FEDERAL POLYTECHNIC NEKEDE

P.M.B 1036 OWERRI,

IMO STATE.

PLANT DESIGN
ON

MAGARINE PRODUCTION

BY

NAME: CHUKWU ELIZABETH OLUCHI

DEPT: FOOD TECHNOLOGY

LEVEL: HND II (EVENING)

COURSE TITLE: EQUIPMENT & PLANT PROCESS DESIGN

COURSE CODE: FST 412

LECTURER: ENGR. ARINZE & MR. CHIBUIKE NJOKU

DATE: APRIL, 2024

1
 DEDICATION

This research work is dedicated to the almighty God for his divine grace and mercy

upon my life in my academic pursuit.

2
 ACKNOWLEDGEMENT

I acknowledge the presence of God in my life, for his mercies and blessings. I say

thank you Jesus. I humbly acknowledge my lecturer, Mr. Chibuike Njoku for his

teachings and instructions as regards to engineering principles. I also acknowledge

my parents for their love and care in all rounds. I will not forget to acknowledge

my brothers, sisters and friends for their love and care towards me not

withstanding all the storms of life. I pray may God continue to shower his

blessings on you all Amen.

3
 EXECUTIVE ABSTRACT

When designing margarine processing plants and choosing the equipment to be

installed, a wide range of considerations have to be made with regard to issues like
actual processing, hygiene, sanitation, and efficiency. In margarine production,
oils and fats usually are considered to be the most important raw materials used,
as oils and fats are significant in relation to the characteristics of the finished
margarine. The type of oils or fats used has a considerable influence on the
crystallization characteristics during the margarine processing, which has to be
considered when choosing the equipment involved in the processing line. The
criteria involved in choosing this equipment are to a certain extent based on the
knowledge about product characteristics, polymorphism, and crystal structure of
the margarine and related products. In this design, crystallization of oil and fat
products, margarine processing equipment and packaging methods, processing
methods, and specific process flows are discussed. Various oil types exhibiting
interesting crystallization habits are reviewed along with certain specialized
margarine or fat products. Storage of the finished products as well as costing,
production quality control and hygiene are also covered.

4
TABLE OF CONTENTS

Title page

Certification

Dedication

Acknowledgement

Executive Summary

Table of contents

CHAPTER ONE

1.0 Introduction

1.1 Background of the study

1.2 Aim and objectives

1.3 Production steps of margarine plant

1.4 Properties and structure

1.5 Uses

1.6 Process route

1.7 Other process route

1.8 Why the process route was chosen

1.9 Scope of the design

1.10 Limitations

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1.11 Process flow chart (Diagram)

1.12 Process description

CHAPTER TWO

2.0 Literature review

2.2 History of caffeinated coffee

2.3 productions

2.4 Nutritional factors of margarine

CHAPTER THREE

3.0 Material and energy balances

3.1 Material balance

3.1 Conservation of mass

3.1.4 Material balance assumption

3.1.2 Material balance assumption

3.1.3 Material balance assumptions

3.1.4 Material balance around different units

3.2 Energy balance

3.2.1 Energy balance assumption

CHAPTER FOUR

4.0 Piping and instrumentation

4.1 General overview

6
4.3 Instrumentation and control objectives

4.4 Control system and short down schemes

4.5 Basic start up and operational information

4.0 Safety measures

4.7 Product specifications

4.8 Environmental regulation

4.9 Economic reasons

4.10 Valve selection

4.11 Alarm and safety trips

4.1.2 Material devices

4.1.3 Pump and pipe selection

CHAPTER FIVE

5.0 Equipment design and specification

5.1 Major equipment use (design costing)

5.1.1 Crystallizer

5.1.2 Pasteurizer

6.1.5 Other economic benefits

CHAPTER SEVEN

7.0 Plant location and layout

7.1 Plant location

7
7.2 Plant layout

7.2.1 Objectives of plant layout

7.3 Environmental impact assessment

CHAPTER EIGHT

8.0 Plant safety and loss prevention

8.1 Process control and hazard control

CHAPTER NINE

9.1 Conclusion

9.2 Recommendation

References

Appendix

8
 CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Design and construction of a new food manufacturing plant or factory is a rare

event in most developed countries, and in the careers of most food professionals,

because growth of overall food consumption is relatively slow in such places.

However, in developing countries, as economies improve, food consumption in

general, and that of processed or preserved food in particular, is growing, and thus

the need for new food plants is especially important in such regions. The design

must consider the technical and economic factors, various unit operations involved,

existing and potential market conditions etc.

Margarine and related products contain a water phase and a fat phase and can thus

be characterized as water-in-oil (W/O) emulsions in which the water phase is

finely dispersed as droplets in the continuous fat phase. Depending on the

application of the product, the composition of the fat phase and the manufacturing

process are chosen accordingly. Apart from the crystallization equipment, a

modern manufacturing facility for margarine and related products will typically

include various tanks for oil storage as well as for emulsifier, water phase and

emulsion preparation; the size and number of tanks are calculated based on

9
capacity of the plant and product portfolio. The facility also includes a

pasteurization unit and a remelting facility.

1.2 AIM AND OBJECTIVES

The aim of this design is to manufacture magarine with a consistent quality and

nutritional value at affordable cost which will be essential to the success of the

food industry today. The efficient use of resources is, therefore, growing concern

for all involved in handling of raw materials and energy for processing, production,

distribution and retailing of food. The unique features of the raw materials of the

food processing industries such as seasonality, and variability in conjunction with

sophistication required for processing to maintain high quality standards,

necessitates special attention towards skilled technical manpower, effective

technologies, efficient machinery in the food plant.

1.3 OBJECTIVE OF THE DESIGN

The objectives of this study is to represent on the paper, a replica of a food

processing plant capable of producing margarine with tones 500,000 per year and

41,666.7Kg/hr by carrying out the financial and economic evaluation of the plant.

It is necessary to carry out a design to determine the technology best for these

product in a large scale. The heat, energy and mass transfer for the processing plant

10
will be established by selecting appropriate equipment size and design of plant

layout.

It is also a guide for prospective food technologist and individual that has an

interest in food processing in Nigeria or elsewhere, whether as a hobby or as an

investment or business opportunity.

1.4 SCOPE OF DESIGN

The design covered market analysis, financial analysis, material balance

assessment of the commercial viability each of the equipment will be designed

strictly based on the requirement of the correspondent process in order to achieve a

maximum production and working at full capacity (100%) at the end of the day.

The design work will also show the plant location and layout, piping and

instrumentation, plant safety and loss prevention, environmental impact assessment

and finally the cost estimation of the project.

1.5 SIGNIFICANCE OF THE STUDY

It is hoped that the market analysis, financial analysis, material balance

assessment of the commercial viability of the equipment properly designed will

result in the production of margarine that are less expensive, acceptable than those

produced from in the market all ready.

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1.6 LIMITATIONS OF THE DESIGN

The primary limitations were time, finance and scope of the project again

combining resources to achieve set objective.

The design of the required proprietary equipment (extractor press etc) is beyond

the scope of this work.

They were only specified here after carrying out a simple calculation which

showed forth the basis of the specification. On the long run, the basis of the design

might be modified to suit prevailing conditions.

1.7 PROCESS DESCRIPTION

Margarine processing methods

Thus, the manufacturing process can in general be divided into the following sub-

processes

Preparation of the Water Phase and the Fat Phase (Zone 1)

The water phase is often prepared batch-wise in the water phase tank. The water

should be of good drinking quality. If drinking quality water cannot be guaranteed,

the water can be subjected to pre-treatment by means of e.g. a UV or filter system.

Apart from the water, the water phase can consist of salt or brine, milk proteins

(table margarine and low fat spreads), sugar (puff pastry), stabilizers (reduced and

low fat spreads), preservatives and water-soluble flavors. The major ingredients in

the fat phase, the fat blend, normally consist of a blend of different fats and oils. In

12
order to achieve margarine with the desired characteristics and functionalities, the

ratio of fats and oils in the fat blend is decisive for the performance of the final

product. The various fats and oils, either as fat blend or single oils, are stored in oil

storage tanks typically placed outside the production facility. These are kept at

stable storage temperature above the melting point of the fat and under agitation in

order to avoid fractionation of the fat and to allow easy handling. Apart from the

fat blend, the fat phase typically consists of minor fat-soluble ingredients such as

emulsifier, lecithin, flavor, color and antioxidants. These minor ingredients are

dissolved in the fat blend before the water phase is added, thus before the

emulsification process.

Emulsion Preparation (Zone 2)

The emulsion is prepared by transferring various oils and fats or fat blends to the

emulsion tank. Usually, the high melting fats or fat blends are added first followed

by the lower melting fats and the liquid oil. To complete the preparation of the fat

phase, the emulsifier and other oil-soluble minor ingredients are added to the fat

blend. When all the ingredients for the fat phase have been properly mixed, the

water phase is added and the emulsion is created under intensive but controlled

mixing. Different systems can be used for metering the various ingredients for the

emulsion of which two are working batchwise; Flow meter system and Weighing

tank system: A continuous in-line emulsification system is a less preferred but

13
used solution in e.g. high capacity lines where limited space for emulsion tanks is

available. This system is using dosing pumps and mass flow meters to control the

ratio of the added phases into a small emulsion tank.

