Abstract: A butterfat substitute including a partially hydrogenated soybean oil and a mono- and diglyceride component is added to a variety of dairy products as a substitute for all or part of their normal butterfat component. A modified product having substantially the same taste, body, mouthfeel, and appearance as the corresponding unmodified dairy product which has all of its butterfat component or which has had a portion of its butterfat component removed is obtained which is substantially cholesterol-free and has substantially less saturated fat. In a preferred embodiment, a low saturated fat, substantially cholesterol-free fluid milk product is obtained by combining the butterfat substitute with skim milk. The resultant modified fluid milk product has a substantially extended shelf-life.