Food Service in Puerto Rico's Schools - AgEcon...

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FOOD SERVICE IN PUERTO RICO'S J SCHOOLS \ ' US. Department of Agriculture Economics, Statistics, and Cooperatives Service ESC5-13

Transcript of Food Service in Puerto Rico's Schools - AgEcon...

FOOD SERVICE IN PUERTO RICOSJ

bull

SCHOOLS

US Department of Agriculture

Economics Statistics and Cooperatives Service

ESC5-13

BIBLIOGRAPHIC DATA 11 Report No 3 Rec ipiems - ccessionNo ESCS-13SHEET Imiddot

4 Title and Subtitle 5 Report Dare May 1978

FOOD SERVICE IN PUERTO RICOS SCHOOLS 6

7 utn-or(s) 8 Perrorming Organization ReptMichael G Van Dress No ESCS-13

9 Performin Organiiation Nameand Address 10 ProjectTaskWork Unit No Nationai Economic Analysis bivision Economics Statistilt=s_ and Cooperatives Service US Department of Agriculture Washington DC 20250

12 Sponsoring Organization Name and Address 13 Type of Report amp Peri-Cd Covercd

Final--1974-75 14

15 Supplemcntary Notcs

16 A~stracts

Puerto Ricos 2612 elementary and $econdary public schools and 86 of its 12- pri shyvate schools provided meals under the US Department 01 Agriculture 1 s (USDA) Na~_shy-ional School Lunch Program during the 1974-75 s~lool ye~r Breakfast service under the USDA School Breakfast Program was provided in l 540 pubJic arid private schools The schools offering food serv~ce had an enrollment of 746132 s-tude_nts and parti shycipation in the lunch program was appr()ximately 66 percent of average daily it-ienshydanc~ Only meal$ meeting the requirement of the Type A pattern were served ~t lunch Purchased arid donated food received qy the school system amounted to about 77 million pounds during the s~hool year with 10 percent contributed by the Federal Governntent through the Commodity Distribution Program

17 _Key tords and Documeill- nlllysis l7c Descriptors

Commodi1ty management Etonom-ic analysis Food Food preparation Food services Human nutrition

22 Price Paper $400 Fiche $300

NTIS price~ subjec17b IdentifiersOpen-Endcd 1_erms to change afte_iBreakfast Puerto Rico September 30 1978Commodity Dist~ibution Program Schools Contact NTIS forFood and Nutrition Service Type A meals new price scheduleLunch USDA School Breakfast Program Price codes will bMeals ADZ for paper andNational School Lunch Program AOI for fiche

17c COSATI FieldGroup 02-B 05-E 06-H 18 AvaibbilitySta-tlmiddotmciit 19Security Class (This 21 No ofI[lges

After initial distribu_tion copies will- be for RCPrtl -- 20UNLI ASIrrlnsale only- by NTIS US D~partment of Commerce 2u Security Class (-Thi~ 22 Price

Plge5285 Port Royal Road Springfield Virginia 22161 See aboveUNCIASSIFIED

FORM NTIS-3~(Rev 10731 ENDOHSE-D BY A0ISI AND UNESCO THISJtORM MAY BE REPROnUCED

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PREFACE

This report was developed by the_ U S Department of Agriculture I s Economics J

Statitics and Cooperatives Service Data were ga~hered and processed by Market Facts Inc under a contract with the Departments Food and Nutrition Service The report evaluates facets of child nutrition and food assistance programs and i_n part assesses the markets fo_r food which these programs bring about

The study was designed to satisfy reqiiire~ents for information needed by managers at various levels of government who ~re responsible for operating school food_ serVice systems and administering related programs Such information al~o may be useful to firms that process ~nd distribute food and provide rela~edgoods and services to schoo~~ that provide food service It may help t~ese firms better tailor their immeshydiate and future food processing and mark~ting efforts to the requirements of this middotsegment of the market for food consumed away from home

Special apprecia tion is extended to the School Food Use Team of the Food and Nushytrition Service whocollectively and individually gave -valuable assistance throughout all phases of the study particularly J C Chai Jackie Davis Dorothy E Meye~s and John Romiddotbinson

CONTENTS

Summary iv

Introduction 1

Profile of the school systembull 1

School food setvice programs 2 USDA School Breakfast Program ~ 2 NatIonal School Lunch Program 2 USDA Food Distribution Program 3

School food supply 6 Quantity and value of food used ~ bull 6 Importance of individual COTmn9dities bull 7 AvailabiIity of storage facilities and food form -- 13 Food ac~uisition practices 14 Potentiai savings in volume purchases 14

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SUMHARY

Nearly 77 million pounds of food products with a wholesale value of $~54 million were used by schools in Puerto Rico that prov~ded food service to students under fedshyerally sponsored p_rograms dudng the 1974-75 school year About 75 millim pounds of food with a wholesale value of $48 -million were received by Puerto Riccl-s school system under the- US Department of Agricultures (USDA) F-ood Dis~iibiition Program The remainder came from commercial suppli~rs and other sources

Students in 1540 public and private schools ttaCl access to meals under the USDA School Breakfast program Meals also were available to studerits in all 2612 eemen- tary and secondary pulJii-c schools and 86 of the 125 private ~choois under the National Schobl Lu~ch Program Breakfasts were se~v-ed daily to an average of 94641 stlJdents and Type A lunches to 417400 students The participatipn rate in the tunch program averaged 664 percent of student attendance for the 177 days that food service was ava-ilable during the school year

All students middotin Puerto Rico except those who w~re members of nonresident fami-shylies were elIgible for meals at no charge The -luncheon cha-rge to the 115-0 partici- shy pat-ing children of nonresident families was 55 cents

During the 194-75 school year the cAst of food used in a USDA school brea~fast averaged 20 centsmiddot and in- a Type A lunch 44 cents- These costs included the value of USDA-donated c~mmoditi~s Vegetables (inciudi~g -po~atoes and dry beans) accounted for 41 percent of the poundage 9-nd about 25 percent of the value of all food purchased and donated Fruits (fncluding -plantain a staple in Puerto Rico) with 116 million pounds comprised the second most important group of products and accounted for 15 cents out of ~very food dollar Other importaft gro~ps were dairy meat and cer~al and ~rain products

AvaiLability of storage faci~litie-s may have had 8 Significant impact ~n- the forms of food that ~chools received Only about one-third of the schools had refriger~tor storage ~nd only 1 in 33 had freezer storage

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FOOD SERVICE IN PUERTO RICOS SCHOOLS

Michae~ G Van Dress

INTRODUCTION

Tlie primary objective of the National School Lunch and Child Nutrition Acts is to sa~eguard the health and well-being 0pound the Nation 5 children by providing them wel1shybalanced nutritious m~_als The Food and Nutrition Service of the US Depa~rtme~t of Agriculture (USDA) has direct responsibility fCr carrying out the provi_si~ns of the acts

All public and nonprofit priyate schools throug~ hi-gh s~hool are eligible to pmiddotar t~cipate in the Child Nutrjtion Programs Participating schools are requir~d to serve nutritious nieals on a nonprofit basis and at free or reduced prices to economically needy pupils who cannot afford to pay full price

A study of food service opcentrations in the Nation I s schools was conducted inmiddot the c9n~inental United States 8nd P~erto Rico duriilg a l-yer period beginning Septentber 1974 It was made to obtain information and operating statistics on schciol food sershyvice programs essenti~l to effective program management at each qperatfonai level This report provides findings from ~ttat facet of the study tqat deals with the scho_ol system tn Puerto Rico The primary objectives of the s~rveymiddotwere to obtain ~easures oJ the quantity and value ~f f~od used in Puerto Rico I s schools and ilforma_tion on other economic and physica-l characteristics o~ school food service programs needed by officials who adm~nister them Current food use and preference data are needed to provfde guidance in the acquisition of f~od for schools- under the Department I s Fpcid Dfstribut10n Program Sudi data provide insight into the types and forms of food most acceptabie and the facilities needed to store them Food use data an4 program statisshytics also m~y be of use to such interested parties as the Congress the foodindustry and food seVice officials

The data summarized here were obtained in personal intervie~s with representashytives from the headquarters of the Commonwealth of Puerto Rico school sys (em in San Juan Puerto Rico Quantities ~f ail food products nomally purchased in iiquid form in dozens or by the piece are expressed in pounds (avoirdupois weight) for grouping and evaluation

PROFILE OF THE SCHOOL SYSTEM

Puerto Rico has a population of about 3 ~illion people In- the i974-75 school year P_uerto Rico I s school system included 2737 elementary and secondary schools

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Of the 2~612 schools in the public sector 1978 were classified as elementary 601 as secondary t and 33 ungraded Grade levels were not determined for schools in the private sector No informati~n was obtained on food service op~rations of 39 private schools that did not part_icipate in either the Nationa~_ School Lunch Program (NSLP or the USDA School Breakfast program (SBP) Therefore this report will concentrate scleshylyon data obtained on 2612 pullic and 86 private schools These schools will be referred to 8pound Puerto Ricos school sys~em

Classes normally were in session 190 days during the 1974-75 school year that spann_e_d approximate1y 10 months For 365 schools however cla~ses were in session for a full 12 months Student enrollment w~s 746132 an average of 277 students per school I~aily- attendance averaged 628451 or 84 percent of enrollment

The number of full-time classroom -teachers was reported to be 30517 slightly more than 11 teachers per school with each teacher fnstructing an average of 25 stushydents per class

SCHOOL FOOD SERVICE PROGRAMS

All schools in the public s~c~or and 86 of the 125 schools in the private sector made food service available on a nohproIit basis Children who were riot enrolled in classes and adults who did not work for the school system normally did not eat school food supplies All schools had onsite kitchens for preparing food that- waS served

USDA School Breakfast Program

About 57- percerit (1540) of the schools for which data were obtained participated in theSBP Regulations for this program require that each breakfast provide a minimum one-half cup serving of fruit vegetable or both or full-s-trength fruit or vegetable 1uice one slice of whole grain or enricfled bread or three-f~urths cup of cereal (or an ounce whicheve-r is less) or an equivalent combination and one-half pint of fluid milk used as a beverage on cereal or both To improve tll_e nutritional well-being of parshyticip_ating children an ounce or equivalent serving of meat alternate is recommended a-s ofte~ as practicable

Break-fast was served to an average of 94641 ~tudents each day Breakfast lt)lso was served daily to an average of 2176 members of the teaching staff and other adults who work for the school system Student participation ranged fro~ a daily low of 77157 to a high of 105314 All breakfasts were given to students at no charge

The fo-od cost for a USDA schoo- breltkfast including the value of USDA-donated commodities averaged 20 cents during t~e ~974-75 school year

