Economic Growth and Organization of the US Corn Starch Industry

Economic Growth and Organization of the US Corn Starch Industry Paul L. Farris Department of Agricultural Economics, Purdue University, West Lafayette, Indiana, USA

I. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II. Extent and Directions of Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . III. High-fructose Syrup Consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV. Fuel Alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V. Technical Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI. Plant Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII. Industry Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII. Effects of Corn Price Variability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IX. International Involvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X. Future Industry Prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XI. References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11 11 13 15 16 16 16 18 19 20 20

I.  Introduction The US starch industry, also known as the wet corn milling, corn wet-milling, and the corn refining industry, has grown rapidly and starch production has expanded in several other countries. Although people continue to consume some starch directly from starch-bearing plants, either raw or cooked, their demands for commercially produced starch to be added to foods and beverages have increased significantly. Starch use in a broad range of industrial products such as paper, textiles, building materials and alcohol for fuel has also expanded.

II.  Extent and Directions of Market Growth As a consequence of overall market growth, the quantity of corn (including minor quantities of sorghum grain) that was processed by the wet corn milling industry Starch: Chemistry and Technology, Third Edition ISBN: 978-0-12-746275-2

Copyright © 1984, 2009, Elsevier Inc. All rights reserved

2

12  Economic Growth and Organization of the US Corn Starch Industry

Table 2.1  US Corn: food, seed and industrial use, 1980–81 to 1999–2000a,b,c Yearb

HFSd

Glucose syrups and dextrosed

Starchd

Fuel alcohold

Beverage alcohold

Cereals and other productsd

Seedd

Totald

US corn productiond

Total FSI use as % of US production

1980–1981e 1981–1982e 1982–1983e 1983–1984e 1984–1985e 1985–1986e 1986–1987e 1987–1988 1988–1989 1989–1990 1990–1991 1991–1992 1992–1993 1993–1994 1994–1995 1995–1996 1996–1997 1997–1998 1998–1999 1999–2000

165 183 214 265 310 327 338 358 361 368 379 392 415 441 459 473 492 513 531 540

156 160 165 167 167 169 171 173 182 193 200 210 214 219 224 227 233 229 219 222

151 146 150 161 172 190 214 226 215 219 219 225 218 225 230 226 238 246 240 251

35 86 140 160 232 271 290 279 287 321 349 398 426 458 533 396 429 481 526 566

78 86 110 88 84 83 95 85 117 129 135 161 136 110 100 125 130 133 127 130

54 53 60 70 81 93 109 113 117 120 124 128 129 140 150 161 172 182 184 185

20 19 15 19 21 19 17 17 18 19 19 20 19 20 18 20 20 20 20 20

659 733 854 930 1067 1152 1233 1252 1298 1370 1425 1534 1556 1613 1715 1628 1714 1805 1846 1914

6639 8119 8235 4174 7672 8875 8226 7131 4929 7532 7934 7475 9477 6336 10 103 7374 9233 9207 9759 9431

9.9 9.0 10.4 22.3 13.9 13.0 15.0 17.6 26.3 18.2 18.0 20.5 16.4 25.4 17.0 22.1 18.6 19.6 18.9 20.3

a

Source: references 2, 3, 4 and 5

b

Marketing year beginning 1 September

c

Amount subjected to wet-milling is that in columns 2–5

d

106 bushels. To convert to 106 metric tons, multiply by 0.02541

e

Crop year began 1 October prior to 1986

increased five-fold between 1972 and 1992, from 262 million bushels (6.66  106 metric tons) to 1303 million bushels (33.11  106 metric tons) during the 20 year period.1 This rapid increase took an increasing share of expanding corn production in the United States. The manufacture of wet-milled products, which accounted for 5% of US corn production in the 1960s and 1970s, averaged close to 20% between 1990 and 1999 (Table 2.1). Yearly percentages fluctuated due mainly to variations in corn production, because wet-milling demands for corn increased quite steadily. Large increases in demands for two major products, high-fructose corn syrup and fuel alcohol, propelled high industry growth beginning in the 1970s. The market for high-fructose syrup was stimulated by the growing acceptance of corn sweeteners in food and, especially, beverage products. Prices of corn sweeteners were competitive with US raw sugar prices, which were substantially higher than world sugar prices due to government policies (Table 2.2). Production of alcohol for engine fuel also increased greatly in the 1970s, motivated by rising crude oil prices and stimulated by government subsidies, which continued to exist in the 1990s. Relatively steady increases in the production of standard starch and syrups accompanied the accelerating expansion of high-fructose syrup (HFS) that began in the 1960s, and the rapid increase in production of fuel alcohol in the 1980s and 1990s

