Arla Foods Ingredients takes control of whey protein venture as Volac drops out

04 Sep 2023 --- Arla Foods Ingredients has taken full control of MV Ingredients with Volac exiting the joint venture, which has been in place for more than ten years. MV Ingredients is a multi-million advanced whey processing facility based at Arla Foods Ingredient’s Taw Valley creamery in the UK.

MV Ingredients produces permeate powder sold by Volac and liquid whey protein concentrate sold to Volac, but Arla Foods Ingredients will now take on full ownership of the business and account management for the permeate powder. Arla Foods Ingredients will, for a period of time, continue to supply Volac with whey protein concentrate liquid.

The new ownership structure took effect on September 1, 2023.

“As with any joint venture, there comes a time when it is the right thing for both parties to move on, and I am delighted that we are leaving on excellent terms and look forward to continuing our relationship,” says Richard Jones, managing director at Whey Nutrition Division at Volac.

“We have enjoyed a very successful period with MV Ingredients since its inception in 2010, originally with Milk Link, and latterly with Arla Foods Ingredients. At the foundation of the joint venture, Volac brought a wealth of whey processing expertise which complemented Milk Link’s production of superior raw materials.”

Opportunities in dairy
Arla Foods Ingredients is a global leader in premium nutrition. Together with its customers, research partners, suppliers and NGOs, the company works to discover and deliver documented ingredients and products that can advance lifelong nutrition. Headquartered in Denmark, Arla Foods Ingredients is a 100% owned subsidiary of Arla Foods.The MV Ingredients facility in the UK.

Henrik Andersen, CEO at Arla Foods Ingredients, adds: “MV Ingredients processes raw whey coming from Arla Foods Ingredients-owned Taw Valley dairy, and the opportunity to take full control of whey already produced within the Arla Foods Ingredients loop is a great opportunity.”

“Arla Foods Ingredients is actively looking for more whey to continue our journey to discover and deliver powerful nutrition for a stronger tomorrow. The whey produced at Arla Foods Ingredients dairies, processing milk supplied from Arla Foods Ingredients’ farmer-owners, is top class, and we are extremely happy to acquire full control of MV Ingredients following a productive partnership with Volac.”

In August, Arla Foods Ingredients reported that the first half of 2023 was dominated by inflationary pressure, declining dairy commodity prices, and a shift in consumer behaviors toward discount channels and private label products, as the group hit €7 billion (US$6 billion) in revenue.

In May, we caught up with Volac at Vitafoods Europe as it unveiled its Volactive Pro2O ready-to-mix ingredient. The product allows manufacturers to develop refreshing shakes that are clear in solution with new fruit-based flavors, such as citrus and melon.

Edited by Joshua Poole