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What’s New With Commodities

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.

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What’s New With Commodities

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  1. What’s New With Commodities Cathie McCullough, Director Food Distribution Division FNS/USDA 2007 SNA State Agency Conference Nashville, TN, November 2007

  2. Today’s Agenda • Commodity Image • Improvements • Commodity Outlook/ECOS • DoD • Other News

  3. 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

  4. 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 fresh F&Vs • Less sugar • More whole grains • Less fat

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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!

  12. 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

  13. Bonus Commodities USDA Bonus Purchases for CN Programs in SY 2008 • Canned and frozen apple slices • Applesauce • Canned apricots

  14. 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

  15. ECOS/WBSCM • WBSCM: An internet-based system USDA agencies will use to purchase, manage, and deliver commodities Web-Based Supply Chain Management

  16. DoD Fresh Program • 47States, 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)

  17. 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

  18. 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

  19. National Processing Agreements Inventory Protection: Enforcement of bond requirements: One processor suspended for SY 2008 due to non-compliance Orders directed away from non-compliant processors We successfully collected bonds from 2 processors in SY 2007 Other News

  20. 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

  21. Other News Farm Bill-Commodity Details

  22. 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

  23. 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

  24. 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 cost-effectively

  25. 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

  26. 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

  27. Other News Training: • 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

  28. www.commodityfoods.usda.gov

  29. CFN For Kids & Teens

  30. QUESTIONS?

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