III.  High-fructose Syrup Consumption  13

Table 2.2  HFS and sugar prices and producer price index for total finished goods, 1981–2000a Year

HFS-42 wholesale list prices, midwest markets, dry weightb

HFS-55 wholesale list prices, midwest markets, dry weightb

US raw sugar prices, duty fee paid, New Yorkb

World raw sugar pricesb,d,c

World refined sugar pricesb,d

US producer price index for total finished goods, 1982  100

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

21.47 14.30 18.64 19.94 17.75 18.07 16.50 16.47 19.24 19.69 20.93 20.70 18.83 18.77 15.63 14.46 10.70 10.58 11.71 11.32

23.59 18.81 21.06 22.69 19.95 19.96 17.46 18.68 21.41 21.88 23.25 23.00 20.93 22.47 NA NA NA NA NA NA

19.73 19.92 22.04 21.74 20.34 20.95 21.83 22.12 22.81 23.26 21.57 21.31 21.62 22.04 22.96 22.40 21.96 22.06 21.16 19.09

16.93 8.42 8.49 5.18 4.04 6.05 6.71 10.17 12.79 12.55 9.04 9.09 10.03 12.13 13.44 12.23 12.06 9.68 6.54 8.51

20.51 11.36 11.40 7.71 6.79 8.47 8.75 12.01 17.16 17.32 13.41 12.39 12.79 15.66 17.99 16.64 14.33 11.59 9.10 9.97

96.1 100.0 101.6 103.7 104.7 103.2 105.4 108.0 113.6 119.2 121.7 123.2 124.7 125.5 127.9 131.3 131.8 130.7 133.0 138.0

a

Source: references 6, 7, 8, 9 and 10

b

Cents/lb.

c

Contract No. 11 – f.o.b. stowed Caribbean port (including Brazil) spot price

d

Contract No. 5 London daily price for refined sugar, f.o.b., Europe, spot price

(Table 2.1). These two products, which together accounted for less than one-third of all food, seed and industrial uses of corn in 1980–1981, accounted for almost 60% of these uses in the 1990s. HFS production more than tripled, requiring 165 million bushels (4.219  106 metric tons) of corn in 1980–1981 and 540 million ­ bushels (13.72  106 metric tons) in 1999–2000. The rise in fuel alcohol production was even more dramatic, expanding from 35 million bushels (0.89  106 metric tons) of corn in 1980–1981 to 566 million bushels (14.37  106 metric tons) in 1999–2000. Fuel alcohol production alone consumed more than 5% of total US corn production during the ten year period 1990–1991 through 1999–2000. Numerous edible and industrial products are manufactured by the corn wet-milling industry through further refining. The dollar value of industry product shipments more than doubled (from $3.1 billion to $7.2 billion) between 1982 and 1997 (Table 2.3).

III.  High-fructose Syrup Consumption Until the late 1960s, sweeteners derived from starch accounted for less than 15% of the US total caloric sweetener market. By the mid-1980s, the starch-derived sweetener

14  Economic Growth and Organization of the US Corn Starch Industry

Table 2.3  Corn product shipments by the wet corn milling industry, 1982, 1987, 1992 and 1997a Product

1982

Sweeteners Manufactured starch Corn oil By-products Not specified by kind Total

1987

1992

million dollars

%

million dollars

%

million dollars

1610.4 655.1 234.9 577.7 27.6 3105.7

51.8 21.1 7.6 18.6 0.9 100.0

2182.5 774.3 613.1 845.8 30.5 4446.2

49.1 17.4 13.8 19.0 0.7 100.0

2911.0 1318.1 801.6 1363.5 21.4 6415.5

1997 % 45.4 20.5 12.5 21.3 0.03 100.0

million dollars

%

3056.2 1526.1 980.4 1585.0 40.7 7188.4

42.5 21.2 13.6 22.1 0.6 100.0

a

Source: reference 1

Table 2.4  Starch-derived sweetener consumption per capita in the United States (including Puerto Rico), 1992–2000a Calendar year