National School Lunch Program

Lunch service under the NSLP was available to students _in all p~b1oic schools and in 86 of 125 private schools in Puerto Rico during the 1974-75 school year Meals served under this program must conform to a meal pattern referred to as the Type A Pattern To meet requirem-ents u-nder the NSLP du~ing the time of this study the Type A-lunch contained a minimum of 2 ounces of cooked iean meat (edible portion as served) or an equivalent serving of meat alternate three-fourths cup of two or morevegeshytables fI-u1ts or both (full strength vegetable or frui1 juice may be counted to meet up to one-fourth cup of this requirement) a slice 9f whole grain or enrich~d bread or a_lternate one-half -pint of fluid milk served as a -beverage and a teaspoon of but_ter or frtified margarine As part of the bread middotrequirement in Puerto Rico the following

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products may be seIVed a starchy vegetable or fruit such as tanniers plantafns and sweet potatoes or an elri~hed whole grain cereal product such as macaroni and noodles Only the Type A lunch was served a la carte foods were not available for purchasemiddot Planned daily menus geared to a 20-day cycle were followed Men~s used were flexible however) and could be adjusted to accommodate changes in availability of federally donatedmiddot food and to take adyantage of and provide for a holiday luncheon or special celebration

D~ring the school year ~he lunches served to students daily ranged from 363548 to 439540 and averaged 417400 Based on average attendalice during this period the rate of student participation ranged between a low of 578 percent and a high of 699 percent the average was 664 percent

Sc~ool lunches also were available to the teaching st~ff and other adults who worked for the school system An average of 17287 nonstudents availed themselves of this service each day Consequently about 4 percent of the lunches served from the school middotfood supp--y were co~sumed by persons other than students

Al~ students except those~ho we~e members of nonresident families living in Puerto Rico--primarl1y children of US military families stationed there--received lunches at no charge An average ofmiddot 1150 children of nonresident fam~lies particishypated in the lunch program at a price of 55 cents per meal Te~chermiddots did not pay for lunches however this cost was und~rwritten by the Commonwealth of Puerto Rico

The cost of food for a Type A lunch includirig the value of USDA-donated commodishyties averaged 44 cents during the sch~ol year

Special Milk Program

Puerto Ricos school system Was nOt authorized by law to participate in the USDA Special Milk Program until 1975 The school system is now authorized to use reconstIshytuted dry milk to meet requi reIlents under the Special Milk Jrogram Schools also are authorized to serve reconstituted dry milk to meet the fluid milk requirements under the SBP and the NSLP

USDA Food Distribution Program

Each year millions of dollars worth of food is donated to schools throughout the Nation and in participating territories These donated foods are made availabte by the Dep~rtment of Agriculture under school iunch price support and surplus removal legislation They are distributed to schools by a cooperative food handling System ~nvolving Federal State and local agencies During fiscal year 1975 about 764 million pounds of foCd costing $418 million were distributed to ~chool lunch programs

Quantity and Value of Federally Donated Food

DUring the 1974-75 school year Puerto Ricos school system received 7518100 pounds of food of all types under the USDA Food Distribution Program (table 1) This represented about 10 percent of the total quantity of food used and was valued at over $middot48 million Dairy products accounted for more than 46 percent of the total quantity of donated ~ood received meats about 24 percent poultry products 11 pershycent and vegetables 8 percent

Dairy products sent to all U S school systeJl1s were about 21 percent of the federshy

ally donated foods far less than that received by Puerto Rico middots school system As

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Table l--Quantity and value of donated food used in Puerto Ricos school September 1974~August 1975

Quantity Value

Food Per Percentage Per Per~~en tage

Total stlident of all Total student of all il food II food

1000 1000 pounds Pounds Percent dollars Dollars Percent

Total 75181 120 1000 48351 769 1000

Dairy products 34665 55 461 2429middot9 387 502 Milk nonfat dry 34665 55 461 24290 387 502

Fats and oils 1793 3 2 4 1454 23 30 B11tfer 1793 3 24 145 23 30

Meat 17844 28 237 14055 224 291 Beef ground 16345 26 21 7 12729 203 263 Eork middotcanned 1499 2 20 1326 21 27

Poultry 7971 13 106 5064 81 105 Chicken canned 2955 5 39 2050 33 42 Chicken parts 251 8 4 34 1074 17 22 Turkey roll 2498 4 33 1940 31 40

Vegetables 617 2 10 82 1253 20 26 Beans green 4047 6 54 689 11 14 Sweet potatoes canned 2125 3 28 564 09 12

Fruits 4236 7 56 1008 16 21 Cranberry sauce 2266 4 30 479 08 10 Peache-s canned 1970 3 26 529 08 11

Nuts 2500 4 33 1227 20 25 Peanut butter 1832 3 24 81 6 13 17 Peanut granules 668 1 9 411 07 9

lJ Based on average a~tendalce 1

bull earlier indicated Puerto Rico was authorized to serve reconsti~lIted dry milk in place of fresh fluid mi-lk a1d it met part of its fluid mi-lk requirement~ under both middotthe SBP arid the NSLP -with dry milk received unltler the USDA Food Distribution rrog-~am

If the quantity of donated food received by Puerto Rico were adjusted to reflect average rece~pts 01 dairy products the comrnodites received under the program by

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Puerto Rico would have approximated the same proportionate dlstribution pattern as that for all US school systems except for peanuts fruits and cereals and grains 1

A number of products used in relatively large quantities in the schools in Puerto Rico ate nltlt federally donated commodities These foods--tanniers (tania) and garbanshyzo peas and papaya and plan~ain--accounted for 17 and 30 percent respectively of the total quantity of vegetables and fruits used

Food Processing Contracts

Schools may use the USDA-donated food products directly as basic ingredients in the preparation of meals or they may have pr9ducts processed under contract by comshymercial food firms into more convenient and usable forms A food processing COntract is a written agreement between a tood processor and a school system to use or al1ocate federally gonated food as ingiedi~nts in processing a different end-use product Having peanut butter piocessed into cookies and flour and shortening into c~ackers are examples These contr~cts hetp schools to economize on food costs Those persons served meals also may penefit from a greater variety of food

Puerto Rico reported using food processing coritracts for three USDA-donated com~ mod~ties ground beef was combined with textured vegetable protein (TVP) dry beans were processed and canried with salt and water added and flour was u~ed as an ingredishyent in crackers

Some Problems with Donated Foods

The USDA Food Distribut-ion Program is substantial middotand diverse During fical year 1975 USDA made available alD0st 400000 tons of fa9d to padicipafing schooi systems throughout the Nation The variety (if products ranged acro_s nearly all comshymopity lines

When determining commodities to be purchased under ~he USDA Food Distribution Program specifie consideration is given to food iii surplus food available undeshyprice support programs and food purchased specifically for school food service proshygramgt Although guidance f9~ purchasing foocl for use in schools involves considerashytion of the food pre~_erences of and product acceptability to c_hildren and school systems schools periodically may receive a less acceptable commodity because of the allocation met_hod used and potentia differences in regi(mal State_ and local- prefershyences

During the study year the Puerto Rico school system reported that it h~d experi- ienced di~ssatisfaction with four products It_ reported that bulgur and cranberry sauce had low acceptance in the school system that it would like to substitute part of its allotment of peanut butter for other commodities and tttat it preferred to receive fruits of higher nutritive vatue l

Infrequently donated products were rejected because they- were unsatisfactory These were chiefly gO-ods that presumably were in storage and then transfe_ired to the school system ~rom the Needy FamIly Program which was being phased out that year Included were flour cornmeal rolled oats rice and cheese which were rejected because of infestation and mold

I Agricultural Statistics 1976 US Department of Agriculture table 767 p 565 2 Puerto Rico no longer receives donated -food that it would rather not accept t beshy

ca~se of changes in the Program- subsequent to the study

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SCHOOL FOOD SUPPLY

The school fqad S11pply in Puerto Rico has been growing rapidly as a result of increasing enrollment and numhcent_r gf schools offering food service Approximately 62 million lunches under the NSLP and 3 iiIillion breakfasts under the- SBP were served in 1972 By 1975 this had -increased to 74 ~illion lunches and 16 miilion ireakfa_sts

Quantity and Value of Food Used

During ~he 1974-75 school year almost 77 million pounds of food with a wh9~esale value of $35 4 milJion were received by the school systmiddot~m (table 2) This included the cost of purchased food and -the estimated value of UpDA-donated commodities

Table 2--Quantity and value of all food used in Puerto Ricos schools September 1974-August 1975

Quantity Value

Food Per Per Per partici shy Per partici shy

Total student pating Total student pating y student ]) student

1000 1000 pounds ~ - Pounds -- dollars - - Dollars --

Total 766916 1220 1442 353655 5627 6651

Dairy products 5881 2 94 111 45321 721 852 Beef 28168 45 53 23710 377 446 Other meats 43874 70 8 3 41524 661 781 middotPoul try and eggs 11824 19 22 8725 139 1 64 Seafood 22152 35 42 16723 266 315 Vegetables 31148_4 496 586 89099 1418 1676 Fruits 115748 184 21 8 53887 857 1013 Juices and riectars 37128 59 70 6137 98 115 Fats and oils 21888 35 41 1406 7 224 265 Bakery products 9604 15 18 5297 84 1 00 Grain and cereal 42419 67 80 14626 233 275

1_Sugar and sweets 24964 40 47 10709 i 70 201 Beverages 12123 i9 23 7704 123 145

)Prepared foods 8584 14 16 9385 149 177 -Nuts condiments 18144 29 34 6741 1 07 1i7

seasonings

1 Based Qn average attendance

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Commercial purveyors furnished 69 2 ~~llion pounds of food more than 90 percent of that received 1 This food cost $305 million about 86 percentmiddot of the value 01 all food received The difference of 4 percentage points between the quantity and value of food received is due primarily to greater proPClrtionatcent commercial purchases o~ veg~tables than other commodities and the relatively low cost per pound of vezeshytables

F6op middotconsunption per student in attendance was valued at $5627 for the year an average of 318 cents for each day that food service was ava-ilable In terms of quanshytity each student averaged 122 pounds per year or 069 pounds daily during the s4~e period Unless otherwise in9-icated information on per capita consumption by students is based on average attendance figures

Based only on students who actually participa~ed il) the breakfast and lunch proshygrams (excluding the value and poundage of food served to teachers and other adults who ate meals prepared from schooL food supplies) food valued at $6651 and weighing nearly 145 pounds per student was used during the year Averages perday were 376 cents and 082 pounds per participating student

Importance of Individual Commodities

There was considerable variation among commqdities in amounts received and in proshyportions that they represent of the total quantity and value of purchased an4 clonated food used This examination of foltd usage (see t~ble 3) concentrates primarily on relative quantities rather thari values because of price fluctuations that have occurred in recent years

