what’s new with usda foods - school nutrition · •pilot 2: researching group of products for...
TRANSCRIPT
Dave TuckwillerAssociate Deputy Administrator, Commodity Procurement Program
Kathleen Staley
Chief, Program Integrity and Monitoring Branch
July 11, 2018
What’s New With USDA Foods
Christina Riley, MS, RD
Nutritionist, Nutrition Services and Access Branch
Business Management Improvement Initiative (BMI)
Business Management Improvement Initiative
• Key improvement opportunities:• Forecasting/Align Supply and Demand• Long-Term Contracts• Transportation Management• Warehouse Management• Supplier Management• Checkloading• Product Lifecycle Management• Electronic Communication• Processing Program
Business Management Improvement Initiative
• BMI Activity• Business Case completed March 2017• Teams formed for pilot development October
2017• Multiple pilots complete or in process• Additional research and documentation in
process
BMI – Current Status
• Forecasting/Demand Planning• Completed overview of software capabilities for
demand/supply forecasting April – June 2018 • Developing requirements through process mapping &
evaluation of historical data refined with supply considerations/demand inputs from FNS/States
• Long-Term Contracts• Pilot 1: First long-term contract awarded for oven
roasted chicken• Pilot 2: Researching bulk products and other direct
delivered poultry products
BMI – Current Status
• Transportation Management• Pilot 1 underway: F.O.B. Origin beef roast contracts
awarded for July-September 2018 delivery with USDA arranged transportation
• Pilot 2: Researching group of products for F.O.B. origin purchase and transportation arranged USDA (through services contract TBD)
• Warehouse Management • Third Party Logistic (3PL) Services contract awarded
this summer for household program; possible pilot for schools in 2019
BMI – Current Status
• Supplier Management • Identifying key performance indicators• Next: Analyzing available data on KPI
• Checkloading • Pilot 1: Complete. Canned fruit (peaches, pears,
mixed fruit) deliveries in school year 2017/2018• Expanded to include frozen and canned vegetables in
school year 2018/2019
BMI – Current Status
• Product Lifecycle Management• Determined products and market research; drafting
specifications for industry input; next step to define procurement schedule (Sept.)
• Electronic Communication/EDI• Dual pilots:
• Direct communication• VAN services to interchange purchase orders and
changes (Autumn 2018)
Purchase Update
Livestock, Poultry, and Fish
SY 2018/2019 Outlook• Beef prices down 8%• Pork and Chicken prices down 4%• Egg prices up 53%• Turkey prices up 34%• Fish prices up 11%
Market Challenges• Chicken Drumsticks
Fruits and Vegetables
SY 2018/2019 Outlook• Fruit prices up 19%• Vegetable prices similar to last year
Market Challenges• Raisins• Apricots
Dairy, Grains, and Oilseeds
SY 2018/2019 Outlook• Cheese prices up 2%• Flour prices up 4%• Oil prices up 11%• Peanut prices down 22%• Rice prices up 36%• Pasta prices up 2%• Yogurt prices similar to last year
USDA DoD Fresh Fruit and Vegetable Program
USDA DoD Fresh Continues to Grow
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
SY08 SY09 SY10 SY11 SY12 SY13 SY14 SY15 SY16 SY17 SY18
USDA DoD Fresh Complaint Process
Recipient Agency
State Agency
USDA Complaint Team
Produce Vendor
DLA Service Representatives
DoD Philadelphia
SFSP USDA DoD Fresh Pilot
• Summer 2017 – 11 States participated and spent over $186,000• (AK, AR, CO, DC, FL, HI, IA, NV, PR, SC, VT)
• Summer 2018 – increase to 20 States with $328,000 allocated• (AK, AR, CT, CO, DC, FL, HI, IL, IN, IA, ME, MA, NV,
OH, OR, PA, PR, SC, UT, VT)
Webinars
• USDA DoD Fresh Fruit and Vegetable Program: The
Basics for Schools (7/25/2017)http://www.fns.usda.gov/fdd/webinars-and-training
• USDA and DLA Partnering for a Healthy Futurehttps://youtu.be/FsV949uEJpo
USDA Foods Processing Rule
Processing Rule
• Transfer of title for USDA Foods
• Vended meals
• Processor agreement with distributors
• Backhauling
Transfer of Title
This section describes when title to USDA Foods transfers from USDA to distributing or recipient agencies
KEY UPDATE:• When a distributor is acting as a recipient agency's
authorized agent, title transfer from USDA to recipient agency occurs upon delivery to the distributor
Transfer of Title and Inventory Pooling
• In situations where recipient agencies contract with a
distributor to store or transport processed end products
containing USDA Foods and act as their authorized agent,
complications can arise that may impede the transfer of title
• The intent of this new requirement is to discourage the
pooling of processed end products at distributors
Transfer of Title and Inventory Pooling
• With this new requirement, end products must be assigned
to a specific recipient agency by the time they are accepted
at a distributor so that the title may be transferred to the
correct recipient agency
• FNS does not expect distributors to maintain separate
physical inventories for each recipient agency
Vended Meals
• Clarifies that the repackaging and use of USDA Foods in vended meals is considered processing - §250.30(a)
Processor Agreement with Distributors
• Processors must have agreements with distributors -§250.30(i)
• Agreements must include the financial liability for the replacement value of USDA Foods, monthly end product sales reporting frequency, requirements under 250.11, and the applicable value pass through system
• Distributing agencies may set additional requirements for these agreements
• Verification of these agreements will be required as a part of the audits that processors must obtain
§250.31 Procurement Requirements
This section covers the procurement requirements for the processing of USDA Foods, i.e. requirements for contracts and solicitations
KEY UPDATES:• Requirements for procurement documents - §250.31(b)
1. Price of the end product or service2. Value pass through method to be used and assurance
that crediting will be performed in accordance with §250.36
3. Value of the USDA Food in the end products4. Location for the delivery of the end products
Backhauling
This section describes when commercially purchased foods
can be substituted for USDA Foods
KEY UPDATES:
• Substitution or commingling of all backhauled USDA Foods is prohibited - §250.34(b)
Value Pass Through
This section describes the methods of end product sales and crediting for the value of USDA Foods
Including:• Describing the allowable value pass through systems
• Refund or rebate (250.36(b))• Direct discount (250.36(c)) • Indirect discount, also known as net off invoice
(250.36(d))• Fee for service (250.36(e))• Approved alternative method (250.36(f))
Webinar Recording Available!
