Canada's largest cricket farm under receivership, despite millions in subsidies
Aspire Food Group, the world's largest cricket-processing facility, has gone into receivership, halting its insect-based food production.
A London-based insect protein plant, once a flagship for 'climate-friendly' food, has entered court-supervised restructuring. Aspire Food Group, the world's largest cricket-processing facility, has gone into receivership, halting its insect-based food production.
Billed as the world's largest cricket processing facility, Aspire's 150,000 square-foot facility sold crickets for human consumption beginning in October 2022. It was only sold as a pet food additive until that point.
The company envisioned crickets as a powder for drinks, in baked goods and protein bars. However, it fell flat despite millions invested by taxpayers, reported the Western Standard.
The Canadian Taxpayers Federation reports that the federal government signed eight deals with five companies, in addition to $8.5 million given to Aspire.
According to a Research and Markets report, the edible insect market was expected to reach $3.5 billion by 2029 and grow 28.6% annually between 2022 to 2029.
However, Canada's edible insect industry struggles with public acceptance despite investment. Aspire laid off 100 of 150 employees last November after claims of high cricket demand.
Former CEO Mohammed Ashour anticipated demand reaching 13 million kilograms annually by early 2024, but lower-than-expected growth led to production scaling back and uncertainty about a second facility.
David Rosenberg, the company's current CEO, warned that the company "needs to pull back production" to bolster cricket yields. Aspire intended to rehire those workers in July.
Proponents of alternative proteins like crickets include the World Economic Forum (WEF), which says they offset emissions compared to other meat products.
According to the Forum, cricket food production uses about one-eighth of the water and generates one-third of the carbon emissions of a cattle farm.
Ashour, who refuted claims of a global conspiracy to compel insect consumption, says crickets are high in protein, low in fat and not costly.
Founded in 2013 by five McGill students, the company won the $1 million Hult Prize from the Clinton Global Initiative for student entrepreneurship focused on solving world hunger.
Rosenberg later acknowledged that set-up costs for the cricket sector are often expensive.
On the company's financial standing, he said: "We have signed a term sheet and are working to close our financing at the end of the month. Demand still remains strong, but we have to scale up and produce consistently."
Ashour's March 2023 claim of securing "significant contractual commitments" for most production costs contradicts subsequent comments.
Government grants, including the $8.5 million contribution from Agriculture and Agri-Food Canada in June 2022, provided about 25% of the plant's funding.
Alex Dhaliwal
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Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.
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COMMENTS
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Bruce Atchison commented 2025-05-13 19:29:00 -0400What an utter and stupid waste of OUR tax dollars! Somebody made off like a bandit and we’re supposed to just shrug and bear it?
