As for the margarine formulation in our process, initially 2 formulations were proposed based on

the availability of the raw materials and the costs involved. Out of the three oil modification
methods which are hydrogenation, fractionation and interesterification, both the formulations
used interesterification method. The reason on why we employed interesterification in our
production of fat blends is to produce a trans-free fatty acid product, margarine. In
interesterification process, fatty acid groups in the triacylglycerols are exchanged with those of
other oils. This is done to improve the melting or functional properties of the product.(Reading,
2003)
The selection of fat blend in our margarine formulation was narrowed down to only palm based
fats. The first option was modification of palm stearin and palm kernel oil olein by enzymatic
interesterification process using the enzyme lipase. The ratio of 30:70 by respective solid fat
contents from palm oil stearin to palm kernel oil olein was chosen. This is because of the lowest
solid fat content temperature and lowest slip melting temperature. The characteristics showed
similarities with soft margarine which is desirable. However, the products from
interesterification using this blend still produces some amount of trans fatty acid. Since palm
kernel ratio is of 70 as compared to palm oil strearin, the production cost increases. This is
because our process does not process palm kernel in the upstream. Therefore, we have to
purchase the palm kernel oil which will increase the initial cost of production. Based on our
calculation of cost as shown in the figure below, the profit generated will be RM 1297.4/tonne
CPO.

Figure shows costs involved in first option blend

Next, we move on to the second option in which palm oil, palm stearin and palm kernel oil are
blended in ternary system. The interesterification blending consisting of palm oil, palm oil
stearin and palm kernel oil are in ratio of 60:20:20 (Affandi M.S. & Habi N.L., 1996). This
blending ratio is better compared to the first option as we already have palm oil and palm stearin
from the upstream process. So, we only need to purchase palm kernel oil which will only consist
a small fraction compared to the first choice. The palm oil olein produced as by-product from
this process can further be sold out which will increase our revenue. Based on our calculation of
cost as shown in the figure below, the profit generated will be RM 1529.14/tonne CPO. This
clearly illustrate a higher revenue generated through option 2.
 Figure shows costs involved in second option blend

Based on comparison of both blends, interesterification blending of palm oil, palm oil stearin and
palm kernel oil in ratio of 60:20:20 are chosen for our margarine formulation.

Affandi M.S., & Habi N.L. (1996). Trans Free Margarine Formulation.
http://palmoilis.mpob.gov.my/images/PORIM IS/0055/PORIM IS 0055.pdf
Reading, F. (2003). Oil Production and Processing. 5904–5916.