Creating Wasted Whey into Opportunity

New research by Jack Hetherington from the Centre for Global Food and Resources, has discovered innovative ways to repurpose whey, a by-product of cheese production and one of the largest sources of food loss and waste in the Australian dairy industry. Whey is the liquid that remains after milk has been curdled and strained during the cheese-making process. It contains rich protein, lactose, vitamins, and minerals and is notably used know in protein powders or as an ingredient in some dairy products.

Hetherington's research highlights that only a small fraction of cheese manufacturers, regardless of production scale, have adopted innovative technologies and business models to up-cycle whey into products that yield high-value. However, some manufacturers have found success with whey-based products such as protein powders, alcoholic beverages (such as beer and vodka), kombucha, and cooking stocks, the broader dairy sector has been slow to adopt these practices. This hesitation stems from a lack of clear incentives, persistent barriers, and the absence of supportive conditions, despite the significant potential for change.

"A key finding from my research is that only a small number of cheese manufacturers, across all production scales, have adopted innovative technologies and business models to up-cycle whey into high-value products," Hetherington says.

The Australian dairy sector contributes 14.9% to Australia's food loss and waste, with whey comprising about half of this figure. To better understand the challenges and opportunities, Hetherington conducted a mixed-methods study, funded by the University of Adelaide, the End Food Waste Cooperative Research Centre, and CSIRO. He interviewed cheese manufacturers across Australia to investigate where their whey goes and what influences their decisions to repurpose it.

Hetherington identified four potential business models to reduce whey waste:

• In-house processing: Manufacturers process whey themselves into value-added products.
• Third-party partnerships: Whey is sold or given to another business for processing.
• Joint ventures: Multiple manufacturers collaborate to scale up processing and share infrastructure.
• Focal companies: Existing whey processors accept whey from other cheesemakers, increasing throughput and minimising waste.

"All four models ultimately achieve the same goal: transforming whey waste into a valuable food product," says Hetherington. He also suggests that manufacturers already processing whey should consider accepting whey from nearby cheesemakers, demonstrating industry leadership, reducing waste, and generating additional revenue. One business he studied even reported making more profit from whey than from cheese.

Retailers could also play a role by adopting procurement policies favouring whey-based alternatives, while consumers can support the shift by choosing whey-based products. However, some regulatory barriers still hinder progress. Heatherington explains that while regulations like waste levies encourage change, others such as food safety requirements and alcohol taxation, can create obstacles.

"Finding ways to improve the circularity of our food system could unlock economic benefits for the industry and help us produce more with less," Hetherington concludes. "It will require collaboration, the right incentives, and streamlined regulations to overcome existing challenges."

Read his study here

Read the full article featured here in ABC Radio Perth, Science Daily, and Food Processing.