178 S. Bolwig et al.
to isolate specific components, heat treatment and pasteurization technology
to improve functionality and shelf- life. R&D further develop powder technologies to form safe and functional powders for dry blend and optimal rehydration’ (Arla Foods Ingredients, 2018c).
In 2009 AFI established a large high- tech ingredients application centre in
Aarhus, Denmark to substitute the more modest application facilities at the
R&D pilot plant in Nr. Vium. Another, smaller centre was established in
Buenos Aires in 2002. The innovation centres are used for both whey protein
research as well as for product trials. A key purpose is to assist AFI’s customers in
utilising the whey- based ingredients sold by AFI in their product development.
The Danish dairy ingredients subsector has shown an even stronger export
market orientation than conventional dairy products, responding to the rapid
growth in demand worldwide. Since 1990, MD Foods Ingredients/AFI has
established overseas subsidiaries in Europe, the US, Asia (Japan, China, Singapore and South Korea) and South America (Argentina, Brazil and Mexico).
The internationalisation strategy includes foreign direct investments in whey
processing plants in Argentina (from 2002 to 2018) and Germany (1993, 2002
and 2011) facilitated by joint ventures and acquisitions (Arla Foods Ingredients, 2018a). A key purpose of these investments is to increase access to whey
raw material, which is critical to maintaining AFI’s market share (Kjer, 2013).
In the other countries mentioned, direct investments have mainly been in the
form of sales offices. In 2008, a partnership was created with the TINE dairy
in Norway (see 9.3).
9.4.2 Utilisation of acid whey in Denmark
Arla Foods generates limited amounts of acid whey from the production of
skyr. This whey contains mainly lactose and calcium and very little protein. It
is therefore not further processed but until today only used as a biogas substrate, as markets need to be found for potentially innovative solutions (interview with AFI). As mentioned, AFI has developed a whey protein product
called Nutrilac
®
that can upgrade acid whey functionality so it can be used in
the production of a range of products (see 9.2.2). AFI sells Nutrilac
®
to customers including producers of dairy products.
9.4.3 Utilisation of sweet whey in Denmark
Up to the 1980s, whey from cheese production in Denmark was mainly used
for animal feed, but today whey- based products have become the main commodities, which may even create a higher value than the cheese production
itself. Arla Foods Ingredients is the only company in Denmark that processes
sweet whey on an industrial scale. It also owns processing facilities in
Germany and Argentina and it markets whey products produced in Norway.
AFI products are sold in more than 90 countries (Arla, 2017). They include a
range of functional and nutritional ingredients (proteins) to support industries
to isolate specific components, heat treatment and pasteurization technology
to improve functionality and shelf- life. R&D further develop powder technologies to form safe and functional powders for dry blend and optimal rehydration’ (Arla Foods Ingredients, 2018c).
In 2009 AFI established a large high- tech ingredients application centre in
Aarhus, Denmark to substitute the more modest application facilities at the
R&D pilot plant in Nr. Vium. Another, smaller centre was established in
Buenos Aires in 2002. The innovation centres are used for both whey protein
research as well as for product trials. A key purpose is to assist AFI’s customers in
utilising the whey- based ingredients sold by AFI in their product development.
The Danish dairy ingredients subsector has shown an even stronger export
market orientation than conventional dairy products, responding to the rapid
growth in demand worldwide. Since 1990, MD Foods Ingredients/AFI has
established overseas subsidiaries in Europe, the US, Asia (Japan, China, Singapore and South Korea) and South America (Argentina, Brazil and Mexico).
The internationalisation strategy includes foreign direct investments in whey
processing plants in Argentina (from 2002 to 2018) and Germany (1993, 2002
and 2011) facilitated by joint ventures and acquisitions (Arla Foods Ingredients, 2018a). A key purpose of these investments is to increase access to whey
raw material, which is critical to maintaining AFI’s market share (Kjer, 2013).
In the other countries mentioned, direct investments have mainly been in the
form of sales offices. In 2008, a partnership was created with the TINE dairy
in Norway (see 9.3).
9.4.2 Utilisation of acid whey in Denmark
Arla Foods generates limited amounts of acid whey from the production of
skyr. This whey contains mainly lactose and calcium and very little protein. It
is therefore not further processed but until today only used as a biogas substrate, as markets need to be found for potentially innovative solutions (interview with AFI). As mentioned, AFI has developed a whey protein product
called Nutrilac
®
that can upgrade acid whey functionality so it can be used in
the production of a range of products (see 9.2.2). AFI sells Nutrilac
®
to customers including producers of dairy products.
9.4.3 Utilisation of sweet whey in Denmark
Up to the 1980s, whey from cheese production in Denmark was mainly used
for animal feed, but today whey- based products have become the main commodities, which may even create a higher value than the cheese production
itself. Arla Foods Ingredients is the only company in Denmark that processes
sweet whey on an industrial scale. It also owns processing facilities in
Germany and Argentina and it markets whey products produced in Norway.
AFI products are sold in more than 90 countries (Arla, 2017). They include a
range of functional and nutritional ingredients (proteins) to support industries