Whey beyond waste: Bangladesh’s untapped dairy opportunity

Every day, sweetmeat makers across Bangladesh separate curds from milk to make chhana for rosogolla, chomchom and sandesh. Cheese and paneer producers do the same. What remains is a thin, yellowish or greenish liquid.

For producers, it is simply waste, poured into drains, ponds, canals and open fields, where its organic matter pollutes water and generates foul odours.

Known as whey water, this overlooked by-product contains lactose, minerals, water-soluble vitamins and whey proteins. Properly processed, it could become the raw material for fortified beverages, fermented dairy products and bakery ingredients.

A feasibility study by the Global Alliance for Improved Nutrition (GAIN), Fortification of Whey Water for Producing Value-Added Commercial Dairy Beverages and Other Dairy Products in Bangladesh, explores how the country could turn discarded whey into a commercial resource.

"In our dairy industry, particularly among cheese and sweet manufacturers, we have long been aware of the challenge of managing and utilising whey water generated during production," said Ashek Mahfuz, portfolio lead at GAIN. "The purpose of our study was to determine the extent of the problem and the potential opportunities in this sector."

"This liquid contains a considerable amount of micronutrients and other substances that are beneficial to the human body. It contains protein, lactose, and various minerals. It could become a valuable nutritional product. But instead, we are simply draining it away and throwing it out," he said.

The opportunity is growing with the dairy industry. As cheese and chhana-based products become more widely produced, so does the volume of whey. Yet the systems to collect, preserve and commercialise it remain underdeveloped.

From sweetmeat shops to cheese clusters

The country's extensive sweetmeat industry offers a natural starting point. Thousands of businesses, from neighbourhood confectioners to commercial manufacturers, routinely generate whey, often without suitable storage or recovery systems. Paneer processors and emerging cheese factories add to the supply.

GAIN's assessment covered Dhaka, Kishoreganj, Mymensingh, Dinajpur, Thakurgaon, Pabna, Sirajganj and Kushtia. It identified 39 cheese plants in districts such as Thakurgaon and Dinajpur, with reported milk-processing capacity of around 35,000–40,000 litres a day. How much whey could actually be recovered would require plant-level measurement.

Well Food and Beverage Company Limited, one of the country's leading food manufacturers, has begun exploring uses. "Until now, we simply lacked awareness of its potential," said Kamal Mridha, Chief Operating Officer. The company has used whey to make yoghurt and is now looking at beverages.

"With technical support for storage and processing, we hope to develop whey-based drinks and explore other applications, including whey powder," Mridha said. At present, "around 60–70 per cent" of the company's whey goes to waste, he said.

Recovery is only the first step. Composition, acidity, microbial quality, availability and transport costs will determine whether whey becomes a viable product.

"The technology is already available in many countries around the world. However, this type of initiative has not yet been widely undertaken in Bangladesh," Mahfuz said. "We have experience in formulation and product development at GAIN. If interested industries want to pursue this opportunity, we can support them in different ways, including connecting them with relevant consultants."

Thakurgaon and Pabna have emerged as promising sites for pilot collection hubs. Rather than requiring every small producer to invest in equipment, a cluster-based model could connect businesses to shared facilities for collection, testing, chilling and processing: collect whey where it is produced, preserve it safely and move it quickly to a facility that can turn it into a marketable ingredient.

From environmental burden to commercial resource

Whey's lactose and proteins are biodegradable, but untreated discharge raises the biological oxygen demand (BOD) of receiving waters. As microorganisms break it down, they consume dissolved oxygen, harming aquatic life and water quality. 

GAIN's field observations found producers in several locations routinely discharging whey into drains, ponds, canals and open land, many without storage tanks, chilling facilities or the know-how to recover it.

"Since it contains protein and other organic matter, it can take a considerable amount of time to break down. As a result, the unpleasant odour can persist for several days, particularly when the discharge continues," Mahfuz said. "It can be harmful to the environment… It may also affect the surrounding ecosystem."

Recovering whey for food use could cut the untreated organic material entering the environment and give producers a new revenue stream, though whey unsuitable for food would still need treatment. 

