In a pioneering effort to boost sustainability and reduce product loss, researchers from Yili Innovation Center Oceania, National Technology Innovation Center for Dairy, Oceania Dairy Limited and Westland Milk Products are working on transforming an overlooked dairy by-product— DAF sludge—into a high-value, digestible protein source for pet food.
DAF sludge, or Dissolved Air Flotation sludge, is a by-product in dairy processing.
Traditionally low value, it is now being upcycled into a hydrolysed protein ingredient rich in essential amino acids.
We profiled the DAF-to-pet food project in last year’s Impact Report, and since that time the project has advanced from proof-of-concept and early feeding validation into robust, formulation-relevant nutritional validation, significantly strengthening the commercial case for this technology.
Building on earlier results demonstrating high bioavailability and suitability for canine nutrition, recent collaborative work with Callaghan Innovation Technologies Group and the BPA has now confirmed that DAF-derived protein performs at inclusion levels of 15–20% in complete, extruded pet food diets, aligning with real-world commercial formulations.
Critically, the latest feeding trials show that diets containing DAF protein deliver significantly higher digestibility than soy-based controls across key nutritional metrics, including dry matter, energy, protein, fat, and amino acids.
This advancement materially reduces technical risk and strengthens the pathway to commercialisation, reinforcing the project’s potential to convert low-value dairy by-products into high-value, export-ready ingredients.
The trials also confirmed that DAF-based diets are palatable, well-tolerated and suitable for extrusion, supporting manufacturability in commercial pet food systems.
These results represent a step-change from earlier outcomes reported in last year’s case study, where the focus was on demonstrating feasibility, high bioavailability, and environmental and economic potential.
The project has now progressed to a stage where nutritional performance has been validated against industry-standard protein sources under realistic conditions, substantially reducing technical and market risk.
“BPA funding allowed us to get this project off the ground, and enabled internal engagement with key stakeholders by kick-starting and de-risking the innovation journey. Funding from the BPA helps attract interest from researchers too, and their enthusiasm, connections and expertise are very helpful. The model where industry works with the research sector to commercialise science is invaluable.” – Dr Philip Wescombe Development team member, Yili Innovation Center Oceania, Lincoln University
From an impact perspective, this strengthens the project across three key BPA dimensions:
1. Economic impact
Reinforces the projected value creation (US$3,000 per tonne previously identified) by proving competitive nutritional performance versus established ingredients.
Advances the ingredient closer to commercial adoption in formulated pet food products.
2. Environmental impact
Continues to support the transformation of dairy waste streams into high-value ingredients.
Underpins scalability by demonstrating viable use at meaningful inclusion rates (not just low-dose supplementation).
3. Innovation and commercial readiness
Moves the technology beyond pilot validation into application-ready ingredient status.
Establishes DAF protein as a functionally superior alternative to plant proteins in pet nutrition.
Determined applications for the fat fraction of DAF reducing side stream cost of disposal.
Comments are closed.