The above-mentioned systems can all be controlled fully automatically. Some

older plants, however, still have manually controlled emulsion preparation systems

but these are labour demanding and not recommended to install today due to the

strict traceability rules. The flow meter system is based on batch-wise emulsion

preparation in which the various phases and ingredients are measured by mass flow

meters when transferred from the various phase preparation tanks into the emulsion

tank. The accuracy of this system is +/-0.3%.

This system is characterized by its insensibility to outside influences like vibrations

and dirt. The weighing tank system is like the flow meter system based on batch-

wise emulsion preparation. Here the amounts of ingredients and phases are added

directly to the emulsion tank which is mounted on load cells controlling the

amounts added to the tank. Typically, a two-tank system is used for preparing the

emulsion in order to be able to run the crystallization line continuously. Each tank

works as a preparation and buffer tank (emulsion tank), thus the crystallization line

will be fed from one tank while a new batch will be prepared in the other and vice

versa. This is called the flip-flop system. A solution where the emulsion is

prepared in one tank and when ready is transferred to a buffer tank from where the

14
crystallization line is fed is also an option. This system is called the premix/buffer

system.

Pasteurization (Zone 3)

From the buffer tank the emulsion is normally continuously pumped through either

a plate heat exchanger (PHE) or a low pressure scraped surface heat exchanger

(SSHE), the GS Consistator®, or high pressure SSHE, the GS Kombinator or GS

Perfector, for pasteurization prior to entering the crystallization line. For full fat

products a PHE is typically used. For lower fat versions where the emulsion is

expected to exhibit a relatively high viscosity and for heat-sensible emulsions (e.g.

emulsions with high protein content) the GS Consistator® system as a low pressure

solution or the GS Kombinator as a high pressure solution is recommended. The

pasteurization process has several advantages.

It ensures inhibition of bacterial growth and growth of other microorganisms, thus

improving the microbiological stability of the emulsion. Pasteurization of the water

phase only is a possibility, but pasteurization of the complete emulsion is preferred

since the pasteurization process of the emulsion will minimise the residence time

from pasteurized product to filling or packing of final product. Also, the product is

treated in an in-line process from pasteurization to filling or packing of the final

product and pasteurization of any rework material is ensured when the complete

emulsion is pasteurized. In addition, pasteurization of the complete emulsion

15
ensures that the emulsion is fed to the crystallization line at a constant temperature

achieving constant processing parameters, product temperatures and product

texture.

In addition, occurrence of pre-crystallized emulsion fed to the crystallization

equipment is prevented when the emulsion is properly pasteurized and fed to the

high pressure pump at a temperature 5-10°C higher than the melting point of the

fat phase. A typical pasteurization process will after preparation of the emulsion at

45-55°C include a heating and holding sequence of the emulsion at 75-85°C for 16

sec. and subsequently a cooling process to a temperature of 45-55°C. The end

temperature depends on the melting point of the fat phase: the higher the melting

point, the higher the temperature.

Chilling, Crystallization and Kneading (Zone 4)

The emulsion is pumped to the crystallization line by means of a high pressure

piston pump (HPP). The crystallization line for the production of margarine and

related products typically consists of a high pressure SSHE which is cooled by

ammonia or Freon type cooling media. Pin rotor machine(s) and/or intermediate

crystallizers are often included in the line in order to add extra kneading intensity

and time for the production of plastic products. A resting tube is the final step of

the crystallization line and is only included if the product is packed. The heart of

the crystallization line is the high pressure SSH E, the GS Nexus, the GS

16
Kombinator or the GS Perfector, in which the warm emulsion is super-cooled and

crystallized on the inner surface of the chilling tube.

The emulsion is efficiently scraped off by the rotating scrapers, thus the emulsion

is chilled and kneaded simultaneously. When the fat in the emulsion crystallizes,

the fat crystals form a three-dimensional network entrapping the water droplets and

the liquid oil, resulting in products with properties of plastic semi-solid nature.

Depending on the type of product to be manufactured and the type of fats used for

the particular product, the configuration of the crystallization line (i.e. the order of

the chilling tubes and the pin rotor machines) can be adjusted to provide the

optimum configuration for the particular product. Since the crystallization line

usually manufactures more than one specific fat product the GS Nexus, GS

Kombinator or GS Perfector often consists of two or more cooling sections or

chilling tubes in order to meet the requirements for a flexible crystallization line.

When producing different crystallized fat products of various fat blends, flexibility

is needed since the crystallization characteristics of the blends might differ from

one blend to another.

The crystallization process, the processing conditions and the processing

parameters have a great influence on the characteristics of the final margarine and

spread products. When designing a crystallization line, it is important to identify

the characteristics of the products planned to be manufactured on the line. To

17
secure the investment for the future, flexibility of the line as well as individually

controllable processing parameters are necessary, since the range of products of

interest might change with time as well as raw materials. The capacity of the line is

determined by the cooling surface available of the GS Nexus, GS Kombinator or

GS Perfector.

Different size machines are available ranging from low to high capacity lines. Also

various degrees of flexibility are available from single tube equipment to multiple

tube lines, thus highly flexible processing lines. After the product is chilled in the

GS Nexus, GS Kombinator or GS Perfector it enters the pin rotor machine and/or

intermediate crystallizers in which it is kneaded for a certain period of time and

with a certain intensity in order to assist the promotion of the three-dimensional

network, which on the macroscopic level is the plastic structure. If the product is

meant to be distributed as a wrapped product it will enter the GS Nexus, GS

Kombinator or GS Perfector again before it settles in the resting tube prior to

wrapping. If the product is filled into cups, no resting tube is included in the

crystallization line.

Packing, Filling and Remelting (Zone 5)

Various packing and filling machines are available on the market and will not be

described in this article. However, the consistency of the product is very different

if it is produced to be packed or filled. It is obvious that a packed product must

18
exhibit a firmer texture than a filled product and if this texture is not optimal the

product will be diverted to the remelting system, melted and added to the buffer

tank for re-processing. Different remelting systems are available but the most used

systems are PHE or low pressure SSHE like the GS Consistator®.

Automation

Margarine, like other food products, is in many factories today produced under

strict traceability procedures. These procedures typically covering the ingredients,

the production and the final product result not only in an enhanced food safety but

also in a constant food quality. Traceability demands can be implemented in the

control system of the factory and the Gerstenberg Schröder GS Logic control

system is designed to control, record and document important conditions and

parameters concerning the complete manufacturing process. The GS Logic system

is equipped with password protection and features historic data logging of all

parameters involved in the margarine processing line from recipe information to

final product evaluation. The data logging includes the capacity and output of the

high pressure pump (l/hour and back pressure), product temperatures (incl.

pasteurization process) during crystallization, cooling temperatures (or cooling

media pressures) of the SSHE, speed of the SSHE and the pin rotor machines as

well as load of motors running the high pressure pump, the SSHE and the pin rotor

machines.

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During processing, alarms will be sent to the operator if the processing parameters

for the specific product are out of limits; these are set in the recipe editor prior to

production. These alarms have to be acknowledged manually and actions

according to procedures have to be taken. All alarms are stored in a historic alarm

system for later view. When the product leaves the production line in a suitably

packed or filled form, it is apart from the product name typically marked with a

date, time and batch identification number for later tracking. The complete history

of all the production steps involved in the manufacturing process is thus filed for

the security of the producer and the end user, the consumer.

CIP

Cleaning plants (CIP = cleaning in place) are also part of a modern margarine

facility since margarine production plants should be cleaned on a regular basis. For

traditional margarine products once a week is a normal cleaning interval. However,

for sensitive products like low fat (high water content) and/or high protein

containing products, shorter intervals between the CIP are recommended. In

principle, two CIP systems are used: CIP plants which use the cleaning media only

once or the recommended CIP plantswhich operate via a buffer solution of the

cleaning media where media such as lye, acid and/or disinfectants are returned to

the individual CIP storage tanks after use. The latter process is preferred since it

represents an environmentally-friendly solution and it is an economical solution in

20
regard to consumption of cleaning agents and hereby the cost of these. In case

several production lines are installed in one factory, it is possible to set up parallel

cleaning tracks or CIP satellite systems. This results in a significant reduction in

cleaning time and energy consumption. The parameters of the CIP process are

automatically controlled and logged for later trace in the GS Logic system.

1.8 PROPERTIES AND USES

Margarine is a fat used widely as an ingredient or a spread that resembles butter,

but is a common butter substitute. It is made from the emulsion of vegetable and/or

animal oil. Like other fats, margarine helps improve mouth feel and flavor in baked

goods.

Vitamin Enrichment

Margarine is a convenient vehicle for the addition of the fat-soluble vitamins A and

D. The international standard for margarine issued by the Codex

Alimentarius Commission of the Food and Agricultural Organization (FAO) in

Rome recommends their addition. In Canada and the UK, the addition of vitamins

A and D is mandatory. In the USA, the addition of vitamin A is mandatory, while

the addition of vitamin D is optional. Such enrichment gives margarine the edge

over butter, in which the vitamin A content varies with the diet of the dairy cow

and vitamin D is essentially absent. Vitamin D, which assists in the absorption of

calcium, is naturally produced from the sun's activation of precursors in the skin.

21
However, in cold climates where skin exposure to the sun is precluded by

outerwear for many months of the year, foods fortified with vitamin D,

including margarines, are an important public health measure.

