What s New with USDA Foods? SNA Annual National Conference July 10, 2016

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1 What s New with USDA Foods? SNA Annual National Conference July 10, 2016

2 Session Topics Mission & Goals New Products & Information School Year Review Past and Present Customer Service

3 Agricultural Marketing Service Commodity Procurement Laura Walter, MPH, RD Nutritionist

4 National School Lunch Act 1946 Preamble as a matter of national security, and to safeguard the health and well being of the nations children, and to expand the market with nutritious agricultural commodities, the school lunch program is established

5 National School Lunch Act of 1946 To support agriculture Section 32 purchases To improve the health and well being of the nation s youth Safeguard national security Section 6 funds established to purchase food for school meals

6 DUAL MISSION Support domestic agriculture 100% U.S. grown and produced Support Dietary Guidelines goals-

7 1. Must be 100% Grown and Processed in the US or Its Territories USDA Foods support and strengthen domestic agriculture NO Exceptions

8 2. Supports the Nutrition Goals in the Dietary Guidelines Must contribute to creditable components in the meal pattern USDA s nutrition priorities include: Fruits and vegetables- expand variety Whole grain rich options Low in sugar, sodium, and fat Versatile, cost-effective protein options

9 3. Must be versatile Basic food items that can be used in a variety of recipes and menu items Versatile across USDA Foods programs Meets diverse needs nationwide Examples: Diced ham (soup, salad, casserole) Cheese, flour and tomato products instead of pizza

10 4. Must be Available from Multiple Vendors Fosters competitive pricing Sole-source or patented products are unlikely to be purchased

11 5. Must Have Documented Demand in a Commercial Setting Successful track record in a similar setting Example: Schools already purchase the product commercially USDA Foods purchases are request-driven Customer needs are the top priority Foods are not ordered just because they are on the Foods Available List

12 6. Be Produced by a Responsible Entity Potential vendors must demonstrate experience and past performance in a similar commercial or governmental setting Be financially sound and able to meet contracting requirements USDA will not be the first or the only customer for a product.

13 Market Research: Assessing Demand Researching the commercial marketplace Talking to States/school districts Needs Specifications Packaging

14 Market Research: Outreach with Industry Potential suppliers Specifications for commercial products Capacity - Quantities available Solicitation timing

15 Changing commercial landscape Scheduling production line time Lead time for new product development and reformulation Lead time for packaging/labeling

16 How Long Does it Take? It depends! Example Product Development Timelines Dried Cranberries, Individual Sweet Potato Fries Unseasoned Chicken Strips Months Medium Grain Brown Rice

17 Decision matrix How would the new product or spec change impact market availability? Would this potentially increase or decrease vendor participation? How does the product support meal pattern/dietary Guidelines? How would it add value for recipients? What contracting challenges might we encounter?

18 USDA Foods Approved Vendors Posted on the AMS website:

19 USDA Foods Specifications Posted on the AMS website:

20 Product Review and Testing

21 Why does USDA update a specification? Industry notifies USDA that commercial practices have changed Challenges with procurement Reformulation or specification changes will better meet school needs

22 Updating specifications Build truckloads efficiently cases per truck Clarify allergens no soy/gluten/advisory labels Sodium reductions where possible 10-15% from current level More consistent flavor/texture/size Primary packaging/labeling

23 Examples of Recent Reformulations Salsa Spaghetti Sauce Diced Ham Chicken Fajita Sliced carrots

24 Food and Nutrition Service Food Distribution Division Julie Skolmowski MPH, RD, SNS Chief Nutrition Services & Access Branch

25 Objectives New product review Factors used to consider new products Product information sheets

USDA Foods: SY16 17 New Products Fruits/Vegetables: Sweet Potatoes, Crinkle Cut Red/Green Pepper and Onion Blend Cranberries, Dried, Individual Portion Orange Juice,

26 USDA Foods: SY16 17 New Products Fruits/Vegetables: Sweet Potatoes, Crinkle Cut Red/Green Pepper and Onion Blend Cranberries, Dried, Individual Portion Orange Juice, Individual Cups Dry Legumes, 2 lb bags (garbanzo, pinto, lentils, great northern) Frozen Fruits/Vegetables, lb bags (apples, blueberries, diced carrots, peas, spinach)

