| The purpose of this study is to assess the competitive advantage of using different vegetable oils in the production of bio-products in Canada. The assessment is based on a profitability index calculated as the ratio of relative returns to costs from the joint production of meal and oil from soybeans, canola, and palm. The study uses price and cost values from Canada, Malaysia, and the United States from 1997-2007.;The results indicate that the relative profitability for a crusher in southwestern Ontario is highest on average and the lowest variation through the use of soybeans. Canola and palm oil can also be profitable and have been in recent years due to high oil prices since canola and palm have a higher proportion of oil to meal than soybeans. In western Canada, the highest returns for crushing are with canola. Thus, the results are consistent with actual crushing activity. However, palm can be a competitive substitute for soybeans and canola if vegetable oil price is high and/or transportation costs are low. |
