A company backed by federal funding to kickstart edible crickets for human consumption in Canada is now facing serious financial trouble and has been placed under receivership by a creditor.
Aspire Food Group, an “alternative protein” company specializing in cricket farming, has been placed under receivership by Farm Credit Canada, a Crown corporation that provides financing to the agricultural sector.
In July 2020, Aspire Food Group successfully obtained a $8.5 million taxpayer-funded grant from the federal government to help develop their cricket farms.
Two years later, Aspire would open the world’s largest edible cricket production facility in London, Ontario, seeking to reach 100 per cent production capacity by early 2024.
Despite Aspire’s ambitious goals, the cricket plant faced significant challenges in finding a market for its product, having to lay off 67 per cent of its workforce in November 2024.
Since May 2024, the London plant remained at or below 50 per cent production capacity, having a hard time finding a market for their edible crickets.
As a result, Aspire failed to generate positive earnings and has required numerous cash injections to maintain operations.
Aspire now owes Farm Credit Canada $41.5 million despite receiving significant financial support from the federal government, in addition to owing $1 million in unpaid property taxes.
After efforts to pay off creditors and return to profitability, Aspire still failed to maintain a $1 million cash balance, violating their credit agreement with Farm Credit Canada.
FTI has been appointed the receiver of Aspire, who will seek to liquidate the company’s assets to pay off its debts.
The announcement of Aspire being placed under receivership comes after the company and the federal government received significant backlash for their attempt to convince Canadians that eating bugs is a viable alternative source of protein.
While most of the plant’s production went to creating pet food, around ten per cent of the company’s product was dedicated to human consumption.
The World Economic Forum has spearheaded the push for bug consumption, controversially encouraging people to begin eating bugs as a means to fight climate change.