The primary purpose of this analysis is to provide government officials in Ecuador with information on the soybean subsector. Toward this end, this paper describes and analyzes the economic system which encompasses the flow of soybeans and soybean products from producer to consumer. Particular attention is given to the interaction between industry structure, the conduct of private sector participants and existing government policy. Also, weaknesses in existing government policy are identified and alternate policy approaches are explored. Two methodologies, the subsector studies approach and the structure-conduct-performance paradigm, were employed to guide and organize the research and analysis. Also, a simple technique based on the opportunity cost concept was employed to examine the costs to the consumers of soybeans and soybean products of existing government policy.