Shared collection hubs could let smaller producers pool supplies, while agreed quality standards and payment arrangements would give them an incentive to keep whey separate from other waste.

A new ingredient for the food industry

The most practical starting points may be flavoured whey beverages and selected fermented products, which could also be fortified with vitamins and minerals, subject to demonstrated nutritional need and regulations. Bakery and confectionery manufacturers could use suitable whey ingredients, and whey could go into animal-feed supplements and powdered dairy ingredients.

Whey protein concentrate (WPC), lactose and whey powder could offer higher value in the longer term. But membrane filtration and drying demand substantial investment, consistent supplies and rigorous quality control.

Dr Raihan Habib, professor of dairy science at Bangladesh Agricultural University, sees opportunities in beverages, ice cream and other foods. He noted that whey's lactose content is relevant to nutritional discussions around brain development. "Instead of treating whey as waste, we should recognise its potential as a source of valuable nutrients," he said.

"We at Aarong Dairy see immense potential in dairy by-products and whey-based beverages to create new opportunities for farmers and unlock greater value across the dairy value chain," said Zia Uddin, senior general manager, Aarong Dairy (BRAC).

Internationally, whey supports an established market. Switzerland's Rivella is a well-known soft drink made with whey-derived ingredients, and India's Amul has shown the potential of whey beverages in a large dairy market. 

Bangladesh will need products suited to local production costs, refrigeration infrastructure, consumer preferences, purchasing power and regulations. A gradual approach may work best: begin with products needing manageable investment and serving identifiable local markets, then move to more specialised ingredients.

Building a value chain, one cluster at a time

The first step would be to map whey-producing businesses in selected clusters, measure daily output and establish how much could realistically be recovered. Thakurgaon and Pabna could serve as pilots, subject to verification of supply, producer interest and market demand.

"Approximately 35 to 40 factories are engaged in mozzarella cheese production in Thakurgaon and Pabna. Another interesting fact is that around 40–50 per cent of these factories are women-led," said Ahmed Shihab Zaman, project manager at GAIN.

"So, considering these factors, Thakurgaon is a promising location. Mozzarella cheese is already being produced there, and the products are not only supplied to Dhaka but, in some cases, are probably distributed to other places as well. At the same time, women are already involved in the production process. If we can build their capacity further, their involvement in production could also contribute to improving their livelihoods," he was quick to add.

Next would come shared collection hubs with containers, basic testing and chilling, paying producers for whey that meets agreed specifications. Government support could help organise producers, set standards and coordinate institutions.

"In particular, when working with cooperatives, some form of government intervention will be required," Zaman said. "The Department of Livestock Services and the Ministry of Fisheries and Livestock would be important stakeholders."

Dr ABM Khaleduzzaman, Director of the Department of Livestock Services, said whey should be seen "not as waste, but as a resource", stressing the need for research into recovery, utilisation and storage. 

Md Delwar Hossain, secretary of the Ministry of Fisheries and Livestock, reaffirmed the government's support for the dairy industry and said it looks forward to exploring ways to turn whey water into a valuable resource through better utilisation, storage and processing.

Safety, affordability and consumer trust

Collection alone will not create a viable market. Products must be made safely, sold affordably and produced consistently enough to sustain a business. Dairy products are highly perishable, making microbial safety, processing conditions and shelf life critical, particularly for children's beverages.

"The private sector will develop the product, but the government will need to ensure that it meets the necessary standards and is safe and suitable for children," Zaman said, pointing to the Bangladesh Standards and Testing Institution (BSTI) and other agencies. "Keeping children's health in mind, we must ensure that they receive the best possible product."

Consumer awareness will matter too. Whey is unfamiliar to many Bangladeshis, and businesses must explain what their products contain and who they are for. Claims about benefits, especially for children with stunting or malnutrition, must be backed by evidence. Even a nutritionally valuable product will have limited reach if households that could benefit cannot afford it.

"The pricing also needs to be affordable for the target population," Zaman said. "The public sector will have a major role in quality assurance, while the private sector will have a major role in creating consumer awareness."

A final phase would assess the pilots, measuring production costs, consumer acceptance, nutritional quality, environmental benefits, producer earnings and the financial sustainability of collection systems.