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As you have stated here in your written testimony, at least, we 

 ought not to be producing for production's sake. And how often we 

 still do that, that we just produce and think volume. Well, most 

 producers that are surviving are learning that production is not the 

 key. It is efficient production. 



If you can't make a profit on what you are producing, why 

 produce it? That is the bottom line. 



So efficient production, utilization of technology, are going to be 

 critical to us. How do we plug the hungry, who have no money, into 

 a market-oriented production strategy? Look at what has happened 

 in the United States today, as we have gone market-oriented, and 

 I use the dairy policy for an example, surpluses that used to go to 

 hungry people are no longer there, and now we are confronted with 

 feeding people in a different way. 



How do we plug in the hungry into an equation of a market-ori- 

 ented agricultural policy, both foreign and domestic? Any ideas? 



If not, don't embarrass me and you both publicly, but if you have 

 some ideas, I would like to hear them. 



Mr. Goldthwait. I am certainly not an expert on the domestic 

 nutrition programs which attempt to do this. 



Mr. Stenholm. How about world? 



Mr. Goldthwait. But on the world basis, I think you can say 

 two or three things. I think you can look at the changing nature 

 of the need for food aid, which we are looking at. What we are find- 

 ing is that food aid needs around the world are significantly less 

 predictable. They are increasingly due not to natural disasters, but 

 to man-made circumstances caused by political events. We are try- 

 ing very hard to develop some ideas. 



I can't give you specifics today, but we are trying as we look at 

 our food assistance programs to develop some ideas about how we 

 can, in fact, make our food assistance more flexible. Are there ways 

 in which we can have resources under our food aid programs that 

 can perhaps be used for one kind of programming, in emergency 

 programming, for example, if emergencies develop during a par- 

 ticular year, but in the event those emergencies do not take all of 

 those resources, could that resource be used for food aid to support 

 other kinds of food aid needs, perhaps in monetization for develop- 

 ment. 



I think that is kind of the direction our thinking is going, trying 

 to look at our food aid resources and make them more flexible so 

 we can respond to needs as they develop rather than try to predict 

 those needs when we start our budget process 18 months before a 

 fiscal year begins. 



That is sort of the direction our thinking is going on the inter- 

 national side. That really doesn't address your concern about the 

 market orientation, but maybe that is helpful in a small way. 



Mr. Mendelowitz. What drives a market-oriented system is con- 

 sumers who, one, have certain preferences, and two, have the re- 

 sources to turn those preferences into purchases. When you are 

 dealing with countries or people who don't have the resources to 

 purchase, you are not dealing with a market phenomenon. And 

 maybe one of the problems we face in some food aid programs, we 

 try to serve too many interests with the food aid programs. And if 

 we recognize in the beginning that we are dealing with people who 



