USDA Foods 101 Marlon Hopkins Supervisor, Food Distribution Program - PDF document

USDA Foods 101 Marlon Hopkins Supervisor, Food Distribution Program OSPI Child Nutrition Services 1

Objectives 1. What are USDA Foods? 2. How does the process work? 3. What is entitlement and how much do we get? 4. How much does is cost? (how is my entitlement used) 5. How do I order and receive items? 2

Food Distribution Team The Team Marlon Hopkins – Food Distribution Supervisor  Sarah Davis – Manages your orders  Kim Sanchez – Orders foods from USDA  Brenda Merritt – Procurement and Supply Specialist – conducts  procurement for W code items Trisha Santee- Administration Assistant  Contact information is on the website and has been provided in your welcome packets 3

What is USDA Foods? USDA has a dual mission of providing healthy food and supporting American farmers. All products purchased are grown, processed, and packaged in the United States or its territories. USDA Foods are local to someone. The United States agricultural system supplies a variety of nutritious foods for schools such a fruits, vegetables, whole grains, meats, fish, eggs, nuts and dairy. 4

Do you want to participate in USDA Foods? Are you interesting in ordering Usda Foods? The first step is to let us know! Whether you are a new FSD or your LEA has never participated before or if you are simply unsure, just reach out to us. 5

Food Distribution Communications Food Dis coummication and training can be found online through the Office of Superententent and Public Instrction website at www.k12.wa.us You can then select policy and funding and then Child Nutrtion Once in child nutrition, you will find Food Distribution and administering USDA Foods for the state of WA 6

USDA Foods Options 1. USDA Direct (brown box) 2. W Code (WA state processed) 3. Diversion 4. DoD Fresh First we need to understand the different food options that are available through USDA Foods. There are 4 options….. USDA Direct previously known as (brown box) W Code – Which are State Processed USDA foods Diversion ‐ Which are USDA Foods process by the school district or buy group And DoD Fresh ‐ Which Represent the Deptment of Defense Fresh Fruit and Vegtable program But First, let’s talk about USDA Direct items 7

USDA Foods Options – Direct USDA direct items are products procured and souced by USDA and shipped directly the state WA. USDA purchases a variety of food products in support of the National School Lunch program and other Federal Feeding programs. These purchases help to stabilize prices in agricultural commodity markets by balancing supply and demand. This Items that fall in a catorgory of either dry or fozen can be found on our WA State FDP foods available list. For example you will find items like; frozen peach cups, diced chicken, ground beef, apple sauce cups, canned beans or peaches and much more… The list of available products will be updated once per year. 8

USDA Foods Options – Direct In order to make these product avaialble in the state of WA, There has to be enough interest to bring in whole truckload quanities . And How much is in a truck load? Well that depends on the item… Four example Chicken requires at minimum truck of 36 thousand pounds! and Beef even more at 42 thousand pounds! And of course the number of cases in a truckload will depend on their pack size and storage type. For example: In DRY Storage: Canned Fruit is packed 6/#10 cans, which requires 912 cases to equal a full truckload! However a Item such as Raisins Indiv pack at 144 per case requires 2964 cases to make a truckload! These numbers reflect one reason why forcasting is so important for you the LEA and us the state. Storage! It wouldn't take long to run out of space. 9

Canned Tuna has 1440 cases per truckload. 1000 cases if full truckload 9

USDA Foods Options – Direct Every USDA Direct product will have a Product Information Sheet This sheet provides the LEA the product Discription, Crediting, and nurtion facts asscociated with the USDA direct product 10

USDA Foods Options – Direct As can you see, the products are packed in cases with product decriptions visable allowing you the LEA to easily count cases for accurate delivery and assess any damage that may have occurred in transit. And Please Note, Its key that you report any damage or mis ‐ ship immediately to OSPI FDP. If possible inform the driver so the product in error can be returned with the truck. 11

USDA Foods Options 1. USDA Direct (brown box) 2. W Code (WA state processed) 3. Diversion 4. DoD Fresh Now that we touched on USDA Direct lets take a look at the next USDA Foods option available to LEA's – W Code or State processed USDA Foods W ‐ Code product are produced by the State contracting with commercial food processors to convert raw and/or bulk USDA Foods into a variety of convenient, ready ‐ to ‐ use end products. 12

