Rising demand for whey is coinciding with low availability of the raw material, and European dairy companies are now competing to secure enough of the scarce resource.

The food industry has been experiencing a tight whey market in recent months. According to Danish food and agriculture trade publication FødevareWatch, which cites Dairy Reporter, this is due to a combination of sharply growing demand and availability that cannot keep pace.

Part of the explanation, according to the article, lies in the health sector, where growing use of GLP-1-based weight-loss medicines has created fresh demand for protein sources such as whey. At the same time, the US domestic market absorbs so much output that large volumes of American whey production effectively never reach international markets.

Alexander Anton, Secretary General of the European Whey Processors Association, was reported by FødevareWatch as not expecting significant improvements in the near term. He noted that the build-up of additional processing capacity could ease the pressure somewhat over time, whilst also assessing that the market’s underlying conditions could remain tight for some time to come.

Arla and FrieslandCampina compete for the raw material
Whey is a by-product of cheese production and is widely used in the food industry as a protein source. According to FødevareWatch, both Arla Foods and FrieslandCampina have for some time invested heavily in securing the raw material, and both companies have purchased large volumes on the European market.

The industry has looked at alternatives such as casein-based proteins, but according to the article, these can only partially replace whey’s properties. This leaves doubt as to whether the European market in particular has the capacity to absorb the extra demand from companies seeking alternatives to American whey.

By Maja Løvstrup
Source: FødevareWatch
Photo: AI-generated