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Australia’s Food Waste Crisis: Startup Turns Millions of Maggots into Profits

UPDATE: A revolutionary startup in Sydney is tackling Australia’s staggering food waste crisis by harnessing millions of maggots to convert discarded food into valuable animal feed and fertiliser. Founded by Olympia Yarger, Goterra has developed a unique system that processes food waste using black soldier fly larvae, effectively redirecting waste from landfills and addressing a pressing environmental issue.

Yarger, a former sheep farmer turned entrepreneur, operates her facility in Wetherill Park, where she collects mouldy bread and spoiled vegetables from supermarkets daily. “We’ve developed a technical system that accepts and manages food waste using insects,” Yarger stated, emphasizing the urgent need to reduce the environmental impact of food disposal.

Currently, food waste contributes to approximately 3 percent of Australia’s annual emissions, according to the Department of Climate Change, Energy, the Environment and Water. With Australia generating over 7.6 million tonnes of food waste annually—costing the economy over $36.6 billion each year—this innovative approach could significantly mitigate greenhouse gas emissions.

Lisa Bai, a research fellow at the University of Queensland, highlighted the environmental stakes: “When food rots, it releases methane, a greenhouse gas far more potent than carbon dioxide. Separating our food waste and turning it into compost has real benefits for the environment.”

Starting from July 1, 2026, new regulations will require large food-generating businesses in New South Wales to separate their food waste from general waste, with a complete rollout for households expected by 2030. Alexandra Geddes from the NSW Environment Protection Authority (EPA) stated, “We are running out of landfill capacity, and food waste makes up a substantial portion of our waste. We need to keep this out of landfills for a sustainable future.”

At Goterra, the innovative farming system allows for on-site waste management. One modular box can process 1.7 tonnes of food waste daily, producing nutrient-rich fertiliser and high-quality poultry feed. “The chickens love it. The feed is really good for their gut health,” said Justin Frank, Goterra’s chief sustainability officer, emphasizing the health benefits of this feed rich in essential amino acids.

Despite the advantages, challenges persist. Bai noted, “The biggest problem for food waste treatment is contamination. We’re seeing rising levels of metals, glass, PFAS, and microplastics, which pose risks for composting.” The EPA is pushing for improved sorting habits among businesses to ensure clean organic material for compost production.

As Yarger prepares for national expansion—growing from a small operation in her garage in 2016 to seven facilities across four states—she remains committed to transforming the food waste narrative. “If we can leverage technology to create a circular economy, we win at both ends of our value chain,” she remarked.

The urgency of this initiative cannot be overstated. With the potential to significantly bolster the economy by halving food waste, which could yield a net benefit of $58 billion by 2030, Goterra’s approach exemplifies how innovative solutions can address critical environmental challenges while driving profitability.

Stay tuned for more updates as Goterra continues to lead the charge against food waste in Australia. For the latest developments, visit our website and subscribe to our newsletter.

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