What s New With USDA Foods

Transcription

1 What s New With USDA Foods Dave Tuckwiller Associate Deputy Administrator, Commodity Procurement Program Kathleen Staley Chief, Program Integrity and Monitoring Branch Christina Riley, MS, RD Nutritionist, Nutrition Services and Access Branch July 11, 2018

2 Business Management Improvement Initiative (BMI)

3 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

4 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

5 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

6 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

7 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

8 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)

9 Purchase Update

10 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

11 Fruits and Vegetables SY 2018/2019 Outlook Fruit prices up 19% Vegetable prices similar to last year Market Challenges Raisins Apricots

12 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

13 USDA DoD Fresh Fruit and Vegetable Program

14 USDA DoD Fresh Continues to Grow 300,000, ,000, ,000, ,000, ,000,000 50,000,000 - SY08 SY09 SY10 SY11 SY12 SY13 SY14 SY15 SY16 SY17 SY18

15 USDA DoD Fresh Complaint Process State Agency Recipient Agency DLA Service Representatives USDA Complaint Team Produce Vendor DoD Philadelphia

16 SFSP USDA DoD Fresh Pilot Summer 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)

17 Webinars USDA DoD Fresh Fruit and Vegetable Program: The Basics for Schools (7/25/2017) USDA and DLA Partnering for a Healthy Future

18 USDA Foods Processing Rule

19 Processing Rule Transfer of title for USDA Foods Vended meals Processor agreement with distributors Backhauling

20 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

21 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

22 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

23 Vended Meals Clarifies that the repackaging and use of USDA Foods in vended meals is considered processing (a)

24 Processor Agreement with Distributors Processors must have agreements with distributors (i) Agreements must include the financial liability for the replacement value of USDA Foods, monthly end product sales reporting frequency, requirements under , 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

25 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 (b) 1. Price of the end product or service 2. Value pass through method to be used and assurance that crediting will be performed in accordance with Value of the USDA Food in the end products 4. Location for the delivery of the end products

26 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 (b)

27 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))

28 Webinar Recording Available! USDA staff highlighted information from the Processing Rule and answered questions from stakeholders on June 28 View the recording:

29 New Foods Available

30 OVERVIEW

31 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

32 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

33 USDA Foods Tasting Opportunities October Maryland USDA Foods Processing Show Featured: Butternut Squash, Pepper/Onion Blend October New York State SNA Featured: Dried Fruit Mix March Ohio Child Nutrition Training and Vendor Show Featured: Individual Portion Dried Cranberries and Peanut Butter May Tri-State Meeting (ME, VT, NH) Featured: Sweet Potato Fries, Mixed Berry Cups, Individual Portion Peanut Butter, Individual Portion Dried Cranberries June Iowa SNA Conference Featured: Mixed Berry Cups

34 USDA Foods Product Information

35 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

36 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)

37 USDA Foods Specifications AMS Website:

38 USDA Foods Approved Vendors AMS Website:

39 New Product Preview Sheets

40 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

41 USDA Foods Vendor Label FDA/FSIS defines minimum label information on primary packaging: Company name Company/Plant location Food item name Ingredient list Allergen declaration

42 USDA Foods Purchased by State FY16

43 USDA Foods Purchased by State FY16

44 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! unts/usfns/subscriber/new

45 USDA Foods: We re Listening! Do you have problems, concerns, ideas, or suggestions? Do you have a success story to share? Let us know: USDAFoods@fns.usda.gov Photo submitted by: Prince Williams County Public Schools in Virginia

46 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)

47 8 QUESTIONS?