Vegetable Oils' Use Keeps Growing
Transcript of Vegetable Oils' Use Keeps Growing
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other idea too: upgrading cresylics via derivatives such as alkyl-substituted cresols. Such materials could command a higher market price and compete with some already established markets such as antioxidants, lube oil additives, detergent intermediates, and plasticizers.
OOYBEAN OIL CONSUMPTION doubled in 1956 to some 3 billion pounds from 1947-5l ' s average of 1.5 billion pounds annually. And the rise in soybean oil consumption accounted for most of the upward trend in total vegetable oil use in the past 10 years, says Leonard Smith of the National Cotton Council.
Factory consumption of all vegetable oils reached a record level in 1956 of more than 6.25 bilhon pounds, up 5% over 1955, and up more than one third over the 1947-51 average (Table I ) . Approximately 7 5 % of all vegetable oils go into edible products. Because soybean oil and cottonseed oil compete in price, quality, and availability, and have lower prices than most other oils, they account for most changes in the consumption pattern.
Price is the big factor in consumption of soybean and cottonseed oils. Cottonseed, although higher, remains competitive with soybean oil (Table I I ) . As the price spread between the two narrows, cottonseed oil consumption gains at soybean oil's expense. Since 1954, the price differential has narrowed, says Smith, but cottonseed oil use has not gained as rapidly as expected probably because of improved soybean oil quality.
• Shortening. Soybean and cottonseed oils account for almost 9 3 % of vegetable oils going into shortenings. Vegetable oils in shortening reached an all-time high in 1954 of 1.6 bilhon pounds. But by 1956, consumption had declined to less than 1.2 billion pounds because of a rapid increase in the use of lard and tallow in shortenings. Relatively large price declines for lard—from 1954's 16 cents per pound to 1956's 11.1 cents—caused lard and tallow to increase their share of total fats and oils consumed in shortening from 10% to over 3 1 % during this period.
Lard and tallow were able to capitalize on their favorable price situation because of important quality improve-
Across the board, all cresylics are headed for new horizons based on two factors: purity and availability. The latter has caused some to worry over an over-supply. Pitt-Consol, however, is confident that future markets will work out and over-supply will not be a problem.
ments, says Smith. In 1952, lard quality was not high enough to displace soybean oil, even at a 1-cent-a-pound price advantage.
Cottonseed oil has been the big loser in the shortening market. Quality improvements in soybean oil reduced cottonseed's quality advantage to the point that price in many cases determines any choice between the two. In 1956 lard used in shortening moved close to half a bilhon pounds, exceeding cottonseed oil by some 146 million pounds. And tallow usage reached a new high of 125 million pounds. Lard and tallow combined equaled three-fourths of the 775-million-pound soybean oil consumption in shortenings.
• Margarine. The second largest outlet for vegetable oils, margarine made spectacular gains during the 1947-52 period. Consumption leveled off at about a billion pounds per year with further increases dependent on population increases, future quality improvements, and competitive prices, and particularly on adequate promotion of margarine, says Smith.
Cottonseed and soybean oils comprise 99% of total vegetable oils consumed in margarine each year. Again cottonseed oil use declined in favor of soybean oil from 1952 to 1956. In 1956, soybean oil, with 751 million pounds going to margarine, equaled 72% of the total, up from 64% in 1952. The only interruption in the trend was in 1954 when the price differential dropped to just 0.3 cents per pound in favor of soybean oil, Smith points out.
Besides price advantage and quality improvements, another factor helped soybean oil consumption. More margarine production plants are being located in soybean growing centers which also tend to be closer to centers of population. Greater freight savings result.
• Other Uses. Cottonseed oil's major increase in consumption came in winterized oils. These go into salad oils, cooking oils, and similar products where a lack of cloudiness is an
Vegetable Oils' Use Keeps Growing Soybean o i l paces g rowth of vegetab le oils use — in some years offsets decl ines in other oils
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essential quality. All vegetable oils winterized for use in 1956 totaled 880 million pounds. Of this amount, cottonseed comprised 732 million pounds or 83%?. Cottonseed gained substantially from 1952 when it totaled 72% of winterized oils or 492 million pounds. This is one use where quality advantages justify cottonseed oil's higher price, says Smith.
