Arla Foods is to team up with fellow Scandinavian dairy group Tine in a NOK300m (US$55.7m) whey protein project in Norway.
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Tine, one of Norway’s leading packaged food firms, is to build a production site in its home market to produce whey protein to sell domestically and overseas.
Arla plans to distribute the ingredient, a key bi-product in cheese making, in markets outside Europe.
“Cheese is in great demand in Norway and we invest in cheese production”, says Tine vice president Trond Smeby. “Whey from cheese making is valuable if we can refine it to whey protein concentrate.”
Through the deal, Arla said it would gain access to an extra 10% of whey protein concentrate. “The cooperation gives both companies access to a product that provides good revenues and improved growth,” said Jais Valeur, head of global ingredients at Arla.
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By GlobalDataThe Denmark-based dairy giant has its own whey protein concentrate production plants in Denmark, Germany and Argentina.