1992 1993 1994 1995 1996 1997 1998 1999 2000

HFS

50.6 53.3 55.0 55.2 56.5 59.2 61.4 62.8 61.6

Sweetenersb Glucose syrup

Dextrose

17.7 17.9 18.1 18.4 18.3 19.8 18.8 18.2 17.9

3.8 3.8 3.8 3.9 3.9 3.7 3.6 3.5 3.3

Total

Total caloric sweetenersb

Starch-derived sweeteners share of total caloric sweeteners, %

72.0 75.0 76.9 77.5 78.7 82.7 83.9 84.5 82.9

137.8 140.4 143.0 143.6 145.3 149.6 150.7 152.8 150.1

52.2 53.4 53.8 54.0 54.2 55.3 55.7 55.3 55.2

a

Source: reference 11

b

106 pounds, dry basis. To convert to metric tons, multiply by 453.5

share of total caloric sweeteners had risen to more than 50%, and the upward trend, though slowing, was continuing (Table 2.4). HFS had rapidly replaced most other sweeteners in the nonalcoholic beverage market (Table 2.5). Beverage use accounted for about 75% of HFS production in the mid-1990s. Production of HFS in other industrialized countries is far lower than that in the United States, but production elsewhere has also been increasing (Table 2.6). Future significant growth is expected in other countries, but if relatively lower world sugar prices prevail abroad, the pace of HFS growth in other countries will likely be slower than past HFS growth in the United States.

IV.  Fuel Alcohol  15

Table 2.5  US domestic food and beverage uses of HFS-42 and HFS-55, 1980 and 1995a HFS-42a

Domestic use

Cereal and bakery products Confectionery, including chewing gum Processed foods Dairy products Multiple and miscellaneous Beverages, mainly soft drinks Total

HFS-55b

1980

1995

1980

1995

304 11 334 110 380 372 1511

441 44 657 210 427 1310 3089

4 1 17 5 38 525 591

14 12 163 27 110 4327 4653

a

Source: references 10 and 12

b

1000 short tons, dry basis. To convert to metric tons, multiply by 0.9074

Table 2.6  World production of high-fructose syrup in selected countries, selected yearsa,b

United States Canada Argentina EU Japan South Korea Taiwan Others World total

1982

1987

1992

1995

2846 110 40 260 579 69 NA 60 3964

5145 202 169 265 724 182 15 81 6783

6236 250 180 286 761 263 125 133 8134

7121 255 220 303 750 250 180 335 9414

a

Source: reference 10

b

1000 metric tons, dry basis

IV.  Fuel Alcohol The search for alternative energy sources, beginning with the crude oil shortage and crisis in the 1970s, led to renewed emphasis on alcohol as an automotive fuel. As a liquid fuel that could be used to help power a large motorized transportation sector, alcohol became a very desirable form of energy. Concurrently, the 1977 Clean Air Act and the phaseout of lead from gasoline provided added stimulus. Federal and state legislative changes were enacted, and subsidies were given to encourage ethanol production for so-called gasohol, which is one part ethanol and nine parts gasoline. Further inducement came from the 1990 Clean Air Act Amendments to reformulate

16  Economic Growth and Organization of the US Corn Starch Industry

gasoline to meet certain oxygen levels to help control carbon monoxide and groundlevel ozone problems. Although there are alternative fuel oxygenators, and some questions about the benefit of ethanol in vehicles using fuel injectors, US legislation continues to specify the use of corn- or grain-based ethanol in gasoline. This added demand, along with research emphasis in both private and public sectors, produced significant gains in technical efficiency. One study reported that ethanol production from corn went from a process that required 16% more energy than it produced to a net energy surplus of 33%.13 Research involving applications of biotechnology and chemistry may achieve further gains. Also, corn-processing firms are finding plant operating advantages in co-product initiatives and in balancing seasonal production of alternative products, such as fuel alcohol and HFS. Lower feedstock costs may be realized if efficiencies in producing short rotation woody crops and grass, as well as corn, are realized.

