Magalarva is Funded by a Japanese Investor
Insects - especially flies - are not only detrimental to society. There are also flies that are beneficial to the environment, such as the species Hermetia illucens or the black soldier fly (BSF). Even the Magalarva startup company, which was founded in 2017 under the name PT Magalarva Sayana Indonesia, makes it a profitable business opportunity.
Magalarva focuses on the organic waste processing business using the help of BSF larvae which are able to consume organic waste up to four times their weight. Once the larvae are mature, Magalarva will dry them and sell them as a premium animal feed product. BSF manure can also be a natural fertilizer.
Co-Founder and Chief Operations Officer (COO) Magalarva Arunee Sarasetsiri stated that the supply of waste in the world is always increasing, especially in Indonesia. "There is a lot of supply of waste, hotels, industries, markets. There is a lot of potential for waste," said Arunee to Katadata.co.id, Friday (8/3).
According to Arunee, the speed of processing BSF larvae waste can reach 1 to 2 tons a day. Calculation of the larval cycle for 14 days from eggs. Thus, the average Magalarva production can reach 4 to 4.5 tons of dry larvae every month. He claims his productivity is faster than the regular compost process.
She revealed that Magalarva can sell dried larvae as export products for IDR 35,000 to IDR 45,000 per kilogram to be used as feed for ornamental fish or pets. The export market can reach the United States (US) and the European Union.
Arunee explained, the company still chose to export because the market for premium feed was high, public awareness was also better, the regulations were clear, and the community identified it. "We already have buyers from Europe who are in the process of negotiating cooperation," she said.
Domestic Market Challenges As a top 10 finalist for Future Agro Challenge Indonesia, Magalarva's target market is actually meeting the needs of local communities or local markets. However, the high price disparity is still a challenge in working on the local market.
Arunee admits that the selling price of dried larvae to local people is still around IDR 15,000 to 18,000 per kilogram. Even though it is cheaper than export products, Magalarva finds it difficult to compete with other types of inorganic feed. The drying machine is also still in partnership. Moreover, the processing capacity of the Magalarva facility in Parung, Bogor Regency, which is still small, means that the production costs are high.
Author: Michael Reily
Editor: Happy Fajrian