Cottonseed Oil Mills

SIC 2074

Industry report:

This category covers establishments primarily engaged in manufacturing cottonseed oil, cake, meal, and linters, or in processing purchased cottonseed oil into forms other than edible cooking oils. Businesses primarily involved in refining cottonseed oil into edible cooking oils are covered in SIC 2079: Shortening, Table Oils, Margarine, and Other Edible Fats and Oils, Not Elsewhere Classified.

The first successful cottonseed oil mill began production in Natchez, Mississippi, in 1833. Up to that point, cottonseed left over from planting had been regarded as waste and a health hazard. The cottonseed industry grew swiftly following the Civil War.

By 2008, U.S. cottonseed production totaled 4.3 billion million tons. Cottonseed oil prices received by U.S. farmers rose drastically in the late 2000s, from $105 per ton in 2000 and $96 per ton in 2005 to $235 per ton in 2008, according to the U.S. Department of Agriculture (USDA). Texas produced the most cottonseed in terms of value, followed by Arkansas, Georgia, California, and Missouri.

The milling of raw cottonseed yields three products: hulls, linters, and kernels. The hull is typically used as livestock feed, the linters are used for the manufacturing of various products, and the kernels are crushed for oil and meal production. Cottonseed meal typically represents 60 to 80 percent of total crushed production. Cottonseed meal is used principally as a high-protein feed supplement for cattle, swine, and poultry, and also is used as a fertilizer. Cottonseed oil is used in the production of salad dressings and margarine, as well as in the manufacture of lubricants, paint, and soap. In 2006, some 849 million pounds of cottonseed was crushed for oil and another 1.2 billion pounds was crushed for cake and meal.

Before the crushing of cottonseeds, and after longer fibers processed in the manufacture of fabrics are removed, the linters (shorter cotton fibers) are removed by a range of methods suited to their various uses. These uses include the production of sterile absorbent cotton, felt, and padding; the manufacture of paper, film, explosives, plastics, and rayon; and sources of essentially pure cellulose for the chemical industry.

Domestic demand for vegetable oil grew in the mid-2000s, and in July 2006, world demand for vegetable oils exceeded production for the first time in five years, according to an interagency commodity committee at the USDA. World vegetable oil consumption was 128.2 million metric tons in 2007, with cottonseed oil accounting for a mere 4 percent.

U.S. exports of cottonseed oil were down by nearly 50 percent in the mid-2000s, primarily because Canada, the largest export market, cut shipments almost in half. Meanwhile, exports for cottonseed cake and meal surged upward, primarily through trade with Mexico. Exports rose from 46,246 metric tons in 2002-2003 to 97,335 metric tons in 2004-2005, with exports to Mexico correspondingly rising from just over 40,000 metric tons to more than 81,000 metric tons during that same period. Mexico continued to be the largest export market for U.S. cottonseed oil products throughout the late 2000s.

Any part of cottonseed intended for consumption by humans or by nonruminant (not hooved) animals must be processed in such a way as to extract the gossypol, a pigment toxic to all nonruminants. Because this pigment is located in the tiny glands of cottonseed, the development of a glandless strain of cottonseed held potentially great promise for the future of the cottonseed industry. In the mid-1990s a new cottonseed variety with a "healthier" high-oleic acid profile was developed, which increased market share for cotton in the cooking and salad oil industries traditionally dominated by soybean oil.

Evidence of these positive effects on the industry was demonstrated when New York City officials banned the use of trans fats in restaurants in the late 2000s. Others followed suit, and food manufacturers started to use other sources of fat to make their products. Because cottonseed oil does not contain trans fat, it became a viable option for restaurants and manufacturers, as well as consumers. According to Rural Cooperatives, the most lucrative market for cottonseed processors in 2009 was cottonseed oil. Ben Morgan of the National Cottonseed Products Association said, "For the first time in more than 10 years, more cottonseed will be crushed for oil than will be fed as whole cottonseed to dairy cattle." In 2007, 573 million pounds of cottonseed oil was used for salad or cooking oils, representing a 47 percent increase since 2006. Southeast Farm Press reported in 2008 that cottonseed oil also provided cost-effective benefits in that it had an increased fry life and resulted in an extended shelf life for packaged foods such as potato chips.

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News and information about Cottonseed Oil Mills

New Machine to Boost Cottonseed Oil Production: A More Efficient Oil Expeller, Developed by ATIRA, Will Increase Cottonseed Oil Production by 18%once the Knowhow Is Transferred to the Industry, Close to 400 Cottonseed Oil Mills across the State Can Avail the Benefit
DNA : Daily News & Analysis; June 18, 2015; 554 words
"Ahmedabad: Cottonseed oil producers will now be able to fetch 18-20% more oil as Ahmedabad Textile Industry Research Association (ATIRA) has developed a more efficient oil expeller. The prototype is ready and will be available to the industry soon, say ATIRA officials.With the existing technology,
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...Scotland.Authorities said another two SLPs based in Edinburgh had taken important equity stakes in a series of cottonseed oil mills.The SLPs were Ternesy Development and Newgen Trade, both registered at maildrops in the capital. Their ownership...
Who Are the Secret 'Scottish Investors' in Tyrannical Uzbekistan?
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...stock exchange bulletins, said two businesses based in Edinburgh had taken important equity stakes in a series of cottonseed oil mills.This, from our perspective, does not sound like big news. But it should be.Uzbekistan's cotton industry...
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Delta Farm Press (Online Exclusive); January 13, 2016; 700+ words
...cotton surplus. The impact of prices below 60 cents a pound is being felt throughout the Cotton Belt. "We have cottonseed oil mills closing, cotton gins closing, and I can speak from experience that they have some value when they're operating...
Cotton Industry Looking for Help to Avoid Economic Disaster
Southwest Farm Press (Online Exclusive); January 14, 2016; 700+ words
...cotton surplus. The impact of prices below 60 cents a pound is being felt throughout the Cotton Belt. "We have cottonseed oil mills closing, cotton gins closing, and I can speak from experience that they have some value when they're operating...
A History of Kershaw County, South Carolina
The Journal of Southern History; August 1, 2012; 700+ words
...three great railroads, the Southern, the Atlantic Coast Line, and the Seaboard Line. Camden had cotton and cottonseed oil mills, the hallmarks of the New South. Simultaneously, Camden established itself as a winter resort for northern visitors...
Research and Markets Adds Report: Other Oilseed Processing Industry in the U.S. and its International Trade - Q3 2010 Edition.
Entertainment Close-up; September 30, 2010; 700+ words
...Manufacturing Subsector (311), and the Manufacturing Sector (31-33). Its SIC equivalent codes are: 2074 - Cottonseed Oil Mills (cottonseed processing); 2076 - Vegetable Oil Mills, Except Corn, Cottonseed, and Soybean (oilseed processing...
King Cotton Still Part of Southeast's Fabric
EconSouth; September 22, 2010; 700+ words
...creates jobs and revenues in the Southeast through other parts of the production chain that include the gins, cottonseed oil mills, textile mills, warehouses, and merchants. According to the National Cotton Council and based on U.S. Department...

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