V.  Technical Progress The complex and highly technical process of corn refining requires large economies of scale that, in turn, require substantial capital investment. Also, technological improvements in recent years have greatly reduced the amount of labor needed, so that the number of employees in the US corn wet-milling industry decreased from 12 100 in 1972 to 9200 in 1997, even though the amount of corn processed approximately tripled. Payroll expenses for all employees declined from 42% of value added by manufacture in 1972 to slightly less than 14% in 1997. As a consequence of technological advances and plant scale economies, the industry is dominated by a relatively few large plants. In 1997, 26 establishments with 100 or more employees each accounted for 93.4% of value added by manufacture. The other 25 plants produced the remaining 6.6%.1

VI.  Plant Location Corn refining plants tend to be located near sources of raw material. In 1992, nearly 75% of the US corn wet-milling industry value of shipments was from plants located in Iowa, Indiana and Illinois.1 In the early 1990s, these three states accounted for about 45% of US corn production. Processing plants in the Corn Belt are substantially larger than those in locations away from major corn producing areas.

VII.  Industry Organization Although market growth and technological progress have advanced remarkably in recent decades, the corn refining industry has continued to be dominated by relatively few firms. Some seventy years ago, the industry was judged to be monopolistic and

VII.  Industry Organization  17

Table 2.7  Percentage of total value of shipments accounted for by largest companies in the wet corn milling industry. Selected yearsa Year

Number of Total value of Share of value of shipments Primary product companies shipments 106$ specialization % Four largest Eight largest Twenty largest companies % companies % companies %

1947 1954 1958 1963 1967 1972 1977 1982 1987 1992 1997

47 54 53 49 32 26 22 25 32 28 30

460.0 458.4 522.0 622.4 751.3 832.3 2014.8 3268.4 4788.9 7045.2 8455.2

77 75 73 71 67 63 63 74 74 73 72

95 93 92 93 89 86 89 94 94 93 90

99 99 99 99 99 99 99 99 100 99 99

88 91 91 83 84 97 93 92 94 88 84

a

Source: reference 16

the leading firm, Corn Products Refining Company, was required to divest a portion of its assets. Nevertheless, this company remained the dominant firm for many years, although its 60% market share in 1918 gradually declined to 45% in 1945.14,15 In 1947, the four largest firms in Census Industry 2046 (311221 in 1997), wet corn milling, accounted for 77% of industry value of shipments. The four-firm concentration declined to 63% in 1972, but rose to 74% in 1982 and remained at that level in 1987. It was 73% in 1992 and 72% in 1997 (Table 2.7). Only a dozen or so companies accounted for essentially all US industry output. Data are available by company for industry capacity of two important sweetener products, HFS-42 and HFS-55 (see Chapter 22) (Table 2.8). The largest firm in both 1987 and 1992 was Archer Daniels Midland, with about one-third of total US HFS industry capacity. When capacities for the next three, Tate and Lyle North America (formerly A.E. Staley Mfg. Co.), Cargill and CPC International are included, the largest four accounted for ~85% of the total capacity for manufacturing HFS. In the early 1990s, Archer Daniels Midland produced an estimated half of the US fuel alcohol. Corn refining firms have become increasingly diversified, with the expansion of new food products for the consumer market. They have also acquired other lines of business and become more conglomerate in character, along with their expansion through direct investment in other countries. Marion and Kim17 estimated that about half of the change in four-firm concentration between 1977 and 1988 came from internal growth and the other half from mergers and acquisitions. In 1991, the total sales of the four largest corn sweetener producing firms ranked among the 50 largest US food processing companies.18 In 1993, three of the four largest in the United States were among 50 of the world’s largest food processing firms.

