COMMODITY PROCUREMENT PROGRAM
LP Open Forum/General Session

Who’s on the Poultry Team?

Samantha 

Rhoderick

National Poultry 

Supervisor

Anjeanette Johnson

Marketing Specialist 

(Specifications)

Chad Brillhart

Assistant to the 

National Poultry 

Supervisor

Dr. Jacqueline Mason

International 

Marketing 

Specialist

Terry Lutz

Marketing 

Specialist 

(Specifications)

Laura Grisel

Marketing Specialist 

(Specifications)

Detailee
Who’s on the Egg Team?

Jeff Hendricks

National Supervisor

Anjeanette Johnson

Marketing Specialist 

(Specifications)

Dr. Jacqueline Mason

International Marketing 

Specialist

Jeff Shomaker

Compliance Officer

Jed Warnock

Assistant National 

Supervisor

Laura Grisel

Marketing Specialist 

(Specifications
Who’s on the Food Safety and Technology Team?

Darin Doerscher

Branch Chief

Steve Whisenant

Marketing 

Specialist 

Will Stone

Marketing

Specialist

Dr. Sherry Wise

Senior Economist

Angelia Gale

Marketing 

Specialist

Shalynn Sumrow

Economist Detailee
L&P = Program Support

• Write Purchase Program Specifications

• Grading, Certification, and Auditing of Commodities

• Advice on Waiver Approvals/Denials

• Review Section 32 Requests

• Collect volume data for additional purchases

• Work closely with AMS vendors
LP Section 32 Requests
Section 32, Act of August 24, 1935

(P.L. 74-320 as amended; 7 U.S.C. 612c)

• Authorizes 30% of annual U.S. customs receipts. 

• Section 32 funds, are to be used for 

(1)encouraging the export of farm products through producer 

payments or other means; 

(2)encouraging the domestic consumption of farm products 

by diverting surpluses from normal channels or increasing 

their use by low-income groups; and 

(3)reestablishing farmers’ purchasing power. 

• The Secretary of Agriculture has discretion in 

deciding how to achieve these objectives.
Section 32 Process

• Industry (usually an association) submits a 

request to the Secretary of Agriculture

• Request should include an explanation of the problem 

industry is experiencing.

• Usually a purchase volume or purchase value included. 

Time frame also helpful.

• Request is acknowledged by AMS and sent to 

economist to analyze.

• Economist uses available data, industry and 

other expertise to evaluate industry 

conditions.
Section 32 Process, cont’d

• Economist prepares an analysis which describes 

industry conditions and makes a 

recommendation.

• Economic analysis is reviewed within the 

Program and then by the Office of Chief 

Economist.

• Economist makes necessary revisions and report 

is sent for management review.
Economic Analysis

• Each request is distinct and varies according to 

the industry, conditions faced by industry, and 

the data available to evaluate the industry.

• Industry data is used where available and 

relevant as well as independent sources 

(industry news, academic experts, government 

data).
Economic Analysis, cont’d

• Economic analysis focuses on supply and 

demand conditions.

• Data include—

• Production

• Inventories

• Prices

• Trade

• Demand conditions

• Historical patterns very important 
Dashboard view of Section 32 historical purchases.
Animal Handling & Welfare State Requirements
Background

• National Meat Assoc. v. Harris (2012)

• CA Proposition 2 (2015)

• CA Proposition 12 (2021)

• National Pork Prod. v. Ross (2023)
State AHW Laws

• Approximately 44 state laws*

• Thirty-three laws specify how animals must 

be handled/raised in a particular state

• Eleven laws prohibit the sale of certain 

products in a particular state

*https://www.humanesociety.org/sites/default/files/docs/HSUS_state-farmanimal-protection-laws.pdf
AMS Procurement

• AMS commodities appear exempt 

from Prop 12 but not from Prop 2

• Exemptions from other state laws 

examined case-by-case

• Feedback from AMS vendors will 

inform purchasing policy
Domestic Origin
Domestic Origin Requirement

• Commodities procured by AMS for Federal 

nutrition assistance programs must be of 

“domestic origin.” 

• AMS states that commodities purchased for 

these programs are “100% domestically 

produced and processed”

• Animals must be born, raised, slaughtered, 

and processed in the U.S. ...
... except for

• Beef and pork 

• Animals may be born and raised in another 

country so long as they are slaughtered and 

processed in the U.S.
Revised Requirement

• Beef and pork commodities must be derived 

from animals born, raised, slaughtered, and 

processed in the U.S.

• Specifically, animals knowingly imported 

from another country may not be used

• Phase-in period

• Harmonizes policy across commodities and 

protects integrity of the USDA Foods brand
Economic Outlook
Economic Conditions

• Inflation 

• Overall CPI Up 3.2%

• Food CPI Up 4.9%

• Energy CPI Down 12.5%

• Housing CPI Up 7.7

• Employment

• Unemployment 3.5%

• Cost of employment Up 1.5% (real)
Feed Costs

• Corn

• Soybeans

• Global situation

Cattle/Beef

• Supply

• Cattle herd down 3% (July NASS report)

• Calf herd down 2%; Some evidence of female replacement.

