July 14, 2019

Shenique BridgesProgram Analyst, Child Nutrition Operations Branch

USDA Foods Update

Linda HubenyProgram Analyst, Program Integrity and Monitoring Branch

Elizabeth LoberDirector, Domestic Commodity Procurement Division

USDA Foods Ordering Options

Direct Delivery Bulk for Processing

USDA DoD Fresh Fruit and Vegetable Program

Spending Across USDA Foods Ordering Options

•National Averages•Direct Delivery: 43%•Bulk for Processing: 40%•USDA DoD Fresh: 17%

•State Ranges•Direct Delivery: 0-99%•Bulk for Processing: 0-100%•USDA DoD Fresh: 0-75%

Working with you to order, spend your entitlement in the year that it is earned

100%

USDA Foods FY18 NSLP Purchases

Fruits/Veg45%

Grains1%

Nuts/Seeds1%

Beef/Pork19%

Poultry16%

Fish1%

Eggs1%

Dairy16%

FY18- Total Dollars

Fruits/Veg*63%

Grains3%

Nuts/Seeds 1%

Beef/Pork9%

Poultry14%

Fish<1%

Eggs1%

Dairy9%

FY18- Total Pounds

*Value estimated for USDA DoD Fresh

New USDA Foods for SY19-20

• Cherries, Sweet, Frozen (IQF), 12/2.5 lb bag

• Cheese, Cheddar, Yellow, Sliced, 12 lb case

• Cereal, Oat Circles, Bowls, 96/1 oz

• Cornmeal, Blue, 12/2 lb bag

Other Changes for SY20

Package Size Additions: • Peaches, Sliced, Frozen, 12/2 lb bag• Beans, Green, Frozen, 12/2 lb bag• Corn, Frozen, 12/2.5 lb bag

Grains Re-Introduced:• Flour, All Purpose, Enriched, 8/5 lb bag• Pasta, Spaghetti, Enriched, 20 lb case• Rice, Long Grain, Parboiled, 25 lb bag

• Received $20 million in additional USDA Foods funding to encourage spending on breakfast foods

• Offer many breakfast foods!• Grab and go products• Heat and serve• Fruit, fresh and frozen

USDA Foods in Breakfast

• USDA has been authorized up to $12 billion in FY19 to support farmers impacted by tariffs

• Food purchase and distribution is one of three strategies that USDA will be using• Up to $1.2 billion planned to be spent on USDA

Foods; most will be directed to TEFAP

• Program expected to continue into FY20; offerings still to be determined

What is Trade Mitigation?

Trade Mitigation: Child Nutrition for SY19-20

•Offered 8 products to all CN programs for July-December 2019 delivery

•Bulk and direct delivery options

•Does not count towards 12% provision

•Orders totaled $27M

Monitoring USDA Foods Inventories at Processors

• Six-month or less

• Comparing orders to inventory on hand at processors before approving orders

• Working with processors to clean up small inventory balances

• Paying close attention to stagnant inventories

$0

$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 Fruit and VegetableProgram Spending in NSLP

USDA DoD Fresh Continues to Increase

Produce Contracts for Schools

Robertson F & P (1)

Monroe, LA

Foster Caviness (3) Colfax, NC

Spokane Produce (2)

Spokane, WA

Trinity Fresh (1)

Sacramento, CA

Get Fresh

Sales (1)

Las Vegas,

NV

Fresh Pack (3)

Denver, CO

Go Fresh (2)

Tulsa, OK

Forestwood

Farm (3)

Birmingham, AL

Cash Wa (2)

Aberdeen, SD

Senn Brothers (1) W Columbia, SC

Royal Food Service (1)

Atlanta. GA

Gargiulo Produce (2)

Hillside, NJDNO Fresh (4)

Columbus, OH

MS Fruit

Veg Co (2)

Grenada,

MS

Duck Produce (5)

Portland, OR

SYSCO Seattle (2) Seattle, WA. (for Alaska)

Stern Produce (2)

Phoenix, AZ

Coast Citrus (4)

LA & San Diego, CA

MacEdwards Produce (1)

Miami, FL (for Virgin Islands)

C&C Produce (5)

Kansas City, MO

US Foods (3)

Grand Forks,

ND

BEC Inc/Hill Bros (1)

Puerto Rico

US Foods (1)

Bismarck, ND

Brothers (2)

Houston, TX

Quality F&V (4)

El Paso, TX

Reinhart (1)

Essex Junction, VT

Jo-Ed (1)

Cheyenne, WY

Country Garden Produce (2)

Bardstown, KY

Brothers (2)

Dallas, TX

Grasmick

Produce (3)

Boise, ID

HPC Foodservices

(2) S. Windsor, CTSeashore Produce (2)

Vineland, NJ

Produce Source Partners (2) Ashland, VA

November 2018

Loffredo (1) Des Moines, IA

Kimball & Thompson (1)

Lowell, AR

Muir Copper

Canyon (1)

Salt Lake City,

UT

Oakes Farms (3) Naples, FL

Greenberg Fruit (3)

Des Moines, IA

H. Brooks (3)New Brighton, MN

Brothers (2)

San Antonio, TX

Crook

Brothers (1)

Beckley, WV

Keany Produce (1)

Landover, MD

(#) The number of FFAVORS catalogs for each produce vendor

•Vendors are encouraged, when seasonally available, to source local produce

•Vendors must report State of Origin in FFAVORS catalog starting July 2019

Local Produce and State of Origin

USDA DoD Fresh Complaints

•Refuse non-domestic produce

•If there are issues with produce quality, contact your State Distributing Agency (SDA) and provide:• Description of issue• Quantity of out-of-condition product• Photos of issue – include product label

