Arla Foods has signed a contract with dairy company Dale Farm to supply whey protein concentrate for Arla’s global ingredients business. This is the first time the two dairy cooperatives have partnered as part of a significant supply contract. Financial terms of the agreement have not been disclosed.
Northern Ireland’s largest dairy processing business Dale Farm will supply Arla Foods Ingredients (AFI), headquartered in Denmark, with whey protein concentrate, which will be used as an ingredient in infant formula and consumer health ingredients.
AFI is a supplier of refined whey ingredients within the infant, clinical, and sports nutrition, health foods, and other foods and beverages.
The cooperative says it’s focused on meeting the increasing global demand for its specialty products and plans to continue to increase the value of its whey ingredients business through innovation and extensive know-how.
Recently, AFI spotlighted how whey protein and casein are starring in its new meal replacement concept tapping into demand for more holistic approaches to weight management as consumers turn away from crash diets.
Also, in April, the company designed a nutritious snack from whey and papaya to fight Ethiopian malnutrition.
Securing the contract
“AFI is very pleased to have this new partnership with Dale Farm and the opportunity it brings to grow our business and thereby add value for our farmer-owners,” says AFI supply chain senior vice president Povl Friis.
“The two companies share a common vision of how to develop high-quality ingredients for the global markets and for Arla, making it a significant next step in our growing ingredients business.”
Expanding outside of sports nutrition
Until now, Dale Farm has mainly supplied whey protein for use in sports nutrition products, so this contract repositions this aspect of its business within the infant formula market.
“This partnership with Arla represents an excellent opportunity to grow our presence in the global whey protein market, adding value to our business for our farmer-owners,” adds group operations director for Dale Farm, Chris McAlinden.
“Given that both Dale Farm and Arla are cooperatives, this partnership is good news for the dairy farmers that own both businesses. Through working together, we are utilizing our combined expertise and technology to bring a high-quality specialist ingredient into the global whey protein market, creating future opportunity for growth in export markets.”
