Model business plan for a sterile insect production facility

For over 50 years the sterile insect technique (SIT) is a pest control strategy which has been used for eradication, and more recently for suppression, containment and prevention, of unwanted insect pest populations. Examples of successful applications of SIT, almost always applied in conjunction with other control methods in an area-wide integrated approach, are available from around the world. The development and application of SIT has relied overwhelmingly on public or donor initiative and funding throughout its history, although the private sector has always been involved as participants, cooperators or partners in funding. The demand for SIT, and therefore the market for sterile insects, has increased in recent years. This increase coincides with the introduction of new pests through the expansion of global trade and, at the same time, widespread pressure to find alternatives to pesticides. Recent improvements in the technology supporting SIT facilitate its application and suggest lower costs can be achieved. The conditions are therefore met for a greater commercialization of the technique to bring it in line with other pest control approaches that are fully integrated into a market approach. Several challenges arise, however, in pursuing sterile insect production as a commercial venture, ranging from intellectual property protection to pricing of the product. Routine insurance requirements, for instance, are complicated by the biological aspects of the business. This report is aimed at facilitating private sector involvement in the production of sterile insects for use in pest control. It provides guidelines and tools to support the development of specific business plans for a new SIT venture. By providing an international perspective on such issues as initial capital costs and recurring operational expenditures for a sterile insect facility, it may be used to evaluate the feasibility of proceeding with the construction or expansion of a sterile insect production facility. Informed decisions will allow government planners and private investors alike to account for the opportunities and risks unique to SIT and to plan accordingly.