Anhydrous Milk Fat
Anhydrous milk fat (AMF) is a highly refined dairy fat with near-total removal of water and non-fat solids, obtained from cream or butter. It is traded as a bulk commodity for further processing in food manufacturing, especially confectionery, ice-cream and butter blends.
Prices, specifications and international trade for anhydrous milk fat under HS 040590.
Anhydrous Milk Fat Price
Published reference · Jul 1, 2026
Anhydrous milk fat is quoted in USD/t at NZL. Historical customs values may differ from the headline reference.
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New Zealand led reported anhydrous milk fat exports in 2025, at $1.3B.
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Anhydrous milk fat grading factors include Moisture content, Free fatty acid level, and Peroxide value.
Grading Factors
Quality assessment for anhydrous milk fat considers Moisture content, Free fatty acid level, and Peroxide value.
- Moisture content
The residual water level is measured because anhydrous milk fat is defined by having very low moisture; higher moisture can promote microbiological growth and alter functional performance in manufacturing.
- Free fatty acid level
The amount of free fatty acids indicates hydrolytic rancidity and the freshness of the starting cream; elevated levels cause off-flavours and reduce shelf stability.
- Peroxide value
This test measures primary oxidation products; high peroxide values signal oxidative rancidity, which produces stale, metallic or cardboard-like flavours in the fat.
- Flavour and odour
Sensory evaluation detects taints such as oily, fishy, or rancid notes that are unacceptable for a fat used as a neutral ingredient in premium foods.
- Colour
The fat's colour, from pale cream to deeper yellow, is visually assessed because it influences the final appearance of light-coloured products like white chocolate or ice cream.
Common Defects
Recorded defects for anhydrous milk fat include Rancid flavour, Excess moisture, and Foreign or off-odours.
- Rancid flavour
Hydrolytic rancidity from lipase activity or oxidative rancidity from oxygen exposure produces sharp, soapy, or stale tastes that spoil the sensory profile.
- Excess moisture
Water above the expected low threshold can enable microbial growth and reduce the fat's protective barrier, shortening shelf life.
- Foreign or off-odours
Absorption of environmental odours during production or storage creates unwanted aromas that carry through to finished foods.
Anhydrous Milk Fat Facts and HS Code
Anhydrous milk fat belongs to dairy within protein and dairy. Its customs classification covers HS 040590.
Anhydrous Milk Fat HS Code
| Also known as | AMF, anhydrous butteroil, butteroil |
|---|---|
| Product type | Intermediate |
| Form | Refined |
| Position in the chain | Processed |
| Category | Dairy — Protein and dairy |
| HS codes | 040590 |
| HS6 description | Dairy produce; fats and oils derived from milk (other than butter or dairy spreads) |
| Quoted in | USD/t |
| Reference location | NZL |
Production & Handling
Anhydrous milk fat storage guidance: Anhydrous milk fat should be stored in a cool, dry, and odour-free environment, protected from light and oxygen. The critical controls are temperature stability, which prevents separation or texture changes, and an airtight seal, which avoids oxidative rancidity and moisture pickup.
Production and Storage
| Perishability | Low |
|---|---|
| Temperature regime | Chilled |
| Storage conditions | Anhydrous milk fat should be stored in a cool, dry, and odour-free environment, protected from light and oxygen. The critical controls are temperature stability, which prevents separation or texture changes, and an airtight seal, which avoids oxidative rancidity and moisture pickup. |
| Production methods | Farmed |
| Processing steps |
|
Packaging
Typical anhydrous milk fat packaging includes Food-grade tanker, Bag-in-box or lined drum, and Block or slab form.
- Food-grade tanker
Bulk liquid transport in insulated or lined tankers suits large industrial orders where the fat is pumped directly into storage or processing.
- Bag-in-box or lined drum
For smaller quantities, the fat is packed into multi-layer flexible liners inside rigid containers, protecting it from oxygen and light and enabling easy disposal.
- Block or slab form
Some lots are solidified into blocks wrapped in moisture-barrier film, which is convenient for dry storage and manual handling in bakeries or restaurants.
Uses & Risks
Anhydrous milk fat is used in Confectionery, Ice-cream manufacturing, and Butter blends.
End Uses
- Confectionery
Used as a fat component in chocolate and candy formulations.
- Ice-cream manufacturing
Provides smooth texture and stability in frozen desserts.
- Butter blends
Mixed with butter or vegetable oils to achieve target functional properties.
- Dairy product recombination
Reconstitutes milk fat in various processed dairy products.
Uses and Related Commodities
| Downstream industries | Confectionery, Ice-cream, Dairy ingredient manufacturing, Food processing |
|---|
Sourcing risks
| Risk | Mitigation |
|---|---|
Microbial contamination Food safetyMedium Excess bacteria, yeast, or mold can arise if hygiene controls are insufficient during processing or storage. | Perform routine microbiological testing and adhere to Codex microbial limits. |
Oxidative rancidity Food safetyMedium High peroxide values indicate oxidation, which can develop during storage if exposed to oxygen or heat. | Store under nitrogen, keep at low temperature, and limit exposure to air. |
Heavy metal residues Food safetyLow Elevated copper or iron levels may occur from processing equipment or raw material contamination. | Test batches for metal limits and use equipment that meets Codex specifications. |
Anhydrous Milk Fat Questions
- What is anhydrous milk fat?
- Anhydrous milk fat is the nearly pure milk fat obtained by removing water and non-fat solids from cream or butter. It is a concentrated, stable intermediate used as an ingredient in many foods.
- How is anhydrous milk fat different from butter?
- Butter contains about a fifth water and some milk proteins, while anhydrous milk fat has very low moisture and almost none of those solids. This gives it a longer stable shelf life and makes it functional where water would interfere, such as in chocolate coating.
- What should I look for when receiving a shipment?
- Inspect the lot's sensory profile for rancidity or off-odours, check the moisture certificate, and verify that the fat remains homogeneous without separation. Oxidation indicators like free fatty acids and peroxides are key quality gatekeepers.
- How is anhydrous milk fat stored and handled?
- Keep it sealed, away from direct sunlight and strong odours, and avoid temperature fluctuations. Once the original packaging is opened, use it quickly or re-purge with inert gas to protect the fat from oxygen pickup.
- Can anhydrous milk fat replace butter in manufacturing?
- Yes, in most recipes it can replace butter on a fat basis, but you must adjust for the missing water and solids. The advantage is that it brings a neutral dairy flavour with a cleaner, more concentrated fat profile and a more consistent performance.