A processing method to convert oily sticky food byproducts into non-oily and non-sticky dry products by using liquid animal blood is provided. Moisture in the food byproducts is reduced for reducing drying cost and pH is adjusted to 4-10 with preferred range at 6-8, then liquid animal blood is mixed, heated to above 65° C. for coagulation to form non-oily and non-sticky wet products after removing free water. Then related drying equipment is used to produce the non-oily and non-sticky dry products. The non-oily and non-sticky dry products are in particle or fine form with good flowability. The dry products are easy to be stored, transported and applied, which are used in food and feed industries. Besides general feed applications, the non-oily and non-sticky dry products have bypass function for ruminants.