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JUNE -AUGUST 1954 



MARKETING 
ACTIVITIES 




U. S. DEPARTMENT OF AGRICULTURE 
AGRICULTURAL MARKETING SERVICE 



Washington 25, D.C 



IN THIS ISSUE 



PRE- PREPACKAGING PEARS AND APPLES 

By Fisk Gerhardt Page 3 

Pears and apples in boxes lined with sealed plastic films retain 
quality longer during and after cold storage. The author is with the 
Biological Sciences Branchy AMS, at the Wenatchee, Wash. , USDA laboratory. 

EGG MARKETING MARGINS 

By Robert Conlogue Page 6 

Mr. Conlogue , with the Marketing Organization and Costs Branchy AMS, 
reports on a continuing study of marketing charges on eggs coming into 
the Washington, D. C. market from nearby and midwestern production areas. 



WINDOWS ARE IMPORTANT 

By L. B. Darrah and K. S. Carpenter Page 9 

Letting consumers see the carton's contents sells more eggs at re- 
tail. Dr. Darrah is Professor of Marketing at Cornell University and Mr. 
Carpenter is a cooperative employee with Cornell and AMS. 

GRAPE STORAGE LOSSES CUT Page 12 

OILSEED PROCESSING TRENDS 

By George Kromer . Page 13 



Changes in the major oilseed processing industries during the 1952-53 
period are analyzed by Mr. Kromer, who is with the Special Crops Section, 
AMS. 

(This issue of MARKETING ACTIVITIES covers the period June-August ±95h so 
as to make possible the issuance of the publication on the first day of 
succeeding months. The September 195U issue will be published September 
1, and subsequent issues on the first day of each month.) 



Vol. 17 



No. 5 



Address all inquiries 
to : 

J. Grant Lyons, Editor, 
MARKETING ACTIVITIES, 
U. S. Department of 
Agriculture, 
Washington 25, D. C. 



Material in this publica- 
tion may be reprinted with- 
out special permission. 



A monthly publication of the United 
States Department of Agriculture, Wash- 
ington, D. C. The printing of this 
publication has been approved by the 
Director of the Bureau of the budget 
(March 2U, 1953). Copies may be ob- 
tained from the Superintendent of Doc- 
uments, Government Printing Office, 
Washington 25, D. C, at a subscrip- 
tion price of |l.75 a year (domestic), 
$2.25 a year (foreign), payable by 
check or money order. Single copies 
are 15 cents each. 



Pre-prepackaging 
Pears And Apples 

By FIsk Gerhardt 

Transparent plastic films such as Pliofilm, polyethylene , and cello- 
phane have demonstrated their value in the prepackaging of fresh fruits 
and vegetables. In fact, in many instances, these materials have made 
the prepackaging of certain products possible. Now, some of these same 
transparent films have proved their worth in what might be described as 
the "ore-prepackaging" of certain fruits. 

Studies made by the U. S. Department of Agriculture over the past 
several years have demonstrated that certain sealed film box liners for 
fall and winter pears and Golden Delicious apples not only substantially 
lengthen the cold-storage life and maintain the quality of these fruits, 
but also extend their "shelf-life" after removal from refrigerated storage. 

Use of transparent film for packaging boxes of pears and apples des- 
tined for prolonged cold storage is not as simple as the prepackaging of 
fruits and vegetables for retail sale, however. Only a few of the various 
types of Pliofilm, polyethene, and cellophane are suitable. When these 
are used as sealed box liners, the work has to be done carefully. Some 
types of film have to be perforated as soon as the boxed fruit is removed 
from cold storage and all of them should be opened before the fruit is 
shipped for retail sale. In addition, only sound fruit, treated with fungi- 
cide, and handled with care, should be stored in sealed film box liners. 

Background 

All commercial varieties of fall and winter pears produced in the 
Pacific Northwest - Bartlett, Cornice, Anjou, and Bosc - lose their capa- 
city to ripen normally after rather definite periods of storage at 31 de- 
grees Fahrenheit. During extended storage they also lose moisture and at 
relative humidities under 90 percent they eventually shrivel and lose 
their fresh appearance. Methods of packaging the fruit to extend its stor- 
age life and preserve its appearance and dessert quality were needed to 
successfully market the increasing tonnange of the fruit which was being 
produced in the Pacific Northwest Area. 

For the past five years, research personnel of what is now the Bio- 
logical Sciences Branch of the Agricultural Marketing Service have been 
developing information on the packaging of pears and apples in various 
kinds of sealed plastic films before placing them in storage. Special * 
attention was given to the influence of the films on storage condition, 
ripening capacity, dessert quality, and the physiology of the stored fruits. 



June-August 



3 





The studies developed evidence 
demonstrating that the appearance, 
storage life and dessert quality of 
fall and ■winter pears and Golden De- 
licious apples can be improved by 
packing the fruit in certain kinds 
of sealed film box liners. 

The types of films which may be 
safely used as sealed liners during 
storage at 31 degrees F. are: Plio- 
films 75 FF, 80 and 100 Ml, 80 and 
100 HP; cellophane 300 LSATj and 
polyethylene 100 and 150. To avoid 
injury to the fruit when such filmfe" 
as Pliofilm 75 FF, 80 and 100 HP and 
cellophane 300 LSAT are used, the 
film liners should be perforated im- 
mediately upon removal of the boxed 
fruit from cold storage. 

Commercial pear pack in film liner showing 
method of closure by twist seal. 

The other Pliofilms and polyeth- 
ylene films cited possess sufficient 
permeability to respiratory gasses 
to permit safe handling of the fruit 
at room temperature for at least h 
days after removal from cold storage 
without perforating the sealed liner. 
All sealed film box liners for pack- 
aged pears and apples should be per- 
forated at shipping point before en- 
tering into unsupervised handling at 
retail. 