18  Economic Growth and Organization of the US Corn Starch Industry

Table 2.8  US production capacity for high-fructose syrup by company, 1987 and 1992a Company

HFS-42

HFS-55

Total

1000 short tonsb dry weight

%

1000 short tonsb dry weight

%

1000 short tonsb dry weight

%

1987 Archer Daniels Midland American Fructosec Cargillc CPC International Golden Technologies Hubingerc A.E. Staley Mfg. Co.c Total

675 128 355 213 18 120 355 1864

36.2 6.9 19.0 11.4 1.0 6.4 19.0 100.0

1200 348 540 348 38 130 1250 3854

31.1 9.0 14.0 9.0 1.0 3.4 32.4 100.0

1875 476 895 561 56 250 1605 5718

32.8 8.3 15.7 9.8 1.0 4.4 28.1 100.0

1992 Archer Daniels Midland American Fructosec Cargillc CPC International Golden Technologies Hubingerc A. E. Staley Mfg. Co.c Total

816 284 570 290 38 130 535 2663

30.6 10.7 21.4 10.9 1.4 4.9 20.1 100.0

1425 350 755 365 54 177 1175 4301

33.1 8.1 17.6 8.5 1.3 4.1 27.3 100.0

2241 634 1325 655 92 307 1710 6964

32.2 9.1 19.0 9.4 1.3 4.4 24.6 100.0

a

Source: reference 6

b

To convert to metric tons, multiply by 0.9074

c

See Chapter 1 for changes

VIII.  Effects of Corn Price Variability Corn is the major cost ingredient used in producing corn refinery products, amounting to 81% of total materials, ingredients, containers and supplies purchased by the industry in 1992.1 However, because the price of corn is more variable than that of other components, due primarily to corn production variability, the relative cost of corn varies considerably between years. The net cost of corn to US millers, after allowance for by-product credit, was estimated at $1.26 per bushel in 1997, $0.92 in 1992, $0.26 in 1987 and $1.03 in 1982 (Table 2.9). The 56 pounds (25 kg) in a bushel of corn yields 31.5 pounds (14.3 kg) dry weight, of starch (56%), 1.55 pounds (0.703 kg) of corn oil (2.8%), 2.65 pounds (1.20 kg) of corn gluten meal (47%) and 13.5 pounds (0.680 kg) of corn gluten feed (24%). The 6.8 pounds (3.1 kg) of residual is mainly moisture (12%). By-product credit values are based on the amounts of corn oil and corn gluten feeds times their prices.6 To illustrate further, although corn accounted for 51% of the corn wet-milling industry value of product shipments in 1997, the percentage was only 32 in 1987 when corn supply was abundant and prices low (Table 2.9). These percentages were 44% in 1982 and 40% in 1992. Because product selling prices fluctuate through a

IX.  International Involvement  19

Table 2.9  Corn price and cost to the wet corn milling industry, 1982, 1987, 1992 and 1997a Year

Corn priceb

By-product allowanceb

Net corn costb

Total corn coste

Value of product shipmentsc

Corn cost as % of value of product shipments

1982 1987 1992 1997

2.48 1.59 2.33 2.67

1.45 1.33 1.41 1.41

1.03 0.26 0.92 1.26

1370.8 1435.9 2587.7 3675.0

3105.7 4446.2 6415.5 7188.4

44.1 32.3 40.3 51.1

a

Source: reference 8

b

Dollars per bushel

c

106 dollars

Table 2.10  US high-fructose syrup (HFS) supply and use, 1992–2000a,b Year

1992 1993 1994 1995 1996 1997 1998 1999 2000 a

Supplyc

Total

Domestic production

Imports

6634 7097 7467 7759 8157 8677 9150 9412 9367

193 189 137   79 123 116 117 121 121

6827 7286 7605 7838 8280 8793 9267 9533 9488

Utilizationc Exports

Domestic use

100 113 123 104 224 276 388 350 324

6727 7173 7481 7733 8057 8517 8879 9183 9164

Source: reference 8

b

Includes Puerto Rico

c

1000 short tons, dry basis. To convert to metric tons, multiply by 0.9074

much narrower range than purchase prices for raw grain, industry earnings from corn refining tend to be inversely related to the price of corn.

IX.  International Involvement Exports of a variety of products manufactured by the corn refining industry expanded significantly during the 1980s and 1990s, building on the continuing large foreign sales of corn gluten feed and meal. Additionally, corn oil, starches and sweeteners all posted major gains. Total exports of processed corn wet-milling food products reached $1.375  109 in 1992,19 which amounted to 19.5% of the total industry value of shipments in 1992.1 Some trade has occurred in HFS (Table 2.10). Expanded US production and consumption of two major corn refinery products, highfructose syrup and fuel alcohol, probably contributed positively to the US trade balance

20  Economic Growth and Organization of the US Corn Starch Industry

by substituting to some extent for imported sugar and oil. US corn refining firms have also expanded their direct investment in foreign facilities, such investment occurring in several countries, and foreign companies have purchased US facilities (see Chapter 1).

