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Effect of Water Pollution Control Laws on Location of Dairy Products Plants in Certain United States Countries

Braniff Graduate School of Management, University of Dal'as, Irving, Texas 75060

ABSTRACT

The purpose of the research was to determine whether the Federal Water Quality Act of 1965 would affect the desirability of certain dairy products plant locations. A model plant was considered to produce waste-water and goods proportionate to industry averages. Conditions in four of the leading dairy products counties of the nation were studied to determine increased production costs for a model plant in each location as streams are upgraded.

The models showed costs of dairy manufacturing in Milwaukee County, Wisconsin, remaining constant as this area met current requirements before the law was passed. Manufacturers in Philadelphia County, Pennsylvania, should encounter a cost increase of 0.041%. The increases in the other two counties are indeterminate because of uncertainty about extent of treatment required and financing methods.

Data showed that the cost of abatement, relative to the value of products, was low in the leading dairy products counties despite the industry being named the nation's second most troublesome polluter. It was concluded that the Federal Act generally would have no significant effect on major counties in this industry. An exception to this may occur in a minority of locations if the laws eventually require high levels of treatment and provide no subsidy.