Size of Soybean Oil Mills and Returns to Growers

John M. Brewster, Julia A. Mitchell and Stanley P. Clark

No 310545, Marketing Research Reports from United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program

Abstract: Excerpts from the report Summary: This study determines the way in which change in the size of solvent soybean oil mills under typical operating conditions is related to corresponding change in total cost and total revenue per bushel of beans processed. The study then compares the efficiencies of different-size mills as measured by net revenue per bushel of beans and per dollar of investment. The net returns per dollar of investment are then used in determining to what extent, if any, farmers might be benefited, in the form of higher prices for their soybeans, from industrywide changes in the sizes of soybean oil mills. The study also seeks to determine the approximate point in the range of mill sizes at which solvent mills come to earn more net revenue per bushel of beans and per dollar of investment than screw-press mills. A subsidiary objective of the study was to determine the approximate point in the range of mill sizes at which solvent mills come to gain a competitive advantage over screw-press mills.

Keywords: Crop Production/Industries; Industrial Organization; Labor and Human Capital; Production Economics (search for similar items in EconPapers)
Pages: 118
Date: 1956-11
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uamsmr:310545

DOI: 10.22004/ag.econ.310545

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