Economists To The Rescue

An Iowa factory has landed on its feet, thanks in part to the 
work of two Iowa State economists.

Herman Quirmbach and Dan Otto helped convince the Federal 
Trade Commission to change a ruling that could have closed 
the Friskies canned cat food plant in Fort Dodge. 

Nestle, which owns Friskies, wanted to buy Alpo Pet Foods. 
The FTC said it would allow the sale only if Nestle sold one 
of its pet food plants to keep the market competitive. Nestle 
chose the one in Fort Dodge.

Quirmbach's research showed that the ruling actually could 
result in less competition because if sold, the plant likely 
would close.

Otto's community impact study determined that the plant 
closing eventually could result in the loss of 500 jobs and 
$9.8 million for the area.

Armed with the ISU results, Fort Dodge officials mounted a 
campaign to save the plant. The hard work paid off in June 
when the FTC took the rare action of reversing its decision.

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contact:  University Relations, (515) 294-3129
updated:  9-28-95