Dairy Products

Dry instant milk accounted for 97 percent of the dairy P1oducts used and averaged over 9 pounds oJ dry ~nstant milk per student for t~e year On a reconstituted basis 14 ounc~s o~ dry is equivalent to 1 fluid gllon~ Adjusted to exclude esti~ated us~ge by adults consumption of fluid milk by students averaged 11 half-pints for each USDA schooi breakfast and Type A lunch served Dry instant milk received through- the USDA Food Distribution Program amounted to 3466500 pounds or about 61 percent of the dry ins tant milk used 91ly 1 lOa pounds of fresh fluid milk weremiddot used and this was pur chased from conimercfal suppliers

Fa ts ana Oils

Use of fats and Oils during the school year equaled 35 pounds and $224 per stushydent Solid shortening was the principal product in this category with about 69 pershycent of the group tot_a The relatively small amounts of butter received were shyfederally donated whereas the bulk of fats and oils was obtained from commercial supshypliers

3 Goods not received by the school system fro~ the USDA Food Distribution Program are treated in tflis report as received from local supply sources and cotnmercial purshyveyors a~th~ugh this category also includes products transferred from the Needy Family Program which was being phased out that year

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Taoie 3-QuantJty and value of fndividual foods IIsed iii Puerto Rico I s schools September 1974-August 195

Food

Total

Dairy products (including fresh milk and ice cream)- Milkdry Cheese (including

processed) Natural

Fats -and 0115 (including mayonnai~e)

Shorter1ig ~olid Oil cooking and 53189-Butter

Grains and cereals 2 Rice J regul~r- w~i te Spaghettimacaroni dry enriched

Corn meal Cereal dry breakfast 1

Regular package size Farina GingerJread mix Oats rolled

Bakery products 4 Saltines soda crackers Cake Bread (including Spanish and miscellaneous)

Whi te but termilk potato

Beef (including steaksGround Canned

)

Othe-r meats Lunch Ileats

Frankfurters

Total

1000 pounds

766916

58812 57191

1607 1592

21888 15095

4906 1793

424i9 27078

9339 i81 7 1209

932 1054 1023

757

9604 7158 1654

72 2 703

28168 I 7238 10928

43874 40257 28907

Value

per Total student

1

1000 dollars Dollars

353655 5627

45321 721 43682 695

1634 26 1611 26

14067 224 9055 144 3505 56 1454 23

14626 233 8551 1 36

294i 47 331 05

1648 26 1147 18

431 07 401 ()6 254 04

5297 84 455 7 73

326 05

378 06 372 06

23710 377 12952 206 10755 171

41524 661 37776 601 28633 456

Quantity Percentage

of all food

Percent

1000

128 124

5

5

40 26 10

4

41 24

8

1

5

3

1

1

1

15 13

1

1

1

67 37 30

11 7 107 81

Per student

J

Pounds

1220

94 91

3

3

35 24

8

3

67 43

15 3 2 1 2 2 1

15 11

3

1

1

45 27 17

70 64 46

See footnotes at end of table Continued-shy

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Table 3-Quantity and value of individual foods used in Puerto Rico I s schools September 1974-August 1975--Contlnued

Quantity Value

Food Per

Total student Total 1

1000 1000 pounds Pounds dollars

Luncheon meat 10728 17 8528 Vienna sausage 622 1 61 5

Pork (including chops roas ts and hams) 361 7 6 3748

Canned 3559 6 3684

Poultry and eggs lt824 19 8725 Poultry

Canned 7988 2955

13 5

5068 2050

Chicken parts 2518 4 1074 Turkey (including readyshy

to-cook) Roll

2515 2498

4

4 1944 1940

Eggs dry Whole

3836 3324

6

5 3657 2984

Mix 512 1 673

Seafood_ 22152 35 16723 Cod 14060 22 9664 Tuna 6153 10 6152 Sardines 1939 3 90

Tomato sauce 1124 2 563 Other 815 1 344

Sugars and sweets (including sirup and candy) 24964 40 10709

Sugai white granulated 18567 30 7076 Jam 5890 9 3471

Pineapple and papaya 3445 5 2399 Mango 1832 3 818 Guava 577 t 227

Marmalade 497 1 151

Vegetables (including celery garlic and lettuce) 311484 496 89099

Peas green 11390 18 4402 Beans green-snap 40279 64 15308 Beans and peas other 92408 147 28618

Garbanzo 42905 68 16848 Red black brown 20787 33 5431

Per student

1

Dollars

136 10

60

59

1 39 81 33 17

31

31

58

47

11

266 154

98

14

09

05

1 70 113

55

38

13 04 02

1418 70

244 455 268

86

Percentage of all

food

Percent

24 2

11 10

25 14

6

3

5

5 10

8

2

47 27 17

3

2

1

30 20 10

7

2

1

~

252 12 43 81 48 15

Continued--See footnotes at end of table

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Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

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Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

BIBLIOGRAPHIC DATA 11 Report No 3 Rec ipiems - ccessionNo ESCS-13SHEET Imiddot

4 Title and Subtitle 5 Report Dare May 1978

FOOD SERVICE IN PUERTO RICOS SCHOOLS 6

7 utn-or(s) 8 Perrorming Organization ReptMichael G Van Dress No ESCS-13

9 Performin Organiiation Nameand Address 10 ProjectTaskWork Unit No Nationai Economic Analysis bivision Economics Statistilt=s_ and Cooperatives Service US Department of Agriculture Washington DC 20250

12 Sponsoring Organization Name and Address 13 Type of Report amp Peri-Cd Covercd

Final--1974-75 14

15 Supplemcntary Notcs

16 A~stracts

Puerto Ricos 2612 elementary and $econdary public schools and 86 of its 12- pri shyvate schools provided meals under the US Department 01 Agriculture 1 s (USDA) Na~_shy-ional School Lunch Program during the 1974-75 s~lool ye~r Breakfast service under the USDA School Breakfast Program was provided in l 540 pubJic arid private schools The schools offering food serv~ce had an enrollment of 746132 s-tude_nts and parti shycipation in the lunch program was appr()ximately 66 percent of average daily it-ienshydanc~ Only meal$ meeting the requirement of the Type A pattern were served ~t lunch Purchased arid donated food received qy the school system amounted to about 77 million pounds during the s~hool year with 10 percent contributed by the Federal Governntent through the Commodity Distribution Program

17 _Key tords and Documeill- nlllysis l7c Descriptors

Commodi1ty management Etonom-ic analysis Food Food preparation Food services Human nutrition

22 Price Paper $400 Fiche $300

NTIS price~ subjec17b IdentifiersOpen-Endcd 1_erms to change afte_iBreakfast Puerto Rico September 30 1978Commodity Dist~ibution Program Schools Contact NTIS forFood and Nutrition Service Type A meals new price scheduleLunch USDA School Breakfast Program Price codes will bMeals ADZ for paper andNational School Lunch Program AOI for fiche

17c COSATI FieldGroup 02-B 05-E 06-H 18 AvaibbilitySta-tlmiddotmciit 19Security Class (This 21 No ofI[lges

After initial distribu_tion copies will- be for RCPrtl -- 20UNLI ASIrrlnsale only- by NTIS US D~partment of Commerce 2u Security Class (-Thi~ 22 Price

Plge5285 Port Royal Road Springfield Virginia 22161 See aboveUNCIASSIFIED

FORM NTIS-3~(Rev 10731 ENDOHSE-D BY A0ISI AND UNESCO THISJtORM MAY BE REPROnUCED

r

PREFACE

This report was developed by the_ U S Department of Agriculture I s Economics J

Statitics and Cooperatives Service Data were ga~hered and processed by Market Facts Inc under a contract with the Departments Food and Nutrition Service The report evaluates facets of child nutrition and food assistance programs and i_n part assesses the markets fo_r food which these programs bring about

The study was designed to satisfy reqiiire~ents for information needed by managers at various levels of government who ~re responsible for operating school food_ serVice systems and administering related programs Such information al~o may be useful to firms that process ~nd distribute food and provide rela~edgoods and services to schoo~~ that provide food service It may help t~ese firms better tailor their immeshydiate and future food processing and mark~ting efforts to the requirements of this middotsegment of the market for food consumed away from home

Special apprecia tion is extended to the School Food Use Team of the Food and Nushytrition Service whocollectively and individually gave -valuable assistance throughout all phases of the study particularly J C Chai Jackie Davis Dorothy E Meye~s and John Romiddotbinson

CONTENTS

Summary iv

Introduction 1

Profile of the school systembull 1

School food setvice programs 2 USDA School Breakfast Program ~ 2 NatIonal School Lunch Program 2 USDA Food Distribution Program 3

School food supply 6 Quantity and value of food used ~ bull 6 Importance of individual COTmn9dities bull 7 AvailabiIity of storage facilities and food form -- 13 Food ac~uisition practices 14 Potentiai savings in volume purchases 14

iii

I

SUMHARY

Nearly 77 million pounds of food products with a wholesale value of $~54 million were used by schools in Puerto Rico that prov~ded food service to students under fedshyerally sponsored p_rograms dudng the 1974-75 school year About 75 millim pounds of food with a wholesale value of $48 -million were received by Puerto Riccl-s school system under the- US Department of Agricultures (USDA) F-ood Dis~iibiition Program The remainder came from commercial suppli~rs and other sources

Students in 1540 public and private schools ttaCl access to meals under the USDA School Breakfast program Meals also were available to studerits in all 2612 eemen- tary and secondary pulJii-c schools and 86 of the 125 private ~choois under the National Schobl Lu~ch Program Breakfasts were se~v-ed daily to an average of 94641 stlJdents and Type A lunches to 417400 students The participatipn rate in the tunch program averaged 664 percent of student attendance for the 177 days that food service was ava-ilable during the school year

All students middotin Puerto Rico except those who w~re members of nonresident fami-shylies were elIgible for meals at no charge The -luncheon cha-rge to the 115-0 partici- shy pat-ing children of nonresident families was 55 cents

During the 194-75 school year the cAst of food used in a USDA school brea~fast averaged 20 centsmiddot and in- a Type A lunch 44 cents- These costs included the value of USDA-donated c~mmoditi~s Vegetables (inciudi~g -po~atoes and dry beans) accounted for 41 percent of the poundage 9-nd about 25 percent of the value of all food purchased and donated Fruits (fncluding -plantain a staple in Puerto Rico) with 116 million pounds comprised the second most important group of products and accounted for 15 cents out of ~very food dollar Other importaft gro~ps were dairy meat and cer~al and ~rain products

AvaiLability of storage faci~litie-s may have had 8 Significant impact ~n- the forms of food that ~chools received Only about one-third of the schools had refriger~tor storage ~nd only 1 in 33 had freezer storage

iv

1

I

I

~ I

Ibull

FOOD SERVICE IN PUERTO RICOS SCHOOLS

Michae~ G Van Dress

INTRODUCTION

Tlie primary objective of the National School Lunch and Child Nutrition Acts is to sa~eguard the health and well-being 0pound the Nation 5 children by providing them wel1shybalanced nutritious m~_als The Food and Nutrition Service of the US Depa~rtme~t of Agriculture (USDA) has direct responsibility fCr carrying out the provi_si~ns of the acts