Certain types of transparent 

Fold-over of plastic film liner in commercial films - those with limited rates of 
^ck of Golden Delicious apples in cell-type gaseOUS diffusion - Can Cause Severe 
carton prior to sealing. Colored foil wraps injury or "off" flavor to packaged 
are used to decorate top layer of fruit. fruit when Used as Sealed film box 

liners, even at 31 degrees F. storage. The damage is done by the accum- 
ulation of carbon dioxide being held within the liner and the failure of 
the film to admit sufficient oxygen to support normal respiration of the 
fruit. For this reason, films such as cellophane 300 and hS MSAT, and 
Pliofilms 120 ?k and 120 P6 should not be used as sealed box liners with- 
out suitable perforations. 

During the research gas concentrations of 1 to 5 percent carbon di- 
oxide and 10 to 18 percent oxygen were found in boxes of pears and apples 
at 31 degrees F. storage when the various kinds of the recommended sealed 
film box liners were used. 



h 



Marketing Activities 



Physiological changes in pears, generally associated with progressive 
ripening of the fruit in cold storage, were definitely retarded by the 
use of sealed film liners. The "shelf-life" of the fruit when ripened 
was generally increased several days by use of this packing procedure. 
Pears in these sealed films possessed a fresher appearance, a greater free- 
dom from shrivel, and cold storage life (with normal ripening capacity) 
of 6 to 8 weeks longer than comparable fruit packed without protection of 
the sealed film. 

Apple Shriveling Reduced 

While biochemical tests did not always reflect the benefit of sealed 
film box liners for Golden Delicious apples, visual and taste examinations 
and a check on weight loss of the fruit during storage did show the value 
of this method of packing. Visible shriveling of these apples occurs when 
they lose approximately 3 to 5 percent of their original weight during 
storage. Without the protection of sealed film box liners such a con- 
dition existed in all Golden Delicious apples, both in cartons and wooden 
boxes when stored for extended periods - past January of each marketing 
year. The greatest protection against shrivel in stored apples was pro- 
vided by polyethylene film. 

When polyethylene 1$0 and Pliofilms 80 EMI and 80 HP were used for 
sealed box liners for apples, the fruit, even after prolonged storage, had 
a fresh look, a firm feel to hand pressure, and a delicate aromatic flavor 
characteristic of the variety when sampled early in its storage life. 

Liners Must Be Used Carefully 

Certain precautions must be taken when pears and apples are packed 
in sealed film liners. Every effort should be made to use fruit free from 
surface abrasions and potential fungi infection^ it should be washed with 
an effective fungicide and handled carefully to minimize bruising, as 
moisture conditions within the sealed package are conducive to the develop- 
ment of decay. Care should be excercised in handling and in closing the 
film box liner to assure a perfect seal. Even a small tear will prevent 
the accumulation of a necessary amount of carbon dioxide in the package. 

Trade Acceptance Excellent 

Commercial use of sealed film box liners for storage packing pears 
and Golden Delicious Apples has increased considerably, and trade accept- 
ance of fruit packed in this manner has been excellent. Terminal market 
handlers have been particularly impressed with the fresh appearance and 
uniformity of excellent color development of such fruit when it has rip- 
ened. As one of them said: 

"It would be wonderful if all winter pears were packed this way 
throughout the season. These look as if they were picked only yesterday." 

The work on sealed film box liners reported in this article was done 
at the research laboratory of the U.S. Department of Agriculture at Wen- 
atchee, Washington. 



June -August 19 5U 



Egg Marketing Margins 



By Robert M. Conlogue 

What are the costs of marketing eggs? Who receives the difference 
oetween what producers are paid for their eggs and what city consumers 
pay for" them. 

These and other questions are being answered for at least one large 
city market — Washington, D. C. — in a study now under way in the Agricul- 
tural Marketing Service, U. S. Department of Agriculture. The study covers 
the total spread between prices paid to producers and prices paid by con- 
sumers for eggs entering the Washington, D. C, market. The marketing 
margins are those received by country egg assemblers (including transpor- 
tation costs), margins received by primary receivers (wholesalers in the 
District of Columbia market), and retailers' "mark-ups." 

In November 1953, the total marketing margin on eggs from the time 
they left the farm until they were sold to consumers in Washin 0 ton, D. C., 
ranged from 27^ cents to 3&g cents a dozen. Of this total, country as- 
semblers typically received about 7 cents a dozen; primary receivers 
(wholesalers) got 10 cents; and large retailers, 10f cents. Small re- 
tailers took 13-g- cents a dozen for their services. 

Eggs coming into the Nation's Capital were lar 0 ely from flocks in 
concentrated producing areas in Pennsylvania, New Jersey, Maryland, and 
Virginia, and in Minnesota and Iowa. Total costs of marketing eggs varied 
considerably, depending upon distance of production area from the market, 
handling techniques, the weather, quality losses, and other factors. A 
breakdown of these costs follows: 

Country Assemblers' Margins 

For eggs marketed in Washington which came from nearby States, coun- 
try assemblers received a gross margin of about 7 cents a dozen. This 7 
cents included about 1 cent per dozen for pickup at farms; cases, flats, 
and fillers, about 1-3/U cents; transportation, 1-^ cents; plant labor, 
other operating expenses, and profit, about 3 cents. 

