Functional properties of milk proteins (caseins, whey proteins), such as viscosity, gelling capacity and aroma retention, and methods of producing protein derivatives for specific applications (e.g. microfiltration of caseinate to produce beta-casein for use as a foaming agent) are discussed. Examples are given of the incorporation of milk proteins into relatively complex food systems, such as the introductioin of freeze-dried whey protein into butter and its effect on its stability characteristics.