Edible Oils Manufacturing

Edible Oils Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture oils through wet-milling corn (separating corn into its basic components); processing soybeans, tree nuts, and vegetables into oil; refining vegetable fats; and blending vegetable fats with purchased animal fats. Major companies include ADM, Bunge, Cargill, CHS, and Ingredion, all based in the US; as well as Adani Wilmar and Ruchi Soya (both from India), Associated British Foods (UK), Avril Group (France), COFCO (China), GrainCorp (Australia), and Nisshin Oillio (Japan).

COMPETITIVE LANDSCAPE

Demand is driven by shifting consumer attitudes toward different types of sweeteners, fats, and food oils; as well as livestock production trends, as soybean meal is used to feed poultry, swine, and cattle. The profitability of individual companies depends on managing raw material costs, leveraging federal farm subsidies, and operating efficiently. Large companies have advantages in purchasing, distribution, and marketing. Small operations can compete effectively by serving a local market or offering specialized products. The US industry is highly concentrated: the 20 largest companies account for about 90% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products of fully refined fats and oils, accounting for about 10% of the industry revenue, followed by soybean oil (nearly 10%), corn sweeteners (nearly 10%), and vegetable oils (about 15%). Other products include margarine, butter blends, and butter substitutes, as well as fuel ethanol.