All public and nonprofit priyate schools throug~ hi-gh s~hool are eligible to pmiddotar t~cipate in the Child Nutrjtion Programs Participating schools are requir~d to serve nutritious nieals on a nonprofit basis and at free or reduced prices to economically needy pupils who cannot afford to pay full price

A study of food service opcentrations in the Nation I s schools was conducted inmiddot the c9n~inental United States 8nd P~erto Rico duriilg a l-yer period beginning Septentber 1974 It was made to obtain information and operating statistics on schciol food sershyvice programs essenti~l to effective program management at each qperatfonai level This report provides findings from ~ttat facet of the study tqat deals with the scho_ol system tn Puerto Rico The primary objectives of the s~rveymiddotwere to obtain ~easures oJ the quantity and value ~f f~od used in Puerto Rico I s schools and ilforma_tion on other economic and physica-l characteristics o~ school food service programs needed by officials who adm~nister them Current food use and preference data are needed to provfde guidance in the acquisition of f~od for schools- under the Department I s Fpcid Dfstribut10n Program Sudi data provide insight into the types and forms of food most acceptabie and the facilities needed to store them Food use data an4 program statisshytics also m~y be of use to such interested parties as the Congress the foodindustry and food seVice officials

The data summarized here were obtained in personal intervie~s with representashytives from the headquarters of the Commonwealth of Puerto Rico school sys (em in San Juan Puerto Rico Quantities ~f ail food products nomally purchased in iiquid form in dozens or by the piece are expressed in pounds (avoirdupois weight) for grouping and evaluation

PROFILE OF THE SCHOOL SYSTEM

Puerto Rico has a population of about 3 ~illion people In- the i974-75 school year P_uerto Rico I s school system included 2737 elementary and secondary schools

1

I

Of the 2~612 schools in the public sector 1978 were classified as elementary 601 as secondary t and 33 ungraded Grade levels were not determined for schools in the private sector No informati~n was obtained on food service op~rations of 39 private schools that did not part_icipate in either the Nationa~_ School Lunch Program (NSLP or the USDA School Breakfast program (SBP) Therefore this report will concentrate scleshylyon data obtained on 2612 pullic and 86 private schools These schools will be referred to 8pound Puerto Ricos school sys~em

Classes normally were in session 190 days during the 1974-75 school year that spann_e_d approximate1y 10 months For 365 schools however cla~ses were in session for a full 12 months Student enrollment w~s 746132 an average of 277 students per school I~aily- attendance averaged 628451 or 84 percent of enrollment

The number of full-time classroom -teachers was reported to be 30517 slightly more than 11 teachers per school with each teacher fnstructing an average of 25 stushydents per class

SCHOOL FOOD SERVICE PROGRAMS

All schools in the public s~c~or and 86 of the 125 schools in the private sector made food service available on a nohproIit basis Children who were riot enrolled in classes and adults who did not work for the school system normally did not eat school food supplies All schools had onsite kitchens for preparing food that- waS served

USDA School Breakfast Program

About 57- percerit (1540) of the schools for which data were obtained participated in theSBP Regulations for this program require that each breakfast provide a minimum one-half cup serving of fruit vegetable or both or full-s-trength fruit or vegetable 1uice one slice of whole grain or enricfled bread or three-f~urths cup of cereal (or an ounce whicheve-r is less) or an equivalent combination and one-half pint of fluid milk used as a beverage on cereal or both To improve tll_e nutritional well-being of parshyticip_ating children an ounce or equivalent serving of meat alternate is recommended a-s ofte~ as practicable

Break-fast was served to an average of 94641 ~tudents each day Breakfast lt)lso was served daily to an average of 2176 members of the teaching staff and other adults who work for the school system Student participation ranged fro~ a daily low of 77157 to a high of 105314 All breakfasts were given to students at no charge

The fo-od cost for a USDA schoo- breltkfast including the value of USDA-donated commodities averaged 20 cents during t~e ~974-75 school year

National School Lunch Program

Lunch service under the NSLP was available to students _in all p~b1oic schools and in 86 of 125 private schools in Puerto Rico during the 1974-75 school year Meals served under this program must conform to a meal pattern referred to as the Type A Pattern To meet requirem-ents u-nder the NSLP du~ing the time of this study the Type A-lunch contained a minimum of 2 ounces of cooked iean meat (edible portion as served) or an equivalent serving of meat alternate three-fourths cup of two or morevegeshytables fI-u1ts or both (full strength vegetable or frui1 juice may be counted to meet up to one-fourth cup of this requirement) a slice 9f whole grain or enrich~d bread or a_lternate one-half -pint of fluid milk served as a -beverage and a teaspoon of but_ter or frtified margarine As part of the bread middotrequirement in Puerto Rico the following

f I ~

bull

J

2

products may be seIVed a starchy vegetable or fruit such as tanniers plantafns and sweet potatoes or an elri~hed whole grain cereal product such as macaroni and noodles Only the Type A lunch was served a la carte foods were not available for purchasemiddot Planned daily menus geared to a 20-day cycle were followed Men~s used were flexible however) and could be adjusted to accommodate changes in availability of federally donatedmiddot food and to take adyantage of and provide for a holiday luncheon or special celebration

D~ring the school year ~he lunches served to students daily ranged from 363548 to 439540 and averaged 417400 Based on average attendalice during this period the rate of student participation ranged between a low of 578 percent and a high of 699 percent the average was 664 percent

Sc~ool lunches also were available to the teaching st~ff and other adults who worked for the school system An average of 17287 nonstudents availed themselves of this service each day Consequently about 4 percent of the lunches served from the school middotfood supp--y were co~sumed by persons other than students

Al~ students except those~ho we~e members of nonresident families living in Puerto Rico--primarl1y children of US military families stationed there--received lunches at no charge An average ofmiddot 1150 children of nonresident fam~lies particishypated in the lunch program at a price of 55 cents per meal Te~chermiddots did not pay for lunches however this cost was und~rwritten by the Commonwealth of Puerto Rico

The cost of food for a Type A lunch includirig the value of USDA-donated commodishyties averaged 44 cents during the sch~ol year

Special Milk Program

Puerto Ricos school system Was nOt authorized by law to participate in the USDA Special Milk Program until 1975 The school system is now authorized to use reconstIshytuted dry milk to meet requi reIlents under the Special Milk Jrogram Schools also are authorized to serve reconstituted dry milk to meet the fluid milk requirements under the SBP and the NSLP

USDA Food Distribution Program

Each year millions of dollars worth of food is donated to schools throughout the Nation and in participating territories These donated foods are made availabte by the Dep~rtment of Agriculture under school iunch price support and surplus removal legislation They are distributed to schools by a cooperative food handling System ~nvolving Federal State and local agencies During fiscal year 1975 about 764 million pounds of foCd costing $418 million were distributed to ~chool lunch programs

Quantity and Value of Federally Donated Food

DUring the 1974-75 school year Puerto Ricos school system received 7518100 pounds of food of all types under the USDA Food Distribution Program (table 1) This represented about 10 percent of the total quantity of food used and was valued at over $middot48 million Dairy products accounted for more than 46 percent of the total quantity of donated ~ood received meats about 24 percent poultry products 11 pershycent and vegetables 8 percent

Dairy products sent to all U S school systeJl1s were about 21 percent of the federshy

ally donated foods far less than that received by Puerto Rico middots school system As

3

Table l--Quantity and value of donated food used in Puerto Ricos school September 1974~August 1975

Quantity Value

Food Per Percentage Per Per~~en tage

Total stlident of all Total student of all il food II food

1000 1000 pounds Pounds Percent dollars Dollars Percent

Total 75181 120 1000 48351 769 1000

Dairy products 34665 55 461 2429middot9 387 502 Milk nonfat dry 34665 55 461 24290 387 502

Fats and oils 1793 3 2 4 1454 23 30 B11tfer 1793 3 24 145 23 30

Meat 17844 28 237 14055 224 291 Beef ground 16345 26 21 7 12729 203 263 Eork middotcanned 1499 2 20 1326 21 27

Poultry 7971 13 106 5064 81 105 Chicken canned 2955 5 39 2050 33 42 Chicken parts 251 8 4 34 1074 17 22 Turkey roll 2498 4 33 1940 31 40

Vegetables 617 2 10 82 1253 20 26 Beans green 4047 6 54 689 11 14 Sweet potatoes canned 2125 3 28 564 09 12

Fruits 4236 7 56 1008 16 21 Cranberry sauce 2266 4 30 479 08 10 Peache-s canned 1970 3 26 529 08 11

Nuts 2500 4 33 1227 20 25 Peanut butter 1832 3 24 81 6 13 17 Peanut granules 668 1 9 411 07 9

lJ Based on average a~tendalce 1

bull earlier indicated Puerto Rico was authorized to serve reconsti~lIted dry milk in place of fresh fluid mi-lk a1d it met part of its fluid mi-lk requirement~ under both middotthe SBP arid the NSLP -with dry milk received unltler the USDA Food Distribution rrog-~am

If the quantity of donated food received by Puerto Rico were adjusted to reflect average rece~pts 01 dairy products the comrnodites received under the program by

4

Puerto Rico would have approximated the same proportionate dlstribution pattern as that for all US school systems except for peanuts fruits and cereals and grains 1

A number of products used in relatively large quantities in the schools in Puerto Rico ate nltlt federally donated commodities These foods--tanniers (tania) and garbanshyzo peas and papaya and plan~ain--accounted for 17 and 30 percent respectively of the total quantity of vegetables and fruits used

Food Processing Contracts

Schools may use the USDA-donated food products directly as basic ingredients in the preparation of meals or they may have pr9ducts processed under contract by comshymercial food firms into more convenient and usable forms A food processing COntract is a written agreement between a tood processor and a school system to use or al1ocate federally gonated food as ingiedi~nts in processing a different end-use product Having peanut butter piocessed into cookies and flour and shortening into c~ackers are examples These contr~cts hetp schools to economize on food costs Those persons served meals also may penefit from a greater variety of food

Puerto Rico reported using food processing coritracts for three USDA-donated com~ mod~ties ground beef was combined with textured vegetable protein (TVP) dry beans were processed and canried with salt and water added and flour was u~ed as an ingredishyent in crackers

Some Problems with Donated Foods

The USDA Food Distribut-ion Program is substantial middotand diverse During fical year 1975 USDA made available alD0st 400000 tons of fa9d to padicipafing schooi systems throughout the Nation The variety (if products ranged acro_s nearly all comshymopity lines

When determining commodities to be purchased under ~he USDA Food Distribution Program specifie consideration is given to food iii surplus food available undeshyprice support programs and food purchased specifically for school food service proshygramgt Although guidance f9~ purchasing foocl for use in schools involves considerashytion of the food pre~_erences of and product acceptability to c_hildren and school systems schools periodically may receive a less acceptable commodity because of the allocation met_hod used and potentia differences in regi(mal State_ and local- prefershyences

