2017 National Conference

Transcription

1 2017 National Conference W W W. C O M M O D I T Y F O O D S. O R G DENVER, COLORADO APRIL 23-26

2 UNDERSTANDING ENTITLEMENT-IT IS NOT FREE What is entitlement? Join us to learn the basics of entitlement, including where it comes from, who it belongs, what affects the amount, and why it changes during the year. Gain a better understanding of the costs of USDA Foods.

3 OBJECTIVES Where Does Entitlement Come From? Why Does Entitlement Balance Change During The Year? How Can I Minimize USDA Foods Program Costs? Learn Something New Have Some Fun

4 WHY IMPORTANT?

5 ENTITLEMENT IS STATE PROPERTY Managed By USDA As A State Total Fairly And Equally Distributed Based on Most Recent Actual Data

6 WHAT ALLOWED TO SPEND data:image/jpeg;base64,/9j/4aaqskzjrgabaqaaaqabaad/2wceaakgbxqsehuuehqvfhuvfroxfxqufxcvfbcufxuwfxywfrcyhcgggbolhbuvitehjskrli4ufx8zodmsnygtlisbcgokdg0oghaqgywkhyuslc4slcwslcwslcwslcwslc0slcwslcwslcwslcwslcwslcwslcwslcwslcws LCwsLP/AABEIALgBEgMBIgACEQEDEQH/xAAcAAACAgMBAQAAAAAAAAAAAAAEBQMGAAIHAQj/xABFEAABAwIEAwUEBgcGBgMAAAABAAIRAyEEEjFBBVFhBiJxgZETMqGxBxRCwdHwI1JicoLh8TNDkqKywhUkRHOT4lNj0v/EABoBAAMBAQEBAAAAAAAAAAAAAAECAwQABQb/xAAtEQACAg ICAQIEBQUBAAAAAAAAAQIRAyESMUEEURMisfAyYXGBkQUjoeHxFP/aAAwDAQACEQMRAD8AOwtr/NHYRp1O5QGEq5rQmtCmYAXnHvBjWyBC29kRtK3oUoXlQHmiKaFamkpKTBH3rYVAJXHGrKaJpBeUwNV7m5JkKycLbKk/EeO0qFnEvf8A/HTgu/iOjR4qr8T49UrHK94psJjJTJAg/ru953lAX WPDFKTL21wOhBHMXCDxTUVwACrgqD2bMi37BLSP8qjxIkI9oTptezoW4Srlen9J0hVeswgyn2Bq91NBkMy2HLFq0r2U5EwrUr0rUrjiKtoq5jozKx1dFWcae+kkWxdheF0TKgl+FbZGUkiNLCgpQoGKehRLzG2/4I2I9ERdy+Chc48kg7dFtCrRyktLmPu0lpOUtuY11KW4LtLWbYuDx/8AYJP+JsFBNsr8 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7 ENTITLEMENT FORMULA Claimed Lunches X USDA Foods Assistance Rate = Entitlement Available

8 CLAIMED LUNCHES Most Recent Actual Data Actual School Year 2016 Lunches

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10 12 PER CENT

11 RICHARD RUSSELL ACT 12% Of NSLP Reimbursements Must Be USDA Foods 4-6 Cents Added To USDA Foods Assistance Rate

12 ENTITLEMENT FORMULA Claimed Lunches X USDA Foods Assistance Rate + 12% = Entitlement Rate

13

14 ESTIMATES Rate Claimed Lunches Prices

15 RECONCILIATIONS July Actual USDA Foods Assistance Rate October Actual SY17 Lunches November Prior Year Reconciliation Prices Weekly Once Purchases Made

16 TWO YEAR PROCESS SY 16 Lunches Increased X.305= $305 $305 Under Entitlement More To Spend SY17 Same Lunch Increase $305 + $305 Carryover From SY16 $610 Under Entitlement More To Spend

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18 ENTITLEMENT DRAWDOWN USDA TO STATES Actual Prices Average Pricing

