A novel processing method of producing a solid fat products from air flotation sludge fat, vegetable soap stock and an oily liquid oil ingredient with more than 15% free fatty acid level on a fat basis is provided. The liquid fat or oil ingredient is heated to above 85 degree C., mixed with an alkali, dried to less than 18% moisture, and cooled to below 45 degree C. to convert the oily liquid fat or oil ingredient into the solid fat product in dry form. The product has the bypass fat function. The product is free-flowing and easy to be handled, delivered and applied.

 
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