Edible Oils Manufacturing
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 Archer Daniels Midland, Bunge, Cargill, CHS, and Ingredion, all based in the US; as well as Associated British Foods (UK), COFCO (China), GrainCorp (Australia), Nisshin Oillio (Japan), and Adani Wilmar (India).
Soybean production is concentrated in the Americas. China, which recently surpassed India as the world's largest importer of processed soybean oil, is rapidly building oilseed processing plants. Canada accounts for more than half of world trade in canola seed, meal, and oil. Population increases and rising demand for animal protein in developing nations have driven growth in the market for livestock feed, which is highly dependent upon global corn and soybean production. China, India, Brazil, and the US are the largest livestock producers.
The US edible oils manufacturing industry includes about 350 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $62 billion. The edible oils manufacturing industry doesn't include companies that render or refine animal fats, wet-mill corn into ethyl alcohol, or mill-dry corn for flour.
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 eight largest companies account for about 75% of industry revenue.
Exports, mainly to Mexico, Canada, and the Philippines, represent about 15% of US production. Imports account for about 15% of the US market. Edible oil imports come mainly from Canada, Indonesia, Spain, and Italy.
Products, Operations & Technology
Major products include soybean cake and meal; shortening and cooking oils; and corn sweeteners. Other products include margarine, butter blends, butter
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Finance & Regulation
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Regional & International Issues
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Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Industry Forecast
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Industry Websites
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Glossary of Acronyms