Prices paid midwestern producers for eggs shipped to the Washington 
market in November 1953 were $\ cents lower than prices paid to producers 
in nearby States. Most of this difference can be accounted for by trans- 
portation costs, which amount to 3 to 3\ cents per dozen from the Midwest, 
and by the loss in grade caused mainly by the long haul and additional 
time it takes to move eggs from midwestern producers to eastern consumers. 
The eggs are candled and generally D raded after reaching eastern markets. 
The loss in grade is estimated equivalent to about 2 cents per dozen on 



6 



Marketing Activities 



the average. Other direct costs to midwestern country assemblers, on the 
basis of preliminary findings, were similar to those encountered by east- 
ern assemblers. These were: Pickup at farms, 1 to 1^ cents a dozen; 
cases, flats and fillers, 2 cents; plant labor, 1-2/10 to 1-8/10 cents a 
dozen; and other operating costs, \ to l]=r cents. 

City Wholesalers' Margins 

Primary receivers (wholesale handlers) in Washington, D. C, got a 
gross margin of 10 cents per dozen for eggs during the November 195>3 peri- 
od. The operating costs of these handlers were the same whether the eggs 
came from nearby States or the Midwest. Typical costs for this group of 
handlers are approximately 1^- to 3 cents a dozen for labor and candling; 
3 cents for cartons; 2 cents for breakage, spoilage, and grade loss; and 
about 1 to l|- cents for plant overhead and other expenses. 

Retailers' Margins 

Large retailers purchasing eggs from Washington, D. C. wholesalers 
received a gross margin of 10^- cents per dozen, and small retailers pur- 
chasing from wholesalers and others (principally hucksters) had a gross 
margin of 13^ cents per dozen. Information on the costs of handling eggs 
at the retail level were not obtained since many of the services provided 
by retailers are common to all commodities in the store. Gross percentage 
margins on eggs, however, approximate average margins on all products com- 
bined sold by retail food stores in the Washington, D. C, area. 

Seasonal Change in Margin 

Preliminary data for February l°5Uj when compared with the November 
1953 study, show a narrowing of the total spread between producers and 
consumers of about 3^ cents per dozen. This can be partly accounted for 
by heavier egg production, which resulted in a greater volume marketed 
with a consequent reduction of costs. In general, eggs coming to the 
Washington market in February are of somewhat better average quality than 
eggs coming to market in November, depending upon the weather and other 
factors. This makes it possible for distributors to lower their margins 
somewhat in February since overall costs of handling are less when a small- 
er percentage of undergrade eggs are being received. 

Handling Metnods Improve Quality 

The study revealed that eggs marketed in Washington usually were 
purchased by country assemblers, both in nearby States and the Midwest, 
on the basis of size and expected "grade-out." In many instances the pro- 
ducer's name or a code was attached to the case in which nearby eggs were 
shipped to Wasnington. When the eggs were candled by the wholesaler, a 
record was kept of the grade-out — the number of grade "A" large, grade 
"A" medium, grade "A" small, "B's," "C's," "checks," and "leakers." If 
the record on a particular case snowed th t the "undergrades" it contain- 
ed were more than would normally be expected, a report of this was for- 
warded to the country assembler. The assembler then contacted the pro- 
ducsr and informed him that his eggs were under the expected grade and 



June-August 1951; 



7 



advised hijri to correct the situation on his next shipment. This type of 
check, or a variation of it has been successful in encouraging producers 
to follow production practices which provide country assemblers a high 
proportion of top-quality eggs. 

Where such a practice was not followed, eggs often were purchased 
by country assemblers, small stores, and others as current receipts. Bay- 
ers purchasing eggs this way with no later followup on production practices 
affecting quality, have experienced poor yields and therefore tended to 
pay producers less for their eggs. 

It was quite noticeable duringthe preliminary study that top-quality 
eggs which had been purchased on a "producer-check" basis graded out much 
better and yielded producers a greater return than eggs coming into the 
Washington market from areas where there was no check on the producer. 

Selling "On Grade" Pays 

Producers who sold eggs on a graded basis to dealers supplying the 
Washington market received prices which were above average for sales in 
regular wholesale channels. It was evident that they had followed pro- 
duction practices which are conducive to the maintenance of quality, since 
other producers in the same production areas who failed to maintain quali- 
ty were forced to sell on a current receipts basis. 

As handlers pointed out, it costs as much to pick up "undergrade" 
eggs at farms and transport them to consuming areas as it does to pick up 
and transport grade "A" eggs. In addition, replacement costs for the 
"undergrades" increase in proportion to the number of them that come into 
consuming areas. "Undergrades" must be sold for a relatively low price 
compared with the price paid for them. 

Results of the study so far clearly indicate that it is profitable 
for producer to follow production methods which result in shipment of 
top quality eggs and to choose outlets which will pay according to the 
quality of eggs delivered. When a greater proportion ' of quality eggs 
are sent to market, producers receive better returns, handlers may re- 
duce their costs because of the lower number of undergrade handled, and 
consumers benefit by a lower price. 



FARM TO LIVE. ..LIVE TO FARM 

President Eisenhower has proclaimed the week beginning July 25, 195U, 
as National Farm Safety Week. The National Safety Council and USDA are 
again sponsoring National Farm Safety Week in cooperation with State and 
local groups, farm organizations, farm press and radio, trade and other 
associations and many others interested in agriculture. The concerted 
action of all of these groups during the past 11 years has done much to 
affect a substantial reduction in farm injuries. 



3 



Marketing Activities 



Windows Are Important 



By L. B. Darrah and K. S, Carpenter 

Housewives are interested in what 1 s inside an egg carton before they 
purchase it. Quite a few of them handle the closed type of cartons now 
in use - turning them on end or prying open the cover to inspect their 
contents - before they make a selection in retail food stores. 

This trait - probably more a good buying habit than just feminine 
curiosity - considered in connection with advances in use of transparent 
containers for other food products indicated that egg cartons with windows 
in the top might be practical and probably would increase egg sales. 

