DENMARK – Arla’s global ingredients business is set to grow even further following a new partnership between its parent company Arla and Northern Ireland dairy company, Dale Farms.
According to a statement from Arla, the new partnership will allow Dale Farm to supply whey protein concentrate for Arla’s global ingredients business which will be used as an ingredient in infant formula and consumer health ingredients.
This is the first time the two dairy cooperatives have partnered as part of a significant supply contract.
AFI is a supplier of refined whey ingredients within the infant, clinical, and sports nutrition, health foods, and other foods and beverages.
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.
Securing a supply agreement with a major dairy company therefore put AFI in a better positions to meet increasing global demand for its specialty products.
The whey supply contract is also timely as AFI plans to continue to increase the value of its whey ingredients business through innovation and extensive know-how.
“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.”
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.
Earlier in May, Arla Foods announced a DKK 50 million (approximately $8.2 million) expansion of its Troldhede cheese production facility site in West Jutland, in order to meet increasing cheese demand from Japan.
Arla plans to build two new ripening warehouses, install new cheese equipment and a new drainage room.
According to Arla, the expansion will result in a new production method that will reportedly ensure its long-lasting cheeses remain even fresher and softer once unpacked in Japan.
Troldhede Dairy produces several types of cheeses such as Castello Brie and Camembert, and mainly exports to Japan, Australia, UK and Nordic countries.
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