Techno-Economic Assessment of APS-Based Poultry Feed Production with a Circular Biorefinery Process

Abstract

Poultry livestock profitability significantly depends on feed, accounting for 60–70% of the total production cost, of which protein sources are among of the most expensive ingredients. The maintenance of profitability while meeting feed demand and reducing the environmental impact represents a considerable challenge driving research of alternative protein sources (APS), such as insects and algae meals. This study employs, for the first time, techno-economic assessment (TEA) methodology to evaluate the technological performance and the industrial feasibility of an APS-based poultry feed production method based on the valorization of the pre-treated organic fraction of municipal solid waste (OFMSW) as a substrate for Hermetia illucens larval growth and microalgae cultivation. The Excel-based analysis, which evaluated the mass and energy balance as well as the income statement, was integrated with a thematic analysis focused on exploring how the overall value attributed to the sustainability concept is reflected in the willingness to adopt sustainable business models by entrepreneurs in the poultry sector. Despite the ability to generate revenues, the model cannot be said to be profitable for animal feed production due to the strong dependence of its profitability on scale economy logics. Enabling solutions could be derived from the recovery of abandoned infrastructures, government financial incentives, and integrated systems associating OFMSW treatment with poultry farming, thus resulting in marked economic sustainability and profitability: key elements from the poultry entrepreneurs’ point of view.