Research personnel of Cornell University and the Agricultural Market- 
ing Service, USDA, designed window type egg cartons, providing more open 
space in the cover than cartons currently in use, and tested them for 
effect on sales in supermarkets in New York State. 

Preliminary results indicated that the window type cartons have a fa- 
vorable effect on egg sales and those with the largest window space in the 
top of the carton gave the greatest increase in egg sales. 

Egg Cartons Do Many Things 

Egg cartons are used for several reasons: They protect eggs in the 
marketing process; make it easy for the customer to purchase and handle 
eggs since picking up a carton of eggs from a display is a simple matter, 
and little attention has to be given to handling methods between the dis- 
play and the home. Another use for cartons is to separate the eggs into 
desirable units of sale. 

Egg cartons also can aid in establishing a brand name. Although few 
retailers seem to realize it, the eggs they handle can have a distinctive 
brand name and become a specialty item for the retailer. 

Perhaps one of the most important reasons for using an egg carton is 
to improve the appearance of and stimulate interest in the product. Many 
people marketing eggs have attempted to do this through a carton design 
embodying a glorified selection of colors, figures, and printing — but 
still the housewife has to turn the typical egg carton on its end or pry 
open the cover to inspect the eggs. 

Evidence that the customer is interested in the contents of a carton 
of eggs was obtained during three egg merchandising studies in Central New 
York State. In all three studies over 50 percent of the customers who 
were purchasing eggs hesitated before selecting the package they were go- 



June-August 19$h 



9 



j_ug to Duy. Nearly one-l'ifth of the customers, 10 percent , nanu_Lt;u. uiic 
cartons — comparing weights, feeling the tops, viewing the eggs through 
the end of the cartons or opening the cartons in making their choice. 

These observations, coupled with the trend in recent years towards 
the use of transparent containers and packages for many other products, 
indicated that egg sales might be increased if customers were able to 
view the contents of an egg carton. 

To determine if this might be true, three types of cartons with rela- 
tively large windows were designed for experimental testing in retail 
stores. One type of carton had six small windows which accounted for 
about 25 percent of the top cover area (table 1). The second had three 
medium-size windows occupying nearly U0 per cent of the carton cover, while 
in a third type approximately one-half of the top cover was used for two 
large windows. 

The average of four types of windowed cartons currently in use shows 
that about 11 percent of the top cover area is devoted to windows. Thus, 
the experimental cartons developed for the study had considerably more 
window space than any cartons in current usage. 



Table 1. PROPORTION OF TOP COVER USED FOR 

WINDOWS IN VARIOUS TYPES OF CARTONS 



Type of 


Proportion of cover 


carton 


used for windows 




Per cent 


Average of k types of windowed cartons 




currently in use 


11 


Cartons Used in the Study: 




(l) Six small windows 


25 


(2) Three medium-sized windows 


UO 


(3) Two large windows 


50 



The three types of windowed cartons and the regular non-windowed 
cartons used in the study are shown in the chart on page 11. Before offer- 
ing eggs for sale in these cartons, each carton was inscribed with the 
same brand name, color of egg, size, and grade markings. For better egg 
protection and to improve the attractiveness of the package, the windows 
in the experimental cartons were covered with cellophane. 

The experimental cartons were tested for consumer acceptance in a 
supermarket in each of four Central New York cities during February 195U. 
This study, known as a "latin square test" permitted the four types of 
cartons to be offered for sale in the four different markets during four 
separate time periods. This type of test was selected because it mini- 
mized the effects on egg sales of variables other than the type of carton. 
In the study, each week was divided into two time periods, Monday through 
Thursday being used as one time period and Friday and Saturday serving 
as the other. With this design, it was possible to complete the test in 
two weeks and the experiment, with one replication, in. a month. 



10 



Marketing Activities 



The results of the experiment are* shown in Table 2. The regular non- 
windowed cartons were used as a base with sales per 100 customers of 5.3 
dozens. With the three -windowed carton, sales averaged 6.1 dozen or 15 
percent more than for the regular non-windowed carton. With the six-win- 
dowed carton, sales averaged 6.3 dozen or 19 percent above the regular 
carton. Highest sales were obtained with the two-windowed carton (where 
half of the cover was devoted to windows ) — 6.7 dozen, or 26 percent above 
the standard carton used. 



Table 2. EFFECT OF WINDOWED CARTONS ON EGG SALES 

k Central New lork Supermarkets, February 195U 



Type of 
carton 


Egg sales 
per store 
per week 


Egg sales per 
Dozen 


100 customers 

Per cent of 
standard-x- 




Dozen 






Regular (no windows) 


161 


5.3 


100 


Three windows 


178 


6.1 


115 


Six windows 


191 


6.3 


119 


Two windows 


189 


6.7 


1?6 



-X- Sales of eggs in regular type carton used as Standard. 



EFFECT OF VISUAL-TYPE CARTONS ON EGG SALES 

4 CENTRAL NEW YORK SUPERMARKETS, FEB. - MARCH, 1954 

EGG SALES 



TYPE OF PER 100 CUSTOMERS % OF STANDARD 

CART0N DOZENS PERCENT 

5.3 100 

HR 1 6.7 126 

^px^^r 63 119 

Tl 6.1 115 

Kate: The egg cartons shown in this chart are the cctual types used in the experiment described in the 
article. Only the labeling has been removed. 

June-August 195h U 



These data, while based on one experiment, need further testing be- 
fore conclusive statements can be made concerning the relative value of 
different-sized windows in cartons. Nevertheless, the evidence strongly 
suggests that the window-type cartons do favorably affect egg sales with 
greatest sales per 100 customers occurring with cartons having the great- 
est space devoted to windows. 

