Edible Oils Manufacturing

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.