USDA COMMODITY PROGRAMS Driving to Improve

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USDA COMMODITY PROGRAMS Driving to Improve
Cathie McCullough, Director Food Distribution
Division, USDA/FNS
ACDA April 1, 2007
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Driving to Improve

• The quality and the image of commodities
• 7 CFR 250 Commodity Program Regulations
• Communication
• Electronic Commodity Ordering System

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Commodities in Crisis!Addressing our Image
Problems

• Overcoming perceptions and realities
• Perceptions
• School lunch causes obesity
• USDA surplus commodities are the culprit
• Commodities are low quality
• Realities
• Cant always get what we want
• Contracts are sometimes cancelled

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The quality and image of USDA commodities

• Expand the list of commodities available to
  support the nutritional needs of recipients
• Improve the appeal of commodities
• Provide product in more convenient form
• Facilitate processing (Over 50 NSLP now
  processed)

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• Products continually reviewed to ensure each
  supports Dietary Guidelines
• Current healthy commodity examples
• Lean meat
• Tuna packed in water
• Whole grain foods (wheat flour, brown rice, oats)
• Sweet potatoes
• Reduced fat cheese
• Canned fruits packed in juice or lite syrup

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• Products continually reviewed to ensure each
  supports Dietary Guidelines
• On the horizon
• Lower sodium vegetables
• Poultry lean meat substitution for skin/fat
• Whole grain pasta
• Quick cook rice

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Just the facts, Maam, just the facts!
NSLP Fact Sheets will be updated late
spring! - A new user friendly format - One
food, one code, one fact sheet - A tie-in with
MyPyramid food groups - Consistent with Nutrient
Standard Menu Planning guidance CND provides
schools - Includes nutrient values for dietary
fiber, trans fat, sugars, magnesium, potassium,
vitamin A in RAE units, and vitamin E
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7 CFR 250 Proposed Rules

• Management of donated foods published in Fed.
  Register June 8, 2006
• Processing of donated foods published in Fed.
  Register August 24, 2006
• Distribution and control of donated foods to be
  published after the first two final rules are
  published

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Comments on first proposal we heard you loud
and clear!

• Proposal requires credit for commodity value, but
  FSMCs would not be required to use
• Viewed as a cash out
• Proposal requires SDA to do on-site reviews of
  SFAs
• Viewed as placing an undue burden on SDA
• Proposal requires SDA to allow SFA to order from
  full list
• Viewed as impractical

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Communication

• ACDA, SNA, other publications
• Website/ECOS/Whats New
• Conferences, State Meetings, etc.
• SNA Commodity Track
• FD-101 for States
• Processing 201
• 12 Percent Provision

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The 12 Percent Commodity Thing!

• The rule Value of commodities for NSLP must be
  12 of total support for NSLP
• Often 12 not known until after entitlement
  figures have been released. Therefore
• The value of commodity needed to meet the 12
  requirement comes out late in the year. (2005-06
  the amount was 86 million---nationwide!)

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How did this happen?

• 1994 Healthy Meals for Americans Act
• Added provision to NSLA RE 12
• Decline in bonus
• SY 05/06 shortfall of 86 million
• SY06/07 another shortfall projected
• Sec. 32 tapped

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The 12 Percent...

• Is
• The difference between (a) the commodity
  entitlement bonus of States, and
• (b) 12 of the total support that NSLP is
  finally determined to be!

• Is not
• 12 more commodities in addition to the states
  entitlement.

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For Example

• USDA estimates entitlement for new year _at_ 1
  billion
• State A receives 3.5 or 35 million.
• USDA then determines 12 should be 1.086 billion
  (additional 86 million)
• State A receives additional 3.5 of 86 million
  or 3 million

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ECOS

• The only system that engages all of the USDA
  commodity partners
• A new generation of ECOS is coming!
• Enhancements also in progress
• Co-op ordering function
• Option for SDAs to limit RA entitlement spending
  to 105 or 110 percent
• Easier access and sharing of electronic N/D info

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CFN Website Migration

• In the very near future, the look, feel, and
  organization of the CFN website will
  change.
• The new site will contain all the information
  housed on the current site and more!
• Please remember to reset your internet
  bookmarks since a few of the current URLs or
  addresses within the site may change when
  the new site is launched.
• The new site is expected to be launched
  by May 1, 2007 or sooner. Well let you know.

www.commodityfoods.usda.gov
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Sneak Preview
www.commodityfoods.usda.gov/
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Hows our driving????
We want to hear from YOU!
FNS
USDA Trucking Food Distribution Division