132 



Mr. O'CONNELL. It is going down, really. As I indicated in my 

 testimony that was verified by the people over in ERS, it is just 

 simply declining. 



Mr. Penny. Tlie growth area has clearly been in value-added, the 

 United States has a relatively small share of the world market in 

 that area. Europeans, a sizable share. 



Mr. O'CoNNELL. Yes. 



Mr. Penny. So clearly that is a potential growth area for exports. 

 You have made the case this morning no one has even scratched 

 the surface? 



Mr. O'CONNELL. Not really. I just mentioned about 10 of the 

 products here we are working on, and in discussions with some of 

 the clients, for example, we have this Lubrisol. This is this product 

 right here. It now is being sold I believe, Joe, where is it? Japan 

 and Thailand and also in Europe. 



Mr. ROETHELI. They are trying to get in Europe, yes. 



Mr. O'CONNELL. This is made of vegetable oil. Crambe, rapeseed. 

 This is a transmission fluid supplement. And it just has a whole 

 lot of potential. The Newstone project, I know the people in Man- 

 kato, Minnesota, they have talked to some people overseas. But it 

 is just scratched the surface. There is opportunity for some of these 

 new products, but it really hasn't even started yet. 



Mr. Penny. Your last analysis in terms of market potential dealt 

 with the domestic demand and even here, a relatively level demand 

 graph for food items, processed food items, and so even as we look 

 domestically, the only potential for growth in ag products making 

 it on to the store shelf is the nonfood, nonfeed items. 



Mr. O'CONNELL. Nonfood, nonfeed because our production capac- 

 ity is growing at about 2 percent and our demand is growing about 

 1 percent. That is what has been appearing over the last number 

 of years. 



Mr. Penny. Have you coordinated agriculture with FAS or the 

 newly titled International Trade Service? 



Mr. O'CONNELL. I have with some of the folks over in ERS, but 

 not with the Foreign Agricultural Service people to the extent that 

 we need to. 



Mr. Penny. Certainly I would think that is a linkage that would 

 be important. 



Mr. O'CONNELL. And we need to make it. 



Mr. Penny. But virtually every item that you have been involved 

 with could look to a foreign market as well as domestic outlets. 



Mr. O'CONNELL. Yes. 



Mr. Penny. I wanted to ask Mr. Walker, specific to Maryland, 

 what are the products that you are presently most excited about 

 and focus on those that you believe have the greatest export poten- 

 tial? 



Mr. Walker. Again, I think any of the processed food products 

 that are made 



Mr. Penny. You mentioned poultry products. 



Mr. Walker. Absolutely. We are selling 10 to 12 container loads 

 a month to Japan. We are going into Indonesia, Singapore, into the 

 Far East with poultry products, any of the processed food items 

 that we make in Maryland, snack foods to canned crabmeat and 

 clams and everything else. 



