Disclosed herein is a method for preparation of a phospholipid enriched dairy extract comprising at least 30% phospholipid, said method comprising: (a) contacting a dairy product with a protease under appropriate conditions to allow hydrolysis of milk proteins to occur to produce a hydrolysate and (b) subjecting the hydrolysate to a filtration step to separate it into a retentate fraction and a permeate fraction, whereby at least some protein is present in the permeate fraction, and the retentate fraction provides a dairy derived extract comprising at least 30% phospholipid w/w, wherein the dairy product is selected from the group consisting of cream, colostrum, milk fat globule membrane (MFGM), AMF serum, buttermilk and whole milk or processed products thereof and wherein the dairy derived extract comprises at least 80% phospholipid as a percentage of total fat in the extract.
