Completion of work or termination of lower priority research at small field stations ($264,000)-Continued

2. Cooperative State Research Service:

Payments and expenses, payments under section 204(b) of the Agricultural
Marketing Act:

Payments to the State agricultural experiment stations for market-
ing research on agricultural products ($500,000):

This program has been in effect since fiscal year 1949. Funds have been used to finance project proposals submitted by the stations and selected by the Department in consultation with the experiment stations' marketing research advisory committee, the lattter consisting of four experiment station directors and one home economist. The program is designed to serve three main purposes:

1. A nonformula "reserve" to strengthen marketing research in selected

areas.

2. Support for additional marketing research at those stations having the interest and the trained personnel to undertake marketing studies, in addition to those required by the Hatch Act.

3. A means of facilitating closer cooperation among research, extension, and service programs in marketing at the State level.

Research carried forward with 204 (b) funds covered a wide range in both economic and technological fields. Current studies include such subjects as marketing eggs in Alaska, selected effects of importation of meats and meat products in the livestock industry, the phase of pesticides in animal products during storage and processing, postharvest rots of peaches and other stonefruits in transit and storage, potential of retail roadside markets, the marketing of Hawaiian coffee, the market for meats and meals eaten outside homes, effects of integration in agriculture on marketing and pricing efficiency, and potential market expansion for selected grain crops through new uses and changed utilization patterns.

The New Jersey Agricultural Experiment Station, for example, has proven that the rapid development of rancidity in frozen and cured pork is due to the catalytic effects of salt. Basic research on this problem showed that this rapid development of rancidity could be prevented by coating the salt with an inert fat which is solid at frozen and room temperatures but melts at cooking temperature. By this means of improving shelf life a new line of meat products may be possible. Also, it should be of economic importance in the storage and transportation of pork during periods of peak production. The interest of those stations desiring to strengthen their marketing research is evidenced by the fact that each year the number of projects considered has been much larger than could be activated with moneys available. In the current fiscal year, 35 stations are participating in a total of 88 projects. It is important to note that it has been required that Federal funds allotted to each project must be matched by at least an equal amount of money from non-Federal sources.

Currently the grant program under the section 204(b) of the Agricultural Marketing Act supports 88 research projects at 35 State stations. Additional information on works supported by this progam, since its inception, is as follows:

State research supported by the Agricultural Marketing Act, sec. 204(b), program for fiscal years 1949-64

The $500,000 reduction for this program would have the effect of eliminating all research grants to the States under section 204 (b) of the Agricultural Marketing Act. Currently these grants are distributed by States as follows:

Distribution of Agricultural Marketing Act, sec. 204(b) funds, by State, 1964

This reduction in research funds, some 42 percent of the $220,000 provided in fiscal year 1964, relates to research work performed by the Special Surveys Branch, Standards and Research Division, Statistical Reporting Service. The purpose of the work, in brief, is to assist in the marketing of agricultural products, and to complement marketing and economic research work conducted by the Agricultural Marketing Service and the Economic Research Service, and that of the utilization research work performed by the Agricultural Research Service. This is accomplished primarily by analyses of opinion and attitude surveys of household and industrial consumers of agricultural products concerning such aspects as likes and dislikes, reasons for use and nonuse, bases by which decisions are made concerning commodities, and taste discriminations.

Work of this nature, which started in the Department over 30 years ago, was orginally oriented toward agricultural programs; during the World War II era the trained staff's efforts were directed toward such projects as evaluating response to certain wartime activities, assessment of war damage in Europe, and phases of forecasting consumer expeditures and business activity. Since 1947, under the authority and direction of the Agricultural Marketing Act of 1946, the work has been specifically directed toward marketing research, with emphasis on the uses, attitudes, and opinions of consumers and market buyers toward agricultural products. Special attention has been given to those agricultural commodities in abundant supply for which new or expanded markets were sought, such as cotton, wool, potatoes, citrus, poultry, and grains. The staff, which is headquartered in Washington, D.C., has been able to accommodate only a portion of the work recommended by the Research and Marketing Act Advisory Committees throughout this period.

Results of studies conducted by the Special Surveys Branch on consumers' opinions of agricultural products in various end uses are utilized by natural fiber organizations and food producer groups to evaluate the position of their products in specific segments of the economy and to encourage and guide private industry's efforts to improve the products' attributes so that they can strengthen their market position.

One example of such an application of data from these surveys is the encouragement of the development and use of new processes to improve cotton by imparting such attributes as wrinkle resistance, easy care features, and permanent pleating. Data on consumers' reactions to cotton indicated that it was losing favor because of the superior performance of synthetic fibers in these respects

the pinpointing of this major problem area through consumer preference research provided a strong stimulus for efforts to overcome this handicap to cot. ton. In addition, each year the National Cotton Council of American bases a major portion of its promotion for consumers and retailers on these research results; these reports have also been used as standard examples in the market development program of Cotton Council International.

