Sky high prices for canola and soybeans would have a negative impact on the expansion of the bio-diesel sector.
Brad Magnusson is an agricultural consultant with Credit Union Central Manitoba.  He says we have to remember the vast majority of cost in producing biodiesel is the commodity, and if it's overpriced that pinches the bottom line of the producer.
Magnusson notes we must keep in mind we can't overprice our canola or it will decrease the demand from the biodiesel sector simply because the production facilities are no longer profitable.  Like the rest of the industry, Magnusson awaits the federal government's decision on whether to subsidize the biodiesel sector to the same level as the United States does.  He is concerned if that's not the case we may not be able to compete.