Transcript USDA Update for NC Foodservice Meeting

What’s New With Commodities
Cathie McCullough, Director
Food Distribution Division
FNS/USDA
2007 SNA State Agency Conference
Nashville, TN, November 2007
Today’s Agenda
 Commodity Image


Improvements
Commodity
Outlook/ECOS

DoD

Other News
Commodities in Crisis!
Addressing our Image Problems
Overcoming perceptions and realities…
Perceptions:
•
School lunch causes obesity
•
USDA “surplus” commodities are the
culprit
•
Commodities are low quality
Commodities in Crisis!
Realities:
• Commodities account for 15-20%
of food purchases in schools
• School districts are never required
to accept items they don’t want
• USDA commodities are a healthy choice and
can play an important role in meeting
wellness standards:
 Less sodium
 More whole grains
 More fresh F&Vs
 Less fat
 Less sugar
Commodities in Crisis!
When we get hit…so do you!
We are addressing our image…
• ”Did You Know…” fact sheet
• Press releases/press packages
• Commodity image website
• Recipe contest
• Other suggestions?
We are targeting …
• Foodservice Directors…and you can help!
• School boards/administrators/superintendents
• Parents/Congressional Rep’s/general public
Commodity Improvements
Products are continually
reviewed to ensure each
supports “Dietary
Guidelines…”
– Eliminated trans fats in
frozen potatoes
– Testing fat free potato
– Eliminated shortening
– Chicken skin substitution
for meat
– 96-97% lean ham
– 95% lean turkey ham
– Testing a 95% lean beef
patty
Commodity Improvements
Reducing sugar
– Unsweetened applesauce
Increasing whole grains
– Spaghetti
– Rotini
– Dry kernel corn for further
processing
On the horizon…
– Low sodium vegetables
effective SY 2009
Commodity Fact Sheets
Updated NSLP Fact Sheets:
•
New “user friendly” format
•
One food, one code, one fact sheet
•
A tie-in with MyPyramid food groups
•
Consistent with Nutrient Standard Menu
Planning guidance
•
Nutrient values for: dietary fiber, trans
fat, sugars, magnesium, potassium,
vitamin A in RAE units, and vitamin E
Commodity Outlook
Beef and Pork Outlook:
– Beef and pork purchases are on
schedule
– 90% lean frozen (new) and
chilled special beef trim for
reprocessing is available for
January 2008
– New 96-97% lean sliced and
diced ham is available in 5 lb.
packages
Commodity Outlook
Poultry:
– All turkey orders
(roasts, hams, deli
breast) were
purchased for the fall!
– Processors can now substitute
meat for skin to lower fat content
Commodity Outlook
Fruit Outlook:
– Canned clingstone peach
production is up
– Fresh Bartlett pears are
plentiful
– Maui Land and Pineapple Co. is
focusing on fresh product only—
no more canned pineapple!
Commodity Outlook
Other Products:
– Cheese
 Prices
are high due to export
demand
 Long-term contracts
 Mozzarella orders due earlier
(due Sept 07 for 2008)
 Moving to a calendar year purchase
cycle
– Catfish strips
 All
bones will be removed
 Looking for suppliers
 Will do a test purchase
Bonus Commodities
USDA Bonus Purchases for CN
Programs in SY 2008
 Canned and frozen apple slices
 Applesauce
 Canned apricots
ECOS
New Fixes were issued
10/20/07:
– Includes an “All” option in selection
criteria for reports
– Includes an “All” option in the
Transfer function
– SDA can limit RA submissions that
exceed entitlement
Effective Spring 08: further ECOS
modifications will be restricted to
accommodate WBSCM development
ECOS/WBSCM
WBSCM: An internet-
based system USDA
agencies will use to
purchase, manage, and
deliver commodities
Web-Based Supply Chain Management
DoD Fresh Program
– 47 States, DC, VI, PR, & Guam set aside
entitlement funds in SY 08
– About 23 States utilize Section 4 & 11 funds
on DoD Fresh
– 5 prime vendors awarded to date:
NC, SC, VA, MS, WI
– New system uses FFAVORS (Fresh Fruit and
Vegetable Ordering and Reporting System)
DoD Fresh Program
– With FFAVORS, the price you see when you
order is the full price you pay
– Schools have to decide whether or not it is a
fair value
– If so, it can be a useful option for F&Vs
– FNS will continue to expect a high level of
customer satisfaction from DoD
Other News
Processing commodities:
 50% + of NSLP commodities are further
processed…and the percentage is
growing!
 USDA National Processing
Agreements:
– Over 100 processors approved by USDA
– Centralized/standardized approval of
processed end items using commodities
– Saves the State time and paperwork
Other News
National Processing Agreements

Inventory Protection: Enforcement
of bond requirements:
 One processor suspended for SY 2008
due to non-compliance
 Orders directed away from noncompliant processors

We successfully collected bonds
from 2 processors in SY 2007
Other News
Legislation:
 Ag Appropriation:
– Continuing resolution through
December 14, 2007
 Farm Bill:
– House version passed July 2007
– Senate Ag Committee passed their version
October 25, 2007
 Debate
by the full Senate on their version
expected to continue in coming weeks
Other News
Farm Bill-Commodity Details
House Version
Senate Version
Adds $190 million to
 Same
 Commodity F&V
 Remains at $50 million
existing commodity F&V
purchases in FY 2008, and
more each year until
amount reaches $206
million in FY 2012
purchases through DoD:
– $50 million FYs 20082009
– $75 million FYs 20102012
Regulations Update –
Part 250 Rewrite
 Proposed
rule - “Management of Donated
Foods in CN Programs, NSIP and
Charitable Institutions” - published June
8, 2006
 Received over 600 comments, mostly
from schools on degree of flexibility
proposed for food service management
companies’ use of commodities
 Expect to publish final rule in calendar
year 2008
Regulations Update –
Part 250 Rewrite
 Proposed
rule - “Revisions and
Clarifications in Requirements for
the Processing of Donated Foods”
- was published on August 24,
2006
 Received 39 comments
 Expect to publish final rule in
calendar year 2008
Regulations Update –
Part 250 Rewrite
 Proposed
rule on distribution and
control of commodities is being
drafted now and will be published
after the first two rules (FSMC and
Processing) are finalized
 Proposal
will revise and clarify
requirements to ensure donated
foods are distributed and managed
safely, efficiently and costeffectively
Update of 7 CFR Part 250
We can still take input on
these regulations …
particularly on
establishing standards
for…
• Cost-effective and efficient commodity
delivery systems
• Consistent service to recipient agencies
across all states
Other News
Commodity Rate:
– Commodity rate for SY 2008 18.75 cents (up from 17 cents
last SY)
– Additional food beyond
entitlement and bonus will
have to be purchased to meet
12% rule
– The effective commodity
assistance rate is 20.84 cents
for SY 2008
Training:
Other News
– Presentations at ACDA, SNA, State and
CN Director meetings this past year
– Commodity/USDA track at SNA
Philadelphia-July 08
– Processing training video
– “White Paper” overview of commodity
component of NSLP
– FD 101 for State staff—May 2008
Commodity Newsletter:
– Useful updates on commodity issues
– Published about 3 times a year
www.commodityfoods.usda.gov
CFN For Kids & Teens
QUESTIONS?