Missouri Department of Elementary and Secondary Education, School

Missouri Department of Elementary and Secondary Education, School

Missouri Department of Elementary and Secondary Education, School Food Services USDA Foods Program Commodity Expos February 12-14, 2014 Matthew Essner Assistant Director, DESE School Food Services Andy Dudenhoeffer Supervisor, DESE-SFS Introductions Karen Wooton Director School Food Services [email protected], 573-751-3526 Matthew Essner Assistant Director Donated Food Program, DoD, FFVP, Commodity Shelf Newsletter, oversight of USDA DF [email protected], 573-522-1974 Andy Dudenhoeffer Supervisor, Processing Specialist, Issues with processed products, Delivery issues [email protected], 573-751-7253 DeeDee Kilson Administrative Assistant, Monthly Performance Reports, Processing Packets reviews, Warehouse billing/inventory tracking [email protected], 573-751-1706 Amy Halderman Administrative Assistant, Monthly Orders, Filing, Data entry [email protected], 573-751-2646 Lanter Distributing: Joni Buck, Kim Ackerman, and Josh Drake Perception of whats its like working for DESE

Or maybe this is your perception of what we do all day Reality Reality What does all the $$ talk mean? Entitlement drives the USDA Foods Program Entitlement is based solely on NSLP participation USDA Foods can be used in other programs but no additional Entitlement DESE SFS has to budget the State of MOs Entitlement and provide access to LEAs Stretch your Entitlement Dont let it go to waste MO USDA Foods 101 ..Entitlement What does it mean to you? Where does it come from? Can I just get my Entitlement as cash? Did Entitlements go up or down for SY 13-14? Should you keep track of Entitlement throughout the School Year? Does anyone know the difference between Entitlement and Bonus? Who determines? Value of Commodities vs. Entitlement.

USDA Foods Packet vs. Total Entitlement 12% Provision via NSLA Historical Figures 13-14 $0.2775 13-14 $0.2325 12-13 $0.2275 11-12 $0.2225 10-11 $0.2600 10-11 $0.2275 10-11 $0.2025 09-10 $0.1950 08-09 $0.2075 07-08 $0.1875 06-07 $0.1700 05-06 $0.1750 04-05 $0.1725 03-04 $0.1575 So why did my Entitlement go down? SY Proj Ent Spent Ent Actual Ent

Rollover 10-11 $ 20.6 $ 24 $ 27.4 $ 3.4 11-12 $ 24.2 $ 26.5 $ 26 - $ 0.5 12-13 $ 23.4 $ 24.1 $ 22.4

- $ 1.7 13-14 $ 27.5 $ 26.6 ?? Est $ 23.9 - $ 2.7 14-15 $ 22 ?? ?? ?? Figures for the entire state of MO In Millions 2011 2012 % Change

2013 % Change JULY TLS 202,204 154,904 -23.39% 157,322 1.56% AUG TLS 6,488,967 6,991,187 7.74% 6,624,257 -5.25% SEP TLS

12,599,953 10,883,625 -13.62% 11,178,779 2.71% OCT TLS 11,826,210 12,548,289 6.11% 12,251,162 -2.37% NOV TLS 11,420,041 10,716,962 -6.16%

9,632,517 -10.12% -5.87% -2.69% So why did my Entitlement go down? Code # Description Del Period Case Price 100012 CHEESE CHED RDU FAT YEL SHRED BAG-6/5 LB 7/15/2013 $58.71 100012 CHEESE CHED RDU FAT YEL SHRED BAG-6/5 LB 12/15/2013 $64.18

100022 CHEESE MOZ LM PART SKIM FRZ LVS-8/6 LB 7/15/2013 $81.92 100022 CHEESE MOZ LM PART SKIM FRZ LVS-8/6 LB 12/15/2013 $93.42 100034 CHEESE MOZ LITE SHRED FRZ BOX-30 LB 7/15/2013 $55.00 100034 CHEESE MOZ LITE SHRED FRZ BOX-30 LB 12/15/2013 $60.51 100121 TURKEY BREAST DELI FRZ CTN-40 LB 10/15/2013 $72.42

