USDA Foods -Formerly Known as CommoditiesAugust 2013

USDA Foods Facts

• Entitlement dollars allocated to States based on meals served in prior year multiplied by the federal meal rate• Federal meal rate is published annually, in school year 2014 it is 23.25 cents • School year is July 1 through June 30• USDA Foods equals 15-20% of foods used in school meals

Variety of foods

Changes in USDA Foods

Request Driven Ordering of USDA Foods

School and Agency Input

• YOU receive through email and program bulletins the USDA Foods Available List• YOU contact US with input on what USDA Foods should be made

available. • A list will be made based on request received from YOU of the

types and amounts of USDA Foods preferred.• The Advisory Council reviews the list of USDA Foods YOU

selected. • THEY will make the decision on what USDA Foods will be

available. WE create a survey in CNP-Web, YOU place your order for USDA Foods that are in the survey for the entire school year. • WE place an order with USDA for the USDA Foods YOU have

requested

Availability of Bulk USDA Foods for Processing

• Selection of processed items are done through Invitation to Bid to processor for specific end products.

• Input from YOU of processed end products YOU have interest in through vendor show at AKSNA .

• Schedule of Invitation to Bid (ITB) sent to processors for selected end products:

• SY14/15- Eggs (breakfast entrees), Cheese (pizza), and Chicken

• SY15/16- Beef, Pork, and Pollock

Submitting Orders Throughout the School Year

Surveys (ordering)• First survey will be opened in late

January and close in February with delivery periods beginning in August and ending in January. • If bonus USDA Foods are offered, a

separate survey will be opened and all schools/agencies will be notified in the program bulletin or through broadcast email.

BONUS Fat Free Chocolate and Strawberry UHT Milk

• The State of Alaska will receive 8 truckloads of BONUS Fat Free Chocolate and Strawberry UHT Milk.

• First shipment will be delivered in August with a monthly shipment until January

• Survey open in CNP Web for orders;• Delivery in September and October closes

August 16• Delivery in November, December, and January

closes September 16• No entitlement dollars needed to order• Only cost is administrative cost per case• Shipping beyond the direct drop point

Administrative Fee Increase

• The administrative fee for SY14 will increase to $3.05 per case.• This increase is needed due to the increase cost associated with shipping the processed orders to the schools and agencies, also the salaries and benefits for the Food Distribution staff.

There is a difference.

Direct USDA Foods vs Processed USDA Foods

Direct USDA Foods(Brown Box)

• Direct USDA Foods (Brown Bow)• Orders go directly from State to USDA• USDA Foods shipped to one of the 13 pre-paid

destinations which are

Anchorage Wasilla Fairbanks Unalakleet KotzebueBethel Mt. Village Dillingham Kodiak Juneau Sitka SoldotnaKetchikan JuneauKotzebue

RA pays $3.05 per case state administration fee

Processed USDA Foods

• Orders go from State to USDA to Processor• Schools and agencies must have agreement

with Processor which may include a credit line application• Processed USDA Foods are shipped directly

to the school district or agency• School or agency pays Processor fee-for-

service• School or agency pays $3.05 per case for

state administrative fee

What is the Processor Fee-for Service ?• It is the price per pound or by case representing a

processor’s cost of ingredients other than the USDA donated foods, labor, packaging, overhead, and other costs incurred in the conversion of the USDA donated food into the specified end product.

• Example; JTM Beef Patty• USDA Case value = $67.78• Entitlement dollars are used for this amount• Fee for Service = $27.96• This is the amount you will be billed by the

processor

Processors for USDA Foods for SY14

• Asian Food Solution - Chicken entrees• Cargill- Breakfast entrees• Horizon – Fruit pockets• JTM – Beef products, pork products and cheese

sauces• MCI/Los Cabos – Mexican entrees• National Food Group- Applesauce• Pilgrim’s Pride- Chicken products• Schwan's – Pizza and grilled cheese sandwich• Taco Loco – Tortillas and salmon wrap• Trident – Alaska Pollock products

.

How USDA Foods Support the New Meal Pattern

USDA Foods Support New Meal Pattern

RequirementsFruits •Canned fruits in extra light syrup or juice

•Mixed Fruit• Peaches• Pears• Applesauce is unsweetened

•Frozen fruits- blueberries and strawberries •Apples and cherries for processing•Orange Juice in single servings

Frozen Fruit with Added Sugar Allowed

• USDA issued Policy Memo SP 49-2013 which extends the provision to serve frozen fruit with added sugar in the NSLP and SBP through SY2014-2015 (June 30, 2015)

• This exemption applies to products acquired through USDA Foods as well as those purchased commercially

USDA Foods Support New Meal Pattern

Requirements

Vegetables• Red/Orange – Carrots and sweet

potatoes• Dark Green – Frozen broccoli • Beans – Red kidney beans, and

vegetarian beans.• Starchy Vegetable- No salt added

canned corn, fat free potato wedges• Other- Green beans

USDA Foods Support New Meal Pattern Requirements

Meat/Meat Alternate• Bulk eggs for processing• Reduced Fat Shredded Cheddar• Chicken Fajita Strips ‐lower sodium• Diced Chicken• Beef crumble• Uncooked Fine Ground Beef• Home style pre-cooked patties ( 1.5 ounce

)• Sunflower Seed Butter

USDA Foods Support New Meal Pattern Requirements

Grains• Whole grain pastas ( rotini )• Whole grain pancakes• Whole wheat flour• Rolled oats• Brown rice• Whole wheat flour

Milk• UHT 1% Milk • UHT Fat Free Chocolate and Strawberry Milk

Gradually Reduce Sodium Content

• USDA vegetables, meat, poultry, pork, cheeses all have reduced or low sodium levels to help school meet or exceed the two-year target.

• USDA continues to dialog with industry to modify specifications for SY 2014-15.

Cost Analysis of entrée prepared with USDA Foods versus Commercial

Bought ProductsSavings up 45%

Ingredient 100 Servings Commercial Price

USDA Food Value

Rice 10.6 lbs $4.52 $4.08

Corn, canned 14.2 lbs $11.79 $8.19

Tomatoes, canned

2 #10 cans $8.60 $7.41

Pinto beans, canned

2 #10 cans $7.92 $5.26

WW tortillas 5 lb $19.86 $15.06

Chicken Fajita strips

12.5 lbs $75.56 $27.37

Reduced Fat Cheddar Cheese

1.5 lbs $3.55 $2.98

Spices Various $2.73 $2.73

Total $134.53 $73.08

Cost per entrée $1.35 $0.74

Nutrient Analysis of Entrée prepared with USDA Foods verses Commercial Products

.

Why Orders Change

Changes in Orders• State must balance orders by shipment

requirements• Direct USDA Foods in ½ truckloads or full truck

loads• Survey response from RAs do not arrive in at least a

½ truck to split with another state or full truck sizes• Processed USDA Foods may have a minimum order

requirement• USDA may cancel orders• Check CNP-Web for information on orders under

Allocation or Inventory

Mobile web site and enhanced available food list

New tools from USDA

USDA Foods Available List Enhanced Version

• USDA Foods Available List for Schools and Institutions with links to USDA Foods Fact Sheets

http://www.fns.usda.gov/fdd/foods/SY13-Foods_Available_List-Enhanced.pdf

USDA Foods Mobile Site

The USDA Foods Mobile site is available at http://www.fns.usda.gov/fdd/mobile

Question Time

Contact Information

USDA Foods Program CoordinatorSue Lampert907-465-8710susan.lampert@alaska.gov

Program AssistantTony Warren907-465-3629tony.warren@alaska.go

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