Trends in industrial markets for fats and oils and derivatives

During the past decade, research by industry and government has developed numerous new chemical markets for fats and oils derivatives. Lower prices for competitive raw materials have forced some of these new products into specialty markets. Economic factors, such as the continual growth of the chemical industry, population increases, and high consumer demand, have allowed for steady growth in the fat-derivative market. New fat-type plasticizers are currently consuming about 60 million pounds of fats annually. Synthetic lubricants will probably be consuming 20 million pounds of fatty diesters annually by 1965. Animal feeds consume approximately 600 million pounds of fats and fat derivatives annually and may eventually become the leading domestic nonfood market for fats. The protective coating market as an outlet for fats continues to decline, and the continuing shift to nonfat materials and changes in pain formulas indicate that, while the demand for protective coatings may increase, the use of fats in their manufacture may not share in the increase. Nonfat chemical raw materials provide intense price competition for fatty raw materials. Fat prices are influenced by the demand for use in food, soap, paints, and possibly animal feeds rather than by the demand for use as chemical raw materials. Presented before the American Oil Chemists' Society, New York, October, 17, 1960.     

Vegetable oil raw materials

Vegetable oils that are important to the chemical industry include both edible and industrial oils, which contribute 24% and 13.5%, respectively, compared to 55% for tallow, to the preparation of surfactants, coatings, plasticizers, and other products based on fats and oils. Not only the oils themselves but also the fatty acids recovered from soapstock represent a several billion pound resource. Coconut oil is imported to the extent of 700-1,000 million pounds per year. Its uses are divided about equally between edible and industrial applications. Safflower oil has a relatively small production, but 15–25% of the oil goes into industrial products. Soybean oil, the major edible oil of the world, is produced in the United States at the rate of 11,000 million pounds per year with more than 500 million pounds going into industrial uses, representing 5% of the total production. Castor oil is imported to the extent of about 100 million pounds per year. Linseed oil production has declined drastically over the last 25 years but still amounts to about 100 million pounds per year. Oiticica and tung oils are imported in lesser amounts than castor and linseed oils. New crops that have industrial potential, as well as the traditional vegetable oil crops, include seed oils from crambe,Limnanthes, Lesquerella, Dimorphotheca, Vernonia, andCuphea plants. Crambe oil contains up to 65% erucic acid. Oil fromLimnanthes contains more than 95% of fatty acids above C₁₈.Lesquerella oil contains hydroxy unsaturated acids resembling ricinoleic acid from castor oil.Dimorphotheca oil contains a conjugated dienol system.Vernonia oils contain as much as 80% epoxy acids. TheCuphea oils contain a number of short chain fatty acids. Of these, crambe,Limnanthes, andVernonia are probably the most developed agronomically. Competition between vegetable oils and petrochemicals for the traditional fats and oil markets has been marked over the past 25 years, but prices for petrochemicals have accelerated at a greater rate than those for vegetable oils; and, it is now appropriate to reexamine the old as well as the new markets for fatty acids.     

1978 world fats and oils situation

As expected, world oil and meal production and demand this year have been above trend, but the U.S. share of world markets has been greater than projected because of smaller than anticipated oilseed crops in Brazil, the Soviet Union, India, and Senegal. World 1978 fats and oils supplies should be around 53 million metric tons with export markets absorbing about 17 million metric tons. The U.S. 1978 soybean crop may equal or excel the 1977 crop; Canada’s oilseed crops are expected to be up, and Brazil’s 1979 soybean crop is expected to rebound from the 1978 level.     

