The invention relates to a liquid or semi-liquid bioactive dairy composition formed from a bioactive powder containing a colostrum powder and/or milk powder and immunoglobulin G (IgG), water and a food grade acid; the composition having a pH between 2.5-4.0. The bioactive dairy composition can be used in the preparation of a range of ready-to-drink and ready-to-eat food products having bioactive properties. Processes for the preparation of the bioactive dairy composition and the associated food and beverage products is also described.