Why Process, How to Start, Yield and Other Traffic Signals

Transcription

1 Basic Cncepts f Cmmdity Prcessing Why Prcess, Hw t Start, Yield and Other Traffic Signals Wh Are We? U.S. Department f Agriculture Fd, Nutritin, and Cnsumer Services Special Nutritin Prgrams Fd Distributin Divisin Operatins Branch Prcessing Initiatives Team (PITs) What is the Cmmdity Prcessing Prgram? Regulatry Authrity 1958 t maximize the use f cmmdity Cmmercial fd manufacturers cnvert raw bulk cmmdity int end prducts Wide variety Mre cnvenient Ready-t-use Our Sister Agencies AMS Agricultural Marketing Service Grup A Cmmdities Beef, Prk, Pultry, Eggs, F&V Surplus Remval End Prduct Certificatin (Grading) FSA Farm Service Agency Grup B Cmmdities Cheese, Grain, Oil, Peanut Price Supprt Prgram Partners Distributing Agency (DA) State gvernment agency which enters int an agreement with FNS fr the distributin f DF t eligible RAs

2 Recipient Agency (RA) Organizatins within a State eligible t receive DF Schls (public and private), RCCI, CI, NPE/NSIP, SFSP, summer camps, sup kitchens Surces f Cmmdity Entitlement A dllar value f cmmdity assistance which is required by law t be prvided t the CN Prgrams Per-Meal-Rate x Meals Served PAL : Planned Assistance Level Bnus Fd items nt charged against entitlement r apprpriated funds Surplus Remval r Price Supprt Use Withut Waste r Fair-Share Delivery Optins Direct Diversin Fd is shipped directly frm the USDA vendr t the prcessr AKA: Direct Shipment r Direct Delivery Backhaul The pick up f a DF frm a DA r RA fr prcessing and return. Types f Prcessrs Multi-State Prcessr enters int agreements with agencies in mre than ne State r an agency in a State ther than where the plant r business ffice is lcated. Single State Prcessr prcessr ding business slely within a State where the plant r business ffice is lcated. Prcessing Agreements Natinal Prcessing Agreement Multi-State Prcessrs State (Master) Agreement Single State Prcessrs Recipient Agency Agreement Yields 100% Yield Single State Prcessrs

3 Guaranteed Minimum Return/Yield Traditinal Prcessing Red meat & Pultry Standard Yield Pultry Only Fruit & Veg Guaranteed Return/Yield Beef & Prk Onl\ Value Pass Thrugh Refund r Rebate Direct Discunt Hybrid System Net Off Invice is a variatin Alternate VPT Fee-fr-Service USDA Respnsibilities USDA enters in t agreement with prcessr USDA apprves EPDS and SEPDS USDA hlds surety instrument USDA purchases cmmdity and delivers t State designated lcatin/prcessr Prcessr Respnsibilities Prcessr sells end prducts t RA Prcessr submits natinal MPR t USDA Natinal Prcessing Agreement DOES NOT Eliminate bidding/prcurement by SDA/RA State Respnsibilities Specify delivery and billing terms

4 Specify value-pass-thru methd Crdinate truck lading r cmmdity rdering Mnitr State inventry draw-dwns Verify minimum yield/return met Mnitr acceptability r field cmplaints State Distributing Agency Rle in Cmmdity Prcessing Make cmmdities available fr rder Divert fr further prcessing Receive brwn bx frm USDA Advise schls what prcessed prducts are available Cnslidate trucklads Crdinate diversins with prcessrs Mnitr inventry levels State Respnsibilities Agreements Enter int participatin agreements with prcessrs Select Value Pass Thugh systems Select end prducts Specify delivery terms Verify yields, where applicable Prcurement Assistance State bid Bid template Help with any prblem that may ccur Mnitr acceptability f prcessed prduct and field cmplaints Quality Delivery

5 Sample Wrksheet Cmmdity Math 101 Cmpare prices Let s Add It Up Fr purchased fds Fr prcessed fds add the cmmdity $$$ 1 case purchased chicken nuggets = $50.50 (145 servings per case) Purchased Cst per serving: five(5) nuggets =$.35 Jim s Chicken Prcessr is ffering a chicken nugget that meets yur specificatins and is acceptable student preference. Prcessing fee per case= $24.45 (145 servings per case)(fob destinatin delivery fee included) Prcessing Cst per serving: five(5) nuggets =$.17 Add the DF value t the case cst Prcessed: FFS = $.17/serving DF Value = $.07/serving Ttal serving cst = $.24/serving Purchased: $.35/serving A SAVINGS OF $.11/SERVING Ready, Set, Order! Decide t Prcess Prcurement Guidelines Met Ordered Raw DF int Prcessr Cmplete Order Knw hw delivery and billing will happen with state/prcessr/mainline fd vendr Hw the flw ges FFS established with Jim s Chicken Issue a Purchase Order

6 Order 1,000 cases Chicken Delivered Owe Jim s $24, Negtiate Delivery schedule ptins with Prcessr. Pay attentin t YIELD. Start small and wrk yur way up. Set up a wrksheet/spread sheet t track DF Questins?? Cntact Us FNS General Cmmdity Inquiries: FDD-PSB@fns.usda.gv FNS Cmmdity Prcessing Inquiries: NPA@fns.usda.gv