This paper examines the competitiveness of the soybean processing industry. A model of multinational firms with scale economies is specified. An index of the way in which firms compete (conjectural variations) is included and the model is calibrated to market data to estimate the competitiveness of the industry. The results imply that despite its oligopolistic structure, the soybean processing sector may be fairly price competitive. This result is shown to be robust to changes in elasticities of demand in meal and oil, the soybean supply elasticity, and the number of multinational firms. However, it is sensitive to changes in the processing profit margin.