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Processing USDA Foods

Processing USDA Foods. Processing: The conversion of USDA food or foods into a convenient, usable form by an approved commercial enterprise at a commercial facility. (known as an end product). Four Value Pass Thru Systems – Part I. Direct Discount Indirect Refund Sale Fee-for-Service

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Processing USDA Foods

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  1. Processing USDA Foods

  2. Processing: The conversion of USDA food or foods into a convenient, usable form by an approved commercial enterprise at a commercial facility. (known as an end product)

  3. Four Value Pass Thru Systems – Part I • Direct Discount • Indirect Refund Sale • Fee-for-Service • Indirect Discount

  4. Direct Discount Sale • Processor sells and ships end product directly to an eligible Recipient Agency Processor School

  5. Indirect Refund Sale • Processor sells end product containing USDA Foods to a commercial distributor at commercial price, then distributor sells end product to an eligible RA at commercial price, plus delivery costs. RA or distributor submits sales to processor for refund of value of USDA Foods. Bulk Cheese Cheese Pizza

  6. Fee-For-Service Sale • Processor charges by pound or by case for all other ingredients to make up the end product. Bulk Beef FC Beef Patties

  7. Fee-For-Service thru Distributor • Also known as Modified Fee for Service, where Distributor acts as the purchasing agent for the RA and invoices RA at the gross price excluding USDA Foods, plus distribution fees. Bulk Beef FC Meatballs

  8. Indirect Discount Sale • Also known as “NOI/Net-Off Invoice”, where Processor sells end product to Distributor at commercial/gross price and Distributor sells to eligible RA at a net price. Alaskan Pollock Fish FC Brd Fish Fillets

  9. Summary End Product Data Schedule Components End product information Processor Name Value Pass Thru Systems The amount of USDA Foods used to create a case of end product. Information of USDA Foods used in the creation of end product. Discount or Refund value per case of end product.

  10. Tracking Tools – Part II • K12 Foodservice (15 processors) • Processor Link (14 processors) • Lunchline, Inc. (2 processors) • Internal Systems (9 processors)

  11. USDA Food Draw Down Targets“Ideal Schedule”

  12. Processing Resources • ADE Food Distribution Webpage: www.ade.az.gov/health-safety/cnp/fdp • FNS Food Distribution Webpage: www.fns.usda.gov/fdd/processing • USDA Foods Fact Sheet: www.fns.usda.gov/fdd/processing/cp_faqfacts.htm • Code of Federal Regulations to govern USDA Food Processing: www.fns.usda.gov/fdd/regs/fd_regulations.htm • RA Processing Handbook: www.commodityfoods.org/processing

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