The addition of vitamin E to margarine is permitted in Canada, if added in an

amount that results in not less than 0.6 IU of α-tocopherol per gram of linoleic

acid present. However, most Canadian margarine manufacturers do not exercise

this option. Fortification of margarine with vitamin E is not permitted in the USA,

although tocopherols may be added as antioxidants.

Lipid component

The total fat in margarine is routinely controlled through metering according to

formula specifications and may be monitored in inspection by standard methods.

Of most interest, from the perspectives of function and nutrition, is the nature of

the triacylglycerols (TAGs) that make up the oils and fats of a margarine

basestock. Since each TAG molecule is made up of one molecule of glycerol and

three fatty acids, the structure of the constituent fatty acids and their arrangement

on the glycerol stem affect its physical properties. These features are dictated by

the origin of the oils and fats used in margarine formulation and by their

processing prior to blending. The lipid component of margarine is most frequently

characterized by its fatty acid composition. Local crops often are dominant

constituents such as canola and soybean oils in North American products.

22
Individual fatty acids, which consist of a carboxyl group and a hydrocarbon chain,

are distinguished from one another by chain length and by degree of saturation

with hydrogen. Shorter fatty acid chains and greater unsaturation (i.e., less

hydrogen, therefore more double bonds) within a TAG mixture favor fluidity

and vice versa. Unsaturation has the greater softening effect provided that the

double bonds are in the natural or cis form. This geometric configuration causes

the fatty acid chain to double back on itself, resulting in a bend that discourages the

secondary association among adjacent molecules, which leads to hardening.

Certain processing conditions, such as hydrogenation, convert the

natural cis isomer to a straighter-chain trans isomer that favors hardening.

1.9 PRODUCTION FLOW CHART FOR MARGARINE PRODUCTION

1.10 PROCESS ROUTE AND COMPLEX EQUIPMENTS

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Designed to melt frozen or hard blocks of fats of animal or vegetable origin and

maintain them in a molten state at a given temperature. The bottom and walls of

the melter are equipped with a heating jacket, hot water is circulated through the

jacket, as well as the central grate. A source of hot water is required (not included).

Fat phase mixer

Designed for mixing and primary emulsification of fat phase components. It is an

atmospheric unit with a working volume of 100 liters with a heating jacket and

insulation, a mixing device. The basic version includes a temperature sensor in the

product, soft-starter of the mixing device. A foot valve is already installed in the

basic version! The unit can be retrofitted with CIP cleaning heads. A source of hot

water is required (not included). Pump for feeding the fat emulsion into the

emulsifier tank

Water phase mixer

Designed for mixing dry components in an aqueous medium and maintaining the

temperature of the mixture at a given level. It is an atmospheric unit with a

working volume of 430 liters with a heating jacket and thermal insulation, a

mixing device. The basic version includes a temperature sensor in the product,

soft-starter of the mixing device. The unit can be retrofitted with CIP cleaning

heads. A source of hot water is required (not included). Pump for supplying the

aqueous phase to the emulsifier tank

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Emulsifiers with an external homogenizer

The emulsifiers have a remote Ultra Shear-type homogenizer-emulsifier to

combine the fat and water phases into a stable emulsion. The tanks are used

alternately to ensure the continuity of the process, while in one the emulsion is

being prepared, from the other, the already prepared emulsion is fed into the

pasteurization-cooling unit. Emulsifiers are atmospheric installations with a

working volume of 600 liters with thermal insulation and a mixing device. The

basic version includes a product temperature sensor, soft-starter agitator. The unit

can be retrofitted with CIP cleaning heads.

Ultra Shear homogenizer

For creating stable homogeneous emulsions and mixtures, 7.5 kW. Pump for

feeding the emulsion into the pasteurization-cooling unit.

Pasteurization-cooling plant

For heat treatment and emulsion filtration in shell and tube heat exchangers, which

increases the shelf life of the product. Hot water supply not included! An ice water

station (chiller, buffer tank and refrigeration pump) must also be provided for the

correct operation of the unit.

Storage tank (levelling)It is an atmospheric container with a working volume of

100 liters made of stainless steel with legs.

High pressure pump

25
The plunger pump is designed for pumping the pasteurized emulsion into the

scraped surface heat exchanger (cooler). The performance of the pump is regulated

by changing the speed of rotation of the motor through a frequency converter. The

outlet pressure of the product is also adjustable.

Scraped heat exchanger

For the implementation of heat exchange and the forced promotion of products of

varying degrees of viscosity on the principle of translational-rotational motion of

the rotor, equipped with special scraper blades, located inside the heat exchange

tube with a cylindrical cooling "jacket". Two sections are installed on one frame:

the first scraped heat exchanger for cooling and primary crystallization of the fat

emulsion, above which is the second plasticizing section (finger processor) for

intensive mechanical processing of the product in order to obtain a three-

dimensional structure of the molecular lattice and ensure the plastic properties of

the product.

Crystallizer

Designed for the final crystallization of the product and ensuring its solid structure.

Required in lines for the production of hard margarines and margarines for puff

pastry. The dormant tube is a jacketed cylinder, which is internally equipped with

baffles to slow down the passage of the product. The supercooled mixture from the

scraped-off heat exchanger with the plasticizing section is sent to the resting pipe

26
to create, mature the necessary crystallization structure into the mold (for structure

maturation) and then to the forming equipment. It is recommended to install a

"return" - a return before feeding to the packaging to maintain the required

pressure.

1.11 CHOICE OF PROCESS ROUTE

The choice of process route margarine basically dependent on the size of the plant

i.e. capacity. The basis process route arrangement of crystallizer, pasteurizer

hmogenizer, and packaging universally well known and documented. However

depending on plant capacity, the use of other equipment such as pumps for supply

of water mixer, the need of continuous flow of materials recycling etc are factors to

be considered. Therefore in the design of the best process route, the route chosen

should be seen to be part with other known good techniques used in the margarine

plant. It is safe from both operational human and environmental hazards the

techniques is not technological demanding. The only improvement may be use of

sophisticated equipment which is not wise considering the economy of the

proposed plant capacity. Therefore the choice of the optimum route has been done

based on the breaking down the technology in unit operations. The choice of the

required equipment laws done after answering the questions started above. Each

unit is properly examined to choose the best that will be compatible with others.

27
1.13 Qualitative flow Diagram of margarine production plant

28
 CHAPTER

TWO

29
 LITERATURE REVIEW

2.1 History of Margarine and consumption

Margarine was invented in France by Hippolyte Mèges-Mouries in response to

Napoleon III's call for a cheap alternative to butter for French workers and for his

armies in the Franco-Prussian war. The first margarine, consisting of

beef tallow churned with milk, was patented in 1869. Dutch entrepreneurs at

Jurgens & Co., an established butter trader, purchased the margarine patent and

popularized its use. Margarine production was limited by the availability of beef

tallow until 1902 when Wilhelm Normann in Germany patented a process to

harden oils by hydrogenation. This greatly expanded the market opportunities for

vegetable oils and the availability of margarine.

By its centennial in 1969, margarine production in parts of Europe and in the USA

began to rival that of butter. By 2000, margarine had become the table spread of

choice for many people for reasons of either health or economics. Where this is the

case, it also serves as a versatile fat in the home and in the food-service industry

for preparing pan-fried foods, sauces, and bakery goods. This review considers the

patterns of margarine consumption, the types of margarine available at the

beginning of the twenty-first century, the physical structure of margarine, and its

functionality, that is, its physical and sensory properties and their stability.

2.2 Consumption of margarine

30
Margarine Consumption Patterns 0003 The rate of margarine adoption has varied

among countries, reflecting the relative strength of consumer groups and the

oilseed industry in overcoming restrictive legislation achieved by dairy lobbies.

Margarine was welcomed throughout Europe from its earliest introduction.

However, the reverse was true in North America. In Canada, dairy farmers

succeeded in imposing, in 1886, a countrywide ban on the manufacture, sale, and

importation of margarine. Its prohibition endured until 1948, when the

responsibility for margarine was transferred to each province. However, a federal

excise tax was imposed on manufacturers until 1967. It took until the late 1990s for

margarine to be sold legally in all 10 provinces, and even then, several imposed a

color restriction on margarine to distinguish it from butter. In 1950, the USA

abolished federal restrictive margarine taxation opening the door for liberal

marketing. Nevertheless, some states resisted the legal sale of margarine for

several years. Contrary to Napoleon III’s original expectation, 0004 the tablespread

competition between margarine and butter has not centered solely on price. Some

margarines have the advantage of being easy to spread, even at 4 C, fresh from the

refrigerator. This performance feature, coupled with a perceived nutritional

advantage for vegetable oil-based spreads, led to early increases in margarine

acceptance. In the USA, percapita consumption of margarine surpassed that of

butter in 1965 and more than doubled it 10 years later, a dominance which has

31
been sustained into the last years of the twentieth century (Table 1). In both

Canada and the UK, the shift from butter to margarine has been slower. Consumer

research in Finland reported equal use of the two spreads in 1992 for a total of 15

kg per person per year. In France, butter apparently continues to be dominant. In

North America, there has been a gradual de- 0005 crease in total table spread

consumption over the last four decades of the twentieth century. In Canada, for

example, the sum of margarine plus butter disappearance shown in Table 1

dropped from 13 kg per capita in 1955 to less than 8 kg per capita in 1995. In the

USA, a decrease was also evident; total table spread disappearance dropped from

almost 8 kg per capita in 1965 to only 5.8 kg per capita in 1995.

