Today’s Nutrition Environment:Trends in Government Nutrition Policies

Lisa WatsonWatson Mulhern LLC

Child Nutrition and WIC Reauthorization Act 2009Child Nutrition and WIC

Reauthorization Act 2009

FACT:Even subtle changes

in government programscan have profound impact on overall dairy consumption.

Total Fluid MilkIn Schools:$1.36 Bil/yr

Total Cheese in Schools: $552 Mil/yr

Dairy in WIC, Food Stamps, Other

Food Assistance Programs:

$5.07 Bil/yrTotal: $6.98 Billion

Impact of 5% Drop in Gov’t

program Usage =

- $350 Mil/yr

Impact of 5% Drop in Gov’t

program Usage =

- $350 Mil/yr

Federal Nutrition Policy Impacts Sales Federal Nutrition Policy Impacts Sales Dairy example:

Act authorizes all federal school meal and child nutrition programs

Programs are permanently authorized, but are reviewed by Congress every five yearso Current law expires end of September 2009

Reauthorization amends two existing statuteso National School Lunch Act (created 1946 “as a measure of national

security to safeguard the health and well-being of the Nation’s children”

o Child Nutrition Act of 1966 (established the School Breakfast Program)o Other programs later added, including the Child and Adult Care Food

Program and the Summer Food Program

Child Nutrition and WIC Reauthorization ActChild Nutrition and WIC Reauthorization Act

National School Lunch Program School Breakfast Program Child and Adult Care Food Program Summer Food Service Program Afterschool Snack and Meal Program Special Supplemental Nutrition Program for Women, Infants

and Children (WIC) WIC Farmers Market Nutrition Program Fresh Fruit and Vegetable Program Special Milk Program

Programs Up For ReviewPrograms Up For Review

A few slides on process

CNR 2009CNR 2004

USDA

DG 2005

USDA

IOM

Wait until DG 2005 completed to revise

•Meet, meet, meet•No clear consensus•Punt to IOM to recommend standards based on the science

•Report due late 2009•Comments pushing IOM hard to make case for additional funding to meet standards

Instructs USDA to revise meal standards based on latest dietary guidance

•Individual food groups are identified with disease prevention•Recommended increases in whole grains, f/v, and low/ nonfat dairy

How did we get here?

CNR theoretically should reflect report recommendations

CNR 2009

CNR 2004

USDA

DG 2005

USDA

IOM

Wait until DG 2005 completed to revise

•Meet, meet, meet•No clear consensus•Punt to IOM

•Report due late 2009•Comments pushing IOM hard to make case for additional funding to meet standards

Instructs USDA to revise meal standards based on latest dietary guidance

•Individual food groups are identified with disease prevention•Recommended increases in whole grains, f/v, and low/ nonfat dairy

Dietary

Guidelines 2010 Start all over again . . . ?

The ProcessThe Process 1) FY 2010 budget submitted to Congress next month2) March 2009, SNA and FRAC spring conferences; CNR

hearings expected3) April 15: Budget Resolution to allocate $ by

committee/function4) <WINDOW FOR CNR DELIBERATIONS>5) October 2009: Appropriations completed

SNA is most powerful, but consumer groups on the riseo Historically seen as “SNA’s bill”o But more criticism of school meal programs

Additional funding?o Program quality could improve with more $o New equipment funding in Senate stimulus billo Many observers doubt major funding increase

National nutrition standardso Much more likely now than last yearo USDA Discretion vs. details in statuteo Could accelerate trend to kick out sodas, snack foodso Sugar is “avoidance nutrient” – limits likely on total grams in vended

products

Child Nutrition Programs: Major Issues for CongressChild Nutrition Programs: Major Issues for Congress

Key 2009 CNR Issue

A variety of advocates likely to seek additional funding -- makes process much more difficult, reducing likelihood of action

IOM report could help make case for more funding Most Reauthorization items are entitlements; few discretionary

dollarso Opportunity for “tradeoffs” limited

House Education and Labor has full docket in 2009 No items in CNR have to move this year

o NSLP, SBP, Special Milk authorized permanentlyo Others could be extended fairly easily

Lawmakers could use rationale of IOM report not being completed until fall 2009 and DG process not done until 2010, both of which ideally should influence child nutrition program funding and structure

Potential Factors on 2009 MovementPotential Factors on 2009 Movement

Increase funding Per meal reimbursement Update Federal reimbursement rates semi-annually Expand “free” meal category from 130% of poverty to 185%

(eliminating reduced price meal) Provide 10 cents in USDA commodities for each school breakfast

served Improve nutrition standards

Grant Secretary of Ag statutory authority to regulate sale of all foods/beverages on school campus (ending “time and place” rule)

Require USDA to implement a consistent, science-based national interpretation of the DGA for all school meals reimbursed by USDA

Key Player: SNAKey Player: SNA

Improve access to nutritious foods in schools, child care centers and homes, in afterschool programs, on weekends, during the summer and in the home.

