# Presentation: 032407

## The Dynamics of USDA Commodity Programs

***The Dynamics of USDA Commodity Programs***

**Dennis J. Pearson**
**Chief, Commodity Procurement Branch, **
**AMS Poultry Programs**

## AMS Organization

**AMS Organization**

## AMS Functions:

**Commodity Procurement**
**Grading and Certification**
**Research & Promotion**
**Market News**
**Standards**

**Auditing**
**National Organic Program **
**Country of Origin Labeling**
**Farmers Markets**
**Agricultural Transportation**

## Mission of Commodity Procurement:

**Stabilize farm prices by removing surplus commodities**
**Provide needy persons with access to a more nutritious diet**
**Improve the eating habits of the Nation’s children**

## Procurement:  AMS

_**AMS Purchases**_**:**
**(non price-support commodities)**
**  ****Livestock (Beef/Pork/Fish)**
**  ****Poultry (Chicken/Turkey/Egg Products)**
**  ****Fruits & Vegetables****	**

## Commodity Areas:

**Poultry Programs**
**Fruit and Vegetable Programs**
**Livestock and Seed Programs**

## Purchases and Recipient Preference:

**AMS is primarily a purchase agent**
**Recipient preference determines purchases**
**Product**
**Type**
**Form**
**Packaging**
**Quantity**

## How are AMS Commodities Purchased?

_**Announcements:**_
**List products to be invited**
**Set responsibility standards**
**Detail bid formats**
**Shipping and payment information**

## How are AMS Commodities Purchased?

_**Invitations:**_**  **
**Issued periodically**
**Used in conjunction with the Announcement**
**List delivery destination cities and estimated quantities**
**Identify delivery periods**
**Other restrictions (Kosher, truck only, etc.)**

## How are AMS Commodities Purchased?

_**Offers Received:**_**  **
**Determine responsibility/responsiveness**
**Analyze on a least-cost basis**
**Check for tie bids and possible collusion**

## How are AMS Commodities Purchased?

_**Food Purchase Reports and Contracts:**_
**Awards Released**
**Identifies quantity purchased, firms awarded, and prices paid**
**Contracts faxed to successful firms**

## Slide 12

## Impact of Production Cycle and Recipient Needs:

**Larger purchases at peak production**
**Fund shifts**
**No purchases/deliveries some months**

## Peak Consumption Days:

**A season for eating?**
**	****	****YES ! High Demand – Higher ****	****Prices!**
**Does the market need support then?**
**	****	****NO !**

## Peak Consumption Days:

**Turkey**
**Eggs**
**Ham**
**Ground Beef**
**Watermelon**
**Chicken**

**Wings**
**Strawberries**
**Asparagus**
**Lamb**
**Champagne**
**Chocolate**

**A Season for Eating?**

## Requirements:

**Specification Requirements**
**Commercial Item Descriptions (CIDs)**
**Buy American—Domestic Origin**
**USDA Meat and Poultry Inspection**
**Total Quality Systems Audit**

## Commodity PurchasesFiscal Year 2006Group A

|  | 
TOTAL LBS. (Millions) | 
TOTAL DOLLARS
(Millions) |
| --- | --- | --- |
| Livestock | 220.7 | 304.2 |
| Fruit & Vegetable | 847.0 | 341.5 |
| Poultry | 338.6 | 251.1 |
| TOTALS  | 1,406.4                                                                                   | 896.8 |

## Poultry Partners:*

**Tyson Foods, Inc.**
**Gold Kist Poultry Company**
**Pilgrim’s Pride Corp.**
**Crider’s Inc.**
**Jennie-O Foods**
**Carolina Turkeys**

**ConAgra**
**Willow Brook Foods**
**House of Raeford Farms**
**Southern Hens, Inc.**
**Tony Downs Foods**
**Tip Top Poultry**

- *Awarded over $5 mil., SY ’05-’06

## Fruit &Vegetable Partners:*

**Allen Canning Company**
**Bruce Foods**
**CA Fruit & Tomato Kitchen**
**Cherry Growers, Inc.**
**Del Monte**
**Glacier Sales**
**Knouse Foods**
**Lakeside Foods, Inc.**
**Mason County Fruit Packers**

**McCain Inc.**
**Red Gold, Inc.**
**Seneca Foods**
**Signature Fruit**
**Snokist**
**Summer Prize Fruit Co.**
**U.S. Food Service**
**Valley Fig Growers**

- *Awarded over $5 mil., SY ’05-’06

## Livestock & Seed Partners:*

**Tri-Union (Chicken of the Sea)**
**Westland Meat Co**
**Palo Duro Meat Processing**
**Criss Cross Express**
**Central Valley Meat Co. **

**Cherry Meat Packers, Inc.**
**John Hofmeister & Son**
**Farmland Foods, Inc. **
**Lakeside Foods, Inc.**
**Castleberry's Food**

- *Awarded over $5 mil., SY ’05-’06

## Questions?

**Suggestions?**