest in entomophagy exists, especially in
rural areas, but commercialization is still limited by a lack of awareness, regulatory clarity, and
standardized production systems (Delicato et al., 2021).

Financial feasibility is another important dimension in the assessment of insect farming. Start-up
costs are generally lower than traditional livestock systems, and the potential for high-volume,
low-cost protein production creates strong business opportunities, especially for small and
medium enterprises (Payne et al., 2016). However, profitability depends on species selection,
production scale, technology access, and market development. Collectively, these studies
suggest that insect farming holds significant promise, but its success requires an integrated
approach that addresses environmental sustainability, consumer behavior, and economic
viability.

THEORETICAL FRAMEWORK

This study is grounded in two interrelated theoretical models: the Sustainable Livelihoods
Framework (SLF) and the Theory of Planned Behavior (TPB). The Sustainable Livelihoods
Framework, developed by the Department for International Development (DFID), emphasizes
the role of various forms of capital—natural, human, social, financial, and physical—in
supporting sustainable economic activities (Scoones, 1998). In the context of insect farming in
the Bicol Region, this framework helps assess how access to land, knowledge, market
infrastructure, and financing can enable farmers to adopt insect farming as a sustainable
livelihood option. Meanwhile, the Theory of Planned Behavior by Ajzen (1991) explains how
individual intentions to perform a behavior are influenced by attitudes, subjective norms, and
perceived behavioral control. This theory is particularly useful in analyzing how market
acceptance of insect-based food and feed is shaped by consumer beliefs, social influence, and
confidence in product safety and benefits. By integrating these frameworks, the study evaluates
both the structural and behavioral factors influencing the investment potential of insect farming,
offering a multidimensional perspective that combines environmental sustainability, economic
viability, and social acceptance.

METHODOLOGY
This study adopts a mixed-methods research design, combining both qualitative and
quantitative approaches. The purpose is exploratory and descriptive, aiming to identify the
most suitable insect species for farming, assess market acceptance of insect-based food and
feed products, and evaluate the financial feasibility of insect farming ventures in the Bicol
Region. Mixed-methods research allows for a more comprehensive understanding by
integrating numerical data with qualitative insights.

The research will be conducted in selected provinces of the Bicol Region, specifically Albay,
Camarines Sur, and Sorsogon. These provinces were chosen due to their diverse ecosystems,
active agricultural sectors, and potential suitability for small- to medium-scale insect farming
initiatives. The region’s environmental characteristics, such as temperature, rainfall, and
vegetation, make it a promising location for sustainable insect production (Food and Agriculture
Organization [FAO], 2013).

Data collection will be carried out in three parts. First, to identify suitable insect species,
secondary data will be gathered from the Department of Agriculture (DA), the Department of
Science and Technology (DOST), and academic studies from local universities. This will be
supplemented with interviews from subject-matter experts, including entomologists and
agriculturists. An environmental suitability analysis will be conducted to assess factors such
as climate conditions, host plant availability, and ecosystem compatibility (van Huis et al., 2013).

Second, a market acceptance survey will be conducted targeting consumers, livestock

farmers, and feed producers across the selected provinces. A structured questionnaire using
a Likert scale will assess knowledge, attitudes, preferences, and willingness to pay for insect-
based food and feed. The sampling method will be stratified random sampling to ensure
representation across urban and rural areas. This component seeks to understand potential
consumer behavior and commercial demand, which are critical for scaling insect farming
operations

Third, a financial feasibility study will be performed using cost-benefit analysis. Key
variables will include startup and operational costs, projected yields, market prices, breakeven
points, and expected return on investment (ROI). Financial data will be drawn from pilot farms
and operational insect farming ventures in other parts of the Philippines. This component will
inform the potential profitability and investment risks involved in commercial insect production
(FAO, 2013; van Huis et al., 2013).

For data analysis, descriptive statistics such as means, frequencies, and percentages will be
used to summarize survey responses. Financial viability will be evaluated using Net Present
Value (NPV), Internal Rate of Return (IRR), and Payback Period. Meanwhile, data from
expert interviews will be analyzed through qualitative content analysis to extract themes and
insights related to species selection and regional support mechanisms.
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(2013). Edible insects: Future prospects for food and feed security (FAO Forestry Paper No.
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