19 ENTITLEMENT DRAWDOWN STATES TO SCHOOLS Actual Prices November Pricing Market Prices

20 SCHOOL YEAR 2017 VARIANCES NOVEMBER PRICING Coarse Ground Beef 2.99 Pound Turkey 1.30 Pound Mozzarella 1.90 Pound Bulk Chicken.98 Pound ACTUAL ENTITLEMENT DRAWDOWN Ground Beef Pound Turkey 1.28 Per Pound Mozzarella Per Pound Bulk Chicken Per Pound

21 USDA BUYING SCHEDULE Beef/Poultry/Cheese Monthly Processors Control Delivery Dates Fruits and Vegetables Less Frequently

22 WHY IMPORTANT? Frequency Of Price Changes Ability To Adjust Orders

23 ENTITLEMENT VS PURCHASES

24 $1,000,000 CUT OR ADD 8 Trucks Of Beef 14 Trucks Of Cheese 30 Trucks Of Chicken 80 Trucks Of Green Beans 100 Trucks Of Flour

25

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RzFFJanmLMWYiYSZiIuTzDMov0gMlcHKnBzgAccc526NvF5wOH5tn44PZzkY9nOb2S8/2sPUu5MMy03Rz7toK8yATwzgkf+pPqE4jSud2CDtLA+zHl5xtk+1h6lzzCdxo2KqwZcMAR7s/g3uis0brjkdxUDHiRmNsp9nD1LjCdl0jcckDaXB4EgbeeSOXOS+pWZwcDiBzBxkxtk+zh6lXhE+QSDzBIPrhJUp9r D+vRRQhO6lAxQkUjIwhEqURhCRUTImEJFhGRMITKkZEwhIpGRMISKgZEwhI1CMUISKDImEICkHjhNQ83Vf5owhCV84QhCAQzCEAjEIQFmOEIH//2Q==

27 TRUE VALUE OF USDA FOODS Value of USDA Food + State Charges/Fees + Processing Costs/Fees + Storage/Handling/Delivery Fees = True USDA Food Value

28 FOUR CHOICES USDA DOD Fresh Fruits and Vegetables Program Direct Delivery Processing Nothing, give entitlement to someone else

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30 POSITIVES No Procurement No Full Truck Quantities No Storage Entitlement Pays For Delivery

31 NEGATIVES More Expensive Than Commercial Dealing With Subcontractors Delivery Error Recoveries

32 WHY MORE EXPENSIVE? USDA DOD Fresh Program Management Fee Buying Power Surveys Have Been 9% - 11%

33 DIRECT DELIVERY

34 POSITIVES Domestic Guarantee Regulation Compliant Commercial Equivalent Value

35 NEGATIVES Distribution Storage Full Truckload Amounts Consistency

36 TRUE VALUE OF USDA FOODS Value of USDA Food + State Charges/Fees + Processing Costs/Fees + Storage/Handling/Delivery Fees = True USDA Food Value

37 EASTERN SHORE APPLESAUCE $14.00 per case USDA Foods/$21.00 per case Commercial + $0 State Fee + $3.00 per case Delivery Fee $17.00 per case USDA Foods/$21.00 per case Commercial +$5.00 per Month Storage Fee After 30 Days $22.00 per case USDA Foods

38 PROCESSING

39 POSITIVES Consistency Variety Center Of Plate Commercial Equivalent

40 NEGATIVES Distribution Value State Regulations Minimum Orders

41 TRUE VALUE OF USDA FOODS Value of USDA Food + State Charges/Fees + Processing Costs/Fees + Storage/Handling/Delivery Fees = True USDA Food Value

42 CHICKEN

43 WHY IT MATTERS? SY16 Diverted 240,000 Pounds Year End Balance 3.86 Pounds White Year End Balance 82,617 Pounds Dark.85 to.98 Price Per Pound $70, To $80,959.00

44 REAL DOLLARS SY17 Diverted 300,000 Pounds Expected Dark Meat Balance 102,000 Pounds $86, To $99, Plus 52,000 Pounds Carryover

45

46 EVALUATING CHICKEN PROCESSING Menu Include Waste Into Cost Calculations Make Informed Fact Based Decisions

47

48

49 OBJECTIVES Where Does Entitlement Come From? Why Does Entitlement Balance Change During The Year? How Can I Minimize USDA Foods Costs? Learn Something New Have Some Fun

50 QUESTIONS

51