Feeling the Pinch: The Impact of Increasing Food Prices on School Lunch

Commodity and Food Prices Milk Prices Increasing Source: NASS, USDA

Commodity and Food Prices Corn Prices Increasing Source: NASS, USDA

Commodity and Food Prices Wheat Prices Increasing Source: NASS, USDA

Commodity and Food Prices Fruit and Vegetables Increasing Source: NASS, USDA

On the School Lunch Tray Bread Up 12% Milk Up 17% Pasta Up 13% Cheese Up 15% Source: USDA Economic Research Service, 2007

Energy Prices Crude Oil Prices Increasing Source: Energy Information Admin

Benefit & Insurance Costs Increasing Health Care Premiums Source: Kaiser Family Foundation

What Does it Cost to Prepare a School Meal? Cost Type Cost Food Costs$1.15 Non-Food Costs$0.14 Labor Costs$1.26 Indirect Costs$0.11 TOTAL COSTS $2.70 (national school lunch cost average: $2.60 to $3.10) **Preliminary Figures** Source: SNA Preliminary

Average Cost of a School Meal Average Meal Prices for Students Reimbursement Rates (SY ) Total Revenue per Lunch Full Paid Lunches Elementary: $1.66 Middle: $1.85 High: $1.90 $0.23 Elementary: $1.89 Middle: $2.08 High: $2.13 Reduced Price Lunch* $ $0.40$2.07$ $2.47 Free Lunch** $0.00$2.47 *Students with household incomes between 130%-185% of the poverty level receive meals at a reduced price rate. **Students with household incomes below 130% of the poverty level receive meals for free. Sources: School Nutrition Operations Report: The State of School Nutrition 2007 and the U.S. Department of Agriculture (USDA)

Across the Country Of school nutrition directors surveyed: –86.1% of saw an increase in food costs –83.2% saw an increase in labor costs –84.6% saw an increase in transportation costs –46.6% saw an increase in indirect costs (i.e. gas, electricity, water) (SNA 2007 Trends Report, August 2007, School Nutrition Association)

How School Districts are Coping In , 1/3 rd of school districts increased full-paid lunch meal prices. Full-paid lunch prices increased a median of 9% (5 cents) and breakfast prices increased a median of 15% in districts that raised prices. Source: 2007 SNA School Nutrition Operations Report

How School Districts are Coping New York City replaced grape tomatoes for sliced tomatoes at salad bars. Charlotte-Mecklenburg, NC switched lasagna for spaghetti. Spring, TX switched baby carrots for hand cut carrots. Hoover, AL is serving more bananas and apples instead of grapes.