2.3 Nutritional Factors of margarine

Margarine
Protein (g) 0

Total lipid (fat) (g) 39.98

Carbohydrate, by difference (g) 0.82

Energy (kcal) 358.75

0
Sugars, total (g)

2.4 Types of Margarine Available

32
 There are several types of margarine available on the market, each with its own

characteristics and purposes. Here are some common types of margarine:

 Regular Margarine: Regular margarine is the standard type of margarine found in

most grocery stores. It is typically made from a blend of vegetable oils, water, salt,

and emulsifiers. Regular margarine is versatile and can be used for spreading,

cooking, and baking.

 Light or Low-Fat Margarine: Light or low-fat margarine is a variation of regular

margarine that contains a lower fat content. It is often formulated to have a reduced

amount of calories and saturated fats. Light margarines may have a higher water

content and a softer texture compared to regular margarine.

 Vegan Margarine: Vegan margarine is specifically formulated to be free of

animal-derived ingredients. It is suitable for individuals following a vegan or plant-

based diet. Vegan margarine is made using plant-based oils and often does not

contain any dairy or animal products.

 Dairy-Free Margarine: Dairy-free margarine is designed for individuals who are

lactose intolerant or have allergies to dairy products. It is made without any milk or

dairy ingredients and is suitable as a butter substitute in recipes.

33
 Spreadable Margarine: Spreadable margarine has a soft and spreadable

consistency, making it easier to spread on bread or toast straight out of the

refrigerator. It often contains a higher water content compared to regular

margarine, which allows it to be easily spreadable.

 Stick Margarine: Stick margarine comes in solid stick form, similar to butter. It is

convenient for measuring and is often used in baking recipes that require precise

measurements.

 Flavored Margarine: Some margarine is available in flavored varieties, such as

garlic, herb, or citrus flavors. These flavored margarines add extra taste and aroma

to dishes and can be used as spreads or for cooking

 Cholesterol-Lowering Margarine: Cholesterol-lowering margarines are specially

formulated with added plant sterols or stanols. These substances have been shown

to help lower LDL (bad) cholesterol levels when consumed as part of a healthy

diet.

It's important to note that the availability of specific types of margarine may vary

by region and brand. When selecting a margarine, it's advisable to read the

ingredient list, nutritional information, and consider personal dietary needs and

preferences.

34
HOW TO USE MARGARINE IN COOKING

Margarine can be used as a substitute for butter in various cooking applications.

Here are some tips on how to use margarine in cooking:

1. Sautéing and Frying: Margarine can be used for sautéing vegetables, frying

meats, or cooking other ingredients in a skillet or pan. Heat the margarine over

medium-high heat until melted and hot. Add the ingredients and cook as desired,

stirring occasionally. Margarine with a higher smoke point, such as those made

from canola or soybean oil, is suitable for high-heat cooking methods.

2. Baking: Margarine can be used in baking recipes as a substitute for butter.

When using margarine in baking, keep in mind that it may have a higher water

content compared to butter, which can affect the texture and moisture of the

final baked goods. Follow the recipe instructions and consider any adjustments

needed based on the specific margarine being used.

3. Roasting: Margarine can be used to coat vegetables or meats before roasting

them in the oven. Melt the margarine and toss the ingredients in it to ensure they

are evenly coated. Place them on a baking sheet and roast in the oven as

directed.

4. Grilling: Margarine can be used to prevent sticking and add flavor when

grilling. Before grilling vegetables, seafood, or other foods, brush the grill grates

35
 with melted margarine or spread some directly onto the food to prevent sticking

and enhance the flavor.

5. Sauce and Gravy: Margarine can be used as a base for sauces and gravies. Melt

the margarine in a saucepan over medium heat, then add other ingredients such

as flour, milk, broth, or seasonings to create a smooth and flavorful sauce or

gravy.

6. Topping: Melted margarine can be used as a topping for vegetables, rice, pasta,

or popcorn. Drizzle it over the desired food and season with herbs, spices, or

grated cheese for added flavor.

7. Spreading: Margarine can be spread on bread, toast, bagels, or other baked

goods, just like butter. It provides a creamy and spreadable texture and can be

flavored with herbs, spices, or honey for a personalized taste.

When using margarine in cooking, it's important to consider the specific

formulation and characteristics of the margarine being used. Some margarines may

have a milder taste or higher water content compared to butter, which can affect

the flavor and texture of the dishes. It's also important to adjust the quantities as

needed and follow recipe instructions to achieve the desired results

36
 NUTRITIONAL VALUE OF MARGARINE

The nutritional value of margarine can vary depending on the brand, formulation,

and specific type of margarine. However, here is a general overview of the typical

nutritional composition of margarine:

 Fat: Margarine is primarily composed of fats, which can vary depending on the

specific vegetable oils used in its production. It is common for margarine to

contain both saturated and unsaturated fats. The amount of fat can range from

around 70% to 80% of the total weight of margarine.

 Calories: Margarine is relatively high in calories due to its fat content. On average,

it provides around 100 to 120 calories per tablespoon.

 Saturated Fat: The saturated fat content of margarine can vary depending on the

formulation. Regular margarine may contain around 2 to 4 grams of saturated fat

per tablespoon, while some reduced-fat or light margarines may have even lower

amounts. It's important to check the nutrition label to choose margarines with

lower saturated fat content.

 Trans Fat: Many margarine manufacturers have reduced or eliminated the use of

partially hydrogenated oils, which are a major source of trans fats. However, it's

still important to check the ingredient list for any presence of trans fats, as small

37
 amounts may still be present. Choose margarines labeled as "trans fat-free" or

those with minimal or no partially hydrogenated oils

 Cholesterol: Margarine is typically cholesterol-free as it is made from plant-based

oils. This makes it a suitable option for individuals looking to limit their

cholesterol intake.

 Vitamins and Minerals: Some margarines are fortified with vitamins and

minerals, such as vitamins A, D, or E, to provide additional nutritional benefits.

The specific fortification can vary depending on the brand and formulation.

38
 CHAPTER THREE

3.0 MATERIAL AND ENERGY BALANCE

3.1 MATERIAL BALANCE

This is an application of conservation of mass to the analysis of physical systems.

By accounting for materials entering and leaving a system, mass flows can be

identified which might have been unknown or difficult to measure without the

techniques. The exact conservation law used in the analysis of the system depends

on the context of the problem, but all revolves around the mass conservation i.e

that matter can neither be created nor destroyed, (en.rn.Wikipedia.

Org/Wiki/massbalance).

The basis of these mass or material balance is the conservation of mass stating that

mass can be neither created nor destroyed” thus all mass (i.e Weight) of the

individual components entering the process must be accounted for in the final

products, by-products, wastes etc.

General materials balance equation =input +generation-Output-

Consumption= accumulation Input: Enters through system boundaries

generation: is produced within the system

Output: existed through system boundaries.

Consumption: Is used up within the system.

Accumulation: Is built up within system.

39
3.1.1 CONSERVATION OF MASS

This general conservation equation for any process system can be within as

material out = material in + generation consumption – Accumulation. Input +

generation =output + accumulation + conservation (generation term is zero).In the

absence of chemical reaction, the amount of any chemical species flowing in and

out will be the same, this gives rise to an equation for each specie present in the

system Material in =material out.

3.1.2 MATERIAL BALANCE ASSUMPTIONS

- This system is operating at steady state i.e there is no accumulation of any sort in

the system.

- Non reactive system

- The following assumptions were made, this is based on the fact the

total material in = total

- Output + Accumulation (Total material under steady condition therefore the

rate of input – rate of output +rate of Accumulation A-B+C

3.1.3 MATERIAL BALANCE AROUND DIFFERENT UNIT

DATA:

Expect plant attainment on installation = 100%

No of days to energy in production = 347x100

Production days/annum = 347x24=8328hrs/annum

40
Expected plant capacity = 21000 bags/annum

= 21000 8328 hrs/annum = 2,521613833kg/hrs

Quantity of raw material needed per hour 5602.5kg/hr

Input- output

3.1.4 MASS BALANCE FLOW DIAGRAM

Input Product

5602.5kg/hr System 5602.5kg/hr

3.1.5 ENERGY BALANCE

An energy balance states that the amount of heat or mechanical energy entering a

process = the total energy leaving with the product and wastes + stored energy +

energy lost to the surroundings. If heat losses are minimized, energy losses to the

surrounding maybe ignored for approximate solutions for calculations, for example

the quality of system hot air or refrigerant required. Energy out- Energy in +

generation consumption = Accumulation.

3.1.6 ENERGY BALANCE ASSUMPTION

- Steady state condition is assumed in all process equipment.

- Heat loss from ail process equipment is negligible.

- Pressure drop along the pipeline is negligible.

41
- Effect of pressure on enthalpy is ignored.

- Potential and kinetic energy contribution are negligible.