During the study year the Puerto Rico school system reported that it h~d experi- ienced di~ssatisfaction with four products It_ reported that bulgur and cranberry sauce had low acceptance in the school system that it would like to substitute part of its allotment of peanut butter for other commodities and tttat it preferred to receive fruits of higher nutritive vatue l

Infrequently donated products were rejected because they- were unsatisfactory These were chiefly gO-ods that presumably were in storage and then transfe_ired to the school system ~rom the Needy FamIly Program which was being phased out that year Included were flour cornmeal rolled oats rice and cheese which were rejected because of infestation and mold

I Agricultural Statistics 1976 US Department of Agriculture table 767 p 565 2 Puerto Rico no longer receives donated -food that it would rather not accept t beshy

ca~se of changes in the Program- subsequent to the study

5

SCHOOL FOOD SUPPLY

The school fqad S11pply in Puerto Rico has been growing rapidly as a result of increasing enrollment and numhcent_r gf schools offering food service Approximately 62 million lunches under the NSLP and 3 iiIillion breakfasts under the- SBP were served in 1972 By 1975 this had -increased to 74 ~illion lunches and 16 miilion ireakfa_sts

Quantity and Value of Food Used

During ~he 1974-75 school year almost 77 million pounds of food with a wh9~esale value of $35 4 milJion were received by the school systmiddot~m (table 2) This included the cost of purchased food and -the estimated value of UpDA-donated commodities

Table 2--Quantity and value of all food used in Puerto Ricos schools September 1974-August 1975

Quantity Value

Food Per Per Per partici shy Per partici shy

Total student pating Total student pating y student ]) student

1000 1000 pounds ~ - Pounds -- dollars - - Dollars --

Total 766916 1220 1442 353655 5627 6651

Dairy products 5881 2 94 111 45321 721 852 Beef 28168 45 53 23710 377 446 Other meats 43874 70 8 3 41524 661 781 middotPoul try and eggs 11824 19 22 8725 139 1 64 Seafood 22152 35 42 16723 266 315 Vegetables 31148_4 496 586 89099 1418 1676 Fruits 115748 184 21 8 53887 857 1013 Juices and riectars 37128 59 70 6137 98 115 Fats and oils 21888 35 41 1406 7 224 265 Bakery products 9604 15 18 5297 84 1 00 Grain and cereal 42419 67 80 14626 233 275

1_Sugar and sweets 24964 40 47 10709 i 70 201 Beverages 12123 i9 23 7704 123 145

)Prepared foods 8584 14 16 9385 149 177 -Nuts condiments 18144 29 34 6741 1 07 1i7

seasonings

1 Based Qn average attendance

6

I I

i I

I

Commercial purveyors furnished 69 2 ~~llion pounds of food more than 90 percent of that received 1 This food cost $305 million about 86 percentmiddot of the value 01 all food received The difference of 4 percentage points between the quantity and value of food received is due primarily to greater proPClrtionatcent commercial purchases o~ veg~tables than other commodities and the relatively low cost per pound of vezeshytables

F6op middotconsunption per student in attendance was valued at $5627 for the year an average of 318 cents for each day that food service was ava-ilable In terms of quanshytity each student averaged 122 pounds per year or 069 pounds daily during the s4~e period Unless otherwise in9-icated information on per capita consumption by students is based on average attendance figures

Based only on students who actually participa~ed il) the breakfast and lunch proshygrams (excluding the value and poundage of food served to teachers and other adults who ate meals prepared from schooL food supplies) food valued at $6651 and weighing nearly 145 pounds per student was used during the year Averages perday were 376 cents and 082 pounds per participating student

Importance of Individual Commodities

There was considerable variation among commqdities in amounts received and in proshyportions that they represent of the total quantity and value of purchased an4 clonated food used This examination of foltd usage (see t~ble 3) concentrates primarily on relative quantities rather thari values because of price fluctuations that have occurred in recent years

Dairy Products

Dry instant milk accounted for 97 percent of the dairy P1oducts used and averaged over 9 pounds oJ dry ~nstant milk per student for t~e year On a reconstituted basis 14 ounc~s o~ dry is equivalent to 1 fluid gllon~ Adjusted to exclude esti~ated us~ge by adults consumption of fluid milk by students averaged 11 half-pints for each USDA schooi breakfast and Type A lunch served Dry instant milk received through- the USDA Food Distribution Program amounted to 3466500 pounds or about 61 percent of the dry ins tant milk used 91ly 1 lOa pounds of fresh fluid milk weremiddot used and this was pur chased from conimercfal suppliers

Fa ts ana Oils

Use of fats and Oils during the school year equaled 35 pounds and $224 per stushydent Solid shortening was the principal product in this category with about 69 pershycent of the group tot_a The relatively small amounts of butter received were shyfederally donated whereas the bulk of fats and oils was obtained from commercial supshypliers

3 Goods not received by the school system fro~ the USDA Food Distribution Program are treated in tflis report as received from local supply sources and cotnmercial purshyveyors a~th~ugh this category also includes products transferred from the Needy Family Program which was being phased out that year

7

Taoie 3-QuantJty and value of fndividual foods IIsed iii Puerto Rico I s schools September 1974-August 195

Food

Total

Dairy products (including fresh milk and ice cream)- Milkdry Cheese (including

processed) Natural

Fats -and 0115 (including mayonnai~e)

Shorter1ig ~olid Oil cooking and 53189-Butter

Grains and cereals 2 Rice J regul~r- w~i te Spaghettimacaroni dry enriched

Corn meal Cereal dry breakfast 1

Regular package size Farina GingerJread mix Oats rolled

Bakery products 4 Saltines soda crackers Cake Bread (including Spanish and miscellaneous)

Whi te but termilk potato

Beef (including steaksGround Canned

)

Othe-r meats Lunch Ileats

Frankfurters

Total

1000 pounds

766916

58812 57191

1607 1592

21888 15095

4906 1793

424i9 27078

9339 i81 7 1209

932 1054 1023

757

9604 7158 1654

72 2 703

28168 I 7238 10928

43874 40257 28907

Value

per Total student

1

1000 dollars Dollars

353655 5627

45321 721 43682 695

1634 26 1611 26

14067 224 9055 144 3505 56 1454 23

14626 233 8551 1 36

294i 47 331 05

1648 26 1147 18

431 07 401 ()6 254 04

5297 84 455 7 73

326 05

378 06 372 06

23710 377 12952 206 10755 171

41524 661 37776 601 28633 456

Quantity Percentage

of all food

Percent

1000

128 124

5

5

40 26 10

4

41 24

8

1

5

3

1

1

1

15 13

1

1

1

67 37 30

11 7 107 81

Per student

J

Pounds

1220

94 91

3

3

35 24

8

3

67 43

15 3 2 1 2 2 1

15 11

3

1

1

45 27 17

70 64 46

See footnotes at end of table Continued-shy

8

Table 3-Quantity and value of individual foods used in Puerto Rico I s schools September 1974-August 1975--Contlnued

Quantity Value

Food Per

Total student Total 1

1000 1000 pounds Pounds dollars

Luncheon meat 10728 17 8528 Vienna sausage 622 1 61 5

Pork (including chops roas ts and hams) 361 7 6 3748

Canned 3559 6 3684

Poultry and eggs lt824 19 8725 Poultry

Canned 7988 2955

13 5

5068 2050

Chicken parts 2518 4 1074 Turkey (including readyshy

to-cook) Roll

2515 2498

4

4 1944 1940

Eggs dry Whole

3836 3324

6

5 3657 2984

Mix 512 1 673

Seafood_ 22152 35 16723 Cod 14060 22 9664 Tuna 6153 10 6152 Sardines 1939 3 90

Tomato sauce 1124 2 563 Other 815 1 344

Sugars and sweets (including sirup and candy) 24964 40 10709

Sugai white granulated 18567 30 7076 Jam 5890 9 3471

Pineapple and papaya 3445 5 2399 Mango 1832 3 818 Guava 577 t 227

Marmalade 497 1 151

Vegetables (including celery garlic and lettuce) 311484 496 89099

Peas green 11390 18 4402 Beans green-snap 40279 64 15308 Beans and peas other 92408 147 28618

Garbanzo 42905 68 16848 Red black brown 20787 33 5431

Per student

1

Dollars

136 10

60

59

1 39 81 33 17

31

31

58

47

11

266 154

98

14

09

05

1 70 113

55

38

13 04 02

1418 70

244 455 268

86

Percentage of all

food

Percent

24 2

11 10

25 14

6

3

5

5 10

8

2

47 27 17

3

2

1

30 20 10

7

2

1

~

252 12 43 81 48 15

Continued--See footnotes at end of table

9

Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

10

Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

r

PREFACE

This report was developed by the_ U S Department of Agriculture I s Economics J

Statitics and Cooperatives Service Data were ga~hered and processed by Market Facts Inc under a contract with the Departments Food and Nutrition Service The report evaluates facets of child nutrition and food assistance programs and i_n part assesses the markets fo_r food which these programs bring about

The study was designed to satisfy reqiiire~ents for information needed by managers at various levels of government who ~re responsible for operating school food_ serVice systems and administering related programs Such information al~o may be useful to firms that process ~nd distribute food and provide rela~edgoods and services to schoo~~ that provide food service It may help t~ese firms better tailor their immeshydiate and future food processing and mark~ting efforts to the requirements of this middotsegment of the market for food consumed away from home

Special apprecia tion is extended to the School Food Use Team of the Food and Nushytrition Service whocollectively and individually gave -valuable assistance throughout all phases of the study particularly J C Chai Jackie Davis Dorothy E Meye~s and John Romiddotbinson

CONTENTS

Summary iv

Introduction 1

Profile of the school systembull 1

School food setvice programs 2 USDA School Breakfast Program ~ 2 NatIonal School Lunch Program 2 USDA Food Distribution Program 3

School food supply 6 Quantity and value of food used ~ bull 6 Importance of individual COTmn9dities bull 7 AvailabiIity of storage facilities and food form -- 13 Food ac~uisition practices 14 Potentiai savings in volume purchases 14

iii

I

SUMHARY

Nearly 77 million pounds of food products with a wholesale value of $~54 million were used by schools in Puerto Rico that prov~ded food service to students under fedshyerally sponsored p_rograms dudng the 1974-75 school year About 75 millim pounds of food with a wholesale value of $48 -million were received by Puerto Riccl-s school system under the- US Department of Agricultures (USDA) F-ood Dis~iibiition Program The remainder came from commercial suppli~rs and other sources

Students in 1540 public and private schools ttaCl access to meals under the USDA School Breakfast program Meals also were available to studerits in all 2612 eemen- tary and secondary pulJii-c schools and 86 of the 125 private ~choois under the National Schobl Lu~ch Program Breakfasts were se~v-ed daily to an average of 94641 stlJdents and Type A lunches to 417400 students The participatipn rate in the tunch program averaged 664 percent of student attendance for the 177 days that food service was ava-ilable during the school year

