USDA COMMODITY PROGRAMS UPDATE Cathie McCullough, Director Food Distribution Division, USDA Legislative Action Conference, March 5, 2007

SY 08 Foods Available - Meat Beef Products Pork Products  Beef, Ground, Frz.  Beef, Patties, Frz., 100%  Beef, Patties, Frz., VPP  Beef, Patties, Lean  Beef Patty, Cooked  Beef, Crumbles  Beef, Irrad Patties  Beef Irrad  Beef, Cnd  Ham, Cooked, Water-added, Frz.  Ham, Cooked, Frz, Thin Slc.  Ham, Cooked, Frz, Cubed  Pork Leg Roast  Pork, Canned 24 Ounce  Pork, Cooked Sloppy Joe Mix  Pork, Cooked, Crumbles  Pork, Cooked Patty Links  Pork, Cooked Seas Patty 2.7  Pork, Cooked Seas Patty

SY 08 Foods Available - Poultry Poultry/Egg Products  Chicken, Breaded, Frz., 7 Piece  Chicken, Canned, Boned  Chicken, Cut-up, Frz.  Chicken, Diced, Frz.  Chicken, Fajita Strips  Chicken Nuggets, SOC  Chicken Patties, SOC  Egg Mix  Eggs, Frz., Whole 5#  Turkey Hams, Frz.  Turkey Roast, Frz.  Turkey, Deli Breast, Frz.  Turkey, Deli Breast, Smoked  Turkey, Taco Filling  Turkey, Crumbles  Turkey, Whole, Frz.

SY 08 Foods Available – Fresh Fresh Fruits Fresh Vegetables  Almonds, Natural  Almonds, Roasted  Apples, Fresh (various types)  Oranges, Fresh  Pears Bosc, Fresh  Pears D-Anjou, Fresh  Potatoes, Russet, Fresh  Potatoes, White. Fresh  Potatoes, Bulk, for Dehy  Potatoes, Bulk, for Frozen  Sweet Potatoes

SY 08 Foods Available - Fruit Fruit Products (canned, dry, frozen)  Apple Slices, Cnd, Frz.  Applesauce, Cnd  Apricots, Cnd, Diced, Frz.  Blueberries, Cultivated, Dry, Frz.  Blueberries, Wild, Frz  Cherries Red 10, Canned  Cherries, Dry, Frz.  Cherries, IQF  Cranberries, Cnd, Dry, Whole, Frz.  Cranberry, Cnd, Sauce  Fruit Mix, Cnd  Fruit-Nut Mix  Juice, Orange, Frz., Concentrate  Juice, Orange, Singles  Raisins  Raspberries, Puree  Raspberries, Frz., Pail  Peaches, Cnd, Clingstone, Diced, Slc.  Peaches, Cups, Freestone, Frz.  Pears, Canned, Diced, Sliced, Halves  Pineapple, Canned, Chunks, Crushed, Tidbits Tidbits  Strawberries, Cups, Frozen  Strawberries, Frz, Sliced

SY 08 Foods Available - Vegetables Vegetable Products (canned, dry, frozen)  Beans, Cnd, Baby Lima  Beans, Cnd, Black Turtle  Beans, Cnd, Blackeye Pea  Beans, Cnd, Garbanzo  Beans, Cnd, Great Northern  Beans, Cnd, Pink  Beans, Cnd, Pinto  Beans, Cnd, Red Kidney  Beans, Cnd, Refried  Corn, Frz.  Peas, Cnd, Frz.  Potatoes, Oven, Frz.  Potatoes, Rounds, Frz.  Potatoes, Wedges, Frz.  Salsa, Cnd  Spaghetti Sauce (Meatless), Cnd  Sweet Potatoes, Cnd, Syrup, Mashed  Sweet Potatoes, Frz., Mashed  Sweet Potatoes, Frz., Random Cut  Tomato Paste, Cnd  Tomato Sauce, Cnd  Tomatoes, Cnd, Diced

SY 08 Foods Available – Group B Group B Products Cheese/Peanut Products Grains/Flour Products  Cheddar, Reduce-Fat, Shredded  Cheddar, Shredded  Cheddar, White & Yellow  Cheese Blend, Amer/Skim Milk  Cheese, Pasteurized Amer, Sliced  Cheese, Process, Sliced, Yellow  Peanut Butter, Smooth  Peanuts, Roasted Runner  Peanuts, Roasted, Canned  Mozzarella, Light, Shred. Frz.  Mozzarella, LMPS, Frz.  Mozzarella, LMPS, Shred., Frz.  Cornmeal, Degermed, Yellow  Flour, All Purpose, BL. & Unbl.  Flour, Baking  Flour, BHW, BL. & Unbl.  Flour, BHW Hearth, BL.  Flour, Whole Wheat  Flour, Bakers Soft Wheat, BL  Flour, Bakery Mix, Regular & Low-Fat  Flour, Bread, BL.  Flour, Masa, Yellow  Grits, Corn, White & Yellow  Grits, Fine, Yellow

SY 08 Foods Available Group B Products (con’t) Rice/Pasta Oil/Shortening/Misc. Products  Rice, Brown  Rice, Medium  Rice, Milled, Long-Grain  Rice, Parboiled  Rice, Brown, Long-Grain, Quick Cook  Macaroni, Elbow  Rotini, Spiral  Spaghetti 20  Oil, Soybean, Low Saturated Fat  Oil, Vegetable, Bottle  Shortening, Liquid, Vegetable  Shortening, Vegetable  Sunflower Butter