3.1.7 ENERGY BALANCE AROUND THE SYSTEM

Mass flow rate of the plant

= 14193.85kg/hr

Inlet temp = 30◦C

Output temp of 85◦C

Heat capacity = 3.18kj/kg/k

Mass flow rate of stream = 14000kg/hr

Heat capacity rate of = 4.18kgII KI I

Inlet temp of stream = 105◦C

Outlet temp of stream = x◦C

Given that Q- MCP T mixture = MCPD T stream for Mixture, heat gain.

Q – 14193.85 X 3.18X (85-30)

Therefore outlet temp of stream Tin- Tout =

MCP T mixture

MCP T stream

= 105- Tout= 42.42146898

Tout – 62.6◦C,,

42
ENERGY FLOW DIAGRAM AROUND THE SYSTEM

input Output
System
14193.8kg/hr 14193.kg/hr

80◦c

30oc

Steam

Steam out

14000k/hr

14000kg/hr 105oc

Dressing Separator

Mass flow rate = 14193.85kg/hr

Heat Capacity of mixture = 3.18kj/kg kII I

Inlet temp = 80◦C

Outlet temp = 900◦C

Latent heat of stream at 105◦C = 2356 kjkII I

Latent heat of vapour at 90◦C = 2024kjkII I

Heat capacity of water = 4.18kj/kgkII I

Heat gained by mixture = MCPDT

14193.85 X 3.18 (90-80) = 451364.43kj

43
Heat to evaporate water = Q = M x LHY

= 451364.43kj

Heat to evaporate water = Q = M x LHY

-14193.85 x 2358 – 33469, 698,30kj

Total heat input

= heat gained by mixture + heat evaporated H2O

= 451364,43 +33469098.30kj

= 339020,462.73kg = 33920.46273kj

Mass flow rate of stream = heat input/LHE of stream at 90oC

= 31920,46273

2024= 16783.99937kg/hr

44
 CHAPTER FOUR

4.0 PIPING AND INSTRUMENTATION

Piping is a system of pipes (hollow, cylindrical tubes) fittings, valve used to

convey fluids (solid, liquid, gas) from one location to another. The pipe can be

made with aluminum, steel or rubber, instrumentation is an art and science of

measurement and control process variables within a production. Before the

margarine production get from one unit to another. This transportation is done in

piping system. The pipes are regularly checked for scaling condensation, leakages,

liquid hamming as well as corrosion in order to ensure free flow of the fat/oil, thus

enhancing efficiency.

4.1 GENERAL OVERVIEW

Piping and instrumentation is an arrangement that shows the interconnection of

process used in controlling the process and it plays significant role in the

maintenance and modification of that process, the diagram which is described in

details which provides basis for the development of system control schemes,

allowing for further safety and operational investigation, such as a hazard and

operability study (Hazop).

45
4.2 INSTRUMENTATION AND CONTROL OBJECTIVES

Different specified tool has been set up, in order to assist installation, long

run of plant and product specification, to achieve a rundown rate. This is

done to reduce several disturbance and influences to environment.

4.3 CONTROL SYSTEM AND SHORT DOWN SCHEMES

A control system is a device, or set of devices that managers, commands,

direct or regulates the behavior of other devices or systems in production

industry. A switch is a control system which controls the inflow and outflow of

power in the margarine Production Company.

4.4 SAFETY AND REGULATORY REQUIREMENT

It is a guide that provides an overview of a safety management.

A safety meter or boxes placed on an equipment, shows working temperature,

therefore, when an equipment in working at a particular temperature, ones the

temperature exceed there is a warning alarm.

4.5 BASIC START UP AND OPERATIONAL INFORMATION

In a plant (mixer, crystallizer, pasteurizer) there is a step by step operation on how

to control the system. There is an operational manual on how to switch on the

46
plant, and a temperature will be given so as to allow the equipment boost before

putting in your feed.

4.6 SAFETY MEASURES

This is a measure taken in order to protect people against accidents, damages or

harm, so as to enable continued contributor to the economic development.

4.7 PRODUCT SPECIFICATIONS

The plant is intended to produce 2.61 tones per hour so as to meet up with the need

of producing the units needed in a day, so that condition necessary for processing

can be kept. The margarine Production is rich in fats and minerals etc

4.8 ENVIRONMENTAL REGULATION

The conversion of raw agricultural commodities into finished food can be

determined to the environment of precautions are not taken. Food processing can

have adverse environmental effects on air and water quality as well as producing

toxic side product.

In magarine Production, the environmental problem are caused by having a lot of

water around the processing unit, which can easily enter other units in the plant and

may cause problem (i.e the final product) thereby reducing the quality and texture.

47
4.9 ECONOMIC REASONS

Operations of the plant must conform to market conditions, and effective control

system must be adopted, so as to safety the customer or consumer to avoid sub-

standard production which might lead to losses.

4.10 VALVE SELECTION

Valve is an instrument of in or out of a fluid. It controls the flow in a production.

Apart from diagram valve, an emergency valve must be installed

this enables all system to shut down during emergencies and can be used to

control the plant both automatically and manually.

Types of valve

1. Diagram valve

2. Control valve (fail safe closed)

3. Control valve (fail safe open)

4.11 ALARM AND SAFETY TRIPS

There are built alarm in the plant to warn in case of foreseen danger or hazard and

this helps prevent overall harm to the people, as well as the environment. It is

48
placed in such away that when the danger is foreseen, the alarm andsafety trips

become activated.

In a plant, the operator in the main control room should be familiar and

conversant with these alarms to enable, him handle each alarm that comes up

effectively.

4.12 MATERIAL DEVICES

Is a small device fixed into equipment controller, which includes: flow rate,

temperature etc. Electric metering device is used to measure the quantity of raw

material used in the beginning of production in order to be able to account for the

loss, and get the material balance at the end of the production process.

4.13 PUMP AND PIPE SELECTION

Pump and pipes are selected based on their power requirement in a plant.

E.g. since production frankfurter plant involves unit process/unit operation of plant

,there is a pump to transfer the materials from one form to another.

Types of pumps selected include:

1. Stainless steel pipe non corrosive

2. Aluminum pipe-non corrosive, non ferras

49
3. Metals

4. Alloy pipe

When determining pipe size (diameter) during design calculation factors are

considered and they include: initial steam pressure, flow rate, steam velocity etc

while pump cost decreases with increases with diameter.

W=g

50
 CHAPTER FIVE

5.0 EQUIPMENT DESIGN AND SPECIFICATION

There are many equipment involve in processing and production of margarine

Equipment designs and specification include the design and specification of the

physical equipment in a processing plant.

Also an estimated costing of the equipment are made for alternative design and

project evaluation.

5.1 MAJOR EQUIPMENT USE (DESIGN COSTING)

5.1.1 Mixer

Capacity of the mixer : 60kg

Type of material used: aluminum and stainless

Type of joint: bolts and nuts (easily assemble and disassemble)

Number of tray: 3 to 4

Conveyor, type

Belt size: 0.5m

51
Design temperature: 30°c

Length: 100cm

Tray dimension: 98Ommx48mm

Breath: 50mm

Ce — purchase cost: 2024

C = constant from table 6.2

S = characteristic size parameter in the units given (6.2)

n = index for the type of equipment

Cost in 2024 x cost index in 2015

Cost index in 2024

Cost for mixer = 32328.7 =N9,698,610

5.1.2 Homogenizer

Material of construction: stainless steel

Length: 40m

Model: 1320
52
Housing: 12mm

Screen area: 475 inches

Type: pulverisers

Ce = purchase cost: 2024

C- constant from table 6.2

S= characteristic size parameter in the units given (6.2)

n =index for the type of equipment

Cost in 2024 x cost index in 2016

Cost index in 2024

Cost for homogizer = £31,663.957=N9,499.18

5.1.3 Pasteurizer - cooling plant

Material of construction: aluminum and stainless steel

Volt: 250 volts

Weight diameter: 40mm

Design temperature : 50-70oc

53
Length: 160mm

Driver power: 2kw

Capacity: 7,932kg/hr

Ce=purchase cost: 2024

C = constant from table 6.2

S= characteristic size parameter in the units given (6.2)

n = index for the type of equipment

cost in 2024 x cost index in 2015

cost index in 2024

Cost for pasteurizer = £36308.68 =N10,892,604

5.1.4 Crystallizer

Material of construction: stainless steel

Model: TT-1200

Capacity: 80 to 100 Kg/Batch

Detection system: image capture (OCP)

Length: 135mm

Width: 85mm

Thickness: 0.15mm

Weight: 2-100kg

54
Type conveyor belt (0.lm wide)

Ce = purchase cost: 2024

C = constant from table 6.2

S characteristic size parameter in the units given (6. .2)

n index for the type of equipment

cost in 2024 x cost index in 2015

cost index in 2023

Cost, for crystallizer = £12630.1=N33,3789,030

5.1.5 High pressure pump

Material of construction stainless steel & aluminum

Model: BM1O

Weight: 2-5kg

Length: 369mm

Diameter: 60

Ce = purchase cost: 2024

C = constant table 6.2

S=characteristic size parameter in the units given (6.2)

n = index for the type of equipment

cost in 2024 x cost index in 2015

55
cost index in 2023

Cost for pump = £16,498.54 =N4,949,562

5.1.6 Scraped heat exchanger

Material of construction: aluminum and stainless still

Height: 220m

Length: 120m

Design temperature: 500oc

Ce= cost: 2024

C= constant from table 6.2

S= characteristic size parameter in the unit given (6.2)

n = index for the type of equipment

cost in 2024 x cost index in 2015

cost index in 2024

Cost for exchanger = £26518.88 = N7,955,66

Equipment Quantity Cost in 2024 Cost in 2024 Cost in 2024

56
 (£) ($) (₦)

Mixer 1 5000 32,328.7 9,698,610

Homogenizer 1 3750 31,663.95 9,499,185.3

Pasteurizer 1 2000 36,308.68 10,892,604

Crystallizer 1 2700 112,630.1 33,789,030

High pressure pump 1 76,500 106,500 160,100

Heat Exchanger 1 28,000 265,18.88 7,955,664

Total 6 120,500.000 4,567,768,968 8,768,970,987

CHAPTER SIX

57
6.0 ECONOMIC ANALYSIS

This company will be effective on market segmentation through the identification

of several niche markets and strategies implementation. The company intends to

advertise, implement, direct marketing merchandisers, team workers and

advertising will rotate around and to be able to penetrate the market within and

outside the production, site. Therefore, our key to a successful business will

include the following factors.

