Dale Farm signs whey protein supply deal with Danish giant Arla Foods
DAIRY co-op Dale Farm has signed a new supply deal with European giant Arla Foods.
The Northern Ireland food group will supply the Danish-based company with whey protein concentrate for use in infant formula and consumer health ingredients.
Dale Farm generates around £500m a year from dairy produce such as milk, cheese, butter and yoghurt.
But the farmer-owned co-op is increasingly supplying whey protein. Until now, that has mainly been for use in sports nutrition products.
Group operations director Chris McAlinden said the Arla contract repositions the whey protein aspect of its business within the infant formula market.
He described it as “an excellent opportunity to grow our presence in the global whey protein market, adding value to our business for our farmer owners”.
“Given that both Dale Farm and Arla are cooperatives, this partnership is good news for the dairy farmers that own both businesses,” he continued.
“Through working together, we are utilising our combined expertise and technology to bring a high quality specialist ingredient into the global whey protein markets.”
Arla's Povl Friis said: “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.”