What s New with USDA Foods? SNA Annual National Conference July 10, 2016
Session Topics Mission & Goals New Products & Information School Year Review Past and Present Customer Service
Agricultural Marketing Service Commodity Procurement Laura Walter, MPH, RD Nutritionist
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
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
DUAL MISSION Support domestic agriculture 100% U.S. grown and produced Support Dietary Guidelines goals-
1. Must be 100% Grown and Processed in the US or Its Territories USDA Foods support and strengthen domestic agriculture NO Exceptions
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
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
4. Must be Available from Multiple Vendors Fosters competitive pricing Sole-source or patented products are unlikely to be purchased
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
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.
Market Research: Assessing Demand Researching the commercial marketplace Talking to States/school districts Needs Specifications Packaging
Market Research: Outreach with Industry Potential suppliers Specifications for commercial products Capacity - Quantities available Solicitation timing
Changing commercial landscape Scheduling production line time Lead time for new product development and reformulation Lead time for packaging/labeling
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 0 5 10 15 20 25 30
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?
USDA Foods Approved Vendors Posted on the AMS website: https://www.ams.usda.gov/sellingfood/becoming-approved
USDA Foods Specifications Posted on the AMS website: https://www.ams.usda.gov/selling-food/product-specs
Product Review and Testing
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
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
Examples of Recent Reformulations Salsa Spaghetti Sauce Diced Ham Chicken Fajita Sliced carrots
Food and Nutrition Service Food Distribution Division Julie Skolmowski MPH, RD, SNS Chief Nutrition Services & Access Branch
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, Individual Cups Dry Legumes, 2 lb bags (garbanzo, pinto, lentils, great northern) Frozen Fruits/Vegetables, 2 2.5 lb bags (apples, blueberries, diced carrots, peas, spinach)
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
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
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
Identifying the USDA Foods Vendors The SDA and school district can identify the specific vendors once the solicitation has been awarded. https://www.ams.usda.gov/selling food/solicitations
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
USDA Product Information Sheets
USDA Product Information Sheets
USDA Product Information Sheets
Why Might the Math Not Add Up? For some products the information is a compilation Example: Calories Fat Sodium Vendor A 80 6 170 Vendor B 90 7 95 Vendor C 80 5 170
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 80 6 170 Vendor B 90 7 95 Vendor C 80 5 170
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.
USDA Foods Specifications Posted on the AMS website: https://www.ams.usda.gov/selling-food/product-specs
Food and Nutrition Service Food Distribution Division Peggy Cantfil, Chief Child Nutrition Operations Branch
Objectives School Year 15/16 review School Year 16/17 status School Year 17/18 plans
School Year 16 Review Entitlement Ag Market Impact Processing Inventory Management
School Year 17 Status Entitlement Ordering Timelines Catalog Market Forecast Processing Inventory Management
School Year 18 Plans Entitlement? Ordering Timeline Changes? Processing Inventory Management - National sweeps? Business Management Improvement Initiative
Food and Nutrition Service Food Distribution Division Kathy Staley, Chief Program Integrity and Monitoring Branch
Objectives Learn about new customer feedback tools Discuss optimal delivery procedures Review how to file a complaint Get feedback from you today
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
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
At Delivery: Opportunity Check: Seal, Temperature, Quantity, Condition of Load
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
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
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
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: 800-446-6991 Email: USDAFoodsComplaints@fns.usda.gov
Analysis of Complaint Data Identify: Trends of repetitive occurrences Issues with product specifications Poor inventory management
Questions?
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 #2047-2053 Become a Team Nutrition School www.fns.usda.gov/tn/join-team Visit us online facebook.com/usda @USDANutrition @TeamNutrition fns.usda.gov