There are two different meanings to Dehydrated Butter, depending on where you are.
In France, this is called “Beurre Déshydraté”, and means butter that the water has been take out of (“de” meaning “from”, and “hydro” meaning water.) It is made by melting butter then applying centrifugal force to take out most of the water. It will store for up to a year at room temperature. If being stored for longer than that, it is best to keep it at 32 F / 0 C.
In France, it will be 99.3% butterfat, and .5% maximum water. In some definitions, the butter will not contain any milk solids, either. It needs to have water added back in before using, or you can reduce the quantity of milk called for in a recipe by 15%, and replace that quantity with the same quantity of water. Sometimes concentrated butter (aka anhydrous butter or butteroil) is also thought of as “Dehydrated Butter.”
In North America, “Dehydrated Butter” is interpreted to mean completely dehydrated, as in all the liquid taken out until it’s powdered. Annatto may be added to the butter before it’s dehydrated, in order to give the dehydrated product a better colour. It is often referred to fully as “Dehydrated Butter Powder.” It can be used in baking, but not for frying. To use, you add water until it’s the consistency of paste you want — you’ll just get it to a paste, not to a solid. You can also add some unflavoured vegetable oil (e.g. not olive oil) for added texture.Nutrition FactsPer 1 teaspoon, Dehydrated Butter PowderAmountCalories15
5 cups dehydrated butter powder = 1 pound (450 g) dehydrated butter powder
1 teaspoon Dehydrated Butter Powder = 1 tablespoon fresh butter