All students middotin Puerto Rico except those who w~re members of nonresident fami-shylies were elIgible for meals at no charge The -luncheon cha-rge to the 115-0 partici- shy pat-ing children of nonresident families was 55 cents

During the 194-75 school year the cAst of food used in a USDA school brea~fast averaged 20 centsmiddot and in- a Type A lunch 44 cents- These costs included the value of USDA-donated c~mmoditi~s Vegetables (inciudi~g -po~atoes and dry beans) accounted for 41 percent of the poundage 9-nd about 25 percent of the value of all food purchased and donated Fruits (fncluding -plantain a staple in Puerto Rico) with 116 million pounds comprised the second most important group of products and accounted for 15 cents out of ~very food dollar Other importaft gro~ps were dairy meat and cer~al and ~rain products

AvaiLability of storage faci~litie-s may have had 8 Significant impact ~n- the forms of food that ~chools received Only about one-third of the schools had refriger~tor storage ~nd only 1 in 33 had freezer storage

iv

1

I

I

~ I

Ibull

FOOD SERVICE IN PUERTO RICOS SCHOOLS

Michae~ G Van Dress

INTRODUCTION

Tlie primary objective of the National School Lunch and Child Nutrition Acts is to sa~eguard the health and well-being 0pound the Nation 5 children by providing them wel1shybalanced nutritious m~_als The Food and Nutrition Service of the US Depa~rtme~t of Agriculture (USDA) has direct responsibility fCr carrying out the provi_si~ns of the acts

All public and nonprofit priyate schools throug~ hi-gh s~hool are eligible to pmiddotar t~cipate in the Child Nutrjtion Programs Participating schools are requir~d to serve nutritious nieals on a nonprofit basis and at free or reduced prices to economically needy pupils who cannot afford to pay full price

A study of food service opcentrations in the Nation I s schools was conducted inmiddot the c9n~inental United States 8nd P~erto Rico duriilg a l-yer period beginning Septentber 1974 It was made to obtain information and operating statistics on schciol food sershyvice programs essenti~l to effective program management at each qperatfonai level This report provides findings from ~ttat facet of the study tqat deals with the scho_ol system tn Puerto Rico The primary objectives of the s~rveymiddotwere to obtain ~easures oJ the quantity and value ~f f~od used in Puerto Rico I s schools and ilforma_tion on other economic and physica-l characteristics o~ school food service programs needed by officials who adm~nister them Current food use and preference data are needed to provfde guidance in the acquisition of f~od for schools- under the Department I s Fpcid Dfstribut10n Program Sudi data provide insight into the types and forms of food most acceptabie and the facilities needed to store them Food use data an4 program statisshytics also m~y be of use to such interested parties as the Congress the foodindustry and food seVice officials

The data summarized here were obtained in personal intervie~s with representashytives from the headquarters of the Commonwealth of Puerto Rico school sys (em in San Juan Puerto Rico Quantities ~f ail food products nomally purchased in iiquid form in dozens or by the piece are expressed in pounds (avoirdupois weight) for grouping and evaluation

PROFILE OF THE SCHOOL SYSTEM

Puerto Rico has a population of about 3 ~illion people In- the i974-75 school year P_uerto Rico I s school system included 2737 elementary and secondary schools

1

I

Of the 2~612 schools in the public sector 1978 were classified as elementary 601 as secondary t and 33 ungraded Grade levels were not determined for schools in the private sector No informati~n was obtained on food service op~rations of 39 private schools that did not part_icipate in either the Nationa~_ School Lunch Program (NSLP or the USDA School Breakfast program (SBP) Therefore this report will concentrate scleshylyon data obtained on 2612 pullic and 86 private schools These schools will be referred to 8pound Puerto Ricos school sys~em

Classes normally were in session 190 days during the 1974-75 school year that spann_e_d approximate1y 10 months For 365 schools however cla~ses were in session for a full 12 months Student enrollment w~s 746132 an average of 277 students per school I~aily- attendance averaged 628451 or 84 percent of enrollment

The number of full-time classroom -teachers was reported to be 30517 slightly more than 11 teachers per school with each teacher fnstructing an average of 25 stushydents per class

SCHOOL FOOD SERVICE PROGRAMS

All schools in the public s~c~or and 86 of the 125 schools in the private sector made food service available on a nohproIit basis Children who were riot enrolled in classes and adults who did not work for the school system normally did not eat school food supplies All schools had onsite kitchens for preparing food that- waS served

USDA School Breakfast Program

About 57- percerit (1540) of the schools for which data were obtained participated in theSBP Regulations for this program require that each breakfast provide a minimum one-half cup serving of fruit vegetable or both or full-s-trength fruit or vegetable 1uice one slice of whole grain or enricfled bread or three-f~urths cup of cereal (or an ounce whicheve-r is less) or an equivalent combination and one-half pint of fluid milk used as a beverage on cereal or both To improve tll_e nutritional well-being of parshyticip_ating children an ounce or equivalent serving of meat alternate is recommended a-s ofte~ as practicable

Break-fast was served to an average of 94641 ~tudents each day Breakfast lt)lso was served daily to an average of 2176 members of the teaching staff and other adults who work for the school system Student participation ranged fro~ a daily low of 77157 to a high of 105314 All breakfasts were given to students at no charge

The fo-od cost for a USDA schoo- breltkfast including the value of USDA-donated commodities averaged 20 cents during t~e ~974-75 school year

National School Lunch Program

Lunch service under the NSLP was available to students _in all p~b1oic schools and in 86 of 125 private schools in Puerto Rico during the 1974-75 school year Meals served under this program must conform to a meal pattern referred to as the Type A Pattern To meet requirem-ents u-nder the NSLP du~ing the time of this study the Type A-lunch contained a minimum of 2 ounces of cooked iean meat (edible portion as served) or an equivalent serving of meat alternate three-fourths cup of two or morevegeshytables fI-u1ts or both (full strength vegetable or frui1 juice may be counted to meet up to one-fourth cup of this requirement) a slice 9f whole grain or enrich~d bread or a_lternate one-half -pint of fluid milk served as a -beverage and a teaspoon of but_ter or frtified margarine As part of the bread middotrequirement in Puerto Rico the following

f I ~

bull

J

2

products may be seIVed a starchy vegetable or fruit such as tanniers plantafns and sweet potatoes or an elri~hed whole grain cereal product such as macaroni and noodles Only the Type A lunch was served a la carte foods were not available for purchasemiddot Planned daily menus geared to a 20-day cycle were followed Men~s used were flexible however) and could be adjusted to accommodate changes in availability of federally donatedmiddot food and to take adyantage of and provide for a holiday luncheon or special celebration

D~ring the school year ~he lunches served to students daily ranged from 363548 to 439540 and averaged 417400 Based on average attendalice during this period the rate of student participation ranged between a low of 578 percent and a high of 699 percent the average was 664 percent

Sc~ool lunches also were available to the teaching st~ff and other adults who worked for the school system An average of 17287 nonstudents availed themselves of this service each day Consequently about 4 percent of the lunches served from the school middotfood supp--y were co~sumed by persons other than students

Al~ students except those~ho we~e members of nonresident families living in Puerto Rico--primarl1y children of US military families stationed there--received lunches at no charge An average ofmiddot 1150 children of nonresident fam~lies particishypated in the lunch program at a price of 55 cents per meal Te~chermiddots did not pay for lunches however this cost was und~rwritten by the Commonwealth of Puerto Rico

The cost of food for a Type A lunch includirig the value of USDA-donated commodishyties averaged 44 cents during the sch~ol year

Special Milk Program

Puerto Ricos school system Was nOt authorized by law to participate in the USDA Special Milk Program until 1975 The school system is now authorized to use reconstIshytuted dry milk to meet requi reIlents under the Special Milk Jrogram Schools also are authorized to serve reconstituted dry milk to meet the fluid milk requirements under the SBP and the NSLP

USDA Food Distribution Program

Each year millions of dollars worth of food is donated to schools throughout the Nation and in participating territories These donated foods are made availabte by the Dep~rtment of Agriculture under school iunch price support and surplus removal legislation They are distributed to schools by a cooperative food handling System ~nvolving Federal State and local agencies During fiscal year 1975 about 764 million pounds of foCd costing $418 million were distributed to ~chool lunch programs

Quantity and Value of Federally Donated Food

DUring the 1974-75 school year Puerto Ricos school system received 7518100 pounds of food of all types under the USDA Food Distribution Program (table 1) This represented about 10 percent of the total quantity of food used and was valued at over $middot48 million Dairy products accounted for more than 46 percent of the total quantity of donated ~ood received meats about 24 percent poultry products 11 pershycent and vegetables 8 percent

Dairy products sent to all U S school systeJl1s were about 21 percent of the federshy

ally donated foods far less than that received by Puerto Rico middots school system As

3

Table l--Quantity and value of donated food used in Puerto Ricos school September 1974~August 1975

Quantity Value

Food Per Percentage Per Per~~en tage

Total stlident of all Total student of all il food II food

1000 1000 pounds Pounds Percent dollars Dollars Percent

Total 75181 120 1000 48351 769 1000

Dairy products 34665 55 461 2429middot9 387 502 Milk nonfat dry 34665 55 461 24290 387 502

Fats and oils 1793 3 2 4 1454 23 30 B11tfer 1793 3 24 145 23 30

Meat 17844 28 237 14055 224 291 Beef ground 16345 26 21 7 12729 203 263 Eork middotcanned 1499 2 20 1326 21 27

Poultry 7971 13 106 5064 81 105 Chicken canned 2955 5 39 2050 33 42 Chicken parts 251 8 4 34 1074 17 22 Turkey roll 2498 4 33 1940 31 40

Vegetables 617 2 10 82 1253 20 26 Beans green 4047 6 54 689 11 14 Sweet potatoes canned 2125 3 28 564 09 12

Fruits 4236 7 56 1008 16 21 Cranberry sauce 2266 4 30 479 08 10 Peache-s canned 1970 3 26 529 08 11

Nuts 2500 4 33 1227 20 25 Peanut butter 1832 3 24 81 6 13 17 Peanut granules 668 1 9 411 07 9

lJ Based on average a~tendalce 1

bull earlier indicated Puerto Rico was authorized to serve reconsti~lIted dry milk in place of fresh fluid mi-lk a1d it met part of its fluid mi-lk requirement~ under both middotthe SBP arid the NSLP -with dry milk received unltler the USDA Food Distribution rrog-~am

If the quantity of donated food received by Puerto Rico were adjusted to reflect average rece~pts 01 dairy products the comrnodites received under the program by

4

Puerto Rico would have approximated the same proportionate dlstribution pattern as that for all US school systems except for peanuts fruits and cereals and grains 1

