A method of producing powder milk, said method comprising: (a) contacting milk or a fraction thereof with a lipid acyltransferase enzyme; and (b) drying the enzyme treated milk to produce powder milk; is disclosed. Powder milk products produced by the method and use of a lipid acyltransferase in the manufacture of powder milk for improving the rehydration properties, the perceptible sensory difference (smell and/or taste) and the flowability of the powder milk, and for reducing the cholesterol content and/or the free fatty acid content of the powder milk, and for reducing fouling of the equipment used in the manufacture of the powder milk, are also disclosed.