What is Butter Oil?
Butter oil, also known as anhydrous milk fat, is a clarified form of milk fat containing a minimum of 99.3% fat. It is traditionally used for both culinary and industrial purposes and remains a vital product in the dairy processing ecosystem.
Its rich golden-yellow color (especially when derived from cow’s milk) and low moisture content make it highly shelf-stable. This product is popular in food manufacturing due to its long shelf life, high smoke point, and clean taste.
As a food processing consultant or a food manufacturing consultant, recommending butter oil can be a game-changer in formulation for shelf-stable dairy or fat-rich products.
Regulations and Standards
According to Codex Standards, butter oil and anhydrous milk fat must:
- Be made exclusively from milk or milk products.
- Contain ≥99.3% (butteroil) or ≥99.8% (anhydrous butteroil) milk fat.
- Be almost completely devoid of water and non-fat solids.
- Be made from cream or butter of various ages.
- Allow use of alkali for neutralizing free fatty acids.
Key Characteristics of Butter Oil
Understanding the general properties is essential for food industry consultants and food technologists:
- Pure fat and resistant to oxidation
- Moisture ≤0.1%
- Golden yellow if from cow milk; white with green tinge from buffalo milk
- Neutral or bland aroma
- Fine crystalline texture
- Must be packed in clean, odorless containers
These qualities ensure compatibility with both household and industrial food applications.
Principles of Butter Oil Production
Butter oil can be made using two main methods:
- Directly from cream
- From reworked butter
Let’s explore both.
1. Butter Oil from Cream
- Raw cream (35–40% fat) is pasteurized and separated to raise fat to ~75%.
- Cream undergoes homogenization to break fat globules and release fat.
- Product is passed through a centrifugal concentrator to reach ~99.5% fat.
- Then it's heated to 95–98°C in a plate heat exchanger.
- Moisture is reduced to 0.1% in a vacuum chamber.
- The product is cooled and prepared for packaging.
2. Butter Oil from Reworked Butter
- Butter is melted (60–80°C) in melting vats.
- Held for 20–30 mins to allow protein aggregation.
- Fat is separated using a centrifugal concentrator.
- Then heated, dehydrated under vacuum, and cooled before packing.
Food business consultancy professionals can help identify the best method depending on plant capability and raw material access.
Packaging and Storage
- Packed in airtight containers to exclude oxygen.
- Sizes range from 1 kg to 20 kg for homes and restaurants.
- For industrial use, 180 kg drums are standard.
- Often flushed with nitrogen to prevent oxidation.

Conclusion
Butter oil is a concentrated dairy fat used for both preservation and culinary applications. With its high fat purity, resistance to spoilage, and clean taste, it’s a preferred product for many in the food industry.
Whether you're a startup or an established player in the dairy business, engaging with food consultancy services can help optimize your butter oil production lines. From regulatory compliance to process optimization, an experienced food technology consulting team can elevate your operations and ensure consistent quality.