CHANNEL CATFISH FARMING, THE MOST IMPORTANT WARM-WATER AQUACULTURE IN THE UNITED STATES, PARTICULARLY IN THE SOUTHEASTERN REGION HAS A MULTI-BILLION DOLLAR OVERALL SOCIAL-ECONOMIC IMPACT. HOWEVER, CATFISH INDUSTRY HAS DECLINED DRAMATICALLY DUE TO INCREASES IN FEED COST AND FIERCE IMPORT COMPETITION. THEREFORE, ENHANCING PROFITABILITY AND ABILITY TO COMPETE IN THE GLOBAL CATFISH MARKET WILL STRENGTHEN THE US ECONOMY. THE BY-PRODUCT (ABOUT 60% OF THE WHOLE FISH, COMPRISING HEADS, SKIN, BONES AND VISCERA) AFTER FILLET CUTTING HAS LITTLE VALUE, AND IS REGARDED AS A WASTE. NOVEL UTILIZATION OF THE CATFISH BY-PRODUCT AND CARP MEAT FOR FOODS IS CRITICAL FOR ENHANCING THE PROFIT OF THE FISH INDUSTRY, AND WILL ALSO PRODUCE PROTEIN FOR HUMAN CONSUMPTION. OUR LONG-TERM GOAL IS TO ENHANCE THE VITALITY OF THE FISH INDUSTRY, AND SPECIFIC OBJECTIVES ARE TO (1) SYSTEMATICALLY OPTIMIZE PROTEIN YIELD AND QUALITY THROUGH STUDYING THE PHYSICAL CONDITIONS OF THE EXTRACTION PROCESS AND CONDUCT THE QUALITY OF THE PROTEINS ISOLATED FROM THE WATER AND SALT SOLUBLE PORTIONS OF THE CATFISH BY-PRODUCT, AND (2) TO DEVELOP NOVEL PROCESSING TECHNOLOGIES TO OPTIMIZE THE PROTEIN YIELD AND QUALITY OF THE PRODUCTS (SURIMI PROTEIN ISOLATE AND GELATIN) FROM HOMOGENIZED WHOLE CATFISH BY-PRODUCT PASTE, AND TO ENZYMATICALLY MODIFY PROTEIN TO PRODUCE HIGH-QUALITY PROTEINS FOR GELLING AND TO PRODUCE PROTEIN HYDROLYSATES FOR USE AS FLAVORING AGENTS AND NUTRITIONAL INGREDIENTS, AND TO RECOVER BONE MATERIALS FOR USE AS CALCIUM SUPPLEMENTS, AND (3) TO CONDUCT THE ECONOMIC FEASIBILITY OF THE PROTEIN EXTRACTION PROCESS. THIS STUDY FITS WELL WITHIN THE PRIORITY PROGRAM A1531 ON THE VALUE-ADDED UTILIZATION OF WASTE OR UNWANTED MATERIALS GENERATED IN AGRICULTURAL AND FOOD SYSTEMS.