Whey protein concentrate (high protein)

Summary of submissions and consultation process

  • Fonterra is New Zealand’s largest producer of whey protein concentrate (WPC) and provided preliminary data indicating that the production of WPC is potentially eligible for industrial allocation.
  • Draft activity definitions were circulated to industry participants and submissions were received from the following:
    • Fonterra
    • Westland Milk Products
    • Tatua
  • All submitters submitted that emissions associated with packaging should not be excluded, as for most perishable food products the act of putting the product in packaging is an integral part of the process and essential for making the saleable product.
  • Tatua proposed an increase from 5% to 6% in the total allowable water content for the final product.  Tatua also proposed that the proteins in the input and output definitions be more clearly identified as whey proteins.
  • Westland submitted that it is important to have a range of values of whey protein concentration to allow for variation in product specifications and changes to processes over time.
  • Fonterra submitted that the appropriate range for protein content of WPC would be from 60% upwards.

Summary of analysis

Inputs

Officials propose that whey is defined to consist of residual water and milk solids following the separation of curd from a milk based coagulation process such as cheese or casein curd manufacture.  This approach avoids issues associated with varying compositional properties for whey.  The same approach to defining whey is proposed for other dairy activities. 

Outputs

Officials propose that whey protein concentrate is defined as having a water content of no more than 6%, a milk-derived protein content of between 60% and 89% and that the proteins have specified characteristics.

The protein content of whey protein concentrate (WPC) can range between 34% and 89%.  In concentrations above 90%, the product is known as whey protein isolate (WPI).  Based on the information available, officials consider that there are distinct groupings of products which are not substitutable with each other:

  • Stakeholders have advised that WPI is distinct from WPCs as it can be used in applications for which WPCs are less suitable.  This conclusion is supported by the use of a separate name for this product.  Stakeholders have also indicated that WPI commands a significantly higher price than WPCs on international markets which also supports a conclusion that the products are not substitutable.
  • A proportion of WPC production is conducted in a process that is integrated with WPI production.  Officials have considered whether WPC and WPI production should be classified as a single activity.  This would require revenue from both outputs to be included in the assessment of eligibility and separate allocative baselines for WPC and WPI.  Given the majority of WPC is produced in a stand-alone process separate from WPI production, officials do not consider the extra complexity of a single activity covering WPC and WPI production is warranted.
  • High protein WPCs have different applications from low protein WPCs.  Although all WPCs have structural characteristics which make them useful for textural purposes, low protein WPCs have more limited applications than high protein WPCs due to their lower protein content and higher content of lactose and salt.  In particular, advice from a New Zealand food engineering expert has confirmed that:
    • WPC with a higher protein concentration is better suited to medical applications and use in certain infant formula products
    • Lower protein WPC may have an excessively high salt content for some applications.

In recognition of these differences, high protein WPCs command a much higher price than low protein WPCs on international markets.

It is noted that there is limited information available about applications for different WPC and WPI products.  Officials have consulted with a food engineering expert from Massey University.  Officials have also sighted the abstract of a report from international consultancy, UBIC, which clearly identifies each of WPI, WPC 34 and WPC 75-80 as separate market segments.

Typical composition of whey protein-based ingredients (Source: Dairy Management IncTM, 2010).
Ingredient Protein Lactose Ash Fat Moisture
WPI 91.5 0.8 3.7 0.5 3.7
WPC 80 81.0 3.5 3.1 7.2 4.0
WPC 35 36.2 46.5 7.8 2.1 4.6
Sweet whey 12.9 74.4 8.4 1.1 3.2
Acid whey 11.7 70.0 8.4 1.1 3.2

The lower bound of 60% protein has been chosen as officials understand this to be the lower bound of high protein WPC produced in New Zealand.  The proposed definition for whey protein concentrate (high protein) has been circulated to all firms who we are aware of that are currently producing WPCs, and no objections have been raised.

Transformation

Officials propose that emissions associated with packaging should be excluded.  Packaging is a complementary process that is not considered part of an activity and the exclusion of packaging is consistent with other activities.

Matter Analysis
The requirement to define each activity by reference to a physical, chemical or biological transformation of inputs into outputs. The focus of the definition is on the input (the specific description of whey) and the output (the specific description of whey protein concentrate) rather than on the process.  .
The undesirability of activities being defined by reference to the technology employed, the fuel used, the age of the plant, or the quality of the types of feedstock used when the activity is carried out. The transformation process is described in general terms so as to allow changes in the technology employed, the fuel used, the age of the plant and the quality of the feedstock used. 
The desirability of defining activities:
  • consistently and equitably across industries.
  • in a way that takes into account the impact that definitions may have on business investment, geographical location, and the structure of activities.
  • in a way that takes into account the potential for intermediate inputs produced when the activity is carried out to be substituted for bought-in inputs.
 The activity definition has been drafted so that the activity of producing whey protein concentrate is defined consistently and equitably compared to definitions for other industries.  For example, packaging is excluded from all activity definitions, including the activity definition for whey protein concentrate, because it is a complementary process that is not considered part of an activity. 

Separate activity definitions have been prepared for a number of different products made from whey or permeate.  Developing separate activity definitions means that activity definitions do not discriminate between firms carrying out one activity and firms carrying out a number of activities.
The desirability of there being no overlap between activity definitions. The development of separate activity definitions in respect of whey products prevents overlap between activity definitions in this area.  Each definition has been drafted to be sufficiently specific to avoid overlap.  Emissions associated with the production of other saleable products using components of the feed material that are not contained in the final whey protein concentrate product are excluded to prevent overlap with other activities.
Any other matters the Minister considers relevant, including activity definitions proposed to be used in Australia. There is no equivalent activity definition in Australia.

Following consideration of the issues set out above, officials have prepared an activity definition for your consideration.  Officials recommend that you approve a gazette notice being issued on the basis of this activity definition.

Last updated: 2 July 2010