We are happy to share this positive progress update from Agri House, supported by their intermediary Red Hat Impact.
Who are Agri House?
Agri House is a Khmer, women owned and led business which has used cricket farming to create climate-resilient solutions for marginalized communities that promote inclusion, alternative livelihoods and good nutrition for youth. After borrowing through LendForGood to support expansion and successfully repaying twice before, Agri House came back for their third loan. The funding will support the construction and certification of a new facility that will expand their processing capacity and enable export capabilities. Agri House’s market expansion empowers Cambodian farmers to generate alternative livelihoods through cricket raising to prevent poaching and deforestation.
They now have an opportunity to expand their operation due to recently winning a Darwin Initiative grant, awarded in partnership with conservation social enterprise Rising Phoenix. This partnership provides the necessary volume of biodynamic crickets for Agri House to process and access the growing global alternative protein market, whilst contributing to sustainable local development in Cambodia. As part of the expansion a new processing facility is needed which will unlock new export markets. The loan is required to fund both the build of the new facility and the HACCP certification needed to be able to export.
Read more about their campaign over on their LFG Campaign Pages: Loan 3.
What have Agri House been up to?
Sarvaguna has been is deliver, pivot, deliver mode!
Impact of USAID dismantling.
The dismantling of USAID funding significantly impacted Agri House (AH). The USD$60,000 of committed reimbursements were to underwrite the expansion into new premises and equipment that would help repay the loan. All purchase orders for large processing equipment were cancelled. The lease for the new facility was cut, resulting in the loss of a 3-month bond. However, this will save costs in the long term.
Operations and Expenses
The team has recalibrated and focused on optimising existing operations. The small processing space has been remodelled and redesigned. Smaller capacity processing units were ordered to ensure the continuity of supply for both local and international markets. New cool rooms were ordered and constructed for storage of cricket purchasing agreements from the Rising Phoenix Conservation project.
Income & Pivots
Engaging with Animal Mama (popular vet in Phnom Penh) for potential endorsement and licensing/branding of pet food and snacks, with plans to donate 10% of sales to support animal shelters. These are lower cost and can be marketed to the middle class pet owners and utilise our existing equipment.
The development and sales strategy of the cricket and deforestation free chocolate bar was hampered as initial bespoke orders were for USAID projects as gifts. We are reworking the packaging for the tourism market and for potential export to Australia, depending on AQIS requirements.
New markets are being sourced in Cambodia, with a focus on frozen crickets produced locally, though this has been difficult. Phnom Penh City Council has closed off the main riverside thoroughfare on weekends to create a walking street complete with vendor booths, including fried cricket sellers. Agri House will set up a booth in the next month to test sales of both fried crickets and orders for frozen for the home, and the new pet snack treats. These options have low set up costs, and by targeting crickets by the can, and middle class pet snacks we hope to generate quick local revenues.
Networks & Projects
AFFIA Research Forum Attendance We recently attended the AFFIA AII & Research Forum to explore cutting-edge developments in food and feed ingredients, connecting with industry leaders and researchers to understand emerging opportunities in sustainable protein production and supply chain innovations across Australia’s agricultural sector. We will be begin working soon with the University of Adelaide and Universiti Malaya to identify pathways for cricket protein as a core ingredient in ‘wild match’ diets, which are more wholesome as an aqua feedstock. We recently joined the Insect Protein Association of Australia to engage with the rapidly growing alternative protein sector in Australia. Whilst very much a closed shop, we are leveraging our experience with AFFIA to create a more collaborative industry to ensure growth for all, and position Agri House front and centre in conversations and potential research grants.
Impact To Our Farmers
In our purchasing agreements with the Rising Phoenix Conservation organisation as part of the UK based Darwin project, we have now completed training for 50 households (husband and wife teams). The families have have signed conservation agreements to reduce poaching and deforestation to access our purchase guarantee.
To date we have purchased:
Total new incomes to farmers: USD$14,250
Fresh Crickets: 4.75 Tons
Price/ Kg: $3.00
Feed selling to framers (discount 10% to farmers):
Feed production in total: 22,000 kgs
Total revenues: USD$12,375
Support raising in 1st & 2nd cycle: 18 Tons
Selling to farmers: 4 Tons
Price/ Kg: $0.56
Staying in touch with Agri House
If you loved this impact progress update and don’t want to wait for the next one, you can follow Agri House’s journey directly to stay up to date with the latest (and perhaps if you pass through or are in Cambodia, spot their upcoming market stall). See their social media channels and website linked below:
https://agrihouse.asia/
https://www.facebook.com/agrihouseasia
https://www.linkedin.com/company/agri-house/posts/?feedView=all
https://t.me/Agri_House
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