100121 TURKEY BREAST DELI FRZ CTN-40 LB 2/15/2014 $91.17 100125 TURKEY ROASTS FRZ CTN-32-48 LB 8/15/2013 $67.54 100125 TURKEY ROASTS FRZ CTN-32-48 LB 12/15/2013 $85.91 100158 BEEF FINE GROUND FRZ CTN-40 LB 7/31/2013 $78.68 100158 BEEF FINE GROUND FRZ CTN-40 LB 12/15/2013 $96.78

100208 APPLESAUCE CAN-6/10 7/15/2013 $27.92 100208 APPLESAUCE CAN-6/10 11/15/2013 $18.68 100208 APPLESAUCE CAN-6/10 1/15/2014 $17.67 100208 APPLESAUCE CAN-6/10 3/15/2014 $17.67 100212 MIXED FRUIT EX LT CAN-6/10 8/15/2013 $24.39

100212 MIXED FRUIT EX LT CAN-6/10 9/15/2013 $29.16 100212 MIXED FRUIT EX LT CAN-6/10 1/15/2014 $28.02 100241 PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ 9/15/2013 $32.77 100241 PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ 2/15/2014 $28.95 % Change 9.33% 14.03%

10.02% 25.89% 27.20% 23.00% -33.11% 19.57% -11.66% So why did my Entitlement go down? Code # Description Cases/Trk Truck Value 100012 CHEESE CHED RDU FAT YEL SHRED BAG-6/5 LB 1280 $75,144.96 100012 CHEESE CHED RDU FAT YEL SHRED BAG-6/5 LB

1280 $82,152.96 100022 CHEESE MOZ LM PART SKIM FRZ LVS-8/6 LB 840 $68,814.14 100022 CHEESE MOZ LM PART SKIM FRZ LVS-8/6 LB 840 $78,470.78 100034 CHEESE MOZ LITE SHRED FRZ BOX-30 LB 1344 $73,914.62 100034 CHEESE MOZ LITE SHRED FRZ BOX-30 LB 1344 $81,321.41 100121 TURKEY BREAST DELI FRZ CTN-40 LB

1000 $72,420.00 100121 TURKEY BREAST DELI FRZ CTN-40 LB 1000 $91,172.00 100125 TURKEY ROASTS FRZ CTN-32-48 LB 1000 $67,540.00 100125 TURKEY ROASTS FRZ CTN-32-48 LB 1000 $85,912.00 100158 BEEF FINE GROUND FRZ CTN-40 LB 1000 $78,684.00 100158 BEEF FINE GROUND FRZ CTN-40 LB

1000 $96,780.00 100208 APPLESAUCE CAN-6/10 912 $25,467.37 100208 APPLESAUCE CAN-6/10 912 $17,034.88 100208 APPLESAUCE CAN-6/10 912 $16,115.18 100208 APPLESAUCE CAN-6/10 912 $16,115.18 100212 MIXED FRUIT EX LT CAN-6/10

912 $22,244.23 100212 MIXED FRUIT EX LT CAN-6/10 912 $26,598.09 100212 MIXED FRUIT EX LT CAN-6/10 912 $25,554.03 100241 PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ 1400 $45,882.14 100241 PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ 1400 $40,530.34 Dif per truck

$7,008.00 $9,656.64 $7,406.79 $18,752.00 $18,372.00 $18,096.00 -$8,432.49 $4,353.86 -$5,351.80 VPT Value Pass Through Systems (1) FFS Fee For Service Processor receives raw USDA Food, processes raw USDA Food into desired end product, only invoices customer Fee For Service How you receive product on your Monthly delivery Value is passed through by not charging for raw USDA Food

MFFS Modified Fee For Service Processor receives raw USDA Food, processes raw USDA Food into desired end product, only invoices distributor Fee For Service Distributor up-charges for service, customer pays distributor the bid price Value is passed through by processor not charging distributor (who in turn doesnt charge customer) for raw USDA Food Product can ONLY be sold to NSLP customers VPT Value Pass Through Systems (2) NOI Net-Off-Invoicing Processor receives raw USDA Food, processes raw USDA Food into desired end product, sells product to distributor for full price Distributor up-charges for service Distributor discounts product for raw USDA Food Distributor is reimbursed value of USDA Food by processor who received the raw USDA Food Customer pays distributor the bid price less the value of USDA Food Rebates Rebates

