# Presentation: 168552

## "Sharpening your commodity ordering skills - Getting the most bang for your buck!"

- By  Cynthia Barton, RD,LD
- District Dietitian
- Northside ISD,
- San Antonio, Texas

**Notes:**
We are a large district and don’t do NOI but are strong proponents of it.
We do full substitution and  standard yield.

## Commodities are Dollars!!!

- View commodities as fiscal dollars to assist procurement and not just physical products.
- Unused or unpopular commodities are wasted fiscal assets.
- Commodities managed effectively
- are the key to a strong bottom line.

## Winning Cycle Menus

- Customer acceptance drives the menu.
- The menu is the first step to start the procurement and commodity ordering process.

## Winning Cycle Menus...

- Menu driven commodities...
-  not commodity driven menus!
- The menu should drive the commodities requested or processed.
- Always ask “How can commodities support the menu?”

## Ask the following questions:

- Is it popular with the students?
- Does it help or hurt participation?
- What is the nutritional impact?

## What about Food Safety?Are raw meats & poultry the best form of commodities for our district? Is there sufficient trained labor to deal with the products in a raw state?

- By using already prepared items you remove a potential hazard.

## When ordering commodities or deciding what to process ask:

**Can the same item be used differently? **
**	****- Chicken Patty on Bun, Chicken Parmesan, Lemon Chicken...**
**	****- Crumbles in meat sauce, taco filling, bar-b-que, sloppy joes **
**Versatile commodities move thru the system faster...saving on storage and ensuring safer higher quality menus**

## Ask yourself the following questions:

- Do you have adequate storage for your commodities?
- Are you paying for storage?
- Do you get commodities when you need them?

## Ask yourself the following question:

- Are you able to use all of your entitlement dollars every year?
- If not, processing could be the solution.

## Commodities Extend Your Purchased Food Dollars:

- Many ask:
- If you add the raw cost of a commodity and the processing fee-doesn’t it cost more to process?
- Our response is- We are not going to get the commodity dollars (PAL) in the form of cash that we can take to local vendors and buy the food items we want.

## Don’t leave commodity $ on the table...

- We are only going to get our commodity dollar value by obtaining the commodity from USDA.
- Therefore we should spend all of our Planned Assistance Level (PAL) money on usable commodity/commodity processed items that help our program.

## Deciding what to Process

-  Center of the plate / high volume items
- Process items that:
-  - would be purchased at full price
-  - can upgrade quality of food products
-  - can save labor time
-  - improve food safety

## Process items that...

- can streamline deliveries, eliminate delivery delays and save storage fees
-  - can help food consistency / food safety
-  - can stretch commodity dollars
-  - reduce commercial expenses

## State Processing Options

**Learn about the options available in your state. This will help define your bid.**
**Are there?**
**     ****-State commodity training programs**
**      ****or web sites**
**   ****-Processing Co-ops**
**   ****-Commodity Food Shows**
**Join ACDA (American Commodity Distribution Assoc), State-SNA and SNA**
**Network with Districts from other states at SNA & ACDA ANC**
**  ****If not, unite with other districts and help organize something!**

## Growing a Processing Program...

- Develop a partnership with your State
- What are the State deadlines and procedures for submitting requests?
- What distribution methods or processing options are approved in State...?
- Value Pass Through Options- Fee for Service, Refund, Indirect Discount (Net Off Invoice), Direct Delivery
- Understand commodity ordering options and the value of processing...

## Hamburger Patties

- Processed
- $.099 ea
- 102/case
- $10.10/case
- Savings
- $13.26/case
- $130.00/1000 servings

- Purchased
- $.229 ea
- 102/case
- $23.36/case

## Chicken Nuggets

- Processed
- $.204/ser
- 94/case
-  $19.18/case
- Savings
- $7.80/case
- $83.00/1000 servings

- Purchased
- $.287/ser
- 94/case
-  $26.98/case

## Breakfast Pork Patties

- Processed
- $.070 ea
- 128/case
- $8.96/case
- Savings
- $8.70
- $68.00/1000 servings

- Purchased
- $.1381
- 128/case
- $17.66/case

## Pizza-Mozzarella Cheese

- Processed
- $.255 ea
- 96/case
- $24.48/case
- Savings
- $6.05/case
- $63.00/1000 servings

- Purchased
- $.318 ea
- 96/case
- $30.53/case

## Cheese, RF American Sliced

- Barrel Cheddar 1.45 / lb
-  + RF American Cheese Processing Fee .97 / lb = $2.42/lb
- 100 lbs raw produces 248 lbs (2.48 times!!!!!)-Use less PAL
- USDA Commodity Cheese-RF B034 for 07/08 – 2.55/ lb
- 100 lbs = 100 lbs
-  Cost Savings $.13 /lb for processed & higher yield

**Notes:**
By process 100 lbs of raw RF cheese you get 148 more lbs than just buying 100 lbs of USDA Boxed Cheese.

##            Bid Proposal

- Bid Proposal – Processing should be bid (Follow federal, state and local guidelines)
- For Product Consistency - Suggest combining commodity processing and commercial equivalent products onto 1 bid proposal

##      Bid Proposal, Cont.

- Unit bid price is based upon – portion cost, net portion cost with commodities deducted, guaranteed yield, donated raw product used in each case
- Product Specifications and Descriptions-Encourage competition, avoid brand prejudice,

## Commodity RequestRecommendations

- Use all of protein commodity allotments for processing
-  Determine dollars left for other commodity items: fruits & vegetables, DOD-fresh fruits & vegetables, lower value staples...

##            Final Thoughts

- Be aware of ordering options and the decision process in your State
- Entitlement dollars-Know it, Use all of it,
-    Monitor it throughout the year
- Work with your State Distributing Agency

## Final Thoughts...

- Unite with other districts and help
- Track allocations, balances and bid adherence
-  Keep notes for future bid revisions

##      Final Thoughts... cont.

-   Ask State for any leftover entitlement that other schools are not using.
-  Get the most out of commodity dollars –
-     If additional rounds of commodities are available compare prices of raw products and yields to get the most from your resources
-  Most importantly look at the big picture and get started!!!!

## Resources

- Commodity Foods Network
-     www.commodityfoods.usda.gov
- American Commodity Distribution Association
-    www.commodityfoods.org
- Food Distribution Home Page
-    www.fns.usda.gov/fdd
- Commodity Files   http://www.fns.usda.gov/fdd/pcims/Nov15Commodityfiles.htm

## Resources, cont.

- Food Distribution Training Power Point Presentations:
- http://www.fns.usda.gov/fdd/ppt-slides/default.htm
- School Nutrition Association
- www.schoolnutrition.org
- USDA Food Buying Guide
- http://teamnutrition.usda.gov/Resources/foodbuyingguide.html

## Resources, cont.

- Approved National Processing Agreement Manufacturers http://www.fns.usda.gov/fdd/programs/national/NPA-ApprovedProcessors.htm
- Recipient Agency Commodity Processing Handbook-ACDA
- www.commodityfoods.org
- First Choice Purchasing Manual –National Food Service Management Institute
-    www.nfsmi.org

## Questions?????

- Cynthia Barton
- Northside ISD Food Services
- 7520 Mainland Dr
- San Antonio, Texas  78250
- 210-397-4504
- cynthiabarton@nisd.net