Abstract: A process for removing free fatty acids (FFA) and preferably cholesterol from liquid anhydrous animal fats is described. The process uses a dilute solution of alkali metal base to form a salt of the FFA and then an alkali metal salt to precipitate the FFA from the animal fat. Preferably, a cyclodextrin is used in the process to remove cholesterol. Liquid vegetable fats are used in blends with the processed animal fat to produce a spreadable mixture for table use. The processed animal fat can be reconstituted to whole milk with the FFA and cholesterol removed for various commercial uses.