Processor receives raw USDA Food, processes raw USDA Food into desired end product, sells product to distributor for full price Distributor up-charges for service Customer pays distributor the bid price Customer submits rebate to processor for reimbursement of the value of the raw USDA Food VPT Value Pass Through Worksheet FFS MFFS NOI Rebate Invoiced by proc Invoiced by dist Invoiced by dist Invoiced by dist USDA Processor Distributor Customer

Total Cost to Customer Scenario (fictitious data in a vacuum..unrealistic) Chicken Fajita product = 30 lbs of USDA Food / case Chicken = $1 /lb Processor charges $20 to produce the Chicken Fajita Distributor has a 5% increase on bid to determine school pricing State pays distribution cost for public schools - $2.50 / case VPT Value Pass Through Worksheet FFS MFFS NOI Rebate USDA $30 $30 $30 $30 Processor

$20 $20 $20 $20 Distributor $2.50 (pd by State) $20 $50 $50 Customer $20 $21 ($20*1.05) $22.50 ($52.50-$30.00) $52.50 ($50*1.05) Invoiced by proc

Invoiced by dist Invoiced by dist Invoiced by dist $20 ($2.50 pd by State) $21 $22.50 $22.50 (after $30 rebate) Total Cost to Customer Scenario (fictitious data in a vacuum..unrealistic) Chicken Fajita product = 30 lbs of USDA Food / case Chicken = $1 /lb Processor charges $20 to produce the Chicken Fajita Distributor has a 5% increase on bid to determine school pricing State pays distribution cost for public schools - $2.50 / case NOI vs. FFS Example (hypothetical and assuming a vacuum scenario or everything equal) FFS (hypothetical and assuming a vacuum scenario or everything equal)

Processor receives DF from USDA, produces end products, only charges LEAs their Fee For Service (FFS) NOI (hypothetical and assuming a vacuum scenario or everything equal) Processors sell end products to commercial distributors, distributors sell end products to school, if lbs available distributor discounts end products to the LEA for the value of DF determined by USDA FFS (hypothetical and assuming a vacuum scenario or everything equal) 36,000 lbs $1.00/lb .0 $20 by d e voic n i

0 or s s e proc by for d ai FS p .50 S 2 $ SE DE ivery l de Assume a case of end product has 30 lbs of chicken and the processor charges $20 FFS NOI (hypothetical and assuming a vacuum scenario or everything equal) $1.00/lb 36,000 lbs Processor

credits distributor $30 for chicken lbs Distributor b ids product at $52.50 (5% increas e) Distributor d iscounts $ 3 0.00 r $22.50 o t u ib r t is d LEA pays $50 = $30 for lbs of chicken and $ 20 for FFS Rebate

(hypothetical and assuming a vacuum scenario or everything equal) $1.00/lb its m b su r A E L sso e c Pro to e t a Reb 36,000 lbs 0 $3 EA L es t

ba e r R lbs o ss en e oc hick r P rc o Distributor b f ids product at $52.50 (5% increas e) r $52.50 o t u ib r t is d LEA pays $50 = $30 for lbs of chicken

and $ 20 for FFS NOI Timeline January February Calculate and Divert lbs via DESE SFS annual Packet February June conduct commercial bid to determine price July Assign distributor for each USDA Food on www.k12foodservice.com or www.processorlink.com July October Utilize at least 33% of diverted lbs for the school year November Broker check-up with LEAs November January Utilize at least 66% of diverted lbs for the school year February Broker check-up with LEAs Plan orders for next school year to order on DESE SFS annual Packet (see #1) February June Utilize 100% of diverted lbs for the school year for zero (0) balance LEAs with under-utilization may lose lbs to be transferred to LEAs utilizing lbs responsibly and in need of additional lbs for the school year.