.Allied with winterized oils, large amounts of vegetable oils go into salad dressings, mayonnaise, and sandwich spreads without being winterized. This semisolid product group used about 43S million pounds in 1955—latest figures available. In making these products, use of many flavorings and blending tends to mask quality differences so lower cost soybean oil finds more use.
Inedible products account for about
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one fourth of vegetable oil consumption. Linseed oil is the principal oil in the nonfood field going into paints and varnishes, linoleum, and oil cloth. As paint formulas change to include more alkyd resins which adapt semidry-ing oils to drying oil uses, a shift from linseed to soybean oil davelops.
Over-all production of vegetable oils has increased steadily since 1951, Smith told the 48th meeting of the American Oil Chemists' Society. But domestic use, while increasing, has not kept pace with increased production. Government export programs have been responsible for averting a large increase in stocks. Exports of cottonseed and soybean oil together tripled in the 1951-55 period. Export outlook for these oils will be at about the same level as last year, 2 billion pounds. •
Table I. Soybean Oil Paces Vegetable Oil Growth 0
(Millions of pounds)
Cottonseed Soybean Peanut Coxn Linseed Vegetable oil stearin Otiier, domestic and foreign
Total
Average 947-1961
1282 1516
91 148 515
95 891
1962 1279 2147
58 201 556 104 727
1963 1204 2316
35 232 529 111 727
1964 1794 2263
39 225 493 146 769
1966 1491 2593
37 242 538 152 870
1966h
1429 2906
45 359 508 148 864
4538 5072c 5154c 5729c 5922c 6260 c
œ Consumption estimates include only consumption in factories and do not represent total consumpt ion in all instances, according to the Industry Division, Bureau of the Census, Washington, D. C.
t> Preliminary. c Does not include all other hydrogenated vegetable oils reported separately since 1952. Source: "Animal and Vegetable Fats and Oils," 1947-1955; M17-1, U. S. Department of Commerce,
Bux-eau of the Census, "Fats and Oils," January-December, 1956; "Facts for Industry," Series M17-2, U. S. Department of Commerce, Bureau of the Census, Washington, D. C
Table II. Cottonseed Oil and Soybean Oil Remain Competitive (Cents per pound)
1962 1968 1964 1966 Cottonseed oil (crude, tank cars, f.o.b.,
S.E, Mills) 12.8 14.1 13.6 12.7 Soybean oil (crude, tank cars, f.o.b., mid-
-western mills) 11.0 12.4 13.3 11.6 Cornoil 13.3 14.2 14.0 13.0 Peanut oil 17.0 21.1 18.2 17.6 Tallow (edible, loose, Chicago) 7 .3 7 .6 10.7 9 .0 Laxd (loose tank cars, Chicago) 9 .9 11.9 15.7 11.5 Linseed oil (raw, tank cars, Minneapolis) 15.9 15.0 14.6 12.9
1966
13.7
13.2 14.1 15.9 10.3 11.1 14.1
Source: "Fats and Oil Situation," U. S. Department of Agriculture, Washington, D, C , 1952-1956.
Table III. Distribution of Cottonseed Oil, 1947-50 (Approx.) (Per cent consumed by end uses)
Average 1947-1951 1952 1953 1954 1955
Margarine 30 .8 28 .1 23.2 22 .3 18.4 Shortening 32 .4 30 .5 31 .4 35 .6 28.5 Winterizing 35 .0 39 .3 41 .5 3 7 . 9 47 .4 M; «ellorine — .2 .4 .3 .4 Other edible and inedible 1.8 1.9 e 3 . 5 e 3 . 9 e 5 . 3 e
Total 100.0 100.0 100.0 100.0 100.0
195(5° 19.9 22 .0 51 .9
.5 5 .7 e
100.0 a Preliminary. *> 1949—1956 estimates for margarine and shortening include hydrogenated oil. Soap is included in "other
edible and inedible." c Includes oils used in deodorizing, eulfonation, pressing, all other processes.
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