Arla

Analysis milk

Arla uses whey ingredients

21 September 2023 - Klaas van der Horst

The Scandinavian Arla has not made any major acquisitions in recent years, but is quietly working on a stronger whey ingredient base. This is done by entering into partnerships and also by terminating them.

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An example of the latter is the recent buyout of the British Volac from the MV Ingredients partnership in South West England. This gives Arla full control over the whey flow from the North Tawton factory at this location. Volac may continue to have a side stream for a while. It seems a bit sad for Volac, because it was also pushed out of a past collaboration in 2019, but then by DMK. Then it was about DV Nutrition in Hoogeveen.

Entire series in 2022
The takeover in North Tawton is the latest step in a series of steps in the field of pasture. At the end of last year, Arla entered into a partnership with Milcobel. The pasture from the Milcobel factory in Langemark will from now on go to Arla. Both parties hope to gain from it. A month earlier, Arla announced a collaboration with the British First Milk, also for the purchase of whey. In June last year, Arla had already concluded a similar agreement with Northern Ireland's Dale Farm.

Arla was already not small in the field of whey processing. In addition to its own supply, Arla also obtained whey from a partnership with DMK.
It is true that Arla is a large dairy group, but as a cheese maker it is smaller than, for example, FrieslandCampina. Arla has more smaller factories and also makes other cheeses, but because it wants to grow significantly in the ingredients business, it needs extra whey, because many high-quality ingredients for children's, sports and health food are made from it.

Sales growth
And Arla grows with ingredients. Last year, the turnover of the Food Ingredients division increased from €798 million to €1.028 million. The market for regular whey powder is not always good, but good returns can be achieved with high-quality ingredients.

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