Whey to go: Dutch cash in on exploding demand for cheese waste

Whey to go: Dutch cash in on exploding demand for cheese waste

THE HAGUE - The powerful Dutch dairy industry is scrambling to cash in on exploding demand for whey, a cheese by-product once used mainly in cattle feed now turned global nutritional hit.

Over the last decade whey powder, produced when milk separates into curd during the cheese-making process, has become a multi-billion-euro industry.

Analysts say research has proven that whey, once the ugly step-sister to its more widely-consumed sibling, cheese, is in fact one of the planet's best sources of natural protein.

From bodybuilding supplements to infant formula and fortified meals for the elderly, demand for whey has skyrocketed over the last five years, with even non-dairy companies wanting a piece of the action.

And analysts predict that is likely to keep growing, driven by a taste for imported dairy products from Asia's growing middle class and the expanding ranks of elderly around the world.

Last year whey powder and proteins represented a global market of 7.6 billion euros ($9.8 billion), up 36 per cent from 2011, said Tage Affertsholt, dairy market specialist at the Danish-based 3A Business Consulting Group.

By 2017, the market will have expanded to 9 billion euros, Affertsholt predicted.

The demand for whey "just keeps growing, irrespective of the relative poor performance of the global economy," he told AFP.

"Some people used to say whey is a by-product. Today cheese has become something of a by-product." Investment in the whey industry since 2012 has topped three billion euros globally, including two billion euros in Europe.

"At one stage whey was worth pretty much nothing, only good to go into cattle feed," Rabobank senior dairy analyst Kevin Bellamy told AFP.

"Today, whey forms a major part of many dairy companies' profits."

A 'hot product'

The Dutch dairy industry, renowned for its top-quality cheese, is fighting for its stake in the rapidly expanding market.

The Netherlands is already one of Europe's top producers of demineralised whey powder - a key ingredient of baby formula - and Dutch companies are investing heavily in the research and development of whey-based products.

"All the major dairy companies in the world are squaring up for control of the liquid whey industry," added Affertsholt.

One of the world's largest dairy cooperatives, FrieslandCampina, now produces over 350,000 tonnes of "whey dry matter" a year.

"Whey is a 'hot product' that resonates with the consumer," Fraser Tooley, FrieslandCampina's business developer, told AFP.

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