27 USDA Foods: SY16 17 New Products Meat/Meat Alternates: Peanut Butter, Individual Portion, 1.1 oz Tuna, 66.5 oz Can Pulled Pork, Unseasoned Beef Patty, Cooked (No soy) Whole Grains: Brown Rice, Medium Grain

surveys/outreach - Informal feedback from State agencies/school districts -

28 USDA Foods: How to Get on the List How USDA Determines Customer Needs/Demand: - Feedback from stakeholder workgroups/meetings/conferences - Formal surveys/outreach - Informal feedback from State agencies/school districts - Trends analysis of current product requests - Industry distribution trends in similar market

29 How can a State/SFA sample a new product? USDA does not currently provide samples States can order a limited quantity to distribute and try ¼, ½, or full truckload States can contact approved vendors: Request samples Include in State food show or tasting events

30 Identifying the USDA Foods Vendors The SDA and school district can identify the specific vendors once the solicitation has been awarded. food/solicitations

31 USDA Foods Product Information Sheets Provide a summary of product information from the specifications and from potential USDA Foods vendors Only available for direct delivery products

32 USDA Product Information Sheets

33 USDA Product Information Sheets

34 USDA Product Information Sheets

35 Why Might the Math Not Add Up? For some products the information is a compilation Example: Calories Fat Sodium Vendor A Vendor B Vendor C

36 USDA Foods Product Information Sheets & the Administrative Review USDA Foods Product Information Sheets are acceptable documentation The school district may choose to use product specific information Calories Fat Sodium Vendor A Vendor B Vendor C

37 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) Because of the nature of the purchase program, vendors may use different ingredients and formulations.

38 USDA Foods Specifications Posted on the AMS website:

39 Food and Nutrition Service Food Distribution Division Peggy Cantfil, Chief Child Nutrition Operations Branch

40 Objectives School Year 15/16 review School Year 16/17 status School Year 17/18 plans

41 School Year 16 Review Entitlement Ag Market Impact Processing Inventory Management

42 School Year 17 Status Entitlement Ordering Timelines Catalog Market Forecast Processing Inventory Management

43 School Year 18 Plans Entitlement? Ordering Timeline Changes? Processing Inventory Management - National sweeps? Business Management Improvement Initiative

44 Food and Nutrition Service Food Distribution Division Kathy Staley, Chief Program Integrity and Monitoring Branch

45 Objectives Learn about new customer feedback tools Discuss optimal delivery procedures Review how to file a complaint Get feedback from you today

46 Value of Customer Feedback Opportunities Improve products and services Listen to our customers what are they saying Provide advance warning about a bigger problem Educate the customer Train employees

47 Communication Complaint Team meets daily Monthly Complaint meeting- AMS Procurement, Office of Food Safety and Operations Branches Monthly complaint report E-letter Complaint Resolution Pipeline

48 At Delivery: Opportunity Check: Seal, Temperature, Quantity, Condition of Load

49 Inspect the Shipment Before the truck leaves: Check for security seal, record number of seal Check temperature of frozen and refrigerated foods Verify product quantity Examine quality of product

50 Inspect the Shipment Condition of packaging/containers Take action if product does not meet specifications Document issues, take photos Train staff on how to properly receive and store USDA Foods

51 Must Have Information for Complaint Injuries or Illnesses occurred Sales Order or Sales Order Item Number Codes (lot, case, can, product code, pack date) Quantity of damaged product Photos

52 How to File a Complaint Report to State Distributing Agency or Indian Tribal Organization (ITO) State or ITO file complaints in Web-Based Supply Chain Management System (WBSCM) Contact USDA Complaint Team Call: USDAFoodsComplaints@fns.usda.gov

53 Analysis of Complaint Data Identify: Trends of repetitive occurrences Issues with product specifications Poor inventory management

54 Questions?

55 USDA is Here to Help! Visit our Help Desk to speak with subject matter experts Come see us in the Exhibit Hall USDA Lane Booths # Become a Team Nutrition School Visit us fns.usda.gov

USDA Foods in Schools. Overview

USDA Foods in Schools. Overview USDA Foods in Schools Shenique Bridges Program Analyst, Child Nutrition Operations Branch November 28-29, 2018 Overview USDA Foods Program Background USDA Foods Entitlement USDA Foods Available List and