1.Marketing know-how: In an increasingly competitive market, there is need to

market out product effectively so as to be at the top of our honourable, prospective

and current clients mind continuously, even if it will warrant that the whole

workers/departments will take part in the marketing of the product or by, breaking

the bulk.

2. Dedication and loyalty: The loyalty and dedication of our employees, no matter

your rank in the company, qualification, age etc shall be necessary to the property

of the business, will recognize that corporate commitment to success should lead to

the survival and long lasting or long run of the products, and the organization as a

whole.

58
3. Excellent in fulfilling promise: We intend to produce and provide products of

uncompromised quality to our customers. In so doing we are meeting up with the

needs and standards of our honourable customers by providing them with a high

quality and nutritive margarine Production.

4. Technology assembly: We will ensure a consistent quality of our product, that

is when it is essential to make use of the latest technology

but to utilize it and know in which unit operation each particular technology in

needed and also the department that needs the latest technology is most (i.e. can

utilize them to facilitate production).

5.Effective distribution network: We intend to establish an excellent distribution

network, that is by setting up/creating roots for each

marketers, communities etc and meet their targets, this will enable us to rapidly

respond to our customers order, and be available in remote areas that our

competitors has never get exploit

6. Adherence to stringent values and principles: There is need to always

acknowledge the fact that the financial and strategic management of the business

will ultimately determine its success and prosperity. This is why we need to adhere

to stringent values and principles that will enable such to be achieved.

59
6.1 ECONOMIC EVALUATION

6.2 PREPARING A PROCESS FLOW DIAGRAM

A process flow diagram has initially been prepared on the chapter one of this

project

6.3 CALCULATION MASS ENERGY AND ENERGY FLOW

Mass flow rate and energy flow has been calculated on chapter 3 (refer back

to chapter 3 and appendix).

6.4 SIZE OF MAJOR EQUIPMENT

Equipment Size (unit) Size range Index Type

Mixer Area (M²) 2-10 0.35 Pan

Homogenizer Area (M²) 20-200 0.35 Pan

Pasteurizer Length (M) 20-40(30) 0.75 Pan

Crystallizer Length (M) 20-40(36) 0.75 Pan

Pressure pump Length (M) 3-50 0.60 steel

Heat exchanger Area (m2) 20-40(50) 0.75 pan

60
6.5 ESTIMATION OF FIXED CAPITAL COST, REF TABLE 6.1

Major equipment Total purchase cost: ₦8,768,970.

Fl - equipment erection 0.95

F2 - Piping 0.85

F3 -instrumentation 0.15 2.15

F4 -electrical 0.10

F5 -building process 0.10

F6 -utilities 0.45

F7 -storage 0.20

F8 -site development 0.07

F9 -auxiliary building 0.40

F10 -design and engineering 0.60

F11 -contractors fee (non) 0.80 0.40

F12 -contingency 0.10

6.6 WORKING CAPITAL

This is the money required to operate a plant from the period of one month to

a period of one year.

61
6.7 BREAK-EVEN POINT

The break-even point is the point at which total cost and total revenue are equal,

meaning there is no loss or gain for your small business.

To calculate the break-even point in units use the formula: Break-Even point

(units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales

dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷

Contribution Margin.

6.8 PAYBACK PERIOD

It is the time frame for a business or project to fully amortize the initial investment

fund from income generated. It is useful criterion for judging projects that have a

short life. It does not consider the performance of the business after the payback

period.

6.9 CAPITAL COST

Is a financial outlay, that is required for the physical erection of the plant is well as

erecting the plant for the period of the month, it include land cost, cost of plant

erection and working capital.

6.10 FIXED COST

This consists of two broad components namely:

Direct and indirect fixed cost

62
Direct fixed cost: Includes cost of those items that can be seen at the plant site

which include:

i. Cost of process equipment

ii. Cost of equipment installation

iii. Cost of piping

iv. Cost of foundation structure, plant building, road bridges etc

Indirect fixed cost: Include cost of engineering and design contractor over

held and contractor fee as well as. construction contingences.

6.11 PROFIT/ANNUM

It is an annual profit after various taxes are paid.

NPV = annual turnover — annual cost of production

Annual turnover = quantity of sales X selling price

6.12 RATE OF RETURN (ROR)

It is the percentage of profit after tax but before depreciation to the total

invested fund.

ROR = profit (per year) x 100

Total investment 1

63
6.13 HOW TO RAISE THE CAPITAL

In order to raise capital for the proposed project both the owners savings and

fund any reliable financial institution. Although institutions usually have

their terms and conditions that their clients have to sign before services are

rendered.

These terms and conditions include:

1. The debenture loan sough must be secured on the project fixed assets is

inadequate; collateral security may be added.

2. The institution should not provide more than 70% of the total project cost.

Therefore, the balance of 30% should come from the owners equity

shares.

According to terms and conditions, I have suggested for the proposed projects,

with the following capital structure which, I believe will be acceptable to the

financial institutions.

Equity shares 40% of TIC = N142,220,538.6

Bank overdraft 10% of TIC = 35,555,134.64

Debenture loan 50% of TIC = N177,775,673.2

64
6.14 SUMMARY OF ECONOMIC ANALYSIS

COST ESTIMATION COST (N)

Purchased equipment = 355,551,346.4

Total capital investment = 8,768,970,987

Annual raw profit =1.041,000. 833

Total production= N638, 620, 3299

Annual net profit 2.5x10’’

Break-even point(unit) 14.093,598.33

Break-even point (Naira) 7,046,799,164

Payback period 1.4(7years)

6.15 OTHER ECONOMIC BENEFITS

Apart from commercial viability reasons, this proposed project will also take care

of socio economic benefits which include: job creation, increase in

government revenue, establishment of industrial linkage, provision of socio-

amenities and diversification of the economy.

65
 CHAPTER SEVEN

7.0 PLANT LOCATION AND LAYOUT

7.1 PLANT LOCATION

The place or area the plant is situated has the profitability of the project and the

scope for future expansion. Therefore, many factors are considered when selecting

a suitable site for the margarine production plant. They include:

Availability of raw material or feedstock: The main raw material needed in

margarine production plant in large quantity in Nigeria, is in (Imo, Akwa Ibom

Ebonyi etc). The plan site should be located near where the margarine Production

plant raw material is available in order to reduce transportation cost, also the

purchase price, availability and reliability of the supply should also be put into

consideration. Hence, the proposed plant site will be at industrial clusters, in Uyo,

Akwa Ibom state, due to the nearness of margarine plant from the southern parts.

Availability of energy: The plant will run production and will require continually

with constant supply of energy, but due to the inconsistent

character of energy supply in the country, it will depend on beer energy source.

Therefore, an alternative means of energy will be provided (Generator power).

66
Transportation: The margarine Production plant will be provided with adequate

transport facilities for case in the distribution of goods at various destinations. The

transportation modes will includes trucks, buses etc. This production plant will be

located close to a good access and for easy

distribution of the finished good to the customers.

Market assessment: The marketing problem will be tackled by carrying out pre-

marketing research to find but how the consumer assessed to before producing to

large quantity.

Also, when this is known, the product will be located near a primary market

where a buyer can comfortably purchase the finished product; also cost of the

product will be relatively low.

Site characteristics: Test boring information will be made available for the entire

plant site, there will be adequate drainage system to avoid stagnant water, since

industrial cluster in Uyo is a level ground there will be no sloppy or construction

cost on the plant site.

Community factors: The development of this project will include representatives

from the community it is sited, also worked will include indigenes of the

community, so that it will stand as a job generator not only for outsiders but also

for indigenes of the community.

67
Also if the community officials and the company representative develop a method

of interacting together, it will determine the extent to which the community will

boost and support the project from hoodlums and theirs.

Labour supply: Labour needed for the construction and operation of this

margarine Production plant will include both skilled (brought from outside) and

will paid to pay scales of every individual or group of workers. Also there should

be training (workshop) to enlighten the unskilled ones.

Waste disposal: There will be proper treatment of waste in the industry by

adopting the ISO (international Standard Organization) which is set aside for

guiding the interest of the nation. In order for the company not to pollute the

environmental there will be large waste management until for treatment of waste in

the plant before disposal.

