USDA Update for NC Foodservice Meeting
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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?