X.  Future Industry Prospects The dramatic growth in HFS production and consumption began in the early-1970s and moderated in the late-1980s. Per capita consumption continued to rise slightly through the early 1990s. Additional HFS marketing expansion is expected as the US population increases. Some further penetration also appears probable in selected food uses. Much will depend, however, on sugar import policies and on technological developments that might further lower manufacturing costs or lead to advances in the development of products such as crystalline fructose. Fuel alcohol production could well expand further if government policies provide incentives for more widespread use as automotive fuel, and if technical developments continue to lower alcohol manufacturing costs. Some efficiency has occurred in overall plant operating costs due to seasonal balancing of the production of HFS and fuel alcohol. Plant capacity used in producing HFS for surging summer soft drink demands can be used during other times to produce fuel alcohol. Food demands for other corn refinery products are expected to expand with population growth or possibly more rapidly with new product development and technological improvements that would lower unit costs. Similarly, expanded industrial uses can be expected with growth in the US economy and possible new uses and applications made feasible through research. A continued upward trend in sales abroad in both food and industrial markets appears promising. Several firms are expanding their foreign direct investments in corn refining operations and participating in joint ventures with foreign firms. The total number of corn refining firms in the United States is not expected to change greatly, although further investment in corn refining capacity can be expected with increased demand for starch for food and industrial uses. Given the large economies of scale and the highly technical nature of the business, capacity expansion is expected to continue to occur, primarily within existing firms rather than through new entrants. The conglomerate character of firms with wet corn milling operations is expected to become more prevalent, although the four-firm concentration may not change greatly.

XI.  References   1. US Department of Commerce, Bureau of the Census: Census of Manufacturers. Industry Series, for indicated years.   2. US Department of Agriculture. Feed Situation and Outlook Yearbook. FDS-1999; April 1999.   3. US Department of Agriculture. Feed yearbook. FDS-2000; April 2000.

XI. References  21

  4. US Department of Agriculture. Feed Outlook. FDS-0301; March 12, 2001.   5. US Department of Agriculture. Sugar and Sweetener Situation and Outlook Yearbook. SSS-228; May 2000.   6. Gray F, Buzzanell P, Moore, W. US Corn Sweetener Statistical Compendium. US Department of Agriculture, Statistical Bulletin Number 868; 1993.   7. US Department of Agriculture. Economic Research Service, Sugar and Sweetener Situation and Outlook Yearbook. SSSV19N2; June 1994.   8. US Department of Agriculture. Economic Research Service, Sugar and Sweetener Situation and Outlook Report. SSS-230; January 2001.   9. US Department of Labor. Monthly Labor Review, various issues. 10. Buzzanell P, US Department of Agriculture. Corn Sweeteners: Recent Developments and Future Prospects. Paper presented at Azucar ‘95 Foro Internacional, Guadalajara, Mexico; October 10, 1995. 11. US Department of Agriculture. Economic Research Service, Sugar and Sweetener Situation and Outlook Yearbook. SSS-231; May 2001. 12. US Department of Agriculture. Economic Research Service, Sugar and Sweetener Situation and Outlook Yearbook. SSSV21N1; March 1996. 13. Lee H. Ethanol’s Evolving Role in the U.S. Automobile Fuel Market. In: Industrial Uses of Agricultural Materials: US Department of Agriculture; 1993. [1US-1]. 14. Watkins MW. Industrial Combinations and Public Policy. Cambridge, UK: Houghton-Mifflin; 1927. 15. Whitney SN. Antitrust Policies. Vol. II. New York: The Twentieth Century Fund; 1958. 16. US Department of Commerce, Bureau of the Census. Concentration Ratios in Manufacturing, for indicated years. 17. Marion BW, Kim D. Agribusiness. 1991;7(5). 18. US Department of Agriculture: Economic Research Service, Food Marketing Review, 1994–95. Agricultural Economic Report, No. 743; 1996. 19. US Department of Agriculture: Economic Research Service, Food Marketing Review, 1992–93. Agricultural Economic Report No. 678; 1994.