Several constraints that have been affecting the dairy industry are identified in a critical fashion, and directions are given with an emphasis on food processing implemented at the post production level.The rationale for modifications aimed at enhancing the appeal of condensed dairy products should be consubstantiated in strengthening of organoleptic characteristics, improvement of nutraceutical impact,and reduction of polluting power. This enumeration follows an order of increasing time scale required for consumer perception and increasing size scale associated with expected impact. Pursuance of suchstreamlines should lead to manufacture of dairy products that resemble nature more closely in terms of milk coagulation, milk fat modification, milk fermentation,whey fermentation, and starter culture addition. Directions for research and development anticipated as useful and effective in this endeavor, and which have been previously and consistently adopted in the development of an individual research program,are characterization and development of alternative rennets from plant sources, development of starter and nonstarter cultures from adventitious microflora, utilization of probiotic strains as starter cultures, upgrading of whey via physical or fermentation routes, and modification of milk fat via lipasemediated interesterification reactions.