183 



••••™ BIOPRODUCTS 



• # # # # 9 Plsl^ fetdi Division 

 9999900 Bloproducts. Inc 



• ••••••• PQBOX^29 



•••••••••• Warrenton. 01! 971^6 



1503] 861-2256 

 FAX: (503) 861-1701 



3 June, 1993 



Representative Kopetsky: 



Enclosed are copies of two letters we sent trying to persuade the 

 Department of Commerce to modify the Whiting allocation decision. 

 Bioproducts invested over one half million dollars on new equipment 

 last year to utilize the scrap material from the Whiting industry 

 in our area. It is our long term goal to increase capacity of 

 processing in Warrenton to eventually be able to process all 

 whiting waste produced on the coast. 



The current allocation decisions have a direct impact on our long 

 range goals. Before we can invest further capital into process 

 equipment we must show our owners that the money they spent last 

 year was a good investment, and has generated the income we 

 projected. This years reduced allocation will cause us to come up 

 short of our projections. It will not be as severe as first 

 thought, because of the increased allotment, but will still cause 

 us to make a substantial substitution of ingredients in our 

 manufacturing process. This will immediately increase our 

 manufacturing cost, reduce our profitability, and reduce the 

 payback for the capital investment. I won't be able to address the 

 final numbers until the first of the year. The waste material 

 coming from Pacific Whiting production is an essential component of 

 the fish feeds we produce now. We are working to appropriate 

 additional capital for investment in equipment to further utilize 

 this raw material source. It makes no sense to process these fish 

 at sea and dump the waste, when that same fish can be processed as 

 well on shore, and the waste can be utilized in secondary 

 processing. It makes economic and environmental sense. We fully 

 support your efforts to increase the allocation of whiting to shore 

 based processors. 



I hope this information is helpful to you. If you have additional 

 questions, or need more information please let me know. 



Cordially yours. 



Russ Farmer 

 Operations Manager 