SY 2008 Foods Available - CP Bulk Processing Products Group A Products Group B Products  Beef, Bulk, Coarse  Beef, Boneless Fresh  Chicken, Chilled, Legs  Chicken, Drumsticks, Thighs, Chilled  Chicken, Light Bulk Fowl Fresh  Chicken, Small & Large Bulk, Chilled  Eggs, Liquid, Whole, Bulk  Juice, Orange, Drums & Tankers  Pork, Boneless Picnic, Frz.  Raspberries, Frozen, Drum  Turkey, Bulk, Chilled  Turkey, Bulk, Ground  Cheese, Nat’l American, Barrel 500  Cheese, Process, Block  Cheddar, White, 40# block  Cheddar, Yellow, 40 # block  Flour, BHW Bulk, BL. & Unbl.  Flour, BHW Hearth Bulk, BL  Mozzarella, LMPS, Unfrozen  Oil, Vegetable, Bulk  Peanut Butter, Smooth, Drum  Potatoes, Bulk, for Dehy & Frozen  Tomato Paste, Drum  Tomato Totes

IMPROVING COMMODITIES IMPROVING COMMODITIES Enhance the foods available list to support the nutritional needs of recipients Improve customer appeal of commodities Provide product in more convenient form

IMPROVING COMMODITIES To help meet recommendations from the 2005 DGAs: Offering more whole wheat/grain items for SY 2008: –Whole wheat macaroni and spaghetti –Brown rice, Quick-cooking brown rice Trans Fats – –Reviewing commodities for trans fats levels – –Requiring USDA commodity labels to address trans fats – –Working to eliminate trans fats from frozen potato products

IMPROVING COMMODITIES Lowering sugar ●USDA offers canned fruits packed in only juice and water, juice, or light syrup (exception is apple slices packed in water only) ●No canned fruits are offered in heavy syrup ●Changed spec to require unsweetened applesauce for schools and institutions Lowering sodium content canned vegetables meet FDA’s ●All canned vegetables meet FDA’s “Healthy” standard for sodium (≤ 480 mg per serving)

IMPROVING COMMODITIES OTHER IMPROVEMENTS: Long-Term Contracts for Turkey ● ●Test buys for whole turkey, roast, hams, deli breast, and deli breast smoked ● ●Regular bi-weekly purchases for turkey items will continue Reducing the fat in processed poultry products ● ●Will allow processors to substitute meat, either dark or white, for fat and skin during processing at a 1 to 10 ratio ● ●More flexibility to lower fat content in end products

COMMODITY FACT SHEETS & GUIDANCE Updating school commodity fact sheets ●Surveyed States/schools for feedback ●Fact Sheets to be completed Spring 2007 Developed label guidance ● 2 Fact Sheets on trans fats and allergens

CFN Home Page

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. We’ll let you know.

Sneak Preview

FY 2008 Farm Bill Proposals Provide an additional $500 million over 10 years in F&V purchases for schoolsProvide an additional $500 million over 10 years in F&V purchases for schools Increase the overall Sec 32 F&V purchase minimum going to all domestic commodity programs by $2.75 billion over 10 yearsIncrease the overall Sec 32 F&V purchase minimum going to all domestic commodity programs by $2.75 billion over 10 years

REWRITE OF 7 CFR Part 250 Drafting 2 final rules based on comments received during summer Drafting 2 final rules based on comments received during summer They address: They address: – Food service management companies – Commodity processing Also drafting a proposed rule addressing delivery, distribution, inventory and other issues—we welcome your comments when published!

TRAINING AND INFORMATION SHARING Training in 2006: State SNA meetings Regional and State meetings Industry/processor meetings 2006 LAC and ANC Training in 2007: LAC Pre-Conference Session ACDA, March 2007 (Orlando, FL) FD-101 for States, May 2007 (Alexandria, VA) Commodity Track, July 2007 ANC (Chicago) We have a new training coordinator!

DoD Fresh Fruit and Vegetable Program

DoD Fresh F&V Program DoD Fresh F&V Program DoD Fresh Program is an OPTION that States may OFFER to schools (not required to offer) Since 2002: Farm Bill requires $50 million of entitlement to be spent annually through 2007 The Program is intended to provide SOME/MORE fresh produce for schools Section 4&11 funds MAY BE USED to buy more DoD produce in addition to the above entitlement purchases

DoD Today 47 States, DC, VI, PR, & Guam will participate in SY SY PA, KS, & DE are not setting aside commodity entitlement dollars for this option About 20 States have chosen to utilize Section 4 & 11 funds in addition to or in lieu of entitlement dollars 4 & 11 funds in addition to or in lieu of entitlement dollars SY deliveries were delayed until Sept 06 as FNS switched to fiscal year allocation system (this system will continue)

DoD Changes New Procurement System - using Long-Term Contracts Schools will have 24/7 access to “FFAVORS” (web- based ordering system) Some DoD staff will remain in field to handle customer support & complaint issues FFAVORS is expected to improve monitoring of orders at all levels

ECOS

ECOS Enhancements Enhancements for Co-ops Enhancements for Co-ops –Co-ops can roll-up member orders into full truckloads, or combine them with other ECOS users –Co-ops can access information on commodities available, entitlement, requisitions, delivery orders, etc. –Co-ops can manage orders for their members like the State does for recipient agencies

Questions? Cathie McCullough Ph: