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Economic Impact Analysis Of Effluent Guidelines: Animal Feed, Breakfast Cereal And Wheat Starch Segments Of The Grain Mills Industry, Final Report.

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The economic impacts of proposed effluent limitations guidelines on three segments of the grain milling industry were assessed: animal feed (SIC 2042) breakfast cereal (2043) and wheat starch-gluten (2046) processing. The analysis included classification and description of types of firms and plants, evaluation of pricing mechanisms and relationships and financial profiles of selected model plants. Financial impacts of proposed effluent treatment technology were assessed in terms of price, industry returns,and production volume. Employment, community impact and international trade effects were also assessed. Limits of the analysis were stated.
Overall , the proposed controls of this study (point source category only) will neither directly nor seriously impact the three segments studied in the short run. Water effluent problems of the animal feed segments are inconsequential and detailed assessments were not required. Virtually all breakfast cereal and wheat starch processing plants are connected to municipal treatment systems and this minimizes applicability of the proposed guidelines. The breakfast cereal industry is sufficiently viable to withstand proposed costs for pollution control facilities if required. However, the potential impacts of the guidelines on the wheat starch segment are such that new entrants into the industry would not be expected if private treatment systems were required. The industry growth prospects for the wheat starch processing segment are thus uncertain.

Water pollution; Economic analysis; Economics; Animal feed; Breakfast cereal; Wheat starch; Vital wheat gluten; Food; Pollution; Industrial wastes; Demand; Supply; Prices; Variable costs; Fixed costs; Fixed investment; Discounted cash flow
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EPA Office:
Multiple offices
Office Suboffice:
Office of Planning and Evaluation - Office of Water
Office Division:
No division specified
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Document Type:
Economic Impact Assessment
Development Planning and Research Associates, Inc.
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