Effect and key factors of byproducts valorization: the case of dairy industry.

Production of many consumer products results in byproducts that contain a considerably large part of nutrients originating from input materials. High production volumes, environmental impact, and nutritional content of byproducts make them an important subject for careful valorization. Valorization allows us to explore the possibility of reusing nutrients in the production of main products, and thus highlights the potential gains that can be achieved. The main aim of this study was to evaluate the added value of cheese whey valorization, and to determine the effect of integral valorization of main products and byproducts on the profit of a dairy producer. Several scenarios and cases were implemented and analyzed using a decision support tool, the integral dairy valorization model. Data originated from the international dairy processor FrieslandCampina (Amersfoort, the Netherlands). The outcomes of scenarios were analyzed with regard to profit and shifts in the production of nonwhey end products, and were validated by company experts. Modeling results showed that the valorization of byproducts is very profitable (24.3% more profit). Furthermore, additional profit can be achieved when 2 valorization processes (main products and byproducts) are integrated. This effect is, however, considerably affected by current capacity and market demand limitations. Significant benefits can be created if demand of whey-based products is increased by 25%.

A comprehensive dairy valorization model.

Dairy processors face numerous challenges resulting from both unsteady dairy markets and some specific characteristics of dairy supply chains. To maintain a competitive position on the market, companies must look beyond standard solutions currently used in practice. This paper presents a comprehensive dairy valorization model that serves as a decision support tool for mid-term allocation of raw milk to end products and production planning. The developed model was used to identify the optimal product portfolio composition. The model allocates raw milk to the most profitable dairy products while accounting for important constraints (i.e., recipes, composition variations, dairy production interdependencies, seasonality, demand, supply, capacities, and transportation flows). The inclusion of all relevant constraints and the ease of understanding dairy production dynamics make the model comprehensive. The developed model was tested at the international dairy processor FrieslandCampina (Amersfoort, the Netherlands). The structure of the model and its output were discussed in multiple sessions with and approved by relevant FrieslandCampina employees. The elements included in the model were considered necessary to optimally valorize raw milk. To illustrate the comprehensiveness and functionality of the model, we analyzed the effect of seasonality on milk valorization. A large difference in profit and a shift in the allocation of milk showed that seasonality has a considerable impact on the valorization of raw milk.

Incentive mechanisms for liver lesion control in finishing pigs in the Netherlands.

Liver lesion prevalence in slaughtered finishing pigs in the Netherlands remained relatively high from the mid-1990s until 2004, although sufficient measures existed to control the main cause, an infection with the roundworm Ascaris suum. In July 2004 a new incentive mechanism was installed to induce finishing pig producers to increase control of A. suum infections. This paper compares the effectiveness of two Dutch incentive mechanisms: a collective insurance - in place prior to July 2004 - and a reduction in producer payment for each delivered pig with a liver lesion - in place from July 2004. Liver inspection data of pigs slaughtered in 2003-2006 by a major Dutch slaughter company were analysed with an out-of-sample dynamic forecast test and non-parametric bootstrapping. Results showed that after introduction of the price reduction, mean liver lesion prevalence decreased from 9 to 5%. A reduced liver lesion prevalence ranging from 0 to 46 percentage points was observed on 67% of 1069 farms that delivered both during the insurance and the price reduction. The number of farms with a liver lesion prevalence of 5.0% or less increased from 52 to 68%. The price reduction for each pig with a liver lesion was a more effective incentive mechanism to induce finishing pig producers to control A. suum infections than the collective insurance.