NOI Timeline cont. Please Note: LEAs electing to participate in the Net-OffInvoicing (NOI) or Rebate program must check with their commercial distributor to verify the actual items available through the distributor which are offered/approved by the processor for NOI. LEAs will have accounts established either on www.k12foodservice.com or www.ProcessorLink.com where they can log in to review their lb balances and make distributor changes. Balance for a processor assigned to one distributor Using NOI/Rebate lbs early assures full value of entitlement will be received and will open the door for the possibility of additional lbs later in the school year from LEAs who are not responsibly using NOI/Rebate lb diversions. USDA Foods Packet SY 14-15 Elections by LEAs are based on Entitlement More brown-box options Department of Defense Produce available to anyone THERE ARE NO LONGER Monthly Processed Order Forms (same as SY 13-14) Open Order will continue to be ordered monthly Only fruit, vegetables, grains/pastas, rice, oil, peanut butter, sun butter and cheese USDA Foods Packet SY 14-15

Packet will be Completed and submitted electronically via Excel spreadsheet No more printed copies or snail mail (> 50 pgs) No more copying information into PDF documents Submit completed packet to [email protected] and receive a confirmation Email (like current Monthly orders) Save file with Agreement # USDA Foods Packet SY 14-15 Only order items you will use dont spend the $$ just b/c Remaining Entitlement will go towards additional Open Order items for SY 14-15 Rebate vs NOI Same end result, different steps Both have to divert lbs via USDA Foods Packet No more first come, first serve Rebates If a distributor offers NOI, more efficient than Rebate Most processors available in 13-14 still available in 14-15 Added Highliner (American Pride) Fish, Captain Kens Beef, Cargill Turkey, Cherry Central Apples Removed Kings Delight exited processing program Brown Box via USDA Foods Packet

(tentative dates subject to USDA availability) The only opportunity to order these items is via the USDA Foods Packet Total quantity calculated for each item will be split evenly over the listed delivery periods Estimated quantities for each period are displayed when completing the USDA Foods Packet Quantities and timing are not guaranteed subject to USDA availability and the orders from ALL MO LEAs USDA Fact sheets are hyperlinked to the description 8 pc raw cut-up or 8 pc Oven Roasted Chicken Again available after M/MA maximums permanently lifted by USDA Enter servings or cases Items are free there are no processing fees Brown Box via USDA Foods Packet (tentative dates subject to USDA availability) Either Servings or # of Cases NOT BOTH!! Brown Box via USDA Foods Packet (tentative dates subject to USDA availability) Automatically Calculates Can Manually Enter Delivery Period Once Formula is gone, will not come back

USDA Packet Notes Poultry white, dark, and natural proportion options White calculated 1st by svg White and Dark lbs must be Equal After White lbs determined, offset lbs by entering DARK lbs. Can be all one product or spread amongst products Natural Proportion Items calcluated the same as all other items by svgs. Do not have to offset lbs. USDA Packet Demo Calculator is set up to input # of servings for the entire 14-15 school year Calculates lbs DF needed to produce servings Calculates estimated entitlement to purchase lbs of DF Calculates remaining Entitlement after each election Can only type in yellow cells dont be scared

Feel free to run hypothetical scenarios to determine the best products for your LEA When satisfied, save with Agreement # and submit to DESE SFS just like monthly Open Order USDA Packet Notes Nutritional Information hyperlinked on bottom right corner Contact Information for each vendor posted to web No longer have predetermined amounts can spread however you would like does not have to be even Detailed instructions posted to web Enter your Agreement # with hyphen Due Date = Friday February 28th, 2014 Processed items area full year commitment PAY YOUR INVOICES shortages are monitored by DESE and reconciled at the end of the SY Sample Reconciliation Info Department of Defense Fresh Program Began as a pilot program and LEAs were grandfathered in Grown over the years and changes have been made by the Department of Defense One long-term contracted vendor for ALL of MO C & C Produce in Kansas City All produce orders are submitted via FFAVORS Prices may be higher than purchasing commercially

Utilizes Entitlement and must be elected via the USDA Foods Packet DoD vs FFVP DoD Began as a pilot program and LEAs were grandfathered in Grown over the years and changes have been made by the Department of Defense One long-term contracted vendor for ALL of MO C & C Produce in Kansas City All produce orders are submitted via FFAVORS Prices may be higher than purchasing commercially Utilizes Entitlement and must be elected via the USDA Foods Packet

