Industry Data

Our Company
History

Market and Industry

  • Cooking oil is the second highest food cost item purchased in a typical restaurant or foodservice establishment.
  • On average, foodservice establishments purchase over 20,000 pounds of cooking oil each year.
  • Currently, the standard distribution of cooking oil is provided through 35 pound or 50 pound plastic and cardboard cases.
  • Packaging, disposal and recycling costs can exceed multiple thousands of dollars per year.
  • Two primary applications of vegetable oils are within the food industry and industrial uses (e.g. pharmaceuticals, biofuels, etc.)
  • Over 80% of market demand is provided by the food industry.
  • Beginning in 2005, many large US cities enacted legislation to ban trans fats from edible food products.
  • In 2013, the FDA made a preliminary determination that trans fats and partially hydrogenated oils (PHO's) are not "generally recognized as safe (GRAS)".
  • Fluctuating Price Factors

  • Increasing crude oil prices.
  • Valuation of the US Dollar.
  • Tariffs and subsidies.
  • Growing global economies.
  • Lower or higher crop yields due to global weather patterns.
  • Growing demand for biofuels.
  • Growth, Harvest, Extraction and Refinement

  • Global oilseed production expected to expand by 23% by 2020.
  • Global vegetable oil production expected to increase by over 30% by 2020.
  • Major U.S. oilseed crops are: soybeans (approx. 90% of total), cottonseed, sunflower seed, canola/rapeseed and peanuts.
  • Soybeans are the second most planted field crop in the U.S. after corn, with 76.5 million acres planted in 2013.
  • Most soybeans are planted May/June and harvested in September/October.
  • Three primary methods of extraction of oil from raw materials: chemical solvent (primarily hexane extraction), expeller and/or cold pressed and decanter centrifuge.
  • Multiple techniques used for post extraction refinement include: filtering, distilling, degumming, neutralizing, bleaching, dewaxing, deodorizing and addition of preservatives.
  • *Certain information on this page has been provided by the FDA, USDA, OECD and FAO