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Shredded coconut meat question

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Yesterday, I went to a well known Indian produce store here in Texas thinking that I could buy a larger size of shredded or chipped coconut for my butter.  Our Whole Foods carry very limited amounts of this and I usually clean them out every time I go.  They had shredded and they had chipped.  The chipped was snow white.  The larger bags (along with all the smaller bags) had a yellow tinge to it.  I bought two big bags of this, but when I got home, started wondering if this is a lower quality of coconut..maybe older?  I've looked online and they elude that yellow flesh is rancid.  Anyone have any ideas whether this is safe to make butter out of?  Maybe it's lower in oils?  I asked at the store, but they had no idea.

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