Valorisation of whey 179
within paediatric nutrition, sport nutrition, health foods, medical nutrition,
bakery products, dairy and affordable food (Arla, 2017). The proteins produced include 15–20 ‘pure proteins’ such as whey protein concentrate, whey
protein isolate, Lacprodan and Capolac Nutrilac, among others. From these
proteins, other and new ‘mixed’ proteins are constantly being developed so
that the total number of proteins produced and sold at any given time ranges
between 80 and 150 (Hansen, 2018). Likewise, AFI produces whey permeate,
a coproduct of whey protein concentrate, on its plants in Denmark and
Argentina and sells the whey permeate produced by TINE (Arla Foods Ingredients, 2018d) (see 9.3.3). A substantial part of the permeate production is
further valorised into different qualities of lactose mainly used for infant
formula production (interview with AFI).
9.5 Discussion
9.5.1 Drivers of whey valorisation
In just a few decades, the production of whey- based food ingredients has
become an important part of Arla Foods’s overall strategy. The development
of these side streams has been significant for the company’s strong position
within value- added activities today (Lange & Lindedam, 2016) and the aim of
AFI is to become ‘the global supplier of value added whey’ (Arla, 2017, p. 34).
Arla Foods has employed several strategies to strengthen its position in a
very dynamic global market for whey- based products. A key factor has been
the establishment of the subsidiary AFI dedicated to whey processing, as well
as joint ventures between AFI and foreign ingredients companies. This has
provided the needed organisational framework for their large investments in
raw material sourcing, production capacity, R&D and marketing of valueadded whey over the last two decades. In general, subsidiaries bring internationalisation opportunities, and they also enable the creation of more direct
customer contact as well as consumer control, resulting in increased governance features for the subsidiary in the respective location (Biisgård, 2006). AFI
thereby enables the creation of a more tailored product portfolio within their
main markets (Danish Dairy Board, 2006). Moreover, AFI has created three
business units for specific products, thereby enhancing its capacity for product
differentiation and specialisation: nutrition, functional milk protein, and permeate and lactose (Andersen, 2014). In support of their business units, AFI
has a large R&D division and runs two customer- focused application centres.
All this has contributed to Arla Foods becoming a ‘lead firm’ (Gibbon, Bair &
Ponte, 2008) in the global value chain for whey proteins, sourcing whey not
only from its own member producers but also from other dairies in Denmark
and Norway (see below).
Nutrilac
®
may be an efficient way of dealing with acid whey today, at least
for high- value end products. Yet it is presently only available in limited
volumes and the challenge for AFI is therefore to identify markets with a
within paediatric nutrition, sport nutrition, health foods, medical nutrition,
bakery products, dairy and affordable food (Arla, 2017). The proteins produced include 15–20 ‘pure proteins’ such as whey protein concentrate, whey
protein isolate, Lacprodan and Capolac Nutrilac, among others. From these
proteins, other and new ‘mixed’ proteins are constantly being developed so
that the total number of proteins produced and sold at any given time ranges
between 80 and 150 (Hansen, 2018). Likewise, AFI produces whey permeate,
a coproduct of whey protein concentrate, on its plants in Denmark and
Argentina and sells the whey permeate produced by TINE (Arla Foods Ingredients, 2018d) (see 9.3.3). A substantial part of the permeate production is
further valorised into different qualities of lactose mainly used for infant
formula production (interview with AFI).
9.5 Discussion
9.5.1 Drivers of whey valorisation
In just a few decades, the production of whey- based food ingredients has
become an important part of Arla Foods’s overall strategy. The development
of these side streams has been significant for the company’s strong position
within value- added activities today (Lange & Lindedam, 2016) and the aim of
AFI is to become ‘the global supplier of value added whey’ (Arla, 2017, p. 34).
Arla Foods has employed several strategies to strengthen its position in a
very dynamic global market for whey- based products. A key factor has been
the establishment of the subsidiary AFI dedicated to whey processing, as well
as joint ventures between AFI and foreign ingredients companies. This has
provided the needed organisational framework for their large investments in
raw material sourcing, production capacity, R&D and marketing of valueadded whey over the last two decades. In general, subsidiaries bring internationalisation opportunities, and they also enable the creation of more direct
customer contact as well as consumer control, resulting in increased governance features for the subsidiary in the respective location (Biisgård, 2006). AFI
thereby enables the creation of a more tailored product portfolio within their
main markets (Danish Dairy Board, 2006). Moreover, AFI has created three
business units for specific products, thereby enhancing its capacity for product
differentiation and specialisation: nutrition, functional milk protein, and permeate and lactose (Andersen, 2014). In support of their business units, AFI
has a large R&D division and runs two customer- focused application centres.
All this has contributed to Arla Foods becoming a ‘lead firm’ (Gibbon, Bair &
Ponte, 2008) in the global value chain for whey proteins, sourcing whey not
only from its own member producers but also from other dairies in Denmark
and Norway (see below).
Nutrilac
®
may be an efficient way of dealing with acid whey today, at least
for high- value end products. Yet it is presently only available in limited
volumes and the challenge for AFI is therefore to identify markets with a