Methyl esters directly from acidulated cottonseed soapstock. Preliminary cost study

A product containing from 80 to 95% of the methyl esters of cottonseed, soybean, and corn oil is produced commercially in the United States directly from the respective acidulated soapstocks of these oils, using a process developed at the Southern Utilization Research and Development Division. The product is marketed as a high-energy additive for poultry and livestock feed, and its ready acceptance indicates that it has nutritional and handling advantages over other by-product fats for this purpose, which, in 1958, represented a ready and expanding market for almost 600 million pounds of animal and vegetable fats and oils. A flow sheet for the process is given, and hypothetical plants with capacities of 15,000 and 60,000 lbs. of acidulated foots per 24 hrs. are described for the continuous production of up to 21 million pounds of methylated foots product annually. The lowest manufacturing costs are realized for each plant when operating 24 hrs. a day, 250 days annually, averaging five days per week. For these optimum operations the estimated capital investment for the small plant is $223,000, and for the large plant $410,000. Manufacturing costs range from a high of 11.2￠ per pound of product at an annual production of 11/4 million pounds to 6.5￠ at an annual production of 15.3 million pounds. The cost of the raw materials, although only 3.4￠ per pound of product and chiefly the cost of foots, is the largest single item of unit cost in producing methyl esters; and, for the higher productions covered by this study, raw material costs account for more than one-half of total unit manufacturing cost. Surplus cottonseed foots can be economically converted into a low-cost feed additive with improved nutritional and handling properties. The process is already a commercial success. Presented at the 51st Annual Meeting of the American Oil Chemists' Society, Dallas, Tex., April 4–6, 1960. Development Division, Agricultural Research Service, U. S. Department of Agriculture.     

Substitutability of fractionated beef tallow for other fats and oils in the food and confectionery industries: An economic evaluation

The United States is the most important beef tallow producer in the world, supplying ca. 5.5 billion pounds annually. Approximately half of this beef tallow is exported at relatively low prices when compared to other fats and oils. Only ca. 10% of the total is used in domestic edible products. On the other hand, cocoa butter, coconut oil, palm oil, and palmkernel oil are imported oils whose demand for use in food and confectionery products has been increasing over the past few years. The first of these is the most expensive fat in the world. Beef tallow contains specific triglycerides which are also contained in these imported fats and oils. Through modern technology, beef tallow has been fractionated into products which are compatible with or superior to the imported fats and oils. It is visualized that products from fractionated beef tallow can be used as substitutes and extenders to cocoa butter, palm oil, and other fats and oils in the food and confectionery industries. The economic evaluation in this paper, analyzed through time series data and multiple regression techniques, established the past relationships between per capita consumption of confectionery food fat, beef tallow, cocoa butter, adjusted per capita disposable income, and adjusted costs of confectionery, beef tallow, and cocoa butter from 1956 to 1973. The substitutability of fats and oils was evaluated and the potential uses of fractionated beef tallow investigated. Presented in part at the AOCS meeting in Cincinnati, September 1975.     

New markets for tallow through research

It is postulated that expanded markets and a more stable price structure for rendered animal fats can be attained through research to develop new products and new uses for these commodities. An industry-supported research program to accomplish this must be designed to develop high volume, low cost products with a reasonable chance to fulfill a market need. Thus the technical research must be accompanied by, and integrated with, market research and careful estimates of production costs. The Fats and Proteins Research Foundation has used these guidelines in the research that it has supported for the past eight years. The following new uses and new products from inedible animal fats have been developed: (1) an air-entraining agent for concrete; (2) a water repellent coating for concrete; (3) a fat-containing admixture for concrete; and (4) a fat-coated urea for ruminant feeds. The estimated market potential for tallow and other animal fats for these new products is 200–400 million pounds annually in the United States by 1980.     