A number of products used in relatively large quantities in the schools in Puerto Rico ate nltlt federally donated commodities These foods--tanniers (tania) and garbanshyzo peas and papaya and plan~ain--accounted for 17 and 30 percent respectively of the total quantity of vegetables and fruits used

Food Processing Contracts

Schools may use the USDA-donated food products directly as basic ingredients in the preparation of meals or they may have pr9ducts processed under contract by comshymercial food firms into more convenient and usable forms A food processing COntract is a written agreement between a tood processor and a school system to use or al1ocate federally gonated food as ingiedi~nts in processing a different end-use product Having peanut butter piocessed into cookies and flour and shortening into c~ackers are examples These contr~cts hetp schools to economize on food costs Those persons served meals also may penefit from a greater variety of food

Puerto Rico reported using food processing coritracts for three USDA-donated com~ mod~ties ground beef was combined with textured vegetable protein (TVP) dry beans were processed and canried with salt and water added and flour was u~ed as an ingredishyent in crackers

Some Problems with Donated Foods

The USDA Food Distribut-ion Program is substantial middotand diverse During fical year 1975 USDA made available alD0st 400000 tons of fa9d to padicipafing schooi systems throughout the Nation The variety (if products ranged acro_s nearly all comshymopity lines

When determining commodities to be purchased under ~he USDA Food Distribution Program specifie consideration is given to food iii surplus food available undeshyprice support programs and food purchased specifically for school food service proshygramgt Although guidance f9~ purchasing foocl for use in schools involves considerashytion of the food pre~_erences of and product acceptability to c_hildren and school systems schools periodically may receive a less acceptable commodity because of the allocation met_hod used and potentia differences in regi(mal State_ and local- prefershyences

During the study year the Puerto Rico school system reported that it h~d experi- ienced di~ssatisfaction with four products It_ reported that bulgur and cranberry sauce had low acceptance in the school system that it would like to substitute part of its allotment of peanut butter for other commodities and tttat it preferred to receive fruits of higher nutritive vatue l

Infrequently donated products were rejected because they- were unsatisfactory These were chiefly gO-ods that presumably were in storage and then transfe_ired to the school system ~rom the Needy FamIly Program which was being phased out that year Included were flour cornmeal rolled oats rice and cheese which were rejected because of infestation and mold

I Agricultural Statistics 1976 US Department of Agriculture table 767 p 565 2 Puerto Rico no longer receives donated -food that it would rather not accept t beshy

ca~se of changes in the Program- subsequent to the study

5

SCHOOL FOOD SUPPLY

The school fqad S11pply in Puerto Rico has been growing rapidly as a result of increasing enrollment and numhcent_r gf schools offering food service Approximately 62 million lunches under the NSLP and 3 iiIillion breakfasts under the- SBP were served in 1972 By 1975 this had -increased to 74 ~illion lunches and 16 miilion ireakfa_sts

Quantity and Value of Food Used

During ~he 1974-75 school year almost 77 million pounds of food with a wh9~esale value of $35 4 milJion were received by the school systmiddot~m (table 2) This included the cost of purchased food and -the estimated value of UpDA-donated commodities

Table 2--Quantity and value of all food used in Puerto Ricos schools September 1974-August 1975

Quantity Value

Food Per Per Per partici shy Per partici shy

Total student pating Total student pating y student ]) student

1000 1000 pounds ~ - Pounds -- dollars - - Dollars --

Total 766916 1220 1442 353655 5627 6651

Dairy products 5881 2 94 111 45321 721 852 Beef 28168 45 53 23710 377 446 Other meats 43874 70 8 3 41524 661 781 middotPoul try and eggs 11824 19 22 8725 139 1 64 Seafood 22152 35 42 16723 266 315 Vegetables 31148_4 496 586 89099 1418 1676 Fruits 115748 184 21 8 53887 857 1013 Juices and riectars 37128 59 70 6137 98 115 Fats and oils 21888 35 41 1406 7 224 265 Bakery products 9604 15 18 5297 84 1 00 Grain and cereal 42419 67 80 14626 233 275

1_Sugar and sweets 24964 40 47 10709 i 70 201 Beverages 12123 i9 23 7704 123 145

)Prepared foods 8584 14 16 9385 149 177 -Nuts condiments 18144 29 34 6741 1 07 1i7

seasonings

1 Based Qn average attendance

6

I I

i I

I

Commercial purveyors furnished 69 2 ~~llion pounds of food more than 90 percent of that received 1 This food cost $305 million about 86 percentmiddot of the value 01 all food received The difference of 4 percentage points between the quantity and value of food received is due primarily to greater proPClrtionatcent commercial purchases o~ veg~tables than other commodities and the relatively low cost per pound of vezeshytables

F6op middotconsunption per student in attendance was valued at $5627 for the year an average of 318 cents for each day that food service was ava-ilable In terms of quanshytity each student averaged 122 pounds per year or 069 pounds daily during the s4~e period Unless otherwise in9-icated information on per capita consumption by students is based on average attendance figures

Based only on students who actually participa~ed il) the breakfast and lunch proshygrams (excluding the value and poundage of food served to teachers and other adults who ate meals prepared from schooL food supplies) food valued at $6651 and weighing nearly 145 pounds per student was used during the year Averages perday were 376 cents and 082 pounds per participating student

Importance of Individual Commodities

There was considerable variation among commqdities in amounts received and in proshyportions that they represent of the total quantity and value of purchased an4 clonated food used This examination of foltd usage (see t~ble 3) concentrates primarily on relative quantities rather thari values because of price fluctuations that have occurred in recent years

Dairy Products

Dry instant milk accounted for 97 percent of the dairy P1oducts used and averaged over 9 pounds oJ dry ~nstant milk per student for t~e year On a reconstituted basis 14 ounc~s o~ dry is equivalent to 1 fluid gllon~ Adjusted to exclude esti~ated us~ge by adults consumption of fluid milk by students averaged 11 half-pints for each USDA schooi breakfast and Type A lunch served Dry instant milk received through- the USDA Food Distribution Program amounted to 3466500 pounds or about 61 percent of the dry ins tant milk used 91ly 1 lOa pounds of fresh fluid milk weremiddot used and this was pur chased from conimercfal suppliers

Fa ts ana Oils

Use of fats and Oils during the school year equaled 35 pounds and $224 per stushydent Solid shortening was the principal product in this category with about 69 pershycent of the group tot_a The relatively small amounts of butter received were shyfederally donated whereas the bulk of fats and oils was obtained from commercial supshypliers

3 Goods not received by the school system fro~ the USDA Food Distribution Program are treated in tflis report as received from local supply sources and cotnmercial purshyveyors a~th~ugh this category also includes products transferred from the Needy Family Program which was being phased out that year

7

Taoie 3-QuantJty and value of fndividual foods IIsed iii Puerto Rico I s schools September 1974-August 195

Food

Total

Dairy products (including fresh milk and ice cream)- Milkdry Cheese (including

processed) Natural

Fats -and 0115 (including mayonnai~e)

Shorter1ig ~olid Oil cooking and 53189-Butter

Grains and cereals 2 Rice J regul~r- w~i te Spaghettimacaroni dry enriched

Corn meal Cereal dry breakfast 1

Regular package size Farina GingerJread mix Oats rolled

Bakery products 4 Saltines soda crackers Cake Bread (including Spanish and miscellaneous)

Whi te but termilk potato

Beef (including steaksGround Canned

)

Othe-r meats Lunch Ileats

Frankfurters

Total

1000 pounds

766916

58812 57191

1607 1592

21888 15095

4906 1793

424i9 27078

9339 i81 7 1209

932 1054 1023

757

9604 7158 1654

72 2 703

28168 I 7238 10928

43874 40257 28907

Value

per Total student

1

1000 dollars Dollars

353655 5627

45321 721 43682 695

1634 26 1611 26

14067 224 9055 144 3505 56 1454 23

14626 233 8551 1 36

294i 47 331 05

1648 26 1147 18

431 07 401 ()6 254 04

5297 84 455 7 73

326 05

378 06 372 06

23710 377 12952 206 10755 171

41524 661 37776 601 28633 456

Quantity Percentage

of all food

Percent

1000

128 124

5

5

40 26 10

4

41 24

8

1

5

3

1

1

1

15 13

1

1

1

67 37 30

11 7 107 81

Per student

J

Pounds

1220

94 91

3

3

35 24

8

3

67 43

15 3 2 1 2 2 1

15 11

3

1

1

45 27 17

70 64 46

See footnotes at end of table Continued-shy

8

Table 3-Quantity and value of individual foods used in Puerto Rico I s schools September 1974-August 1975--Contlnued

Quantity Value

Food Per

Total student Total 1

1000 1000 pounds Pounds dollars

Luncheon meat 10728 17 8528 Vienna sausage 622 1 61 5

Pork (including chops roas ts and hams) 361 7 6 3748

Canned 3559 6 3684

Poultry and eggs lt824 19 8725 Poultry

Canned 7988 2955

13 5

5068 2050

Chicken parts 2518 4 1074 Turkey (including readyshy

to-cook) Roll

2515 2498

4

4 1944 1940

Eggs dry Whole

3836 3324

6

5 3657 2984

Mix 512 1 673

Seafood_ 22152 35 16723 Cod 14060 22 9664 Tuna 6153 10 6152 Sardines 1939 3 90

Tomato sauce 1124 2 563 Other 815 1 344

Sugars and sweets (including sirup and candy) 24964 40 10709

Sugai white granulated 18567 30 7076 Jam 5890 9 3471

Pineapple and papaya 3445 5 2399 Mango 1832 3 818 Guava 577 t 227

Marmalade 497 1 151

Vegetables (including celery garlic and lettuce) 311484 496 89099

Peas green 11390 18 4402 Beans green-snap 40279 64 15308 Beans and peas other 92408 147 28618

Garbanzo 42905 68 16848 Red black brown 20787 33 5431

Per student

1

Dollars

136 10

60

59

1 39 81 33 17

31

31

58

47

11

266 154

98

14

09

05

1 70 113

55

38

13 04 02

1418 70

244 455 268

86

Percentage of all

food

Percent

24 2

11 10

25 14

6

3

5

5 10

8

2

47 27 17

3

2

1

30 20 10

7

2

1

~

252 12 43 81 48 15

Continued--See footnotes at end of table

9

Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

10

Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

I

SUMHARY

Nearly 77 million pounds of food products with a wholesale value of $~54 million were used by schools in Puerto Rico that prov~ded food service to students under fedshyerally sponsored p_rograms dudng the 1974-75 school year About 75 millim pounds of food with a wholesale value of $48 -million were received by Puerto Riccl-s school system under the- US Department of Agricultures (USDA) F-ood Dis~iibiition Program The remainder came from commercial suppli~rs and other sources

