The invention provides a process of producing bio-available folate, i.e., folic acid having an increased proportion of monoglutamyl folate and a decreased proportion of polyglutamyl folate, by culturing food-grade microorganisms containing an active heterologous or homologous polyglutamyl hydrolase activity or containing increased activities of folate biosynthesis enzymes. The genes encoding the polyglutamyl hydrolase and the folate biosynthesis enzymes may be of various origin, e.g. from rodents or other mammals including man. Also provided is a foodstuff, especially a dairy product containing such monoglutamyl folate-producing microorganisms.