The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1916-09-25
TO Be PROF TABLE
OIL MUST Be
OF A HIGHER GRADE.
Farmers Cannot Hope to
Compete With Cotton Seed
Oil Unless Grade of Prod
uct Is Much Improved

manufacture under normal conditions.
peanut oil must be of higher quality
than that which is now being produced
in this country. Ordinarily it cannot
compete in price with cotton seed oil
and permanent demand for 1t must
come from persons who are willing to
pay more for an article that suits
them better.
At the present time, it Is true, cot
ton seed and all it's products are so
high that peanut oil can be put on
the market at about the same price
as cotton seed oil. This has led many
mill owners to consider the advis-
ability of making peanut oil and the
increased acreage in peanuts in the
south, especially in the territory in
tested with the boil weevil is anoth-
er strong inducement for the develop
ment of new outlets for the crop. In
a recent publication of the United
States department of agriculture. how
ever, farmers bulletin No. ISL, by IL.
c. Thompson and H. S. Baily, it is
pointed out that the relative costs OF
production are such that, except under
unsual conditions, higher price must
be asked for peanut oil than for cot
ton seed oil. Unless the grade of the
peanut product is raised, therefore.
there will be little inducement for
anyone to purchase it,
COST OF RAISING
investigations by the authors of the
bulletin already mentioned show that.
including labor and the interest on
from $50 to $25 to produce So bush
els of peanuts-the average yield per
acre of the Spanish variety, which
is the one best suited for oil making.
At 70 cents bushel this means a rev.
enue from the nuts of $2450 an acre.
In addition, the hay is worth about
$40, making s34.50 in all. This mar
gin of profit is none too large In fact,
the investigators state as one of their
conclusions that farmers cannot af-
ford to grow peanuts for sale unless
they are reasonably sure of receiving
at least 20 cents bushel
On the other hand, if peanut oil is
to be sold in competition with cotton
seed oil, even under the present I'M
usual conditions. the mill man cam
not pay more than 70 cents, and at
the prices which have prevailed in the
past he cannot afford to pay that AT
70 cents ton of Spanish peanuts costs
1856 and should yield under care.
full treatment so gallons of oil and
$50 pounds Of meal. The meal can
probs, bly, be disposed of for SLIPS; the
oil at so cents gallon is worth $4S.
This leaves the mill man $12.59 a
ton, out of which he must meet his
manufacturing and selling charges and
take his profit. AS cotton seed oil fire.
quently sells for about As cents a gall
lon. it is obvious that ordinarily the
two oils cannot compete on the basis
of price. Another matter which must
be considered is that by the methods
in use many mills are obtaining a
yield of only 65 gallons of oil from a
ton of peanuts. With such a yield and
with the oil at so cents a gallon, a
considerable loss may be expected.
HIGH GRADE PEANUT OIL
A high grade peanut oil has quail
tiles which for certain purposes, such
as for salad dressing and for cooking.
cause it to be preferred by some to
the cotton product. In Europe there
is a considerable demand for the edible
peanut oils and it Is, to a great ex-
tent, only the inferior grades that
are imported into this country, where
they are used chiefly in the manufac-
ture of oleomargarine. The peanut oil
imported during the year ending June
80, 1914, was valued at 67 cents per
gallon. A small part of this was high
grade edible oil which probably sold
for a considerable higher price than
the average for all of the oil import
ed. If high grade American oil is
placed on the market at little low
er price than that commanded by the
best of the imported oils, it is possible
that a steady demand for it might be
built I'D which would be quite indie
pendent of the cost of cotton seed
OIL
In this connection 1t is pointed out
that in the production of ashigh grade
edible peanut oil the peanuts must be
thoroughly cleaned, shelled, blanched
and degermed. In the ordinary cotton
seed mill this will require the install
lation of additional machinery, involv-
ing an expense which is hardly justi-
fled unless there is reasonable assur-
ance of a permanent demand for the
product In the same way, before the
farmer goes in heavily for peanuts for
oil purposes, be should assure himself
that the mills will be able to pay a
fair price for his crop. This consid-
Grafton, of course, does not affect the
agricultural value of peanuts in 9TH
err respects.
In view of these facts the specialists
in the department of agriculture be-
lieve that the industry can be pro-
NOTED best by devoting attention ia
the production of high grade oil that
will sell on it's merits. The low grade
oils for use in soap, etc, can be made
most profitably from low grade nuts
and the waste of peanut Smelling and
peanut butter making establishments
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