and abroad and marketing trials based on the studies made. The studies would be conducted both in the U.S. and abroad.

These studies would be conducted under the guidance of the Scientific Advisory Committee on Marine Protein Resource Development. It is visualized that this Committee would arrange and have general supervision over the acceptability and effectiveness studies undertaken abroad. The program envisages an expenditure of $300,000 a year for a period of 5 years.

Purchase of FPC, $1,500,000

AID, Food for Peace, White House, and other interests have indicated the desire to obtain FPC for the respective programs. No mechanism now exists in the Bill (we don't think) to purchase the FPC once produced. Therefore, some mechanism should be found to effect purchase. At an output of 10 tons per day for 250 working days per year at a cost of $450 per ton, the total cost of the product would be $1,125,000. The extra money is added in case the working days extend past the 250 days indicated.

In summary then, absolutely necessary funds to support the FPC pilot plants, as well as personnel, are as follows:

Total operating costs per plant per year (250 working days, 8-hour day)

Electric power, 1¢/KWH (200 KW)

Steam, 30g/100# (4.1# steam/# fish)
Refrigeration, 50¢/ton fish (16% tons)
Solvent:

Inventory, 5,000 gal. (50¢/gal.)

Make-up (75 gal./day).

Supplies and maintenance materials, 0.5% FI

Operating labor (8 men at $2.50/hour, 1 man at $3.50/hour).

$4,000 10, 200 2,080

2, 500 10,000

Maintenance labor, 0.5% FI

Payroll extras, 15% of 6 & 7.

General overhead, 30% of 7, 8, & 9_.

Fish-free operating cost.

Fish, $40/ton x 16% tons/day x 250 days--.

Total_____

ATTACHMENT 2

laboratory

7,570

47,000

7,570

8, 200

18, 550

117, 670

166, 650

284, 320

Cost estimates for the establishment and operation of a quality control

Small equipment (pH meters, colony counters, colorimeters,

ATTACHMENT 3

Cost estimates for the conduct of studies on product evaluation

Large specialized items such as presses, grinders, animal cages,

TABLE I.-Cost per gram of protein from animal protein concentrates,

Dry milk solids..

Dried eggs..

MPC..

Item

January 1966

1 Source: U.S. Department of Agriculture (price f.o.b. processor).

Price of protein per gram (cents'

0.09 .53

.07

2 Source: "Composition of Foods," Agricultural Handbook No. 8, ERS, U.S. Department of Agriculture. At 80 percent protein.

TABLE II.-Retail cost per gram of animal protein from selected foods,

1 Source: "Estimated Retail Prices by Cities." Bureau of Labor Statistics, January 1966.

2 Source: "Composition of Foods," Agriculture Handbook No. 8, ERS, U.S. Department of Agriculture. Price per dozen.

Price of unfortified product.

The wholesale price of dry milk solids and estimated manufacturing cost of FPC were doubled to take into account the cost of adding the ingredient as well as the costs of performing the wholesaling and retailing functions.

1 Source: "The World Food Budget, 1970," Foreign Agricultural Economic Rept. No. 19 ERS, USDA, October 1964.

2 With 10 grams per person per day standard.

The required pounds of animal products to fill this would be greater because protein content is considerably less than 100 percent.

Mr. DINGELL. The next witness will be Dr. Ben Buchanan, of the General Foods Corp.

Dr. Buchanan, we are happy to hear whatever statement you choose to present.

Would you give us your name for the record?

STATEMENT OF BEN BUCHANAN, GENERAL FOODS CORP.

Mr. BUCHANAN. Yes. I am Ben F. Buchanan, manager of the technical applications research department for General Foods.

My name is spelled B-u-c-h-a-n-a-n, and I am a Ph. D., and not an M.D.

Mr. DINGELL. The record will be so corrected.

Mr. BUCHANAN. I would like to read our statement for the record, which essentially is the statement we entered into the Senate committee record.

This is a statement of General Foods Corp. to the House of Representatives Committee on Merchant Marine and Fisheries on Senate bill S. 2720, passed by the Senate on June 27, 1966.

General Foods Corp. supports the objectives of this legislation, to authorize the Secretary of Interior to develop, through use of experimental and demonstration plants, practicable and economic means of production of fish protein concentrate for human consumption.