Grape Storage Losses Cut 

Substantial savings from the reduction of storage losses in Cali- 
fornia table grapes are indicated by results of two separate, but relat- 
ed, research projects conducted by the Biological Sciences Branch, Agri- 
cultural Marketing Service, USDA. One is a finding that the major source 
of decay in stored grapes can be reduced by field applications of fungi- 
cides, used as an adjunct to usual fumigation of the grapes in storage. 
The other is a method of forecasting the amount of decay that will develop 
in grapes during storage. 

California table grapes usually are harvested in October and Novem- 
ber. Most of the crop - $ to 6 million lugs of 28 pounds each, in recent 
years - goes into cold storage and is marketed during the winter and spring 
months. Grapes going into storage are fumigated with sulfur dioxide im- 
mediately after packing and at intervals during cold storage. While this 
fumigation will kill fungus spores on the surface of grapes and will in- 
hibit the spread of decay through contact during storage, it does not kill 
fungus mycelium which already has invaded the tissue of the grapes. Much 
decay which occurs in storage is due largely to incipient field infections 
not detectable at harvest, but which can be prevented by applying an ap- 
propriate fungicide in the field. 

Tests over the past three years, have shown that use of certain fungi- 
cides on growing grapes as an adjunct to post-harvest fumigation signifi- 
cantly reduced decay in stored Emperor grapes. These chemicals are Captan 
(N-trichloromethylinercapto-U-cyclohexene-l, 2-dicarboximide), B-622 (2,U- 
dichloro-6-(0-chloroanilino)-S-triazine) and Crag $\\Q0 (Alpha, alpha-tri- 
thiobis-(N-dimethyl thiof ormamide) . 

Decay in experimental lots of stored grapes has been successfully 
forecast in studies over the past two years by measuring the incipient in- 
fections in grapes at time of harvest. Representative samples of each lot 
of grapes were collected immediately before storage, fumigated with sulfur 
dioxide to destroy surface infection and incubated under aseptic, moist 
conditions at room temperatures for 10 days. The amount of decay which 
developed under these conditions indicates the amount that will develop 
in several months at lower sturage temperatures. 

Such a forecast should be of great economic value since knowledge of 
the potential decay makes it possible to market poor-keeping grapes before 
serious losses occur and hold for longer storage those grapes with better 
keeping qualities. 



12 



Marketing Activities 



Oilseed Processing Trends 



By George Kroner 

Within each of the major oilseed processing industries two shifts in 
structure and operation have been significant and continual since World 
War II. One has been a decrease in number of mills, with an accompanying 
increase in average mill size. The other has been an increase in oil 
yield, resulting from the building of new mills of more efficient types- 
screw press and chemical solvent extraction - and a large number of mills 
converted to these processes. At the request of USDA, the Bureau of the 
Census has made periodical surveys since 19U5 of soybean, cottonseed and 
flaxseed processing plants for quantities of seed processed and oil pro- 
duced, by method of extraction. 

Changes that the surveys have disclosed are of such importance in 
planning new mills and mill locations, remodeling mills, operating and 
merchandising methods and practices, farm and commercial storage, trans- 
portation, and Government programs, that requests for the information far 
precede the summarization and publication of the information collected. 

The purpose of this report is to present the findings of the 1952-53 
survey, showing the problems of the oilseed industries ana their efforts 
to adjust to shifting crop areas, improved processing techniques, and the 
resultant over-capacity and close competition. 

The industry expanded facilities rapidly after World War II in re- 
sponse to expanded acreages and oilseed supplies and to relatively high 
prices for fats and oils and oilseed meals. In the more recent years fats- 
and-oils prices have been far below their post-war highs, and processors' 
margins have narrowed. Nevertheless, the processor has had to compete 
strongly for sufficient seed to utilize his full capacity for operating 
efficiently and lower unit cost. 

Soybeans 

The domestic soybean processing industry has continued to shift to 
the more efficient solvent extraction method. While inl9U5-l|.6 this meth- 
od represented only 28 percent of all soybeans processed, it accounted 
for 86 percent in 1952-53. Conversely a decrease in the quantity process- 
ed by the screw press during this period has resulted in only 13 percent 
being handled by this method in 1952-53. Almost all of this change took 
place in the eight central soybean States - Illinois, Iowa, Ohio., Indiana, 
Minnesota, Missouri, Kansas, and Nebraska - where about 90 percent of the 
soybeans are processed. The hydraulic press method, gradually fading out 
for soybean processing, accounted for less than 1 percent of the total 
processed in 1952-53 and was restricted to mills in the Cotton Belt. 



June-August 195k 



13 



Significant changes are also taking place in number . nd size of soy- 
bean oil mills. In 1951-52, 193 mills processed soybeans in the United 
States as compared with only I7I4 in 1952-53. Solvent extraction mills 
increased in number from the earlier year — 70-76 — and all this increase 
was in States outside the Soybean Belt. Furthermore, the solvent mills 
increased in size, as measured by the average quantity processed per mill. 
Screw press mills dropped in number from 92 in 1951-52 to 79 in 1952-53. 
Three-fourths of the mills which disappeared were located in the 8 cen- 
tral soybean States. Hydraulic mills processing soybeans dropped from 
31 in the earlier season to only 19 in 1952-53. This decrease represents 
about a UO percent decline in hydraulic mills. 

Oil yield per bushel of soybeans processed, for "the industry as a 
whole, increased from 10.00 in 1951-52 to 10.82 pounds in 1952-53. Both 
the solvent extraction and screw press methods increased oil outturns 
slightly more than a half pound while the hydraulic press method decreas- 
ed outturns. Solvent extraction processors recovered on the average 11.11 
pounds of oil per bushel, or two pounds more oil than the screw press 
processors and three pounds more oil than the hydraulic processors. 