Produce Quality Audits:

•Inspect produce quality and condition

•Availability

•U.S. Grown

•Verify vendor’s food safety practices•Good Agricultural Practices•Good Handling Practices•Food Defense

Vendor Performance

USDA DoD Fresh in SFSP Pilot

•Summer 2019 - 20 participating States:

Alaska, Arkansas, Colorado, Connecticut, District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, South Carolina, Utah, Vermont

•Recorded Webinar - Best Practices: Use of the USDA DoD Fresh Program in the Summer Food Service Program

Who Should Report Complaint

• Anyone receiving USDA Foods can report an issue

• If product does not meet expectations, Recipient Agency (RA) should document the necessary information, including photos

• RA sends the information to State Distributing Agency (SDA) who enters complaint into WBSCM

What Information is Needed

• Sales Order Number

• Vendor/Product (Lot number, BIUB date, pack date)

• Description of issue

• Quantity of out-of-condition product

• Injuries or illnesses occurred

• Digital photos of issue

Where to Report a Complaint

• Web-Based Supply Chain Management System (WBSCM) –Preferred Method

• State enters complaint • Person who enters complaint sent an assigned complaint number

• Complaint Hotline: 800-446-6991

Monday – Friday 6am - 5pm Eastern

• Email : USDAFoodsComplaints@usda.gov

Why Report

• Reduce USDA Foods losses

• Data to identify trends and evaluate products and vendor performance

• Improve product specifications to ensure consistent, high quality USDA Foods that meet customer expectations

New USDA Foods Infographics Available

www.fns.usda.gov/usda-foods/usda-foods-toolkit-child-nutrition-programs

Stay in the Know with webinars and E-letters

• Click on this icon on our website to sign up for our E-letter • Featured foods, webinar updates, and more!

•Check out webinar archives with all of our recorded webinars: www.fns.usda.gov/fdd/webinars-and-training

•Upcoming Webinar: FNS Instruction 709-5• September 5, 2019• Look for more information in the August e-letter

Show Us Your Tray Photo Contest

•2019 Show Us Your Tray Photo Contest

•Four submission categories to highlight food groups•USDA Foods Gold Tray Award

•Great Grains Award

•Protein Power Award

•Say Cheese Award

Great Grains Award

Rialto Unified School District, CATeriyaki Chicken with Fried Rice

USDA Foods used: brown rice, mixed vegetables, peas and carrots

Protein Power Award

South Windsor Public Schools, CTMediterranean Chickpea Salad

USDA Foods used: chickpeas and mozzarella cheese

Say Cheese Award

Bakersfield City School District, CACaprese Salad with Heirloom Cherry Tomatoes

USDA Foods used: string cheese, broccoli, diced chicken, and strawberries

Honorable Mention

Three Village Central School District, NYTaco Salad, Mexicali Corn, and Broccoli Salad

USDA Foods used: beef crumble, corn, broccoli, and a strawberry cup

USDA Foods Gold Tray Award

Tuckahoe Common School District, NYTeriyaki Chicken over Noodles

USDA Foods used: fajita chicken, spaghetti, broccoli, and oranges

Visit us at the booth!

• USDA Lane – USDA Foods Booth 2649• Monday July 15, 2:00-3:00pm

Become a Recall Rock Star• Tuesday July 16, 2:30-3:30pm

USDA Updates, CNP and USDA Foods

AMS Updates

AMS Highlights 2019

Small and Disadvantaged Businesses• 2018 Calendar Year Report• 190 new vendors reached

• 40 approved, including 25 small businesses

• $134 million in contracts awarded to small businesses• Awards made in every product branch

Stringent Requirements• Food Safety Verified through

Annual Audits:• Good Manufacturing Practices

(GMP) or Good Agricultural Practices (GAP) and Good Handling Practices (GHP)

• When online inspections for USDA foods are performed, daily sanitation inspections are completed to verify compliance with GMP’s.

AMS Food Safety Highlights 2019

AMS Food Safety Highlights 2019

•Stringent Requirements• Products must be 100% domestic

• Domestic sourcing ensures:• FDA “Good Commercial Practice” and “Food

Defense” requirements

• All purchases comply with “Buy American Act”

• Every purchase benefits the American Farmer

Business Management Improvement Initiatives

Background

• Project began October 2015

• Conducted interviews and stakeholder sessions through August 2016 – As-Is & To-Be

• Business Case completed March 2017

• Teams formed for pilot development October 2017

Business Management Improvement Initiatives

10 Improvement Opportunities• Forecasting• Align Supply and Demand• Long Term Contracts• Transportation Management• Warehouse Management• Supplier Management (Key Performance Indicators)• Processing Program• Checkloading• Product Lifecycle Management• Electronic Communication

Business Management Improvement Initiatives

Inventory Management Tools

• Proposed utilization of a distribution center (warehouse):• Would decrease order lead times and geographic delivery challenges

Improved Forecasting/Demand Planning

• Reduce the need for firm orders in advance:• Buying based on forecast from order history and market intelligence

Business Management Improvement Initiatives

Alignment of Supply to Demand• Shift to Long Term Contracts (LTCs):

• Allow CP to secure vendor capacity for future deliveries

• Minimize commodity acquisition shortfall and supply disruption

Flexibility in our SAP system - Web-Based Supply Chain Management • Increased automation through Evaluated Receipt Settlement (ERS) and

Electronic Data Interchange (EDI):• Makes vendor participation in CP programs more attractive

• Likely to increase vendor base

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