demonstration plant in the State of Washington, and carry out biological 

 extraction research. Public Law 90-549 authorized the contract for design, 

 construction and operation of a 50-ton-per-day plant at Aberdeen, Wash., to 

 demonstrate the feasibility of large-scale FPC processes at lower costs and 

 to provide engineering and economic data to assist private industry in con- 

 struction of commercial plants. The Council also approved initiatives for a 

 multiagency effort to investigate the potential of FPC in combatting malnutri- 

 tion in the United States within the framework of the broad program an- 

 nounced by the President in May 1969 (see table VI-1). 



Also during the year the Council contracted with the Ma.ssachusetts Insti- 

 tute of Technology for a study of "The Economics of Fish Protein Concen- 

 trate" which would compare FPC with other protein additives for domestic 

 and foreign use. 



The Agency for International Development conducted preliminary sur- 

 veys of the opportunities for developing FPC capabilities in a number of 

 Latin American, Asian, and African nations. As a result of these surveys, 

 intensive studies Avere initiated on a bilateral basis in Chile and Korea in 

 1968, and a study of Morocco is expected to begin in mid-1970. The em- 

 phasis of the Korean study was altered when it became apparent that 

 Korea lacked an inexpensive source of fish for economical FPC production. 

 Although construction of an FPC plant in Korea is not now contemplated, 

 the study showed that FPC was the best source of protein there from a 

 cost-protein-effectiveness viewpoint. 



The Chilean study will continue through fiscal year 1970, and will assist 

 potential investors in determining the commercial attractiveness of FPC 

 investment in that country. The Chilean study includes — 



( 1 ) Market analysis, including identification of factors contributing 

 to dietary patterns, determination of opportunities for encouraging con- 

 sumer acceptability of FPC, and introduction of FPC into Govern- 

 ment feeding programs ; 



(2) Product development and testing to determine the suitability of 

 FPC in fortifying local foods such as flour, bread, and pasta; and 



(3) Supply analysis to determine availability of an adequate supply 

 of inexpensive underutilized fish stocks. 



In 1968 AID contracted to purchase approximately 1,000 tons of FPC 

 for use in overseas feeding programs. In late 1969 AID partially terminated 

 the contract for failure to deliver an acceptable product. 



AID has accepted delivery of 99 tons of FPC and will accept FPC pro- 

 duced before the contract was terminated provided the product meets 

 contract specifications. The limited quantity obtained will be allocated so as 

 to obtain data on product development, acceptance, and stability. An inter- 

 disciplinary team from the University of California is assisting AID in this 

 evaluation. Future FPC purchases will depend upon the findings of this 

 evaluation and the ability of the manufacturer to produce acceptable FPC. 



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