Milk replacers include a fat component in which least about 10 percent of the total fat content is formed of medium chain triglycerides. Young animals consuming the milk replacer ingest the medium chain triglycerides at a rate of at least about 13.5 grams per head per day and exhibit improved animal performance. The milk replacers with the modified fatty acid profiles may include a reduced level of fat and protein compared to traditional milk replacers without negatively affecting performance of young animals, and may even enhance performance of the young animals. These milk replacers may be produced by adding the medium chain triglycerides during milk replacer formulation, and at least about 9 grams of medium chain triglycerides are provided per pound of milk replacer.