Framework for a Cost-Benefit Analysis of a Large-Scale Food Processing Plant in a Small Rural Community
Dr. Sungho Park (University of Alabama)
Over the last several years, locating a large-scale food processing plant in a small rural community has attracted attention as a policy tool for local economic development. It is unclear, however, that public officials make decisions based on a comprehensive analysis that accounts for various costs and benefits across different policy issues and areas. Doing so is important because these decisions often involve the allocation of scarce public resources. This may be attributable to a lack of literature that offers a robust framework for analysis and guides its application. This study aims to fill this gap. Synthesizing policy analysis and food policy studies, we provide a framework that can be used by public officials for a cost-benefit analysis of a large-scale food processing plant project. This study further explores the constructed framework using the recent case of Costco’s Poultry Plant in Fremont, Nebraska.