Whey utilisation in Australia Products and technologies Pablo Juliano and Phil Clarke | Animal, Food and Health Sciences 26 August 2013 FOOD HEALTH AND LIFE SCIENCE INDUSTRIES

AUSAID PUBLIC SECTOR LINKAGES PROGRAM REINFORCING DISADVANTAGED COMMUNITIES IN ARGENTINA, BRAZIL, COLOMBIA AND URUGUAY

Outline • The Australian Dairy Industry and key players • Cheese making and whey production – • Globally • Australia

• Whey utilisation in Australia

2 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

The Australian Dairy Industry

3 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

The Australian dairy industry facts • • • •

1.64 million cows 9,480 million L milk annum $4 billion value at farm gate Milk utilisation

2,900 million L whey annum (8 million L/day)

• Main commodities (tonnes) • Milk powders 371,000 • Cheese 340,000 • Butter 120,000 • Manufactured product: 60% export • Drinking milk: 97% domestic

• Markets: Australia, Japan, Greater China, Singapore, Indonesia, Malaysia • Workforce: 50,000 people

4 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Australian dairy in the world context

Total dairy exports: $2.76 billion

Cheese and powders 5 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Milk production - location and State share

6 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Key players • Dairy manufacturers • Farmer owned-cooperatives (33% Australia’s milk production) – Murray Goulburn (30% Australia’s milk output) • Publicly listed companies – Warrnambool Cheese & Butter – Bega Cheese Ltd (Tatura milk + De Cicco + Fonterra) • Privately owned companies – Regal Cream (Bulla Dairy Foods); Burra Foods; Longwary Food Park, Niche/small Cheese manufacturers • Multinational companies – Fonterra (New Zealand, 18% of Australian milk) – Kirin (Japan) – Lactalis (France) (formerly Parmalat)

7 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Cheese making and whey production

8 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Cheese production worldwide

S. Korea (4.0%)

(2.00%)

Production of cheese (x103 tonnes per annum) Slovenia 20 Austria Slovakia 34 Ireland Estonia 36 Mexico Latvia 40 Switzerland South Africa 42 Greece Uruguay 48 Iran Portugal 57 Denmark Bulgaria 63 United Kingdom Chile 65 Australia Romania 65 Ukraine Belgium 67 New Zealand Hungary 73 Canada Norway 84 Russia Finland 101 Argentina Lithuania 107 Brazil Czech Republic 109 Poland Israel 112 Netherlands Sweeden 114 Italy Spain 119 France Japan 125 Germany United States

137 140 154 179 230 230 324 339 343 346 355 402 425 491 580 637 724 1064 1765 2032 4463

(Production Annual Growth Rate, %)

(1.30%) (3.03%) (-3.23%) (4.44%) (3.40%) (3.14%)

(3.06%)

Source: Fox, 2011 – Encyclopaedia of dairy sciences http://www.indexmundi.com/agriculture/?commodity=cheese&graph=production-growth-rate

9 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Cheese classification

Salty whey Acid whey Sweet whey

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Mould 1% Fresh 28%

Cheese production in Australia • Cheddar (45%) – Non Cheddar (55%) Australian cheese production by type of cheese (tonnes)

11 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Hard grating 4% Semi hard 20%

Cheddar 47%

Cheese production in Australia • Large cheese manufacturers • 340,000 tonnes per annum • Mainly Cheddar, Mozzarella, Processed cheeses • Lion, Fonterra, Murray Goulburn, Warrnambool Cheese and Butter, Tatura • Small and medium cheese makers (> 100) • boutique type cheeses; non-standardized milks

Large cheese manufacturers

Warrnambool cheese and butter

Murray Goulburn

Mainly Cheddar cheese

Specialty cheeses

12 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Cheeses formats • Blocks (large, short), slices, cubes • Blends with fruits and herbs • Kids formats

13 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Cheese formats

14 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Cheese formats

15 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Cheese formats

16 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Whey production Dairy Australia report (2005)

• 90% whey production from large operations • generating >130,000 L whey /day

• 10% is “unutilised” whey and comes from small cheese makers • Generating 25,000-50,000 L whey/day

How is whey utilised? What are the disposal methods? What opportunities for value addition? cost /environmental impact

17 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Whey utilisation by small cheese makers Possible uses of whey

2005 (Dairy Australia)

Cheese maker size range

25 – 50 kL whey/day

2011 (DIAL) 25 – 50 kL whey/day (Data base includes: 6-487 kL/day)

Ricotta (+ trade waste or stock feed)

0%

21% [8/39]

Trade waste/drain

0.2%

18% [7/39]

Land

65%

10% [4/39] Treatment ponds/septic tanks 8%[3/39] Paddock (irrigation) 8%[3/39] Anti-mildew treatment for vines 5%[2/39] Stockfeed plus paddock

Animal feed

35%

13% [5/39; pigs] 13% [5/39; stockfeed]

18 | AusAID PSLP | Reinforcing disadvantaged communities | Workshop 1 | 26 - 31 August 2013

Whey utilisation options for small cheese makers • Direct use (disposal): whey cheese, beverages, stock feed, mildew treatment, irrigation • Energy feedstock: ethanol, biogas • Direct processing: concentration (liquid D40 concentrate; UF preconcentration), drying (roller dryers, extrusion dryers, spray drying) •