Among the individual States, Illinois had the highest oil outturn, 
11.20 pounds, and Indiana ranked second with 11.00 pounds. Tre eight cen- 
tral soybean States averaged nearly a pound more oil recovery than the 
other soybean States (table 1, page 16). 

In the 1952-53 season, the 76 solvent extraction mills represented 
about kk percent of the soybean mills in the industry but accounted for 
86 percent, or 201 million bushels, of "the 23h million processed. Further- 
more, because of superior recovery rate, the solvent extraction method pro- 
duced 88 percent of the crude soybean oil in the United States. 

Cottonseed 

The cottonseed processing industry is also continuing its trend to- 
ward more efficient extraction methods — more solvent and screw press op- 
erations and fewer hydraulic presses. The direct- and prepress- solvent 
extraction methods together accounted for about 21 percent of the 5.5 
million tons processed during 1952-53, compared with only 11.5 percent in 
1951-52. A simultaneous decrease from 57 percent to I4.6 percent took place 
in the hydraulic press method. While the hydraulic method remains the most 
important single process, this is the first time in industry history that 
this method has accounted for less than half of the total crush. 

During the 1952-53 season, 303 cottonseed oil mills operated in com- 
parison with 328 in 1951-52. (The 1952-53 figures do not include 8 mills 
which delint, hull, and ship the cottonseed meats to a central solvent 
plant.) The decrease represents a sharp drop in the number of hydraulic 
mills. The screw press and solvent extraction mills each increased by 5« 
Tne distribution of mills by method of extraction in 1952-53 was as follows: 
Hydraulic press, 205; screw press. 80: direct -solvent extraction, 10; and 
prepress-solvent extraction, 8 (table 2, page 16). 

Oil yield per ton averaged 328 pounds in 1952-53, an increase of 8 



lit 



Marketing Activities 



pounds over 1951-52. Average oil recovery by the different methods was: 
Prepress- solvent , 380 pounds; direct-solvent, 358 pounds, screw press, 
327 pounds; and hydraulic press, 310 pounds (table 3, page 17). The 
greatest increase in oil outturn was attained by the solvent extraction 
methods. The prepress-solvent method extracted 12 pounds more oil and 
direct -solvent 10 pounds more oil in 1952-53 than in the previous year. 

Flaxseed 

The flaxseed processing industry is apparently the most stable one 
of the three considered here insofar as quantities processed by method of 
extraction and oil outturn are concerned. Of the 25 million bushels pro- 
cessed during the 1952-53 season, 53.5 percent was by the screw press 
method in comparison with 52.6 percent in 1951-52 (table U, page 17). 
The remainder in both years was processed primarily by the prepress-sol- 
vent method. Regarding linseed oil outturn per bushel for the industry 
as a whole, it was 20.3 pounds in 1951-52 and 20.1 pounds in 1952-53. 

The most important change in the flaxseed processing industry appears 
to be the decline in number of linseed oil mills from 23 in 1951-52 to 18 
in 1952-53. All seven mills that went out were screw press type. 

Soybeans: Quantities processed, by method of extraction, 19U5-U6 to 1952-53 and oil 

yield per bushel 19U7-U8 to 1952-53 1/ 

Soybeans processed 



Oct. 1 - 
Sept. 30 

crop 
year 


Screw press 
process 


Solvent 
extraction 


Hydraulic press 
process 


Total 


1,000 
bushels 


Percent 
of 
total 


1,000 
bushels 


Per cent 
of 
total 


1,000 
bushels 


Percent 
of 
total 


1,000 
bushels 



19U5-U6 102, Mi2 6U.2 144,907 28.2 12,111 7.6 159,1160 

19U6-U7 108, 7hh 63.9 US ,22k 26.6 16,271 9.5 170,239 

I9I+7-I4.8 88,233 Sh.h 61,000 37.6 12,933 8.0 162, 166 

19U8-U9 101,535 55.3 72,773 39.6 9,35l 5.1 183,659 

19U9-50 80,5U6 Ul.2 109,258 55.9 5,729 2.9 195,533 

1951- 52 60,1^0 2U.9 178 , 9 2 2 7 3 . 7 3,1480 I.I4 2.).?,8l42 

1952- 53 31,096 13.3 200,702 85. 8 2,082 .9 233,880 



Oil yield per bushel 



Crop year \ Pounds Pounds [ Pounds 



19147-U8 8.86 10.67 8.I46 9.51 

19U8-U9 9.16 10.914 8.67 9.314 

19U9-50 8.96 10.73 8.38 9.93 

1951- 52 8.57 10.52 8.39 10.00 

1952- 53 9,11 11.11 8.11 10.82 



1/ Data for 1950-51 not available. 

SOURCE: Special survey by Bureau of the Census and U. S. Dept. of Agr. 



June-August 195U 



15 



Table 1. — Soybeans: Number of mills, quantities processed, and oil yield, by method of extraction, United States, 

by states, 1952-53 1/ 







Screw pres. 




: solvent >.vXv cti-jjj : 




Total 




State 


Mills 
2/ 


: Quantity : 
: processed: 


Oil yield 
per bushel 


: Mills 
■■ 2/ 


: Quantity : 
: processed: 


Oil yield : 
per bushel: 


Mills : 


Quantity : 
processed : 


0.: , L. id 
■ ." U . 




Number 


1,000 bu. 


Pound s 


Number 


1,000 bu. 


IS 




1,000 bu. 


