What Is Caprylic Acid? First discovered in goat’s milk, Caprylic Acid is a short-chain fatty acid found in some mammal’s milk, as well as in tropical oils like coconut and palm kernel oil. This marvelous fatty acid actually has a very beneficial effect on microbial balance in the gut!† Caprylic Acid Supplements Aren't All Formulated Equal That’s right, most of the caprylic acid supplements I researched simply weren’t formulated to get the job done. Caprylic acid is a short-chain, 8 carbon saturated fatty acid that can be absorbed too soon to have any effect, or be damaged and even digested by stomach acid, gastric juices, and your pancreatic enzymes.