Arla Foods to Cooperate with TINE on Food Ingredients

19/02/08 Norwegian dairy company TINE invests NKR 300 million in a plant to produce whey protein concentrate (WPC), a food ingredient, which provides the company with a significant revenue from the company's cheese production. Arla will assists with technical competencies and provide the ingredients outside Europe through the company's international sales organisation.

"Cheese is in great demand in Norway and we invest in cheese production", says Trond Smeby, Vice President of TINE. "Whey from cheese making is valuable if we can refine it to whey protein concentrate. Through our investment, we create the conditions needed for a much improved revenues form the whey."

The cooperation means that TINE is provided with the conditions for refinement and export by investing NKR 300 million in a plant for the production of whey protein concentrate. Arla will provide technical competencies and vast experiences as a leading producer of highly refined food ingredients all over the world. Through the cooperation, Arla will gain access to an additional 10 pct. of whey protein concentrate for the market.

"We are very pleased about the cooperation with TINE, an important player on the Nordic dairy market", says Jais Valeur, Head of Global Ingredients at Arla Foods. "Arla will contribute with an international sales organisation and channels. The cooperation gives both companies access to a product that provides good revenues and improved growth"

For the last 25 years, Arla has built a global business in whey and milk proteins. It is divided into two parts: nutritional areas of use, such as infant milk formula, and functional areas of use, such as ice cream, cheese, meat and baking products. Good growth makes it desirable for Arla to add supply from external producers.

Arla's own plants for production of whey protein concentrate are located in Denmark, Germany and Argentina.