Pounds 


United States 


79 


31,096 


9.11 


(0 


c\JU s (Uc 


11 • 11 


3/171* 


3/233,880 


10.82 


Central soybean 
producing States: 




















Illinois 

Iowa 

Ohip 

Indiana 

Minnesota 

Missouri 

Kansas 

Nebraska 


13 
lit 

7 

5 
3 
3 
2 
3 


5,657 
7,383 

J-5?J° 

856 
1,837 

ljBlt 


9.33 
9.20 
8.89 
9.18 
8.X0 
9.1*2 

3/ 
9.61 


16 

d.c 

6 
It 
It 
It 

2 


32,526 

2lt,739 
25,696 
9,858 


11.39 

11.09 

lo!85 
11.06 
10.25 
10. 80 

3/ 


29 
26 
i-j 

9 
7 
7 
It 
3 


91,183 
1*0,119 

?6 277 
26,552 
11,695 
6,1*90 
1*,236 
1,881* 


11.20 
10.75 
10 7 3 
11.00 

9.91 
10.50 
10.69 

9. 61 


Total 


50 


21*, 706 


9.18 


ko 


133,730 


11. lit 


98 


203,1*36 


10.91 


Other soybean 
producing States 


29 


6,390 


8.81* 


20 


16,972 


10.78 


3/ 76 


3/ 25,1*1*1* 


10.08 


1/ October 1, 1952 to September 30, 1953- 

2j Mills classified by their major type of process. 

3/ The discrepancy between total and the detailed columns is due to 19 hydraulic press mills, in the Cotton Belt, 
that processed 2,082 bushels of soybeans averaging 8.11 pounds of oil per bushel. 
h/ Not shown to avoid disclosure of individual processors' operations. 


SOURCE: Special survey by 


bureau of Census and U. 


S. Dept. 


of Agr. 










Table 2. — Cottonseed: 


Number 


of mills, quantities processedj 
by regions and states 


and oil yield, by method of extraction, United States, 
, 1952-53 1/ 






Hydraulic press 




Screw ; rts: 




- 




Region and State 


Mills 


: Quantity 
: processed 


Oil yield 
per ton 


: Mills 
: 2/- 


: Quantity 
: processed 


: Oil yield 
: per ton 


: Mills 


: Quantity 
: processed 


Oil yield 




Mo. 


Tons 


Pounds 


No. 


Tons 


Pounds 


;. ■ 


Tons 




United States 


205 


2,509,280 


310 


80 


1,798,366 


327 


303 


5,1*59,000 


328 


Southeast 

Alabama-Georgia 
North Carolina 
South Carolina 
Area total 


1*9 
22 
19 
90 


500,511 

202,391* 
172,622 
375,527 


300 
319 
310 
306 


' 3 
3 
1* 

10 


y 

8,71*7 
18,722 

V 


& 

305 

V 


51* 
25 
23 
102 


622,1*17 
21l,lla 
191,31*1* 
1,021*, 902 


305 

313 
309 
309 


Valley 

Arkansas-Tennessee 
Louisiana- 
Mississippi 
Area total 


21 

1*5 
66 


1*80,31*6 

61*6,090 
1,126,1*36 


319 

320 
319 


6 

5 
ll 


122,107 

106,053 
228,160 


329 

328 
328 


31 

53 
81* 


825,628 

371,069 
1,696,697 


332 

327 
329 


Southwest 

Arizona-California 
Ok lahoma-Texas 
Area total 


2 

ait 

1*6 


¥ 

378,633 

y 


¥ 

233 
V 


13 

ia 

51* 


765,715 
631,617 
1,397,332 


336 
318 
328 


18 
91 
109 


1,056,263 
1,515,71*7 
2,572,010 


3U3 
329 
335 


All other 

(Florida, Illinois, 


3 


y 


V 


5 


V 


V 


8 


165,391 


3U* 



Missouri and New 
Mexico) 

1/ August 1, 1952 to July 31, 1953. 

2/ Mills classified by their major type of process. 

3/ The discrepancy between total and the detailed columns is due to 18 solvent extraction mills. Ten direct-sol- 
vent mills processed 512,1*39 tons, averaging 358 pounds of oil. Eight prepress-solvent mills processed 638,915 tons, 
averaging 380 pounds of oil. 

k/ Not shown to avoid disclosure of individual processors' operations. 

SOURCE: Special survey by Bureau of Census and U. S. Dept. of Agr. 



16 



Marketing Activities 



Table 3. — Yield of crude cottonseed oil per ton of cottonseed, by method of extraction, United States, by regions 

and states, 1952-53 season 1/ 



Region and State 


: Hydraulic : 
: press : 


Screw 
press 


: Direct solvent 
: extraction 


: Prepress solvent : 
: extraction : 


J- otal 




Pounds 


Pounds 


Pounds 


Pounds 


Pounds 


United States 


310 


327 


358 


380 


328 


Southeast 


306 


3U 


2/ 




309 


Alabama 


299 


2/ 

y 


i 





301* 


Georgia 


300 


2/ 





306 


North Carolina 


319 




— 





318 


South Carolina 


310 


305 


— 





309 


Valley 


319 


328 


361 


367 


329 


Arkansas 


319 


2/ 


2/ 




327 


Louisiana 


310 






H 


320 


Mississippi 


323 


328 




2/ 


329 


Tennessee 


319 


330 


2/ 




336 


Southwest 


285 


328 


36O 


382 


335 


Arizona 


K 


3hh 




K 


35k 


California 


|/ 


33U 




2/ 


338 


Oklahoma 


301 






300 


Texas 


253 


320 


360 


2" 


330 



1/ August 1, 1952 through July 31, 1953- 

2/ Not shown to avoid disclosure of individual processors' operations. 



SOURCE: Special survey by Bureau of Census and U. S. Dept. of Agr. 



Table 1*. — Soybeans, cottonseed and flaxseed: Number of mills, quantity processed, and oil yield, by method of 

extraction, United States, 1951-52 and 1952-53 



Method of : 


Number of mills 


: Quantity processed 






Oil yii 


sld per bushel 


extraction : 


1951-52: 


1952-53: 


Change 


: 1951-52 


: 1952. 


