Edible Oils Manufacturing Industry Overview

Excerpt from Edible Oils Manufacturing Report

The US edible oils manufacturing industry includes about 200 companies with combined annual revenue of about $55 billion. Major companies include Archer Daniels Midland, Bunge, Cargill Foods, and CHS. The industry is highly concentrated: the eight largest companies account for about 80 percent of industry revenue.

Competitive Landscape

Demand is driven by consumer trends in consuming sweeteners, fats, and food oils, and in eating meat, since soybean meal is used primarily 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 industry is capital-intensive: average annual revenue per employee is about $2 million.

Products, Operations & Technology

Major products include soybean cake and meal; shortening and cooking oils; and corn sweeteners. Other products include margarine, butter blends, butter substitutes, and soybean oil.