The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Actus Nutrition, a leading North American speciality ingredient manufacturer backed by Butterfly Equity, and dairy cooperative Darigold have finalised a strategic partnership aimed at expanding production of milk proteins and other speciality dairy ingredients.

The partnership encompasses two facilities in the Pacific Northwest and Mountain West regions, combining Darigold's milk supply and processing capabilities with Actus Nutrition's expertise in value-added dairy ingredients.

Under the agreement, Actus Nutrition will assume ownership of Darigold's Jerome, Idaho, facility, where it will continue manufacturing non-fat dry milk while investing in new capabilities to produce high-value milk protein ingredients. The site will become Actus' second operation in Jerome and will continue sourcing milk from members of the Northwest Dairy Association cooperative.

Meanwhile, at Darigold's Sunnyside, Washington, facility, the cooperative will manufacture sweet whey powder and other premium whey ingredients exclusively for Actus under a long-term supply agreement.

The move comes as demand for whey proteins continues to accelerate, fuelled by consumer interest in sports nutrition, healthy ageing products, and high-protein food and beverage innovations.

David Lenzmeier, chief executive officer of Actus Nutrition, said: "We continue to see strong global demand for high-quality dairy proteins, and this partnership accelerates our ability to meet that demand."

The agreement reflects broader trends shaping the dairy ingredients sector, as manufacturers seek to expand capacity for speciality proteins used in functional foods, beverages, nutritional supplements, and clinical nutrition applications.

Lenzmeier added: "The reliability of Darigold's manufacturing operations and the quality of its member-owners' milk make Darigold an excellent partner as we position ourselves to grow with our customers. Together, we are creating a more connected and efficient supply chain that supports innovation and delivers greater value to customers and farmer-owners alike."

The agreement reflects broader trends shaping the dairy ingredients sector, as manufacturers seek to expand capacity for speciality proteins used in functional foods, beverages, nutritional supplements and clinical nutrition applications.

Actus Nutrition has established itself as a major player in the speciality dairy ingredients market, producing whey and milk proteins for leading food and beverage brands. Its portfolio includes PRObev clear whey protein, CasPRO US-made casein and caseinate, as well as speciality ingredients such as lactoferrin, alpha-lactalbumin and milk fat globule membrane (MFGM).

For Darigold, the partnership enables the cooperative to participate in the higher-value speciality ingredients segment while maintaining focus on its core dairy processing operations.

Amy Humphreys, chief executive officer of Darigold, said: "Our partnership with Actus Nutrition allows Darigold to maintain focus on our core business of processing our members' milk and serving our customers here in the Pacific Northwest and around the world, while participating in the growing market for speciality protein ingredients."

The transition associated with the partnership is expected to be completed by mid-June. Financial terms of the agreements were not disclosed.

Founded in 1945, Actus Nutrition manufactures nutritional ingredients for health and wellness products and serves as a co-manufacturer for numerous consumer brands. The company also supplies ingredients to the livestock feed and pet nutrition sectors.

Actus is a portfolio company of Butterfly Equity, a Los Angeles-based private equity firm focused exclusively on investments across the food industry value chain. Since its founding in 2016, Butterfly has built a portfolio of food businesses spanning consumer brands, foodservice, and ingredient manufacturing.

Darigold is among the largest dairy cooperatives in the United States, processing milk from hundreds of Pacific Northwest family farms into consumer dairy products and ingredient solutions, including butter, cheese, milk proteins, and whey proteins.