DSM anounces major ingredients reorganisation

By Chris Mercer

- Last updated on GMT

Related tags Dairy Milk Dsm

DSM has re-organised its dairy ingredients division into two
distinct categories, reflecting growing demand from customers for
both added value and efficiency-boosting products.

The two categories, entitled Dairy Enhancers and Dairy Improvers, follow DSM research which revealed cost reduction and creating innovative, added value products were the two main concerns facing its dairy customers.

DSM hopes the overhaul will help it to take market share off rivals by moving closer to key dairy industry needs, and focusing resources for research and development.

European dairy firms, and those in the UK in particular, have fought a constant battle on profit margins against soaring input costs, reductions in EU support and rising retailer pricing power.

DSM's Dairy Improvers line will focus on this problem, including existing ingredient products such as Delvo-Tec, Maxiren and Delvotest.

The group will also look to develop new enzymes designed to increase product yield and optimise processing techniques, Lucas Hendrikse, DSM's business unit manager for dairy ingredients, told DairyReporter.com​.

DSM launched a new cheese ripening enzyme earlier this year, named Accelerzyme CPG, to accelerate flavour maturation and eliminate bitter off-taste often associated with this.

The second prong in DSM's new-look dairy ingredients unit will focus on next generation and added value dairy products. It will include products such as Fabuless, a weight management ingredient, and Lafti probiotics.

Added value has become somewhat of a buzzword in the dairy industry in recent years, as firms look to increase returns and tap into growing consumer trends for health and wellness foods. Many especially see functional dairy as a strong avenue for future growth.

Hendrikse said DSM was keen to increase its share in the probiotics sector, which has shown promising potential in yoghurt, dairy drinks and cheese. The group is also keen to expand its increasingly popular Fabuless range into new markets.

"In new functional products, our company is focused on substantiated [health] claims to help companies to raise the value of their products,"​ said Hendrikse.

He added DSM's broad strategy for product development would vary in different world regions. For example, "China is growing rapidly, but there has been more growth for fermented milk products, so we will have a lot of products in that area"​.

Related topics Dairy-based ingredients

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