167° F. followed by 212° F., or (3) direct drying in a forced draft or vacuum oven at 212° F. Drying at a lower initial temperature appears to give a better tasting defatted peanut especially when a forced draft oven is used. A minimum total drying time of 9 hours is required to remove the last traces of solvent. A preliminary cost study for defatting Virginia peanuts with hexane in three all-new hypothetical commercial plants indicates operating cost can be as low as 74 cents for a volume equivalent to the 14-ounce pack popularly merchandised in 503 x 308 tins. Using fully depreciated equipment reduces operating cost of the equivalent of the 14-ounce pack to 61.5 cents. COMPETITIVE SITUATION IN PEANUT INDUSTRY Mr. WHITTEN. Is it not a fact in the peanut situation, I am quoting what others have said to me, that insofar as shelling, controlling or eradicating insects, equipment for planting and harvesting, drying, and storage operations, all types of peanuts producers have a common interest. But it is the quality research which has caused the fight on what the price level should be, what the oil content is, which is better for peanut butter, which is better for the slot machines you mentioned, and so on. Isn't that where the competitive situation exists primarily, insofar as you know? Mr. SMITH. Mr. Chairman, as I understand it, the struggle that goes on within the peanut industry stems largely from the fact that the peanuts of these different types are readily substitutable one for the other, in the No. 1 use category, peanut butter. Mr. WHITTEN. You and I agree they are readily substitutable, if that is the proper word, but each area insists theirs is the best, do they not? Mr. SMITH. I think that is so, sir; yes. Mr. WHITTEN. That being true, it is easy to understand that quality might be the decisive factor in the competitive situation. It begins to make sense why they are afraid to put the research center in one location, doesn't it?" Mr. SMITH. Well, actually I personally had not heard it expressed that way, Mr. Chairman. Mr. WHITTEN. I haven't expressed it that way before. But now that I have, what do you think? Mr. SMITH. Well, I frankly have a hard time trying to bring myself to agree with that statement, Mr. Chairman. Mr. WHITTEN. You and I agree that you can substitute one for the other, without much difficulty. We also agree that each insists theirs is the best. Wouldn't it follow that they might have a fear of putting this work in the area of one particular type? Or is it something else that is involved? Mr. SMITH. Well, I just don't have anything to draw on in terms of expressions from the industry folks themselves that would lead me to believe that. Mr. WHITTEN. The committee will recess until tomorrow at 1 o'clock at which time we will continue this discussion. THURSDAY, MARCH 7, 1963. RESEARCH ON BASIC COMMODITIES Mr. WHITTEN. The committee will come to order. I believe at this time I shall insert in the record a compilation of the research work that is being done for the various and sundry commodities in the Department, with particular reference to the basic commodities. In that connection, I would state for the record that according to the Department's report to us, the total value of production of the major commodities for 1962 is as follows: wheat, $2,204,661,000; corn, $3,923,228,000; cotton (upland), $2,356,958,000; rice, $323,484,000; peanuts, $200,496,000; tobacco (Flue-cured), $840,028,000; tobacco (burley), $377,923,000; milk (wholesale), $5,150 million; wool, $115,559,000; oats, $639,691,000; barley, $394,581,000; grain sorghums, $505,994,000; and soybeans, $1,562,720,000. The reason I am providing these figures is that it might help those who read the record to understand the relationship between your research and the size of the crop. If there is no objection, I should like you to insert a table showing research work now going on in your service with regard to all of these commodities. (The table referred to follows:) Marketing research conducted at field stations and Beltsville, Md.-Continued Illinois: Indiana: Lafayette. 8 Direction, coordination, and performance of marketing research of a physical and biological nature to develop methods of identifying and measuring market quality factors in field crops and animal products which will be applicable in developing market grades and standards and improving inspection and grading procedures; performance of research on quality, deterioration, and spoilage in field crops and animal products during handling, transportation, and storage, Direction, coordination, and performance of market- Direction and coordination of marketing research on Performance of research on physiological changes that occur after harvest in fruits, vegetables, and other Space in 2 buildings at plant industry station; both office and laboratory buildings; pay ARS for space including utilities and maintenance ($31,400 approximately). Space in 2 small buildings at plant industry station; occupy all of 1, share other with another branch; pay ARS for space including utilities and maintenance ($3,800 approximately).. Space in 1 building at plant industries station, office and laboratory building; pay Agricultural Research Service for space including utilities and mainte |