FFVP Grant-based program Annual Application Elementary School Only Notification sent to Elementary Schools >50% F/R Grant determined per enrolled student Between $50-$75 per student Monthly claims submitted to DESE for reimbursement Conducted outside breakfast and lunch but during school day MO Commodities 101 ..Deliveries DESE contracts warehousing/delivery New vendor for SY 13-14 = Lanter Distributing Will be same for SY 14-15 DESE pays for storage, handling and delivery for all public LEAs Non-publics only pay delivery Nine (9) deliveries per school year: August April 7:00 a.m. 3:00 p.m.

Attempt to stay on a cycle deliver schedule for consistency Mark any discrepancies (over or under) on the Bill of Lading before signing BOTH COPIES (LEA and Lanter) Inclement weather Lanter will deliver if they can make it whether school is in session or not MO Commodities 101 ..Open Order Open Order form is available on the DESE SFS Commodities page Updated MONTHLY use the current form Posted by the 1st of each month Open Orders are due by the 15th of each month (July March) Must be E-mailed Deliveries are made the month following submission Items with limited quantities are denoted with a ** (## = for everyone) Orders received above inventory levels are adjusted by a percentage of the original ordered amount for each LEA Adjustments are posted by the end of the order month School Lunch Solutions and Opportunity Buys ..not USDA DF School Lunch Solutions and National Food Group (formerly United Commodity Group) may offer your LEA additional commercial items to purchase Delivered by Lanter with USDA DF, but not USDA DF LEAs can purchase any items from SLS or NFG, but DESE SFS receives no information about commercial items

Separate Bill of Ladings will be issued by Lanter Any problems with SLS or NFG items should be directed to: SLS John Pickert, 800-520-1399 ext 1 NFG Nick Goetz: 888-824-0700 ext. 1133 Miscellaneous Open Order amounts will attempt to be similar to 13-14 (remember only f/v, grains, cheese, etc) Plan to have cheese options like 13-14 Only offer WG products again in 14-15 Catfish Strips (100201) are WGR Continue to increase F/V options Adjustments posted monthly ACDA Conference in Austin, TX April 27-29, 2014 SNA Annual Conference in Boston July 14-17, 2014 MO FSD Leah Schmidt National SNA President Thank you to our host district Whos Confused?? NOI SNA FFS k n i

L r o s es c o Pr D o D Op en Or de r MFFS Pro VPT ces sin gP ack et S R O V FFA

DA C A AMS FS A Mo nt 6 Cer t tes a b e R WG R hly Or de rs FFVP om c

. e c i v r e s d W o o F BS 2 1 K CM Commodities vs USDA Food Abbreviations Acronyms

ACDA AMS DoD FFAVORS FFS FFVP FSA MFFS NOI SNA VPT WGR WBSCM American Commodity Distribution Association Agriculture Marketing Service Department of Defense Fresh Fruit and Vegetable Order Receipt System Fee For Service Fresh Fruit and Vegetable Program Farm Service Agency Modified Fee For Service Net-Off-Invoicing School Nutrition Association Value-Pass-Through

Whole Grain Rich Web Based Supply Chain Management Food Show Directions DESE SFS Staff to assist with Packets Housekeeping Questions before we leave? THANK YOU for coming BEST of LUCK in SY 14-15 Contacts Karen Wooton Director School Food Services [email protected], 573-751-3526 Matthew Essner Assistant Director Donated Food Program, DoD, FFVP, Commodity Shelf Newsletter, oversight of USDA DF [email protected], 573-522-1974 Andy Dudenhoeffer Supervisor, Processing Specialist, Issues with processed products, Delivery issues [email protected], 573-751-7253 DeeDee Kilson Administrative Assistant, Monthly Performance Reports, Processing Packets reviews, Warehouse billing/inventory tracking [email protected], 573-751-1706 Amy Halderman Administrative Assistant, Monthly Orders, Filing, Data entry [email protected], 573-751-2646 Lanter Distributing: Joni Buck, Kim Ackerman, and Josh Drake 816-459-4823

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