Coconut butter, also known as coconut oil, is vegetable oil extracted from the dried meat of the coconut, or copra. The copra is collected from mature coconuts and shredded. It is then cleaned of foreign materials, such as dirt or metal, and broken down into fine particles. These particles are passed through a steamer and brought to a temperature of 220 degrees F (104 degrees C). After steaming for 30 minutes, the milled copra is transferred to an expeller where it is subjected to high-pressure oil extraction. The resulting oil is then filtered and pumped into a storage tank. From here, the coconut butter is bottled or jarred for distribution.

Virgin coconut butter is derived from fresh coconut meat, or non-copra. Coconut milk and oil are pressed from the flesh of the coconut using large mechanical presses, or sometimes by hand. The oil is then separated from the water by boiling, refrigeration or mechanical centrifuge.

Coconut butter consists of 90% saturated fat and several medium-chain fatty acids. These include lauric acid, which makes up 50% of the total fatty acids. Others include myristic acid, palmitic acid, and caprylic acid.

These acids have long been used for health purposes such as nutrient mixtures administered intravenously to bedridden patients. They do not require bile to digest and are processed immediately through the small intestine and transported to the liver to be used as fuel. Coconut butter is also a natural antibacterial, antiviral and antifungal food.

Because of its high fat content, coconut butter is among the most stable of all oils. When stored in its solid form, it has a shelf life of 2-3 years and is resistant to spoiling. It has a melting point of 78 degrees F (26 degrees C). Once melted, it is known as coconut oil.

Coconut butter is used commonly in cooking, specifically frying and sautéing. It is also used as a healthier substitute for shortening, butter, or margarine in cooking and baking. Many Asian curries often incorporate coconut oil as a flavoring.

Many soaps and cosmetics contain coconut butter because of its high fat content. This makes it ideal for softening and moisturizing skin. It can also be used as a natural lubricant for sexual intercourse, but is not suitable for use with condoms and may cause allergic reactions in some.

Coconut butter has also been tested for various industrial uses such as engine lubricant and aircraft fuel. It is thought to reduce the amount of fuel consumed by the engine and maintain cooler engine temperatures.