Taxation and legal restriction: The plant will run for two years as stipulated by

the legal regulation of Akwa Ibom State. This is to build a strong grand for

industrial plant which is located at Itam Industrial Layout, Uyo, Akwa Ibom State

is an area mapped out for industries.

The area is for only industry, because individual buildings are restricted from the

area, to avoid the industrial equipment causing nuisance.

68
7.2 PLANT LAYOUT

This involves where the plant will be suited, which is at Itam Industrial Layout,

Uyo, Akwa Ibom State . It also involves the space requirement, to ensure

continuous and steady movement for the production take place.

These include:

Personal, operating equipment, storage space, material shading equipment and all

other supporting devices along with the design of the best structure to

accommodate the named facilities.

7.2.1 OBJECTIVES OF PLANT LAYOUT

• Providing comport and catering to workers

• Providing good and improved working conditions

• Minimizing delays in production and making efficient use of the space that

is available

• Having a better control over the production cycle and other activities within

the plant premises.

69
7.2.3 PLANT LAYOUT

Security office
Vehicle park Weigh bridge

General Manager’s
Reception office Office

Filling Station
Loading and
Chemical Office uploading

Storage room for raw

material
Administrative block

Processing House

Finished Product
Store for Packaging

Waste treatment Utilities

plant and disposal Storage room for
office finished goods
Room for expansions
Administration building: Located far away from potential hazardous plant area,

70
• Central control room (CCR): Located adjacent to processing unit, but with

potential hazardous processes

• Field auxiliary room (FAR): Located right inside the plant area. It is a mini

control room

• Tank farm: Located close to the plant for supply of raw materials and also

close to loading and exist point for easy movement of trucks

• Maintenance workshop: Located far from the administrative officers and

close to the plant for easy maintenance and repairs of equipment. There is a

good network for easy transportation of machineries to and from the

building

• Laboratory: Located far from potential hazardous area, but not too far from

plant. It is where samples of batches are tested for standard

• Emergency block: Located close to potential hazardous area, it consists of

fire station, fire pumps. Fire pumps are situated at each of the layout in case

of emergency

• Plant area: A place where production takes place

• Car park: Located very far from plant

71
• Canteen: Located not far from administrative building, so that workers will
not spend which time going to where they can refresh thereby abiding their
work.

• Clinic: Located very close to plant, to ensure urgent attention to any injured
worker

• Residential area: Located very far from plant it is where company staffs
reside, for the safety of the workers.

• Mustard point: Located close to different structures in the industrial area,

to enhance easy convergence of staff during emergency.

7.3 ENVIRONMENTAL IMPACT ASSESSMENT

Environmental impact analysis was carried out on the early stage of this design, to

investigate the likely environmental challenge that will be posed by the proposed

plant on the environment. The environmental challenges which is likely to be

caused by waste (by products of margarine production and waste water). That is

why the waste water will be treated before disposal and by products sold to people

or company that will need them for production. All these are done to presence the

earth and protect its habitant.

72
 CHAPTER EIGHT

8.0 PLANT SAFETY AND LOSS PREVENTION

Safety is a state of being staff freedom from the occurrence or risk of injury,

danger or loss.

Therefore, for a potential organization to run safe and efficient plant

operation there should be legal and moral obligation to safe guard the welfare of

employees and public at large. In the sense that all unit operation and unit

processes should be carried out under appropriate condition. While loss prevention

is all the effective measures put in place to contain potential

financial loss posed by accidents in the overall plant preview. These losses can

lead to the shutdown of the company or plant.

8.1 PROCESS CONTROL AND HAZARD CONTROL

PROCESS CONTROL

This is a system established in the caffeinated coffee production plant which

involves the effective use of instrumentation to yield high efficiency with less

harm on the people and less hazard in the plant during operation. This system

generally

improves production and maintains the output within the desired range. The

73
processes system can be set up in a different room where every

individual equipment or connection in the factory and other section of plant is

connected to in order to rapidly put to a halt any occurring hazard.

HAZARD CONTROL

Is a system used in industry to minimize or eliminate exposure to hazards.

System used to prevent and control hazard includes engineering control, safe work

practices, and administrative controls, personnel protective equipment, systems to

track hazard correction, preventive maintenance system and

medical.

To ensure that hazard occurrences are minimized in the Malt Production industry,

regularly and thoroughly maintain equipment, ensure the hazard

correction procedure are in place, ensure that everyone know how to use and

maintain personal protective equipment (PPE), make sure that everyone

understands and follow safe work procedures and ensure that when needed there is

medical program tailed to the facility to help prevent work place hazard and

explosion.

8.2 IDENTIFICATION OF POSSIBLE HAZARDS

Hazards are unpredicted, unplanted occurrence that is harmful to personnel,

machineries and materials, and it can cause complete breakdown of a running

74
plant.

Possible hazards of Malt production plant include:

The effect of water, carbohydrate and dietary fiber on the pumps and piping

materials of construction. When water is retained in a washing tank for a long

time, it will rust, also when allow, are exposed to moisture in air it corrodes.

8.3 PREVENTION MEASURES

There should be containment during the design of equipment and piping, and water

after washing the raw production should be discarded in order to avoid rust, there

should be ventilation.

8.4 REACTIVITY: CHO reacts with oxygen in the following vedox equation.

C6H12O6+6O2------------------------6CO2+6H2O

The carbon dioxide and water is a waste product and reaction is exothermic, and

when it is not accounted for can lead to breakdown of equipment.

8.5 VENTILATION

Fans will be installed to reduce odour and lower humidity; there will be windows

and doors all around the plant area, to ensure adequate ventilation.

8.6CORROSION

Moisture enhances corrosion on material of consumption like Alloy,

75
therefore water should always be transferred to waste tanks to avoid corrosion.

8.7 OPERATION AND HUMAN ERROR

Since human errors are inevitable, impite training, education and exposure, safety

measures will be adopted in order to minimize and prevent the various human

errors.

They include:

 Adequate training of staff in safe start-up and shut down of equipment,

overall operation and maintenance.

 Adequate dressing kit for specified operation.

 Adherence of safety rules and regulations.

 Keeping away from moving parts of machines and devices while

handling properly etc.

76
 CHAPTER NINE

CONCLUSION AND RECOMMENDATION

9.1 CONCLUSION

Based on the economic analysis of this project, it can be seen that it is worth

investing on so that the implementation of what is contained in this work could be

achieved. Since the total investment is N8,768,970,987 net profit N2.5 x 1011.

This shows that the company can repay borrowed capital within a short period of

time and this profit will bring open doors to the economy of the state and Nigeria

at large.

9.2 RECOMMENDATION

Jenny margarine will employ a new and unique processing technology. This has

already made it to stand a ground of competing and heating other competitors in

the market. Since this plant is aimed at production, the product will not reluctantly

shut down; rather it has been programmed to produce in order to meet the

increasing demand of customers. Its administration will not frustrate employees

and will not let the firm down.

77
 REFERENCES

Food and agriculture: Consumer Trends and Opportunities, Fats, Oils, and Sweets,
Cooperative Extension. Service, University of Kentucky. (July 2004).
Available: www.ca.uky.edu.

Oil Crops Situation and Outlook, Economic Research Servere, USDA (Oct. 2000)
(updated 2004).

International Margarine Association of the Countries of Europe. (2001). Available:

http:www.imacl.org.

A. J. C. Andersen and P. N. Williams, Margarine, 2nd ed., Pergamon Press, New

York, 1965.

S. F. Riepma, The Story of Margarine, Public Affairs Press, Washington, D.C.,

1970.

S. C. Miksta, J. Amer. Oil Chem. Soc., 48, 169A (1971).

K. Snodgrass, Margarine as a Butter Substitute, Food Research Institute, Stanford

University, 1930.

J. M. deMan, J. E. Dobbs, and P. Sherman, in P. Sherman, ed., Food Texture and

Rheology, Academic Press, New York, 1979, p. 43.

American Oil Chemists’ Society, Official Methods and Recommended Practices,

4th ed., AOCS Press, Champaign, Illinois, Method Cc 16–60, Reapproved
1989

78
APPENDIX

Plant attachment 95% =95/100 = 0.95

Number of days to be engaged in production

= 0.95x365—346.75=347 days

34/days/year

347x24 = 8328 hours/year

Plant capacity on installation = 500,000 tones/year

1 tonne = 1000kg

500,000 tones =?

= 500,000 tones xl000kg= 500,000,000kg/year

1tonne

Mass of meat= 500,000.000

8328 =60038kg/hr

Quantity of plant in required per hour = ?

To change days to kilogram

That is 347000,000 =1000,000kg

347 24

79
= 41666.7kg/hr

ENERGY BALANCE ASSUMPTION FOR DRYER

Q=MCpΔT

fat /oil = 41666.7kg/hr

MCpT =MCp T ΔMv

41666 .7kg/hrX3.91kgX(60°-0) =28666 .7kj/kg(90°60°)+Mv

41 666.7kg/hrX3.91kj/kgx60° =28666kg3.9kj/kg(30°)+Mv

=9775007.82kg/hr = 3,362,603.91+Mv

Making Mv subject

MV = 9775,0007.82-3362,603.91

Mass vapour = 6412,40191kg/hr

COSTING OF THE EQUIPMENT

Cost for mixer

Purchase cost in 2024 = £4,000

Cost index in 1990 = 60

Cost index in 2024 = 80

From 1990 to 2024 = 3 yrs

(80-60) 20 index

80
81
3 years = 20 (from 1990—2023)

22 years ?

