Founded in 2019, Full Circle Biotechnology is a Bangkok-based insect farming company that rears black soldier fly larvae for animal feed. This feed, a sustainable alternative to soybean-based products, has a carbon footprint 100 times lower than soymeal and contains up to 70% protein. However, the company faces a significant financial challenge: its insect-based feed costs approximately $1,400 per tonne, compared to $460 per tonne for traditional soybean feed, making it less affordable for many farmers.
In response, Full Circle has turned to artificial intelligence (AI) to reduce production costs by improving operational efficiency. By analyzing historical data, AI can optimize variables such as temperature, food supply, and larvae spacing, which are expected to boost yield and lower costs. However, implementing AI poses high initial costs and requires significant data collection before yielding optimal results.
Beyond financial constraints, Full Circle also faces another challenge in managing public perceptions around insect-based feed, which may deter some farmers and consumers from considering it a viable option. Despite the environmental benefits, overcoming consumer hesitancy around insects in the food supply chain will require substantial education and outreach efforts. Full Circle is considering using Above The Line (ATL) promotion to change public perception.
Questions
- (2 Marks) Define artificial intelligence (AI).
- (4 Marks) Explain one advantage and one disadvantage of Full Circle Biotechnology using Above The Line Promotion (ATL).
- (10 Marks) Evaluate the potential impacts of using AI to address the challenges Full Circle faces in promoting its insect-based feed over traditional feeds.
Source: The insect farmers turning to AI to help lower costs – BBC News,
The company name is fictious and used solely for the purpose of this exam question. 02/05/2024
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