Enhance nutrition environment to promote healthy eating habits for women and children.

Modernize and streamline program operations to improve program integrity and efficiency.

Key Player: FRACKey Player: FRAC

Key Player: NANA

Update the national nutrition standards for school foods sold in vending machines, a la carte, school stores, etc., and apply them to the whole campus for the full school day.

Increase reimbursement rates for school meals. Require employment of qualified nutrition professionals at school

food service district level. Encourage state child nutrition programs and schools to work

toward the most recent edition of the DGA. Require USDA to publish a proposed rule w/in 12 months (and

finalize w/in 24) of IOM report. Provide $1m for IOM study assessing the nutritional quality of

school meals and compliance with school meal standards. Provide $10m/year for non-food assistance grants (equipment

purchase, etc.) to make it easier to provide meals consistent w/ DGA and food safety practices.

Fund DoD Fresh Program @$100m; encourage purchase of local produce when possible.

Remove requirement specifying that schools have to sell milk at “various fat levels” and allow only lowfat or nonfat.

Change requirement for soymilk to be nutritionally equivalent to lowfat milk only for nutrients of concern for children.

Increase (by $2m) funding to national Food Service Management Institute to improve training and assistance in meeting DGA.

Continue to improve nutritional quality of USDA Foods (commodities).

Strengthen local school wellness policieso Variety of suggestions, mostly related to implementation, as well as

increased role for USDA Team Nutrition

NANA’s Key Positions To Date (continued)

NANA’s Key Positions To Date (continued)

Strengthen local school wellness policieso Variety of suggestions, mostly related to implementation, as well as

increased role for USDA Team Nutrition Strengthen nutrition education and promotion

o Streamline and reform nutrition education and strengthen/provide reliable funding for Team Nutrition

o Training and certification in nutrition and food safety for food service directors

Support and strengthen WIC o Preserve nutrition integrity of packageo Strengthen nutrition education and breastfeeding supporto Support implementation of new packages and technology needed to

effectively implement WIC program (infrastructure, MIS)o Update health outcomes research and effectiveness evaluationo Should NOT cap nutrition services funding

Major Nutrition Policy TrendsMajor Nutrition Policy Trends

Obesity remains top issue

Obesity remains top issue

Major Nutrition Policy TrendsMajor Nutrition Policy Trends

Focus on kids’ health Marketing/advertising School nutrition/activity

Focus on kids’ health Marketing/advertising School nutrition/activity

Major Nutrition Policy TrendsMajor Nutrition Policy Trends

Corporate change through public pressure

Alliance for Healthier Generation

Self-imposed advertising limits

Corporate change through public pressure

Alliance for Healthier Generation

Self-imposed advertising limits

Major Nutrition Policy TrendsMajor Nutrition Policy Trends

Greater emphasis on standards

IOM focus on Childhood ObesityIOM focus on Childhood Obesity

2004Kids are

getting fat; prevention

key

2004Focus on physical

environment

2005Marketing is making

kids fat

2006Gov’t is

not doing enough

2007Get “junk food” out of schools

Nutrition Standards and Meal Requirements for National School Lunch and Breakfast Programs

2008-9Align meal standards w/ science

IOM Urges Restrictive School Food & Beverage Competitive Food StandardsIOM Urges Restrictive School Food & Beverage Competitive Food Standards

IOM Process for Nutrition Standards and Meal Requirements, NSL&BP

Process appears rigorous and extremely detailed Hearing on “Phase 1” (basic assumptions and

approach) January 28 Few arguments to recommended approach during

oral comments Primary focus on need to challenge assumptions of

static funding

Nutrition Standards Can Have Unintended Consequences

Nutrition Standards Can Have Unintended Consequences

Sodium – The New Fat?Sodium – The New Fat?

Clearly a priority of Dietary Guidelines 2010 Committee One focus of

IOM evaluation

The Bottom Line

The timing of relevant reports and the economic environment make it difficult to predict whether CNR will move forward in 2009 versus 2010.