Valorisation of whey 163
amino acids, phytochemical and plant extracts, prebiotics, fibres and specialty
carbohydrates, omega- 3 fatty acids, carotenoids, vitamins, and minerals. In
2018 these were estimated at US$68.6 billion worldwide, rising to US$94.2
billion by 2023 (PR Newswire, 2018). The development of global trade networks and infrastructures associated with globalisation has facilitated the
expansion of market opportunities for whey- based products. Upstream in
the5value chain, mergers and acquisitions have resulted in fewer and more
specialised dairy plants with spatial concentrations of specific side streams,
including whey.
Acid whey has not undergone the same development as sweet whey, due
to its – so far – much lower volume and somewhat less favourable physical
and taste properties (see section 9.2). Yet as this chapter will show, the market
and production dynamics just mentioned may also be relevant to acid whey
valorisation if issues relating to taste and processing are addressed.
In this broader context, this chapter investigates how the largest dairies in
Norway and Denmark, TINE and Arla Foods, have worked to add value to
whey with a focus on acid whey. Specifically, we examine key features of the
dairy industry in each country, the historical development of these industries,
individual firm characteristics and capabilities, and the position of each firm
in national and international markets. We ask how these factors – at the level
of the firm, the industry and the market – have influenced whey valorisation
in the two countries. In this regard, we are especially interested in how the
organisation of the firm, e.g. the separation of main product and by- product
processing in different legal units, affects organisational capabilities and utilisation of whey.
This analysis draws on theories discussed further in Chapter 3: path
dependence and lock- in – particularly economies of scale and scope and
learning effects; and directionality through industrial practices – particularly
value chain governance. Our comparative approach reveals how these drivers
and mechanisms play out in different national contexts and how they influence inter- firm connections crossing these contexts.
This chapter is based on data collected through interviews with experts
from a feed producer and from the TINE and Arla Foods dairies, a review of
company webpages and a literature review. A total of nine interviews were
carried out, of which three were with experts from Arla Foods and Arla
Foods Ingredients (AFI) (senior executive R&D advisor AFI, vice president
for corporate social responsibility Arla Foods, head of department separation
AFI) and six with experts in TINE (research director, head of corporate social
responsibility, technical director, researcher and young professional). In this
chapter, the term ‘whey’ is used to refer to both sweet whey and acid whey,
unless the type of whey is specified.
The chapter is structured as follows: the next section discusses the properties and utilisation options for acid whey. For each possible use, there is a
summary of the current state of innovation, the application’s commercial
potential, the required technological and investment capacities and the
amino acids, phytochemical and plant extracts, prebiotics, fibres and specialty
carbohydrates, omega- 3 fatty acids, carotenoids, vitamins, and minerals. In
2018 these were estimated at US$68.6 billion worldwide, rising to US$94.2
billion by 2023 (PR Newswire, 2018). The development of global trade networks and infrastructures associated with globalisation has facilitated the
expansion of market opportunities for whey- based products. Upstream in
the5value chain, mergers and acquisitions have resulted in fewer and more
specialised dairy plants with spatial concentrations of specific side streams,
including whey.
Acid whey has not undergone the same development as sweet whey, due
to its – so far – much lower volume and somewhat less favourable physical
and taste properties (see section 9.2). Yet as this chapter will show, the market
and production dynamics just mentioned may also be relevant to acid whey
valorisation if issues relating to taste and processing are addressed.
In this broader context, this chapter investigates how the largest dairies in
Norway and Denmark, TINE and Arla Foods, have worked to add value to
whey with a focus on acid whey. Specifically, we examine key features of the
dairy industry in each country, the historical development of these industries,
individual firm characteristics and capabilities, and the position of each firm
in national and international markets. We ask how these factors – at the level
of the firm, the industry and the market – have influenced whey valorisation
in the two countries. In this regard, we are especially interested in how the
organisation of the firm, e.g. the separation of main product and by- product
processing in different legal units, affects organisational capabilities and utilisation of whey.
This analysis draws on theories discussed further in Chapter 3: path
dependence and lock- in – particularly economies of scale and scope and
learning effects; and directionality through industrial practices – particularly
value chain governance. Our comparative approach reveals how these drivers
and mechanisms play out in different national contexts and how they influence inter- firm connections crossing these contexts.
This chapter is based on data collected through interviews with experts
from a feed producer and from the TINE and Arla Foods dairies, a review of
company webpages and a literature review. A total of nine interviews were
carried out, of which three were with experts from Arla Foods and Arla
Foods Ingredients (AFI) (senior executive R&D advisor AFI, vice president
for corporate social responsibility Arla Foods, head of department separation
AFI) and six with experts in TINE (research director, head of corporate social
responsibility, technical director, researcher and young professional). In this
chapter, the term ‘whey’ is used to refer to both sweet whey and acid whey,
unless the type of whey is specified.
The chapter is structured as follows: the next section discusses the properties and utilisation options for acid whey. For each possible use, there is a
summary of the current state of innovation, the application’s commercial
potential, the required technological and investment capacities and the