In the past decade, publications have also been released on a number of studies conducted in cooperation with other agencies to evaluate the market potential of new or improved products developed by the USDA's four regional utilization research and development divisions, such as canned cook rice, instant potato flakes, sweetpotato flakes, and bulgar, a canned cooked wheat. 4. Agricultural Marketing Service:

Marketing research and service:

Research on market facility planning and wholesaling and retailing operations, and research on other physical handling of farm products in marketing channels ($862,000):

A reduction of $862,000 is included in the budget in funds for engineeringhandling research to improve and maintain the quality of commodities moving through the marketing system and to improve the efficiency and the handling of farm products at each stage of marketing such as assembly and processing plants, terminal wholesale and retail markets. Included in this proposed reduction is a decreased emphasis in research on devices, methods, and equipment for assembling, preparing for market, transporting and packaging to improve the efficiency of physical handling of agricultural products in marketing channels by eliminating this work at several field locations.

This work is now carried on under title II of the Agricultural Marketing Act of 1946.

The specific research to be discontinued or curtailed, the locations affected, and other data concerning the work follow:

a. Washington, D.C. ($645,897):

Research which would be discontinued at this location includes the following lines of work:

i. Discontinue planning assistance for improved marketing facilities for farm and food products in metropolitan and production areas: This work has been conducted by a staff located in Washington, D.C., based on specific requests from States, municipal agencies, and other groups.

Plans have been developed for over 50 terminal markets since 1948 and 22 markets constructed based on plans produced by this work. In addition, construction of a considerable number are pending.

Terminal market projects currently underway and their present status of accomplishments are shown below:

For production areas, 195 studies were made in the producing areas of 31 States. These were studies of poultry, egg, meat, livestock, fruit, and vegetable, and wholesale grocery processing and marketing facilities. The studies ranged from evaluating existing marketing operations to developing designs for new, modern facilities and equipment layouts. Approximately 125 of these studies have been used in the construction of new facilities, the improvement of existing plants, or the adoption of better methods of handling or processing. Many others are still under consideration. Some proposals were found not feasible and were so reported.

II. Discontinue research to improve the efficiency of food wholesaling and retailing operations:

This work is performed by a staff located in Washington, D.C.

Examples of results of this work accomplished in recent years are: Grocery wholesaling studies.-The effectiveness of the research to improve the efficiency of grocery wholesaling is indicated by the widespread adoption of suggested improvements and reduction in operating margins.

Produce operation in retail food stores.-An improved program based upon research results for the produce department in retail food stores has been installed in over 300 supermarkets.

Food service institutions.-Research to increase the efficiency of food distribution through restaurants and hotels has increased labor productivity of handling certain fruits and vegetables. This research is being extended to public school cafeterias where similar efficiencies appear obtainable.

Central packaging of cheese.-Research workers have developed efficient methods of packaging cheese in the central warehouse which costs 2.3 cents per pound compared to 3.9 cents per pound when packaged in the retail stores.

Breakage and damage in grocery warehouses and retail food stores.—It is estimated that losses due to breakage and damage amount to $40 to $60 million annually in the warehousing, delivery, and retailing of groceries. A study has pinpointed the causes of this damage and made recommendations as to remedial measures for reducing it.

Warchouse bagging of produce.-AMS research workers have developed efficient methods of bagging potatoes, onions, apples, oranges, and grapefruit at the warehouse that average one-third lower in cost than the most efficient methods of bagging these items in the backrooms of retail stores. Five retail chains are pioneering warehouse bagging by installing the AMS recommended methods.

Grocery and checkout operation in retail food stores.-Sales in the grocery department of retail food stores amount to over $25 billion annually. Research aimed at greater efficiencies in operating methods was completed several years ago and USDA's recommendations have been widely adopted by industry. Research in the wholesaling and retail field is currently underway on the following projects:

Improving operations in institutional grocery warehouses.

Breakage and damage in warehouse.

Uniform accounting for grocery wholesalers.

Inventory control for wholesale grocery warehouses.

Improved warehousing of fresh meat.

Loading out delivery trucks for distributors' fresh fruits and vegetables.

Improved operations for school-lunch cafeterias.

Alternative techniques for handling produce.

Produce packaging at central warehouse.

Systems for handling meat in retail stores.

Tray display for meat.

Central packaging of meat.

Adaptation of research results to small stores.

Dairy department operations.

Bakery department operations.

Optimum work methods, equipment, layout, and store organization. Effect of improved sanitation and temperature control in handling meat.

b. Field stations ($216,103 1):

Research would be discontinued at selected field stations on devices, methods, and equipment for assembling, preparing for market, transporting, and packaging to improve the efficiency of physical handling of agricultural products in marketing channels and reduce emphasis on this work conducted at Washington by extending the time required for its completion. The field stations and funds involved, the work conducted there, how long it has been going on and examples of results achieved are as follows:

Bakersfield, Calif. ($15,900).-This work has been conducted at this station for 3 years. Research conducted is for improved methods, techniques, equipment and facilities for the handling and storage of bales of cotton and development of satisfactory equipment and methods for humidifying cotton storage compartments to maintain the moisture content of stored bales at desirable levels. This research has resulted in (a) improved methods and equipment for receiv