model plant than in the smaller one. Plants having a mixing capacity of 80 and 200 tons per 8-hour shift are common in the mixed food industry.

This and other reports published by the Marketing Economic Division are used by the Feed Production School, Inc., conducted by an industry association, as a part of its program to reduce production costs. The cost standards developed in this study are believed to be below the costs of most plants in the industry. Because of the intense competition within the mixed feed industry, savings. achieved by reducing costs to these standards likely would be passed on at least in part to farmers and ultimately to consumers of animal products.

EXPORTS TO THE COMMON MARKET

Mr. WHITTEN. Where you bring together the facts as they exist, for various and sundry to interpret as they wish, I think nearly everybody recognizes the value of bringing together that information. I know that those who have studied the subject can see the benefits in these others.

It is not as easy to get over, however, either to us or on our part to other Members of the Congress and to the country.

I note in your statement that our exports to Common Market countries were off some half a billion dollars in 1962 as against 1961. Anyone who has wrestled with the cotton problem, which I have, representing an area where it is quite a commodity, and anyone who has been familiar with the fact that there has been lots of talk that prices would be reduced would know that the buyers would get by with just as few purchases as possible. I am sure that if you matched the fall-off in the sales of cotton just from that talk alone, it would equal the difference that you point out there.

I am sure that there are some other factors which don't show in just this one commodity. We all know that this Common Market problem is a real one.

Turning briefly to the Foreign Agricultural Service, which will be before us later, some years ago I spoke to the foreign agricultural attachés in Paris, at which time none of our representatives knew that the United States had authority under the law to sell our surplus competitively for cash. Every country in the world did that except us. From that start we finally got it accepted that that was the law. We moved billions and billions of dollars of commodities.. We are about to backslide again, I am sorry to say.

Now, why is it that FAS doesn't do a lot of these things that you are talking about as to probable markets and things of that sort? Wherein is your work in that area not a duplication of our agricultural attachés' work, since they primarily are there to develop world markets?

Mr. KOFFSKY. The attachés is just one source of information that we use in developing the statistics.

For example, when we indicated in here the statistics of the falloff on our exports of the Common Market in that five-point period from August to December 1962

Mr. WHITTEN. Could you supply at this point in the record a listing by commodity so we can see what has fallen off and what has held its own?

Mr. KOFFSKY. Yes. I have a table on that.

Mr. WHITTEN. You might introduce it at this point in the record.

(The table referred to follows:)

U.S. agricultural exports to the European Common Market, August through December 1961, and 1962

Mr. KOFFSKY. In wheat, our exports are down 73 percent in the 5 months period to the Common Market; wheat flour down 27 percent; poultry and eggs, 44 percent; broilers and fryers are down 54 percent : eggs are down 76 percent. The total of these commodities involved in variable levies are down 21 percent. I will say that feed grains did go up during that period 38 percent.

Cotton is also down, and this is not a variable levy commodity. It is down 56 percent in that period.

Mr. WHITTEN. I think it has been our own domestic policy which has been the major factor in that.

FOREIGN ECONOMIC ANALYSIS

Mr. KOFFSKY. Carrying on your question with relation to the Economic Research Service, with relation to the attaché, the attaché provides information to us. But in addition we do get information on the exports and imports of the various countries from the United States and other nations, which in turn give us clues as to what is happening to the whole pattern of world trade. This is what we are anxious to do more of.

We realize that the Common Market is changing the pattern of world trade, and it is not enough just to understand what we are shipping into the market. We want to know what other countries are shipping in, or taking.

Mr. WHITTEN. Do the foreign agricultural attachés supply the information from which you draw your deductions? Or do you do your own assimilation of this information?

Mr. KOFFSKY. They provide some information, but we do a lot of our own assimilation of this information.

Mr. WHITTEN. Do you send agents to these countries or get reports from them?

Mr. KOFFSKY. We get reports, and in cooperation with the FAS, we do send statisticians to various countries to determine what are the productions of commodities, and what are the opportunities for exports from the United States to these countries.

Mr. WHITTEN. It is mighty hard for me to see, Mr. Koffsky, where this is anything but a duplication. It is their job to bring together not only that which is primarily agriculture but to get figures from their commerce counterparts, and from the various other representatives which our Government has at each of these locations, and send them back here. If you do the analysis of that, the compilation and things of that sort, I could understand it.

But for you to send a man over there to obtain the same information is hard for me to follow. For you to have to go to France to pass on the information which the agricultural attaché ought to be getting to you over here, I just can't see that.

Dr. JOHNSON. I wonder if I might respond just a bit?

I would like to say, Mr. Chairman, that our relationship with the Foreign Agricultural Service in our economic research work is similar to, and quite analogous to our relations on the domestic side to the domestic agencies such as the Agricultural Stabilization and Conservation Service, the Farmers Home Administration, and the Soil Conservation Service.