Cottonseed oil and meal utilization

For five consecutive years world-wide production of cottonseed has set new highs, and cottonseed is more valuable as a source of food, feed, and fiber than ever before. However this paper is primarily concerned with the utilization of cottonseed oil and meal in the United States. During the three-year period, 1963–65, U.S. farmers received about $300 million annually for 6.18 million tons of cottonseed. Annual U.S. crushings were 5.79 million tons, having produced 1.94 billion pounds of crude oil valued at $222 million, 2.72 million tons of meal valued at $174 million, and 1,609,700 running bales of linters valued at $41.2 million. Retail value of cottonseed products is estimated to have been $1.1 billion annually. Changes in the U.S. cottonseed industry include shifts westward, to fewer and larger extraction plants and to the use of new and improved extraction techniques which involve solvents and high-speed expellers. The cottonseed extraction industry has a payroll of $38.2 million and consists of 188 oil mills in about 14 states, employing 8,400 people. Cottonseed oil accounted for 11.5% of total 1965 U.S. factory consumption of 12.7 billion pounds of fats and oils. Some 62% was used in salad or cooking oil, 27% in baking or frying fats, and 8% in margarine. During the 1960–65 period, usage increased in salad or cooking oils, in baking or frying fats, and in inedible products but decreased in margarine, mellorine, and other edible products. Increases exceeded decreases, and total consumption of cottonseed oil in edible and inedible products increased from 1.28 billion lb. to 1.47 billion lb. Practically all of the 2.76 million tons of cottonseed meal produced in the three-year period beginning October 1963 was used for feed. Relatively insignificant amounts were used as fertilizer on farms of cotton growers. Cattle, sheep, horse, and mule rations consumed 1.88 million tons, poultry rations 440 thousand tons, and swine rations 350 thousand tons. Cottonseed meal in cattle rations has had a downward trend since the early 1950’s although usage in poultry and swine rations has increased. It is estimated that 1.52 million tons were used by feed manufacturers in the preparation of mixed feeds during the 1964–65 season, representing a steady increase over the past two decades and a 54% increase over 1962–63. Domestic use of cottonseed flour has not changed appreciably during the past few years.     

Place of rapeseed in the edible oil market

The potential for rapeseed oil in the world edible oil market is evident in the statistics of net exports of the principal vegetable oilseeds from primary producing countries. The last complete year for which figures are available is 1970, and in that year soybeans accounted for some 52% and rapeseed only 7.5% in oil equivalent. Since soybeans have only ca. 50% of the oil content of rapeseed, they are bought mainly for their yield of high protein meal. Conversely, rapeseed is bought for its oil content and produces a meal that is not only lower in protein but up to this time has been less acceptable as an ingredient in animal feed formulations. Fortunately for rapeseed, these problems are being tackled diligently and should be overcome in the near future. When this point has been reached, rapeseed will be a much stronger competitor in world markets for protein meal. The trend in the use of rapeseed oil in the Canadian domestic market is an indicator of the potential in world markets. It is displacing other edible oils that have dominated the Canadian market in the past. In the 1971 calendar year, 35.6% or 160.5 million pounds, i.e., 73,000 metric tons, of vegetable oil used in the manufacture of margarine, shortening and salad oils was rapeseed oil. Rapeseed oil is competing keenly with soybean oil in the Canadian market and in the future should be able to greatly enlarge its share of world trade. One of six papers presented in the symposium “Rapeseed Marketing and Breeding,” AOCS Meeting, Ottawa, September 1972.     

Meat fat formulation

Edible usage of meat fats has somewhat declined over the past years. This can be attributed to several factors. First, the advancement of hydrogenation technology has led to the development of highly functional vegetable oil products. Second, there has been an increased emphasis on Kosher products. Third, various questions relating cholesterol to risks of heart disease have generated some marketing concerns over meat fat usage. Meat fats are still a factor in the edible oils market. U.S. consumption of meat fats in 1976 was 4.1 billion pounds, approximately one billion pounds for edible usage. Because of their trigly ceride profiles, they are excellent sources of highly functional products for bakery applications. They have tended to be the “Cadillac” around which hydrogenated vegetable oil products have been developed. In addition, the economics of these products have generated significant savings for end users. Flavor attributes of meat fats have, in other cases, been the reason for their sole usage in certain specific products. In shortening formulation, meat fats are merely one of many triglyceride sources. They can be blended with any vegetable oil source. They can be subjected to the same processing as other oils in order to modify physical chemical properties such as SFI, melting point, consistency and oxidative stability. This paper will discuss specific applications where lard and tallow contribute unique functionality. It will then discuss various modifications which can be employed to insure more consistent performance or to customize products to specific applications.     

