Arla Foods Ingredients takes full control of MV Ingredients as Volac exits joint venture

UK – Arla Foods Ingredients a global leader in value-added whey proteins has taken full control of MV Ingredients, marking the end of a decade-long joint venture with Volac.

The move, effective from September 1, 2023, will see Arla Foods Ingredients stepping into a leadership role in the multi-million-pound advanced whey processing facility located at their Taw Valley creamery in the UK.

MV Ingredients has been instrumental in producing permeate powder sold by Volac and liquid whey protein concentrate supplied to Volac.

However, with this transition, Arla Foods Ingredients will now take sole ownership of the business, including the account management for permeate powder.

The decision to part ways was characterized by amicability and mutual understanding.

“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,” Richard Jones, Managing Director at Whey Nutrition Division at Volac, said.

The joint venture between Volac and MV Ingredients, originally formed in 2010 with Milk Link, and later with Arla Foods Ingredients, had been successful for over a decade.

Volac brought valuable whey processing expertise to the table, complementing Milk Link’s production of superior raw materials.

According to Arla Foods Ingredients, the transition will be an opportunity to further strengthen its position in the market.

In addition, Henrik Andersen, CEO of Arla Foods Ingredients, emphasized the company’s commitment to discovering and delivering powerful nutrition while highlighting the top-class quality of whey produced at Arla Foods Ingredients’ dairies.

This move comes at a time when the nutrition industry is experiencing challenges, including inflationary pressure, declining dairy commodity prices, and shifts in consumer behavior towards discount channels and private label products.

Despite these challenges, Arla Foods Ingredients reported hitting US$6 billion in revenue during the first half of 2023.

In addition, Arla Foods Ingredients has been actively exploring opportunities to enhance its product portfolio.

Earlier this year, Volac unveiled its Volactive Pro2O ready-to-mix ingredient at Vitafoods Europe. This innovative product allowed manufacturers to create shakes with fruit-based flavors, such as citrus and melon, catering to evolving consumer preferences.

As Arla Foods Ingredients assumes full control of MV Ingredients, the global nutrition industry promises to closely watch how this change in ownership impacts the market and the future of whey protein processing.

With a commitment to advancing lifelong nutrition and a track record of successful partnerships, Arla Foods Ingredients commits to continue its journey toward delivering powerful nutrition in the future.

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