In other words, with the reorganization we were given the responsibility for economic research in the foreign field. The Foreign Agricultural Service has the responsibility for the agricultural attaché service over the world. They are rendering a very fine service to all agencies in the Department of Agriculture. We get, as Mr. Koffsky said, quite a lot of information from the agricultural attachés.

But the figures which Mr. Koffsky just cited on exports to the Common Market are compiled by cooperative arrangements between the Economic Research Service and the Census Bureau. The Census Bureau does collect current information on U.S. agricultural exports, and U.S. agricultural imports. So that is the source of this current information.

Now then, in addition to the information that the agricultural attachés supply us country by country we do have, as Mr. Koffsky's statement indicates, some research projects underway in 21 different countries on demand and supply relationships at the present time. These studies are made with foreign currency funds. Then, as a result of our economic research we have built up a working relationship over the years with economists in other countries. Thus, we do have other information that we can draw on, such as studies that economists in other countries have made.

So our job consists of tying all of these things together into meaningful analyses. Mr. Chairman, identify the impacts of export and import developments, and highlight the significance to American agriculture. Economic Research Service, and Foreign Agricultural Service and everybody else interested in American agriculture is concerned with expanding the foreign market for farm products. The Foreign Agricultural Service is the operating agency, and of course they have to collect information to carry on the operating responsibilities. We have the responsibility for research.

Mr. WHITTEN. Do we have in the record the 21 studies that you have made with foreign currencies and where they are located. Could we have that for the record?

(The information requested follows:)

Following is a listing of the long-term foreign supply and demand studies which have been or are being carried out with foreign currency funds under market development activities of Foreign Agricultural Service:

Mr. WHITTEN. In addition, how many other studies have you made and what publications have you made concerning these? Can you get the State Department to read them?

Mr. KOFFSKY. We have not published yet any of the other studies, other than some of the 21 long-range supply and demand studies, but we can provide a list.

(The matter referred to follows:)

The following research studies also are being conducted with foreign cur rency funds under market development activities of Foreign Agricultural Service:

1. Survey of consumer expenditures for food and fiber, on and off development projects. Contract with India begun June 1960. To be completed in 1964. 2. Effects of Public Law 480 on economic development and trade (effects on exports of U.S. farm products).

The following studies have been undertaken with foreign currency funds available to the Agricultural Research Service:

1. The influence of planning and management on success in farming:

Finland:

Date of contract: July 19, 1960.

Completion date: 5-year study.

2. Economics of alternative use of land for agriculture and forestry: Finland:

Date of contract: July 24, 1961.

Completion date: 5-year study.

3. Factors which promote or impede changes in agricultural organization and production:

Israel:

Date of contract: May 18, 1962.
Completion date: 3-year study.

4. Marketing rice in Colombia: Colombia:

Date of contract: October 31, 1961.
Completion date: 3-year study.

Mr. WHITTEN. When was this reorganization made, and just what was done? Tell me briefly and enlarge it in the record. I am trying to find out how long this has been in your agency.

Dr. JOHNSON. We can supply the agreement between the two agencies for the record.

(The material requested follows:)

The part of Secretarial Memorandum No. 1446, dated February 24, 1961, which deals with transfer of economic research functions, reads as follows:

"TRANSFER OF FUNCTIONS INCIDENT TO REORGANIZATION

"1. Department structure.-Current organization of the Department provides for four groupings of program agencies, under the general direction and supervision of Department officials attached to the Office of the Secretary. To provide for more effective coordination of functions involving research in agricultural economics and statistical reporting, the decision has been made to realine such functional activities in a fifth grouping under similar central guidance. This determination will result in departmental structure as follows:

"Assistant Secretary, Federal-States Relations.

"Assistant Secretary, Marketing and Foreign Agriculture.
"Assistant Secretary, Agricultural Stabilization.
"Director, Agricultural Credit.

"Director, Agricultural Economics.

"2. Economics functions transferred.-The Director of Agricultural Economics is assigned responsibility for arrangements incident to the transfer of statistical reporting and economics research functions, involving adjustiments outlined below, affecting three existing agencies.”

STATISTICAL REPORTING SERVICE

This agency will be headed by an Administrator and will assume program responsibilities now placed in organizational units of the Agricultural Marketing Service, including basically:

Agricultural Estimates Division.

Statistical Standards Division.

Related and supporting activities.

ECONOMIC RESEARCH SERVICE

This agency will be headed by an Administrator and will assume program responsibilities now placed in organization units of other agencies, including basically:

Agricultural Marketing Service:

Functions of the Deputy Administrator, Economics and Statistics, and the Agricultural Economics Division;

Chairman, Outlook and Situation Board;
Market Development Research Division;

Marketing Economics Research Division;

Related and supporting activities.

Agricultural Research Service: Functions of the Farm Economics Research Division, with related and supporting activities.

Foreign Agricultural Service:

Foreign Agricultural Analysis Division.

Part of the Trade Policy Division, including the

International Monetary Branch.

Trade Statistics Branch.

Related and supporting activities.