• USDA staff highlighted information from the Processing Rule
and answered questions from stakeholders on June 28
• View the recording:
https://www.youtube.com/watch?v=5PTIt2EtJ5w
New Foods Available
OVERVIEW
New Products for SY18 – 19
• Mixed Berry Cups, Frozen, 96/4 oz• Mixed Vegetables, 4-Way Blend, Frozen, 30 lb• Chicken Fillet, Cooked, 2.0 MMA, Frozen, 30 lb• Egg Patty, Cooked, 1.0 MMA, Frozen, 25 lb case• 100% White Whole Wheat Flour, 8/5 lb, 25 lb, 50 lb
SY18 – 19 Product Changes
• Mushrooms, Diced, IQF, 12/2.5 lb• Turkey Deli Breast, Smoked, Sliced 8/5 lb• Turkey Deli Ham, Smoked, Sliced 8/5 lb
USDA Foods Tasting Opportunities
• October 2017- Maryland USDA Foods Processing Show• Featured: Butternut Squash, Pepper/Onion Blend
• October 2017- New York State SNA• Featured: Dried Fruit Mix
• March 2018- Ohio Child Nutrition Training and Vendor Show• Featured: Individual Portion Dried Cranberries and Peanut Butter
• May 2018- Tri-State Meeting (ME, VT, NH)• Featured: Sweet Potato Fries, Mixed Berry Cups, Individual Portion Peanut
Butter, Individual Portion Dried Cranberries
• June 2018- Iowa SNA Conference• Featured: Mixed Berry Cups
USDA Foods Product Information
Accessing USDA Foods Product Information
• Information Sources • USDA Foods Specifications• USDA Foods Approved Vendor Lists• USDA Foods Product Preview Sheets• USDA Foods Product Information Sheets• Vendor Label• USDA Foods State of Origin Information
USDA Foods Specifications
All USDA Foods products have a specification defining the parameters for the product to be supplied, which may include:
• Nutrient Limits (e.g. fat, sodium, sugar)• Allergen Exclusions (e.g. no gluten, no soy, no peanuts)• Packaging (e.g. type of material and sizes)
USDA Foods SpecificationsAMS Website: www.ams.usda.gov/selling-food/product-specs
USDA Foods Approved VendorsAMS Website: https://www.ams.usda.gov/selling-food/becoming-approved
New Product Preview Sheets
https://fns-prod.azureedge.net/sites/default/files/fdd/product-preview-sheets19.pdf
USDA Product Information Sheets
• Provide a summary of product information from the specifications and from potential USDA Foods vendors
• Only available for direct delivery products
USDA Foods Vendor Label
FDA/FSIS defines minimum label information on primarypackaging:
• Company name• Company/Plant location• Food item name• Ingredient list• Allergen declaration
USDA Foods Purchased by State – FY16
USDA Foods Purchased by State – FY16
USDA Foods from Farm to Plate E-Letter
• Keep up-to-date with what is going on at FNS!
• Different program focus for each month
• Sign up for only the topics that interest you!
https://service.govdelivery.com/accounts/USFNS/subscriber/new
USDA Foods: We’re Listening!
• Do you have problems, concerns, ideas, or suggestions?• Do you have a success story to share?• Let us know: [email protected]
Photo submitted by: Prince Williams County Public Schools in Virginia
Want to Learn More About USDA Foods?
Join us in these other sessions:- USDA Hot Topic: Regulations, Research and Resources
(Monday, 1:00-2:00)- USDA Foods: Recall Know How (Tuesday, 2:15-3:15)- Using USDA Resources to Source American-Grown
Products (Wednesday 8:45-9:45)
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QUESTIONS?