1. USDA COMMODITY PROGRAMS UPDATE Cathie McCullough, Director Food Distribution Division, USDA Legislative Action Conference, March 13, 2006

2. IMPROVING COMMODITIES Enhance the foods available list to support the nutritional needs of recipients Improve customer appeal of commodities Provide product packaging that is appropriate, i.e., can size

3. IMPROVING COMMODITIES Products are continually reviewed to ensure they support the “Dietary Guidelines for Americans” Healthier offerings: √Tuna canned in water √Reduced fat bakery mix √95% lean ham √ Lower fat cheeses and oils √ Canned fruits packed in juice or light syrup √ Whole grain foods (wheat flour, brown rice, oats) √ Ground beef with no more than 15% fat

4. Currently Offer Testing In FY 07 Exploring Brown Rice  Noodles & Pasta  Macaroni  Spaghetti  Instant Rice  Rotini (spirals)   Whole Wheat Flour  Oats  IMPROVING COMMODITIES To help meet the whole grain recommendation from the 2005 DGAs we are researching new product options

5. IMPROVING COMMODITIES We are also Exploring: √ Reducing trans fats √ Lowering sodium in canned vegetables √ Offering canned fruits only in natural juices or water

6. COMMODITY FACT SHEETS & GUIDANCE We are updating our commodity fact sheets—a long term project: –Surveyed States and schools for their feedback –Adding commodity codes to current fact sheets as an interim measure We are also developing label guidance: – Explains the new Federal label requirements for trans fats and allergens

7. 7 Commodity Food Network (CFN) www.commodityfoods.usda.gov

8. CFN Key Features One-Stop Commodity Portal Gives Instant Access to: –Key Partner websites and links—e.g. AMS, FNS, FSA, FSIS, ACDA, SNA, States, etc. –Regulations, Public Laws, OMB Circulars, Forms, Fact Sheets, Policy Memos –Commodity Specifications, Commercial Item Descriptions, Commodity Fact Sheets for Schools –Foods Available List for All USDA Commodity Programs –Food Safety & Recall Updates Issued by FSIS and FDA –ECOS—USDA’s Electronic Commodity Ordering System ….. And More!

10. Let Us Know What You Like and Don’t Like CFN Website Feedback

11. REWRITE OF 7 CFR Part 250 Publishing 3 separate proposed rules covering different areas of commodity program mgmt.: –Food service mgmt. co’s –Commodity processing –Delivery, distribution, inventory, claims, and other issues The reg. proposal process will afford States, local agencies, & others time to comment—we welcome your comments!

12. BONUS COMMODITIES Products offered to schools in 2005:  Sweet Potatoes  Cranberry Products  Apple Products  Dehydrated Potatoes  Peaches, Canned  Mixed Fruit, Canned  NFDM  Pudding

13. BONUS COMMODITIES Products Offered to schools in 2006:  Cherries, Frozen  Sweet Potatoes  Crushed Pineapple, Canned  Dry Beans

14. DoD Fresh Fruit and Vegetable Program

15. DoD Fresh History –1994/95: $3.2 million pilot in 8 States –1996/97: use of Section 4 & 11 Federal funds authorized –1998/99: FNS increased entitlement set aside to $25 million –Since 2002: Farm Bill requires $50 million of entitlement to be spent annually through 2007 on fresh produce for schools using DoD

16. DoD Fresh Program –DoD Fresh Program is an OPTION that States may OFFER to schools (not required to offer) –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

17. DoD Today –48 States, DC, VI, PR, & Guam will participate in SY 06-07 –About 25 States utilize Section 4 & 11 funds on DoD Fresh –SY 06-07 deliveries will be delayed until Sept 06 as FNS switches to fiscal year allocation system

18. DoD Changes DoD moving to Long-Term Contracts effective October 2006 Purchasing from local small businesses whenever possible Schools will have 24/7 access to “TAP-IT” (web-based ordering system) Some DoD staff will remain in field to handle customer support & complaint issues

19. ECOS

20. ECOS in review 4878 registered ECOS users State users - 606 Recipient agencies - 3,818 Industry (processors & warehouses) – 308 USDA users - 146 States using ECOS with their recipient agencies Recipients ordering in VA, CT, GA, NC, UT, FL, MD, NE, KY Limited use in CA, MI, NY, TN, TX

21. ECOS Enhancements Rapid Alert System –Provides quick communications for potential food safety/biosecurity emergencies Filter Delivery Dates for RA’s –Closer to RAs receiving what they want when they request it Consistent Unit of Measure –Commodity that is delivered in cases will be ordered in cases

22. ECOS Enhancements Shipment Receipt Function –Large RAs/States/processors receiving direct commodity shipments can order and receipt thru ECOS Processor Access to Delivery Orders –Processors have access to real-time information on their commodity orders and deliveries

23. Coming To ECOS… Multi-Food Ordering Refinements to Complaint Module Online Processed End-Item Ordering

24. Questions?