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Assessing the Feasibility of Processing and Marketing Niche Soy Oil

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  • Sergio H. Lence
  • Sanjeev Agarwal

Abstract

Demand in the marketplace for foods with "natural" attributes, such as organic produce, continues to grow. Similarly, interest has developed in creating a technology that allows "physical" rather than chemical refinement of soybean oil to create a "natural" soy oil product. The physical refinement of non-genetically modified (non-GM) soybeans greatly strengthens the marketing claim to natural properties for that product. The oil derived in this manner, designated here as "niche soy oil," and its related inputs (non-GM soybeans) and by-products (high-energy non-GM soy meal) are the objects of our analysis. We find premiums of $0.03 to $0.43 per pound for niche soy oil compared to commodity soy oil. However, our price analysis suggests that only relatively optimistic combinations of premiums for niche soy oil, non-GM soybeans, and high-energy non-GM meal result in spreads above the estimated minimum economically feasible level.

Suggested Citation

  • Sergio H. Lence & Sanjeev Agarwal, 2003. "Assessing the Feasibility of Processing and Marketing Niche Soy Oil," Midwest Agribusiness Trade Research and Information Center (MATRIC) Publications (archive only) 03-mrp6, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:mpaper:03-mrp6
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    References listed on IDEAS

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    1. Fernandez-Cornejo, Jorge & McBride, William D., 2000. "Genetically Engineered Crops For Pest Management In U.S. Agriculture," Agricultural Economic Reports 33931, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Jenson Robert A. & McIntosh Christopher Richard, 2016. "Modeling US Farmer Soybean Seed Choice with Path Dependencies: Inevitable Patented Seed Market Dominance?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 14(1), pages 69-79, May.

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