World Oils and Fats Production from 1960 to 1990 Rapid Changes in its Composition and Global Distribution

After increases of 10.4 mill.T in the sixties, 18.4 mill.T in the seventies and an estimated 21.2 mill.T during this decade, world production of the 17 major oils and fats is likely to reach 79 mill.T in 1990. The increase by 172% over the three decades has been driven by population growth and generally rising per caput requirements. During the past two decades most of the increase was in soybean oil. Helped by sharply growing meal demand, it was able to double its share of the total to 23% in 1980. The only other oils able to increase their shares to any noteworthy extent were sunflower oil in the seventies (to 9%) as well as palm oil and rapeseed oil in the eighties (to 8 and 6%, respectively). The biggest losers during the past two decades in terms of market shares were animal fats, olive oil, groundnut oil, coconut oil and the drying oils. In the current decade the increase in the market shares of palm oil and rapeseed oil is accelerating (to 14 and 9%) and that of sunflower oil is resumed (to 10%). This plus the slowing growth of meal demand is likely to make soybean oil one of the biggest losers, its share probably dropping below 20% by 1990. The biggest losses, however, are expected for animal fats. The global distribution of production, too, has been shifting rapidly – especially since 1980. The direction of the shift is mainly from Europe and North America to Asia. By 1990 the combined share of Malaysia and Indonesia is expected to rise to 14% (from 7.4% in 1980), of China to 10 (7)% and of India to 6.4 (53)%. As against this, the combined share of the US and Canada is likely to fall to 16.8 (from 21.4)%, of West Europe to 15.9(18.7)% and of the UdSSR to 7 (8.2)%.     

Challenges to a mature industry: Marketing and economics of oleochemicals in the United States

Fatty acids, accounting for more than half of oleochemicals discussed, grew at an annual rate of ca. 3% during the 1970s, with no growth since 1979. As competition intensified, the number of companies in the industry declined or owenrship changed. Challenges are covered under five major headings—markets, raw materials, competition, research and profitability. Oleochemical markets are extremely diverse but usually involve surface modification. Fatty acid disposition and real consumer personal income correlate closely. Growth of consumer income in the 1980s will be the most important factor in determining growth of fatty chemicals. Fatty chemicals compete with petroleum-derived products; and, therefore, price relationship of natural fats versus petroleum will affect market share. Tallow and other natural fats and oils are approximately the same price as 15 years ago, whereas ethylene has about doubled. Interchangeability of natural fats tends to moderate price fluctuations. Competition remains intense with market shares divided among many companies. Neither imports nor exports have played a significant role in the US fatty chemical industry. There are large exports of fatty acid derivatives, particularly to South America. Research will concentrate on energy reduction as oleochemical production is highly energy-intensive. Enzymatic splitting is a potential commercial process for this purpose. Improved hydrogenation catalysts and development of new specialty oilseeds are additional research objectives. Success of researchers will probably play the biggest role of all in future marketing and economics of fatty chemical companies. The belief is that the fatty chemical industry has had difficulty in consistently maintaining acceptable levels of profitability. To avoid extinction and achieve reasonable rates of return, business strategies must (a) identify, create and exploit growth segments; (b) emphasize product quality and innovative product improvement; and (c) systematically improve production and distribution efficiencies.     

Fats and oils as feedstocks for oleochemicals

The approximate quantity of 3 million tons estimated to be required at present for the production of oleochemicals is to be covered from a total production of more than 60 million tons of vegetable and animal fats. While the quantity of eleochemicals produced has nearly doubled in recent years, vegetable oil production alone has increased from 25 to 40 million tons in the same period. More than half the feedstocks required for oleochemicals are acid oils and other fats and oils which are unsuitable for human food. The demand for fats and oils for oleochemicals will certainly grow for price and technological reasons, but only the use of large quantities of oils and fats for diesel engines could shift this balance drastically and endanger the world supply of edible fats. A bottleneck may arise in the supply of fatty acids of medium chain length, although the use of coconut and palm kernel oil by the food industry in the highly developed countries has been on the decline. The green revolution goes on and the fat supply grows faster than the population. In addition, new approaches to plant breeding and agriculture, and biochemical processes as well, might help circumvent any conceivable shortage in the supply of oils and fats in general, and in the supply of special fatty acids in particular.     

