Vegetable Oils' Use Keeps Growing

2
Bcsîc producers of Chîoromethanes, BHC (14 end 3ό gomma). Chlorine, Caustic Soda, Muriatic Acid, Fine Grain Salt A DIVISION OF UNION CHEMICAL & MATERIALS CORP. This man is Booking into your future How does it look? Rosy? Free of cancer? You hope! But hoping isn't enough. Of every 6 Americans who get cancer this year, 3 will die because science still has no cure for them. It will take research . . . lots of research ... to find that cure. And research, let's face it, takes money. Pitch in and help. Send a generous check . . . right now . . . to "Cancer" in care of your local Post Office. American Cancer Society MARKETS other idea too: upgrading cresylics via derivatives such as alkyl-substituted cresols. Such materials could com- mand a higher market price and com- pete 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. Cotton- seed, although higher, remains compet- itive with soybean oil (Table II). As the price spread between the two nar- rows, 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 prob- ably because of improved soybean oil quality. • Shortening. Soybean and cotton- seed 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 shorten- ings. 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 shorten- ing from 10% to over 31% during this period. Lard and tallow were able to capi- talize 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 dis- place soybean oil, even at a 1-cent-a- pound price advantage. Cottonseed oil has been the big loser in the shortening market. Quality im- provements in soybean oil reduced cottonseed's quality advantage to the point that price in many cases deter- mines 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 soy- bean 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 im- provements, and competitive prices, and particularly on adequate promo- tion of margarine, says Smith. Cottonseed and soybean oils com- prise 99% of total vegetable oils con- sumed 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 marga- rine production plants are being located in soybean growing centers which also tend to be closer to centers of popula- tion. Greater freight savings result. • Other Uses. Cottonseed oil's ma- jor increase in consumption came in winterized oils. These go into salad oils, cooking oils, and similar prod- ucts where a lack of cloudiness is an Vegetable Oils' Use Keeps Growing Soybean oil paces growth of vegetable oils use — in some years offsets declines in other oils 92 C&EN JUNE 10, 1957 CHLOROMETHANES

Transcript of Vegetable Oils' Use Keeps Growing

Page 1: Vegetable Oils' Use Keeps Growing

Bcsîc producers of Chîoromethanes, BHC (14 end 3ό gomma). Chlorine, Caustic Soda, Muriatic Acid,

Fine Grain Salt

A DIVISION OF UNION CHEMICAL & MATERIALS CORP.

This man is Booking into

your future How does it look? Rosy? Free of

cancer? You hope! But hoping isn't enough. Of every 6 Americans who get cancer this year, 3 will die because science still has no cure for them. It will take research . . . lots of research . . . to find that cure. And research, let's face it, takes money. Pitch in and help. Send a generous check . . . right now . . . to "Cancer" in care of your local Post Office. American Cancer Society

MARKETS

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

9 2 C & E N J U N E 10, 1 9 5 7

CHLOROMETHANES

Page 2: Vegetable Oils' Use Keeps Growing

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

MARKETS

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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J U N E 10, 1957 C & E N 9 3