Abstract: A two stage, on-demand, commercially-viable method for producing process cheese or process cheese-type products by the direct conversion of milk is provided. This method does not require fermentation, enzymatic treatment, and/or intermediate steps of forming and separating curds and whey. In the first stage, a powdered milk protein concentrate is form by ultrafiltering liquid milk, preferably skim milk, and then spray drying the concentrated ultrafiltered milk. The powdered milk protein concentrate, which is storage-stable, may be converted to process cheese or process cheese-type product immediately or may be stored for later conversion. The powdered milk protein concentrate can be used to produce fat-free, reduced-or low-fat, and/or full-fat cheeses having similar organoleptic properties to cheeses prepared from conventional curds and whey processes. The present two stage process is especially adapted for semi-continuous or continuous manufacture of process cheese-type products.