U.S. PRODUCTION OF ANIMAL FATS AND MAJOR VEGETABLE OILS TO REACH 13.

3 MILLION METRIC TONS IN 2016 Wellesley, Mass. In a recent release, OILS AND FATS: APPLICATIONS IN FOODS AND OTHER MARKETS (FOD034B) from BCC Research (www.bccresearch.com), the U.S. production of fats and oils totaled 12.9 million metric tons for 2011. That total is projected to increase at a compound annual growth rate (CAGR) of 0.6% between 2011 and 2016, reaching 13.3 million metric tons in 2016. Major vegetable oils produced in the U.S. are projected to increase slightly from 9.8 million metric tons in 2011 to nearly 10 million metric tons in 2016, a CAGR of 0.3%. Animal fats produced in the U.S. are expected to increase at a CAGR of 1.4% over the next five years, a total of 3.1 million metric tons in 2011 to nearly 3.4 million metric tons in 2016. U.S. apparent consumption of fats and oils are classified into two product categories: foods and industrial. Food products include baking and frying fats, margarine, and salad and cooking oils. Industrial applications of fats and oils include animal feed, fatty acids, lubricants, methyl esters, paints and varnishes, resins and plastics, and soaps. Fats and oils are generally recognized as concentrated and efficient sources of energy for human cells. Fats and oils are lipids or triglycerides, which means that they possess a chemical structure that consists of one unit of glycerol and three units of fatty acids. Glycerol is a sweet-tasting, odorless, and colorless alcohol. Two of the many desirable properties of glycerol are its affinity for water and high viscosity. Naturally occurring fats and oils are derived from two main sources: animal and plant. Animal fats are rendered from fat-bearing tissues in the carcasses of slaughtered livestock and poultry. Vegetable oils are derived from oilseeds, fruits, and nuts. These fats and oils differ primarily because oils are liquid in ambient temperatures while fats are solid in similar temperatures. The applications of fats and oils in essential foods and a growing list of industrial products are a strong indication of the importance of these commodities. Added fats are present in practically every persons diet on a daily basis. Technological advances are constantly expanding the end uses of fats and oils for industrial purposes. The use of fats and oils in biodiesel production is gaining attention as the search for renewable energy continues. The findings of this report should be of interest to producers and manufacturers who are already invested in the fats and oils industry, as well as to anyone interested in understanding the fundamental issues related to the production and end uses of fats and oils.

SUMMARY FIGURE PROJECTED SHARES OF U.S. PRODUCTION OF ANIMAL FATS AND MAJOR VEGETABLE OILS, 2011 AND 2016 (%)

Source: BCC Research Oils and Fats: Applications in Foods and Other Markets (FOD034B) Data and analysis extracted from this press release must be accompanied by a statement identifying BCC Research LLC, 49 Walnut Park, Building 2, Wellesley, MA 02481, Telephone: 866-285-7215; Email: editor@bccresearch.com as the source and publisher, along with report number, which can be found in the first paragraph of this release.