Economics of sunflower oil production and use in the United States

U.S. consumption of fats and oils over the past decade increased at an annual rate of 2.8% and in 1970 reached an all-time high of 18 billion pounds. About two thirds of U.S. consumption is in food products. Salad and cooking oils, shortening, and margarine account for the major share of food oil use. Sunflower oil is well suited for these uses especially for salad and cooking oils, and margarine, owing to its stable qualities and high ratio of polyunsaturated fatty acids to saturated fatty acids. With yields averaging around 1250 lb./acre and prices at 3–4 cents/lb., sunflowers have not been competitive with established crops in the southern states during the past few years. Returns from sun-flowers in the Red River Valley, where yields have averaged around 1000 lb, appear to be more competitive with established crops than in the southern states. Some farmers in the South have achieved yields of 2000 lb. or more per acre and this seems to indicate that yields could be improved with better management. This analysis indicates that yields of 1600–2000 lb./acre, at a price of 4 cents/lb. for the seed, should permit sunflowers to compete with corn, soybeans, wheat and sorghum in a number of farming areas. As experience is gained in growing the crop and higher yielding hybrid seed is better adapted to the available region, sunflowers should become a more significant factor in the U.S. farm economy.     

Synthetic fatty acids

Manufacture of fatty acids from petroleum and natural gas is a large industry worldwide and has important implications in the U.S. Eastern Europe produces an estimated 1.2 billion pounds by air oxidation of hydrocarbons compared to an estimated 956 million pounds of natural fatty acids from the U.S., in 1978 (exclusive of tall oil fatty acids). The enormous production of SFA’s in Eastern European countries and in Russia is done by continuous air oxidation of fresh and recycled mixed aliphatic hydrocarbons. Since the products contain proportions of odd-numbered straight chain acids, they have not been used edibly, but have been applied to the manufacture of industrial products such as soap, lubricants, plasticizers and the like. Another European approach (Liquichimica, Italy) for SFA is the caustic fusion (and oxidation) of branched chain alcohols produced by carbonylation and reduction of olefins. American potential technology is diversified but has not yet been translated to production scale, presumably because of the plentiful supply of natural fats and oils that is available.     

Manufacture of fatty alcohols based on natural fats and oils

The present worldwide capacity of fatty alcohols is ca. 1.0 million metric tons per year. About 60% of this capacity is based on petrochemical feedstocks, 40% on natural fats and oils. Three basic dominating commercial-scale processes are used to manufacture fatty alcohols: the Ziegler process and the Oxo synthesis starting from petrochemical feedstocks, and the high-pressure hydrogenation of natural fatty acids and esters. Basically, the high-pressure hydrogenation can be used with triglycerides, fatty acids or fatty acid esters as feedstock. The direct hydrogenation of fats and oils has not been developed to a commercial-scale process, mainly because it was not possible to prevent decomposition of the valuable byproduct glycerol. Conversion of fatty acids into fatty alcohols by catalytic hydrogenation without preesterification requires corrosion-resistant materials of construction and acid-resistant catalysts. Required reaction temperatures are higher, resulting in a higher hydrocarbon content. The majority of fatty alcohol plants based on natural fats and oils use methyl esters as feedstock. These can be made either by esterification of fatty acids or by-transesterification of triglycerides. For catalytic high-pressure hydrogenation of methyl esters to fatty alcohols, several process options have been developed. The bawic distinguishing feature is the catalyst application either in a fixed bed arrangement or suspended in the methyl ester feed.     

Effects of level and type of dietary fat on incidence of mammary tumors induced in female sprague-dawley rats by 7,12-dimethylbenz(α) anthracene

Female Sprague-Dawley rats on semisynthetic diets containing 10% and 20% by weight of corn oil developed more mammary adenocarcinomas after treatment with a single oral dose of 7,12-dimethylbenz(α)anthracene than similar rats on diets containing only 0.5% or 5% corn oil. Experiments with 10 different fats and oils fed at the 20% level indicated that unsaturated fats enhance the yield of adenocarcinomas more than saturated fats. Fibroadenomas and adenomas were also found in small numbers in all dietary groups but the yield did not seem to be influenced by level or type of dietary fat. The possible relevance of these findings to the incidence of breast cancer in humans is discussed. Presented at the ISF-AOCS World Congress, Chicago, September 1970.     

