Farm-to-Mill Margins for Cottonseed and Cottonseed Products, in Tennessee, September 1946-July 1950

Excerpts from the report Introduction: Technology has made possible the conversion of cottonseed from a troublesome waste product to a source of valuable raw material. Cottonseed has become the basis for a rapidly changing industry which produces edible oil for human consumption and protein supplements for livestock feed, as well as a number of chemicals and industrial raw materials. Because of its increasing importance as a source of farm income, marketing margins and costs for cottonseed are acquiring added significance to cotton farmers, marketing agencies, and consumers. It is for this reason that an attempt has been made to study and to measure margins taken by cottonseed handlers and processors. The study here reported was limited to one State in order to give a more direct comparison between series used, and thus a more accurate evaluation of the several price spreads. The cottonseed industry in Tennessee was chosen because Memphis is an important center both for production of and trade in cottonseed products. Beginning with the sale of his cottonseed by the farmer, an attempt has been made to measure the price spreads that occur between the farmer and the oil mill. All products included are followed in as much detail as available data permit.