We believe that some minor amendments, which are included in this statement, will help eliminate any possibilities of ambiguity regarding the purposes of this bill.

Enactment of this proposal into law will be a major step forward in the struggle to establish and maintain adequate nutrition for the rapidly expanding world population-a struggle in which our Nation is already taking a leading role.

This proposed legislation provides for a realistic cooperation between Government and private industry. This is a combination which many times has demonstrated its effectiveness as an efficient and economic method of achieving long-range humanitarian objectives. We support this proposal for three major reasons:

First. General Foods Corp., as one of the Nation's leading food companies, has a major interest in world nutrition and health. We presently are cooperating with a number of governmental agencies Seeking ways and means to feed the rapidly expanding world popula

tion.

We are actively supporting the food-for-peace program. Our president is a member of the National Advisory Commission on Food and Fiber. For a number of years, General Foods has actively participated in the Food Protection Committee of the National Academy of Science.

This committee's objective is to evaluate food technologies as they relate to public health.

We assist in the development of U.S. Department of Agriculture research programs by serving on the Utilization Research and Development Advisory Committee. We are presently engaged in research under contract with the National Institutes of Health on problems related to public health.

We very actively support such nongovernmental bodies as the Nutrition Foundation and the Institute of Nutrition Science, and have made substantial contributions to several university nutrition study programs.

Second. We are engaged in an intensive research and development program of our own. Our scientists are continually searching for new and different food supplies for new sources of nutrition-for ways to supplement our existing food sources-for methods to help increase our own limited capacity to support a growing world population.

This effort is compatible with our corporate goal: To furnish people with the best nutrition at the lowest price possible and a fair return to our stockholders. But at the same time, this effort reflects our sense of responsibility to aid in the solution of pressing human problems.

Third. We possess a considerable body of technical information in the area of fish protein concentrate. We will be pleased to share this information with the Secretary of the Interior to help achieve the objectives of this proposed legislation.

As we interpret the bill, it would permit the Secretary of the Interior to make a major advance in supplying an additional source of a highly nutritious and stable protein concentrate. The need for additional protein sources is well established.

The presently available supply of both vegetable and animal protein, as well as correlations of this supply against future needs and future

availability, has been carefully documented by a number of skilled investigators from governmental agencies, educational institutions, and private industry.

As I have indicated, that is shown in the appendix to this statement. While differences in these estimates do exist, the essence of all the studies is that a significant increase in food is necessary if the world's rapidly expanding population is to be adequately fed.

It is clear, then, that all logical sources of food, and, most importantly, protein, should be examined and, if possible, developed.

The sea is one such source, and while it is difficult to define its ultimate potential, the Bureau of Commercial Fisheries of the U.S. Department of the Interior, in its oceanography program presentation to the Inter-Agency Committee on Oceanography, Washington, D.C., September 24, 1965, estimated it at 500 million tons annually.

This would convert into almost 100 million tons to fish protein concentrate, which could certainly become a significant factor in the search for solutions to the growing world problem of adequate nutrition.

At the present time, there exist a number of laboratory processes for reducing whole fish to fish protein concentrate suitable as human food. However, there is not available yet a process which has been proven on even a pilot-plant scale.

There is just no process which now could be used to design and construct a commercial plant which could produce substantial quantities of edible fish protein concentrate.

This proposed legislation would provide experimental and demonstration production facilities. These steps are necessary before our modern technology can successfully start converting the sea's abundant supply of protein into food to nourish starving people around the globe.

In its present form, this bill provides for disseminating information obtained from the first large-scale pilot production plant to private industry. In the final analysis, it will be private industry which can most efficiently produce and distribute this new food source to the people.

The experience and information obtained from the pilot plant proposed in this bill can then be used to:

1. Provide fish protein concentrate which various governmental agencies can test for acceptability in those countries suffering from protein malnutrition.

2. Help develop the engineering data needed to plan and build a large-scale commercial production facility.

3. Provide enough concentrate for further research and development by private industry.

Without detracting from the primary objectives of this proposed legislation, we would suggest minor amendments in the text. These are offered only to make certain that no ambiguity exists with respect to its purpose.

We suggest that the present language would permit the construction of yet another fishmeal facility-fishmeal being presently manufactured in large quantities for industrial uses-animal feeds, fertilizers, et cetera.