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The term "compound" found in some older recipe books refers to a mixture of butter and lard used in baking. When butter was too expensive, homemakers would use this less expensive "compound" in place of butter.
Today there is a "Bakery Compound" that is used in commercial bakeries instead of butter or margarine - basically it is a special type of margarine that helps soften and lubricate bread structure and extend shelf life.
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