409 



eigii country as a basis for backing- up collateral of that coni})any 

 alone ? 



How do we get private industry in this business when there is no 

 market unless you are talking about the big man ? 



JNIr. Waters. We are not direct buyers of food products in that sense. 

 However, under the plan we are working on, for which we are trying 

 to work out the details now, we would hold up a target of $1 million 

 and say, in effect, "We will provide an assured market if somehow it is 

 produced." We will take $1 million of that production off the market. 

 We are working on specifications for an end product we can use. We 

 will do this through a transfer of funds to the Department of Agri- 

 culture, to mingle with their funds that will finance a combination of 

 com, soya, milk, and fish concentrate. It would make an ideal formu- 

 lated food to meet all the nutrient needs of mothers and children. 



This will probably be produced by millers who are not in the fish 

 protein concentrate industry. They in turn would have to be the buyers 

 from whoever produces the fish concentrate. 



The procurement system is what we are working out. We do not 

 think we are going to get any suppliers starting to produce until we 

 hang up a target or amount that we would take off the market in a 

 given year. Rather than just buy the fish concentrate and try to go 

 into producing an end product ourselves, we want to encourage the 

 major food processors, the General Foods people, com-millmg indus- 

 try, wheat people, any other industry that wants to compete, in finding 

 who could create the besit blend of a product with fisli concentrate in it, 

 and come up with a food product that we can introduce to the world. 



We are gomg to try to start some competition in this field. 



Mr. Pollock. Are you visualizing a product such as a powder or 

 flour ? 



Mr. Waters. Yes, sir. We visualize a product with the simplest prep- 

 aration possible. Our experience overseas indicates that a precooked 

 form that can be quickly and easily prepared with just hot water, is 

 easiest to introduce. We have had experimental success around the 

 world in a formulated food we call GSM, which is a corn, 

 soya, and milk mixture. We are convinced from a nutritional and cost 

 standpoint that we can upgrade the quality of the protein in this 

 formula by makmg a percentage of it in fish protein concentrate, and 

 have an acceptable food because it is already in use. 



We have some 400 million pounds of this GSM now being used in 

 donation programs by 80 comitries. This is made available to groups 

 such as Gatholic Relief Service, GARE, and Ghurch World Service, as 

 well as in intergovernmental programs by using the American volun- 

 tary agencies in distributing such products w^e can watch the results 

 and get reports back on the acceptability. By being a powder product, 

 it can be prepared in many ways, such as a simple mush or gruel, 

 almost into a drink by liquefying. It can be mixed in other foods or in 

 soups. 



Mr. Pollock. Gookies and pancakes? 



Mr. Waters. Anything. 



It has had a pretty universal acceptance as an easily prepared food. 

 We are going to try to do the same thing with the fish protein concen- 

 trate. We are also using some new formulated foods with a what base 



86-705— 68-^pt. 1 27 