=20 x 22

31

= 146.6

Cost index for homogenizer in 2024

146.6+80=226.6

C = 4000

n = 0.35

S = 10m²

Ce = CXSⁿ

£4000 x 10m2(0.35)

£4000 x 10m2(0.35)

£11,413.5(2023)

Update cost

2024 x 2015

2024

11,413.5x 226.6

82
= 11,413.5 x 2.8325

= £323287

CONVERT TO NAIRA

Exchange rate = £1 = N500

Therefore £32328.7 =?

£32383 x N 500

£1

= N9,698,610

Pasteurizer

Purchase cost in 2024 = £1750

Cost index in 2016 = 60

Cost index in 2024= 3 yrs

(80-60) = 20 index

3 years = 20 (from 2016 -2024)

22years =? (from 2024 —2016)

83
= 20 x 22

3 1

= 146.6

Cost index for expresso in 2015

145.6+80=226.6

C=1750

n =200kg/h

S = 200kg/h

Ce =CXSⁿ

£1750x(200)°35

£11,178.8

Update cost

2023x 2015

2023

11,178.8 x 226.6

80

11,178.8x2.8325

=£31,663.951

84
Convert to Naira

Exchange rate = £1 = ₦500

Therefore £4000 x 10m² (£3163.951)= ?

£31663.951x=₦500

£1

=9,499.185.3

Pump

Purchase cost in 2024 = £1000

Cost index in 206= 60

Cost index in 2021 = 80

From2021 to 2024 = 3 years

(80-60) = 20 index

(If 3 years = 20 (from 2002— 2024)

22years=?

20 x 22

31

=146.6

85
=146.6

Cost index for bean cup machine in 2021

146.6+80=226.6

C=1000

n = 0.75

S 30m

Ce = CXSⁿ

£1000 x (00)°.75

£12,818.6

Update cost

2024 x 2015

2023

12818.6 x 2.8325

=£36,308.68

Convert to Naira

Exchange rate = £1 = N500

Therefore £31663.951 =?

£36,308.68 x N500

86
pump

= ₦10,892,604

Purchase cost in 2024 = £2,500

Cost index in 1990 = 60

Cost index in 2024= 80

From 2021 to 2024= 3 yrs

(80-60) = 20 index

If 3 years =20 (from 2004—2024)

22 years= ? (From 2002 - 2024)

20 x 22

3 1

= 146.6

Cost index for in 2016

146.6+80 = 226.6

C = 2500

n = 0.75

S =40M

Ce = CXSⁿ

87
£2500x(40)0.75

£39,763.5

Update Cost

2024 x 2015

2023

39,763.5 x 226.6

80

= 39.763.5z2.8325

= £112,630.1

CONVERT TO NAIRA

Exchange rate = £1 = ₦500

Therefore

£31663 951 = ?

£112,630.1X₦500

£1

=N33,789,030

crystallizer

Purchase cost in 2023 = £1,250

Cost index in 1990 = 60

Costindexin2024 =80

88
From 2021 to 2024 =3yrs

(80-60) = 20 index

If 3 years = 20 (from 2002 — 2023)

22years = ?

=20x22

3 1

= 146.6

Cost index for crystallizer

146.6+80=226.6

C = 1250

n = 0.60

S =12m

Ce= CXSⁿ

£1250x(13)0.60

£5824.73

Update Cost

2024 x 2015

2024

5824.73x226.6

80

89
= 5824.73x 2.8325

=16.498.54

Convert to Naira

Exchange rate = £1 = 500

Therefore £31663.951 =?

£16.498.54.lx₦500

£1

Heat exchanger

Purchase cost in 2024 = £2800

Cost index in 2021 = 60

Cost index in 2024 = 80

From 2021 to 2024= 3 years

(80-60) = 20 index

If 3 years =? (from 2024-2021)

=20 x 22
90
 3 1

= 146.6

Cost Index in 2021

146.6+80 = 226.6

C = 2800

n = 0.75

S = 5m

Ce = CXSⁿ

£2800 x(5)0.75

£9,362.36

Update Cost

2024 x 2015

2023

9,362.36 x 2.8325

= £26,518.88

Convert to Naira

91
Exchange rate = £1= N500

Therefore £31663.951 =?

£26,518.88₦500

£1

ECONOMIC CAPITAL

TOTAL PURCHASE COST OF MAJOR EQUIPMENT (PCE)

Mixer = N94991 85.3

Homogenizer = N969810

Pasteurizer = N10892604

High Pressure Pump = N33789030

Heat Exchanger= 795 5664

Crystallizer = N4949562

Total purchase cost of major equipment =

PCE = £255948.85 =N8, 676,784,655.3

ESTIMATION OF FIXED CAPITAL COST, REF TABLE 6.1

Total physical plant cost (PPC)

= ₦76,784655.3(i+2.15)

= ₦76,784655.3x3.1 5

= ₦241,87,664.2

92
Fixed capital = ₦24 1, 871664.2(1+0.4)

= 241 871664.2

Fixed capital 241,871664.2(1+0.4)

= N241871664.2x1 .4

WORKING CAPITAL (5% OF FIXED CAPITAL)

Allow 5% 5/100 = 0.05

= 0.05 x ₦338,620.329.9

= ₦16,931,016.49

TOTAL INVESTMENT CAPITAL (TIC)

TIC = Fixed capital + working capital

= ₦338,620,329.9 ± ₦16,931,016.49

= ₦335,551,346.4

ANNUAL OPERATING COST (REF TO TAB 6.6)

Operating time 34 days /annum

34days x 24 = 8328 hrs/year

VARIABLECOST

Electric power 700mj/d

ESTIMATED RAW MATERIAL

1. Raw meat = 500,000,000kg/yr

93
41,667kg/hr:347x24X3

1000

==₦1,041,000.833

PLANT ATTAINMENT 95%

2.Miscellaneous material (10% of working capital)

= 0.1 x ₦16,93,0l6.49

= ₦1,693,101.64

3. Utilities (Cost from table 6.5)

Power at 1 .2p/mj = 1.2 x 709 x 347

100

=2,914.8

4. Shipping and packaging = negligible

Variable cost: ₦1,041,000.833 + ₦1693101.64+ ₦2,914.8

=₦2,737,017.273

5. Maintenance (5% of fixed capital)

= 0.05 xN338,620,329.9

= ₦16,931,016.5

6. Operating cost for labour: (assumed £20,000/annum) it also allow for overheads.

94
= £20,000 = ₦6,000,000

7. Supervision: no additional supervision needed

8. Plant over heads (50% of operating labour)

= 0.50 x N6,000,000 = N3,000,000

9. Laboratory (20% of operating labour)

= 0.20 x ₦6000,000

10. Capital charges (15% of the fixed capital)

= 0.15 x ₦338,620,329.9

11. Insurance (1 % of fixed capital)

0.01 x ₦338,620,329.9

12. Local taxes (2% of fixed capital)

= 0.02 x ₦338620,329.9

= ₦6,772,406,598

13. Royalties: not applicable

Fixed cost (₦16931,016.5+ ₦6,000,000+ ₦5000,000

+ 1,200,000+50,793,094.49 + ₦3,386,299 + ₦6772,406,598)

= ₦6,853,716,867

Direct production cost

DPC = variable cost + fixed cost

= ₦2,737,017,273 = ₦6,853,7l6,867

95
= ₦6,856,453,884

14. Sales expense 10% of direct production

15. General overheads cost

16. Research and development 0.10 x ₦6,856,453,884

Annual production cost = 685,645,3 88.4

Unit production cost = Annual production cost

Annual production rate

= ₦685,645,384.4x 100

500,000,000

= ₦13.7

Selling price = ₦500

COMMERCIAL VIABILITY

This can be assessed by the relationship between the operating cost and

revenues both in absolute amount and in relative terms.

NET PROFIT/ANNUM:

It is an annual profit after various taxes are paid.

PV = Annual turnover — Annual cost of production

Annual turn-over = Quantity of sales X Selling rate

96
500,000,000x₦500

=2.5x100000000000

NPV=2.5 x 100000000000 - 685,645,3884

=2.49 x100000000000

ANNUAL COST OF PRODUCTION (NPR)

Annual profit x100

Annual sales 1

2.49 x 100

500,000,000kg/hr

= 49,800%

RATE OF RETURN (ROR)

It is the percentage of profit after tax but before depreciation to the total

invested fund.

= Profit (per year) x 100

Total investment capital 1

=2.49 x 1011 x 100

355,551,346.41

= 70,032.079% = 70%

97
BREAK-EVENPOINT IN UNITS

= Fixed cost

Contribution

Contribution= sales cost - variable cost

= ₦6,853,716,867

₦486.3

= 14,093,598.33units

BREAK-EVEN POINT IN NAIRA

= Fixed cost

1-variable

Sales cost = 6853,716,867

1-13.7

500

= 6,853,716.867

1-0.0274

6,853.716,867

0.9726

= 7,046,799,164

98
PAY-BACK PERIOD

Total investment

Return

355,551,346.4

2.5x1011

1.422205386 x 10

= 7 years

99