The collapse of a high-profile Canadian insect protein venture is raising new questions about yet another round of public spending that backed a project few Canadians were ever likely to support.

Aspire Food Group entered receivership in 2025 after accumulating roughly $41.5 million in debt linked to its large-scale cricket production facility in London. The plant, which opened in 2022, had been promoted as the largest of its kind in the world and a step toward positioning Canada as a leader in alternative protein.

The federal government, under Prime Minister Justin Trudeau, contributed up to $8.5 million to the project through an agriculture funding program designed to support innovation in food production. That funding was directed toward construction and scaling of the facility.

Beyond that direct contribution, the project also relied on additional financing backed by public sources, including loans and other support. While full details have not been publicly disclosed, the total level of government exposure is understood to reach into the tens of millions.

The facility was designed to produce large volumes of cricket-based protein for both human consumption and pet food markets, with proponents pointing to lower environmental impacts compared with traditional livestock. Despite those expectations, the company struggled to maintain consistent production and generate sufficient revenue.

Court proceedings tied to the receivership indicated operations had slowed or stopped as the company shifted toward research and development while its financial position deteriorated.

The failure highlights another taxpayer-funded green initiative, echoing the electric vehicle push where significant public spending has coincided with job losses and uneven consumer support among Canadians focused on affordability.

The London facility has since been sold to new ownership, which is considering future uses for the site including the possibility of continuing insect farming operations.