USDA Foods Options – “W-code” A list of These products offered by the state of WA can be found in the same location you find our USDA Direct products. Our FDP Foods Available List. 13

USDA Foods Options W ‐ Code products often represent a more heat and quick serve type product and can benefit LEA's in serveral ways. For example W ‐ code products help ensure food safety by limiting handling of raw product in school foodservice operations; � In addition, W ‐ code hel reduce labor costs and cash outlays for food preparation; 14

USDA Foods Options 1. USDA Direct (brown box) 2. W Code (WA state processed) 3. Diversion 4. DoD Fresh Now lets look at the third option for utilizing USDA foods, Diversions Diversion are very simular to W ‐ code in that Diversion is the process of contracting with commercial food processors to convert raw bulk USDA Foods into more convenient, ready ‐ to ‐ use end products. 15

USDA Foods Options – Diversion Co-ops or large SFAs (school food authorities) can divert bulk USDA foods for processing.  Proper procurement  Inventory Management at Processor But instead of the state handing the processing agreement with the processsor, the responsibility tranfers to that of the Co ‐ op or SFA . They are then responsible for the proper procurement) of raw, bulk USDA Foods to be further processed into selected end products, LEA or Co ‐ Op competitively procures the services of commercial food processors to have the USDA Foods converted to more ready ‐ to ‐ use products. 16

USDA Foods Options – Diversion There are 38 items that are available for further processing. Here is a list of USDA Foods that are most often further processed and examples of end product 17

USDA Foods Options 1. USDA Direct (brown box) 2. W Code (WA state processed) 3. Diversion 4. DoD Fresh And last but not least the 4th option for utilizing usda Foods is the DOD fresh fruit and vegetable program: 18

USDA Foods – DoD Fresh DoD Fresh Fruit and Vegetable Program: USDA agreement with Department of Defense to purchase fresh produce for schools The DOD Program allows schools to use USDA Foods entitlement dollars to buy fresh produce. The program is operated by the Defense Logistics Agency (DLA) at the Department of Defense 19

USDA Foods – DoD Fresh The DOD program uses local distributor provide variety of seasonal produce and vegetables Benefits also include weekly deliveries with only a $150 minimum. In addition: No procurement is necessary and entitlement pays for delivery 20

USDA Foods - Entitlement State Entitlement $ Sponsor Entitlement $  Speaking of Entitlement: Entitlement is broken down into to areas • State Entitlement—Which is the Value of USDA Foods that USDA authorizes OSPI to receive in a specific program based on meals served as a state And • Sponsor Entitlement—the Value of USDA Foods that OSPI authorizes the Sponsor to receive based on historical counting and claiming data for lunches served through NSLP. 21

State Entitlement $ Claimed Lunches State Entitlement (Amount Based on Prior Year’s Total Lunches Served) Meal Rate + Washington Food Previous State Total Nutrition Year Entitlement Lunches Service Carryover for the Served Adjustment (if any) current (TLS) school year (0.3700)  State Entitlement is received each year is based on the previous year’s Total Lunch Served (TLS)  This is calculated by taking the Total Lunch Served x Meal Rate (.235) + Food Nutrition Service Adjustment/ carryover = Washington State Entitlement for the school year  State entitlement is then distributed amount sponsors based on their TLS to become Sponsor Entitlement  Please note , any remaining Sponsor entitlement is removed from the sponsor's account at the end of each NSLP School. Entitlement is reissued each year based on updated Sponsors Total lunches served. 22

How much do USDA foods “cost” Storage, State Value of Processing Handling, Fees USDA Costs & Delivery (W code Food Fees items) USDA Foods Value “Cost” In Addition to your entitlement cost, products will require charges is hard cash as well. Because processing cost and delivery fees are not allowed to be paid with entitlement the processing fee for W ‐ code and shipping cost must be pad with hard cash by the sponsor. (Read Slide) 23

How much do USDA foods “cost” W-Code W ‐ code processing fee can be found on our available product list and in the state ordering system. 24