-53 s 


: Change : 


1951-52 


: 1952-53: 


: Change 










1,000 bu. Percent 


1,000 bu. 


Percent 


Percent 


Pounds 


Pounds 


Pounds 










Soybeans 














Hydraulic press 
Screw press 
Direct solvent 


31 

92 
70 


19 
79 
76 


- 12 

- 13 
/ 6 


3,W0 1.1* 
60,1U*0 21*. 9 
178,922 73.7 


2,082 
31,096 
200,702 


0.9 
13.3 
85.8 


- 0.5 
-11.6 
/i:j.i 


8.39 
8.57 
10.52 


8.11 
9.11 
11.11 


-0.28 

/ .51* 
/ .59 


Total 


193 


171+ 


- 19 


21*2,81*2 100.0 
Flaxseed 


233,880 


100.0 




10.00 


10.82 


/ .82 


Hydraulic press 
Screw press 
Direct solvent 
Prepress solvent 


1 
17 
2 
3 


1 

12 
2 
3 


0 

- 5 

0 
0 


u y 

157^06 52.6 

y y, 

9,077 30.6 


y - 
13,275 


!/• 

V 


/ 0.9 


y 
19.9 

y 
20.9 


y 
20.0 

1/ 
1/ 


M 

1/ 
1/ 


Total 


23 


18 


- 5 


29,66U 100.0 

Cottonseed 


2/2U, 809 


100.0 




20.3 


20.1 


- .2 










Tons Percent 


Tons 


Percent 




Oil yield per 


ton 


Hydraulic 
Screw press 
Direct solvent 
Prepress solvent 


2lj0 
75 
6 
7 


205 
80 
10 
8 


- 35 
/ 5 
/ h 
t 1 


3,111,679 56.8 
1,728,397 31.6 
318,661 5.8 
317,818 5.8 


2,509,280 
1,798,366 
512,1*39 
633,915 


1*6.0 
32.9 
9 .It 
U.7 


-10.8 
/ 1-3 
/ 3.6 
/ 5.9 


307 
329 
3U8 
368 


310 
327 

358 
38O 


/ 3 
- 2 

/ 10 
I 12 


Total 


328 


303 


- 25 


5,U76,555 100.0 


5,1*59,000 


100.0 




320 


328 


/ 8 



1/ Not shown to avoid disclosure of individual processors' operations. 

2/ The difference between total and screw press method primarily processed by prepress solvent. 



SOURCE: Special survey by Bureau of Census and U. S. Dept. of A-r. 



June-August ±95h 



17 



ABOUT MARKETING 



The following address and publications, issued recently, may be ob- 
tained upon request. To order, check on this page the publications de- 
sired, detach and mail to the Agricultural Marketing Service, U. S. De- 
partment of Agriculture, Washington 25, D. C. 

Address : 

The Economics of Marketing Meat-Type Hogs. Statement by Gerald 
Engelman. May 195U. 17 pp. (AMS) (Processed) 

Public ations : 

Rules and Regulations of the Secretary of Agriculture Governing the 
Grading and Certification of Meats, Prepared Meats, and Meat Products; and 
Administrator's Instructions Thereunder. Service and Regulatory Announce- 
ments No. 98 (Revised). March 195k. 11 pp. (USDA) (Printed) 

Livestock Slaughter, By States, 1953 Revised Monthly Estimates. May 
195k. Ik PP. (AMS) (Processed) 

Livestock Slaughter - Meat and Lard Production 1952-1953. May 195km 
2 pp. (AMS) (Processed) 

Farm Production, Farm Disposition and Value of Principal Crops 1952- 
1953, By States. May 195k. hi pp. (AMS) (Processed) 

Get More Good From Milk. May 1951*. 15 pp. (AMS and ARS) (Pro- 
cessed) 

Outer-Market Distribution of Milk in Paper Containers in the North 
Central Region. October 1953. kk PP» (AMS in cooperation with Indiana 
Agricultural Experiment Station) (Printed) 

Wholesale Produce Markets of San Diego, Calif. May 195U. 30 pp. 
(AMS) (Processed) 

Lespedeza Seed Production by Varieties, Average 19U2 -1951, 1952, 1953. 
May 195k. 1 p. (AMS) (Processed) 

Charges for Ginning Cotton, Costs of Selected Services Incident to 
Marketing, and Related Information, Season 1953-5U. May 195km 2 pp. 
(AMS) (Processed) 

Processing Costs of Soybean-Oil Mills 1951-52 and 1952-53. May 195U 
15 pp. (AMS) (Processed) 

Processing the Three Major Oilseeds. Marketing Research Report No. 
58. April 195k. 37 pp. (AMS) (Printed) 

Studies of Watermelon Loading for Rail Shipment, 1953. Marketing Re- 
search Report No. 62. May 195U. 27 pp. (AMS) (Printed) 

18 Marketing Activities 



United States Standards for Green Corn. Effective May 18, 195k. k 
pp. (AMS) (Processed) 

United States Standards for Grades of Cucumber Pickles. Effective 
April 30, 195k. 2U pp. (AMS) (Processed) 

United States Standards for Grades of Tomato Sauce. Effective May 
10, 195k. 9 pp. (AMS) (Processed) 

Carlot Shipments of Fresh Fruits and Vegetables by Commodities, States 
and Months Including Boat Shipments Converted to Carlot Equivalents Calen- 
dar Year 1953. April 195k. 20 pp. (AMS) (Processed) 



(Be certain you have given us your name and full address when order- 
ing statements or publications. Check only the individual items you wish..) 

NAME 



STREET 



CITY 

June-August 195k 



ZONE 



STATE 



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