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Economic Analysis Of Effluent Guidelines: Beet Sugary Industry, Final Report. (See U.S. EPA Headquarters Library Copy #PB248-844).

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The beet sugar industry, SIC 2063, is composed of 52 operating plants owned by 10 firms. Beet sugar plants are old with 38 plants built prior to 1933. Nineteen plants have 55% of industry capacity. Estimated after-tax return on sales range from zero up to four percent depending on plant size and campaign length. Prices are indirectly controlled under the Sugar Act by adjustments in domestic production acreage and impact quotas.
Imposition of effluent limitations are not expected to raise prices because large portion of the capacity is at a near zero discharge level. Ultimate price responses, however, are believed to depend on the Secretary of Agriculture's action on quota adjustments. Potential closures due to imposition of zero discharge standards are estimated to be 7 to 17 plants (8 to 26% of beet sugar production). A discharge .5 pounds BOD in 1977 for plants without land available for control facilities of zero for plants with available land is estimated to cause 4 to 10 potential plant closures.
A standard of .5 lbs. BOD in 1977 and .3 lbs. BOD for plants with 2,300 daily tons of capacity or less and/or a daily soil filtration rate of 1/16-inch or less and zero discharge for all other plants in 1983 is estimated to cause 4 to 7 closures.
Employment impacts of potential closures appear to be small. Potential plant closures are likely to be felt more by communities through the loss of a high value cash crop by growers. Michigan and Colorado are believed to be areas most seriously impacted.
The impact analysis is based upon a number of assumptions and cost estimates which are identified.

Pollutants; Water pollution; Industrial wastes; Sugar beets; Economic; Economic analysis; Discounted cash flow; Demand; Supply; Prices; Fixed costs; Variable costs; Community; Production capacity; Fixed investment
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Multiple offices
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Office of Planning and Evaluation - Office of Water
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No division specified
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Document Type:
Economic Impact Assessment
Development Planning and Research Associates, Inc.
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