• Beef production down 4% in 2023; Down 9% in 2024

• Beef imports up 4% in 2023; Up 1% in 2024

• Demand

• Per capita disappearance down 4% in 2023; Down 9% in 2024

• Beef exports down 9% in 2023; Down 8% in 2024

• Price Trend

• Fed cattle up 21% in 2023; Up 5% in 2024

• USDA forecast of beef CPI up 3% in 2023; Up 6% in 2024
Hogs/Pork

• Supply

• Herd appears to be shrinking—Since May sow and boar slaughter up from 2022, 

and 5-year average

• Pork production down 1% in 2023; Steady to down slightly in 2024

• Pork imports down 20% in 2023; Up 8% in 2024

• Demand

• Per capita disappearance down 3% in 2023; Steady to up slightly in 2024

• Pork exports up 9% in 2023: Up 1% in 2024

• Price Trend

• B&G down 19% in 2023; Up 12% in 2024

• USDA forecast of Pork CPI down 3% in 2023; Down 1% in 2024
Sheep/Lamb

• Supply

• Lamb production steady in 2023; Down 2% in 2024

• Lamb imports down 11% in 2023; Up 16% in 2024

• Demand

• Per capita disappearance down 8% in 2023; Up 8% in 2024

• Price Trend

• Slaughter lamb prices down 13% in 2023; Down 3% in 2024

• USDA forecast of lamb CPI up 4% in 2023; Up 2% in 2024
Chicken

• Supply

• Broiler production up 2% in both 2023 and 2024

• Broiler meat in cold storage up 12 from 2022, most of which is breast meat

• Demand

• Per capital disappearance up 2% in 2023; Up 1% in 2024

• Broiler exports up 1% in 2023; Up 3% in 2024

• Price Trend

• Wholesale broilers down 9% in 2023; Steady to up slightly in 2024

• Poultry CPI up 3% in both 2023 and 2024
Turkey

• Supply

• Strong production growth seen in recent months may mean recovery from 

HPAI

• Turkey production up 7% in 2023; Up 2% in 2024

• Demand

• Per capita turkey disappearance up 4% in 2023; Up 3% in 2024

• Turkey exports up 1% in 2023; Up 6% in 2024

• Price Trend

• Turkey wholesale prices up 6% in 2023; Steady to down slightly in 2024

• Poultry CPI up 3% in both 2023 and 2024
Eggs

• Supply

• Table egg production up 3% in 2023; Up 4% in 2024

• Demand

• Per capita disappearance up 1% in 2023; Up 4% in 2024

• Price Trend

• Wholesale New York Grade A egg prices down 36% in 2023; Down 21% in 

2024

• Egg CPI up 2% in 2023; Down 11% in 2024
Aquatics

• Supply

• Record high pink Alaska salmon harvest expected; Sockeye catches are increasing

• Increased imports for shrimp

• Decreased imports for catfish in 2023, but high in 2022

• Demand

• CPI for food away from home up 7.1%; Full-service restaurants up 5.8%

• CPI for shelter up 7.7%; Medical commodities up 4.1%; Transportation services up 

9%

• Price Trend

• Fish CPI up 1% in 2023; Up 3% in 2024
Rejected Loads, Destination Exams & Complaints

Commodity Procurement

Food Nutrition Service

Standards and Specification Division
Rejected Load – The Process

• Recipient wants to reject – Requests approval from FNS

• FNS sends information to CP

• If technical advice is needed – CP reaches out to SSD

• SSD works with the vendor and provides recommendation back 

to CP for acceptance or rejection

• If questionable a destination examination may be requested 
Destination Exam

• Vendors or Recipients may request a Destination Exam on a 

truck that is in jeopardy of being rejected

• A QAD grader or supervisor, if available, will travel out to the 

destination to assess product condition

• If found acceptable the recipient accepts and is billed

• If found unacceptable the recipient rejects and the vendor is 

billed
Destination Exam

• Temperature of the product

• Condition of the cases

• Condition of the product

• Looking for evidence for what the rejection is 

based on

• Organoleptic condition 

• Evidence of tampering

• Case count
FNS 709-5

• Shipment and Receipt of USDA Foods 

Instruction

• Guidance for recipients

• Currently under review

• Help with consistency of accepting product 

alleviate incorrect rejections
Further Processors

• Recipients of USDA Foods diverted to 

processors

• If processing and a foreign object is found – contact FNS that day and stop processing if 

able

• Examination will be requested immediately
Complaints

• FNS requests from recipients:

• Vendor Name

• Complaint Number

• Sales Order Number

• Sales Order Item Number

• Purchase Order Number

• Purchase Order Item Number

• Quantity Affected

• Date of Incident

• Date Received

• Purpose of Complaint

• Recipient Request (i.e., Replacement, Vendor Response)

• Current Status of Product Affected (i.e., Product Condition)

• Other Pertinent Information (i.e., photos)
Complaints

• Recipients of USDA Foods are encouraged to submit 

complaints if issues are found

• FNS receives the complaints and provides information to CP 

• CP reaches out to the vendor for resolution according to the 

FAR

• Reasonable amount of time after discovery

• Received before any substantial change occurs in condition

• A defect which clearly does not conform to the provisions of the 

contract
Questions & Discussion