Dairy products are produced by subjecting a starting dairy material to nanofiltration to remove monovalent ions to produce an ion-depleted dairy permeate; passing the ion-depleted dairy permeate through an ion exchange column and subsequently with a sodium-containing eluting solution to produce sodium phosphate and sodium citrate derived from the starting material; concentrating the sodium phosphate and sodium citrate; and combining the concentrated sodium phosphate and sodium citrate with dairy components. The dairy product contains an amount of the concentrated sodium phosphate and sodium citrate sufficient to cause fat in the dairy product to be emulsified and protein in the dairy product to be hydrated. In addition or alternatively, a dairy by-product stream may be subjected to ion exchange to remove calcium therefrom; concentrated, and combined with dairy materials naturally containing phosphate and citrate in order to adjust the citrate+phosphate-to-calcium ratio to reach an emulsified dairy product.