Thermochemical applications for fats and oils

Fats and oils are well established in food, surfactant and coatings applications. Historically, fats and oils were employed to provide lighting and warmth. Increasing production of fats and oils and increasing uncertainties regarding the reliability of petroleum resources make it desirable to reconsider thermochemical applications of fats and oils. Difficulties associated with the use of fats and oils for vehicular applications are discussed, and use in stationary diesel engines is suggested. Conventional kerosene space heaters are designed to make use of the vaporization behavior of this fuel. Changes in heater design are required to take into account the pyrolytic degradation of the fuel when fats and oils are used, and a traveling grate burner was designed for this purpose. Pyrolysis of fatty acids at temperatures exceeding 500 C yields a mixture of gaseous and liquid products. The gaseous products include ethylene, but little propylene. The liquid product is primarily a mixture of substituted styrenes. Further development is needed for these thermochemical applications of fats and oils. Fuel and olefin markets present valuable cushions to keep the price of fats and oils from fluctuating as during the early 1980’s, when soybean oil has varied from $0.15 per pound to $0.40 per pound. The triglycerides can provide a future source of feedstocks for petrochemicals, if petroleum prices and availabilities change dramatically. Most of the development work needed consists of down-to-earth large-scale experiments in semi-commercial or commercial equipment to determine the best methods of fuel storage, feeding and conditions for combustion and steam cracking.     

Application of the line-width method to the spectrochemical analysis of oils,fats, and related substances

Summary The application of the line-width method to the spectrochemical analysis of oils and fats in conjunction with the use of an improved ashing technique has been shown to permit the quantitative determination of copper, iron, manganese, nickel, and tin in quantities as low as 1 part in 10 million. The procedure has been critically examined by precision tests on commercial and experimental samples, by accuracy tests on synthetic samples, and by recovery tests. Results of actual analysis of 30 vegetable oils and fats indicate the use of the procedure as a research tool. The procedure may be used for the trace element analysis of organic material low in ash content. One of the laboratories of the Bureau of Agricultural and Industrial Chemistry, Agricultural Research Administration, U. S. Department of Agriculture.     

Acetin fats. I. Products made from mixed acetin fats

Summary The most striking effect of the introduction of the acetyl group into the glyceride molecule is the reduction in melting point. This effect permits the preparation of low melting fats and oils, or acetin fats, of a high degree of saturation and of a significantly increased oxidative keeping quality. Mixed acetin fats containing monoacetyl (monoacetins), diacetyl (diacetins), and normal triglycerides were made by random interesterification of normal fats or oils with triacetin, followed by removal of the residual triacetin. In general, mixed acetin fats may replace normal triglycerides in any edible fat use. Edible fat products including shortenings, margarines, or spreads, salad oils, and frying oils were made from acetin fats and oils. Suggested inedible use applications of the acetin fats and oils include plasticizers, tinning oils, and hydraulic oils.     

Hydrogenated cottonseed oil as a substitute for palm oil in the production of tin plate and cold reduced sheet steel

Summary Work has been reported on the development of a substitute for palm oil, which is used to the extent of about 40 million pounds annually in the production of tin and terne plate, and in the cold reduction process for the manufacture of strip steel. This investigation included an examination of the chemical and physical properties of virgin and spent palm oils, especially with respect to the effect of these properties on the action of these oils in the tin bath. Based on the results of this investigation, and on information and cooperation of various producers and consumers of tin plate, efforts were made to produce from cottonseed oil a product which would be equal to or superior to palm oil with respect to its performance in the tin bath. It was found that, of the various types of selectivity hydrogenated cottonseed oils which were investigated, one having an iodine number of approximately 50 was best adopted as a palm oil substitute for use in the tin bath. The effect of heating hydrogenated cottonseed oils on the viscosity, rates of free fatty acid formation, rate of volatilization, effect of flux, and other factors were determined. Based on these results and further evaluation of the hydrogenated cottonseed oils by various producers of tin plate, specifications were formulated covering a product which it is believed will provide optimum performance and maximum life in the tin bath. Presented before American Oil Chemists’ Society, Chicago, Illinois, October 8–9, 1942.