Students in 1540 public and private schools ttaCl access to meals under the USDA School Breakfast program Meals also were available to studerits in all 2612 eemen- tary and secondary pulJii-c schools and 86 of the 125 private ~choois under the National Schobl Lu~ch Program Breakfasts were se~v-ed daily to an average of 94641 stlJdents and Type A lunches to 417400 students The participatipn rate in the tunch program averaged 664 percent of student attendance for the 177 days that food service was ava-ilable during the school year

All students middotin Puerto Rico except those who w~re members of nonresident fami-shylies were elIgible for meals at no charge The -luncheon cha-rge to the 115-0 partici- shy pat-ing children of nonresident families was 55 cents

During the 194-75 school year the cAst of food used in a USDA school brea~fast averaged 20 centsmiddot and in- a Type A lunch 44 cents- These costs included the value of USDA-donated c~mmoditi~s Vegetables (inciudi~g -po~atoes and dry beans) accounted for 41 percent of the poundage 9-nd about 25 percent of the value of all food purchased and donated Fruits (fncluding -plantain a staple in Puerto Rico) with 116 million pounds comprised the second most important group of products and accounted for 15 cents out of ~very food dollar Other importaft gro~ps were dairy meat and cer~al and ~rain products

AvaiLability of storage faci~litie-s may have had 8 Significant impact ~n- the forms of food that ~chools received Only about one-third of the schools had refriger~tor storage ~nd only 1 in 33 had freezer storage

iv

1

I

I

~ I

Ibull

FOOD SERVICE IN PUERTO RICOS SCHOOLS

Michae~ G Van Dress

INTRODUCTION

Tlie primary objective of the National School Lunch and Child Nutrition Acts is to sa~eguard the health and well-being 0pound the Nation 5 children by providing them wel1shybalanced nutritious m~_als The Food and Nutrition Service of the US Depa~rtme~t of Agriculture (USDA) has direct responsibility fCr carrying out the provi_si~ns of the acts

All public and nonprofit priyate schools throug~ hi-gh s~hool are eligible to pmiddotar t~cipate in the Child Nutrjtion Programs Participating schools are requir~d to serve nutritious nieals on a nonprofit basis and at free or reduced prices to economically needy pupils who cannot afford to pay full price

A study of food service opcentrations in the Nation I s schools was conducted inmiddot the c9n~inental United States 8nd P~erto Rico duriilg a l-yer period beginning Septentber 1974 It was made to obtain information and operating statistics on schciol food sershyvice programs essenti~l to effective program management at each qperatfonai level This report provides findings from ~ttat facet of the study tqat deals with the scho_ol system tn Puerto Rico The primary objectives of the s~rveymiddotwere to obtain ~easures oJ the quantity and value ~f f~od used in Puerto Rico I s schools and ilforma_tion on other economic and physica-l characteristics o~ school food service programs needed by officials who adm~nister them Current food use and preference data are needed to provfde guidance in the acquisition of f~od for schools- under the Department I s Fpcid Dfstribut10n Program Sudi data provide insight into the types and forms of food most acceptabie and the facilities needed to store them Food use data an4 program statisshytics also m~y be of use to such interested parties as the Congress the foodindustry and food seVice officials

The data summarized here were obtained in personal intervie~s with representashytives from the headquarters of the Commonwealth of Puerto Rico school sys (em in San Juan Puerto Rico Quantities ~f ail food products nomally purchased in iiquid form in dozens or by the piece are expressed in pounds (avoirdupois weight) for grouping and evaluation

PROFILE OF THE SCHOOL SYSTEM

Puerto Rico has a population of about 3 ~illion people In- the i974-75 school year P_uerto Rico I s school system included 2737 elementary and secondary schools

1

I

Of the 2~612 schools in the public sector 1978 were classified as elementary 601 as secondary t and 33 ungraded Grade levels were not determined for schools in the private sector No informati~n was obtained on food service op~rations of 39 private schools that did not part_icipate in either the Nationa~_ School Lunch Program (NSLP or the USDA School Breakfast program (SBP) Therefore this report will concentrate scleshylyon data obtained on 2612 pullic and 86 private schools These schools will be referred to 8pound Puerto Ricos school sys~em

Classes normally were in session 190 days during the 1974-75 school year that spann_e_d approximate1y 10 months For 365 schools however cla~ses were in session for a full 12 months Student enrollment w~s 746132 an average of 277 students per school I~aily- attendance averaged 628451 or 84 percent of enrollment

The number of full-time classroom -teachers was reported to be 30517 slightly more than 11 teachers per school with each teacher fnstructing an average of 25 stushydents per class

SCHOOL FOOD SERVICE PROGRAMS

All schools in the public s~c~or and 86 of the 125 schools in the private sector made food service available on a nohproIit basis Children who were riot enrolled in classes and adults who did not work for the school system normally did not eat school food supplies All schools had onsite kitchens for preparing food that- waS served

USDA School Breakfast Program

About 57- percerit (1540) of the schools for which data were obtained participated in theSBP Regulations for this program require that each breakfast provide a minimum one-half cup serving of fruit vegetable or both or full-s-trength fruit or vegetable 1uice one slice of whole grain or enricfled bread or three-f~urths cup of cereal (or an ounce whicheve-r is less) or an equivalent combination and one-half pint of fluid milk used as a beverage on cereal or both To improve tll_e nutritional well-being of parshyticip_ating children an ounce or equivalent serving of meat alternate is recommended a-s ofte~ as practicable

Break-fast was served to an average of 94641 ~tudents each day Breakfast lt)lso was served daily to an average of 2176 members of the teaching staff and other adults who work for the school system Student participation ranged fro~ a daily low of 77157 to a high of 105314 All breakfasts were given to students at no charge

The fo-od cost for a USDA schoo- breltkfast including the value of USDA-donated commodities averaged 20 cents during t~e ~974-75 school year

National School Lunch Program

Lunch service under the NSLP was available to students _in all p~b1oic schools and in 86 of 125 private schools in Puerto Rico during the 1974-75 school year Meals served under this program must conform to a meal pattern referred to as the Type A Pattern To meet requirem-ents u-nder the NSLP du~ing the time of this study the Type A-lunch contained a minimum of 2 ounces of cooked iean meat (edible portion as served) or an equivalent serving of meat alternate three-fourths cup of two or morevegeshytables fI-u1ts or both (full strength vegetable or frui1 juice may be counted to meet up to one-fourth cup of this requirement) a slice 9f whole grain or enrich~d bread or a_lternate one-half -pint of fluid milk served as a -beverage and a teaspoon of but_ter or frtified margarine As part of the bread middotrequirement in Puerto Rico the following

f I ~

bull

J

2

products may be seIVed a starchy vegetable or fruit such as tanniers plantafns and sweet potatoes or an elri~hed whole grain cereal product such as macaroni and noodles Only the Type A lunch was served a la carte foods were not available for purchasemiddot Planned daily menus geared to a 20-day cycle were followed Men~s used were flexible however) and could be adjusted to accommodate changes in availability of federally donatedmiddot food and to take adyantage of and provide for a holiday luncheon or special celebration

D~ring the school year ~he lunches served to students daily ranged from 363548 to 439540 and averaged 417400 Based on average attendalice during this period the rate of student participation ranged between a low of 578 percent and a high of 699 percent the average was 664 percent

Sc~ool lunches also were available to the teaching st~ff and other adults who worked for the school system An average of 17287 nonstudents availed themselves of this service each day Consequently about 4 percent of the lunches served from the school middotfood supp--y were co~sumed by persons other than students

Al~ students except those~ho we~e members of nonresident families living in Puerto Rico--primarl1y children of US military families stationed there--received lunches at no charge An average ofmiddot 1150 children of nonresident fam~lies particishypated in the lunch program at a price of 55 cents per meal Te~chermiddots did not pay for lunches however this cost was und~rwritten by the Commonwealth of Puerto Rico

The cost of food for a Type A lunch includirig the value of USDA-donated commodishyties averaged 44 cents during the sch~ol year

Special Milk Program

Puerto Ricos school system Was nOt authorized by law to participate in the USDA Special Milk Program until 1975 The school system is now authorized to use reconstIshytuted dry milk to meet requi reIlents under the Special Milk Jrogram Schools also are authorized to serve reconstituted dry milk to meet the fluid milk requirements under the SBP and the NSLP

USDA Food Distribution Program

Each year millions of dollars worth of food is donated to schools throughout the Nation and in participating territories These donated foods are made availabte by the Dep~rtment of Agriculture under school iunch price support and surplus removal legislation They are distributed to schools by a cooperative food handling System ~nvolving Federal State and local agencies During fiscal year 1975 about 764 million pounds of foCd costing $418 million were distributed to ~chool lunch programs

Quantity and Value of Federally Donated Food

DUring the 1974-75 school year Puerto Ricos school system received 7518100 pounds of food of all types under the USDA Food Distribution Program (table 1) This represented about 10 percent of the total quantity of food used and was valued at over $middot48 million Dairy products accounted for more than 46 percent of the total quantity of donated ~ood received meats about 24 percent poultry products 11 pershycent and vegetables 8 percent

Dairy products sent to all U S school systeJl1s were about 21 percent of the federshy

ally donated foods far less than that received by Puerto Rico middots school system As

3

Table l--Quantity and value of donated food used in Puerto Ricos school September 1974~August 1975

Quantity Value

Food Per Percentage Per Per~~en tage

Total stlident of all Total student of all il food II food

1000 1000 pounds Pounds Percent dollars Dollars Percent

Total 75181 120 1000 48351 769 1000

Dairy products 34665 55 461 2429middot9 387 502 Milk nonfat dry 34665 55 461 24290 387 502

Fats and oils 1793 3 2 4 1454 23 30 B11tfer 1793 3 24 145 23 30

Meat 17844 28 237 14055 224 291 Beef ground 16345 26 21 7 12729 203 263 Eork middotcanned 1499 2 20 1326 21 27

Poultry 7971 13 106 5064 81 105 Chicken canned 2955 5 39 2050 33 42 Chicken parts 251 8 4 34 1074 17 22 Turkey roll 2498 4 33 1940 31 40

Vegetables 617 2 10 82 1253 20 26 Beans green 4047 6 54 689 11 14 Sweet potatoes canned 2125 3 28 564 09 12

Fruits 4236 7 56 1008 16 21 Cranberry sauce 2266 4 30 479 08 10 Peache-s canned 1970 3 26 529 08 11

Nuts 2500 4 33 1227 20 25 Peanut butter 1832 3 24 81 6 13 17 Peanut granules 668 1 9 411 07 9

lJ Based on average a~tendalce 1

bull earlier indicated Puerto Rico was authorized to serve reconsti~lIted dry milk in place of fresh fluid mi-lk a1d it met part of its fluid mi-lk requirement~ under both middotthe SBP arid the NSLP -with dry milk received unltler the USDA Food Distribution rrog-~am

If the quantity of donated food received by Puerto Rico were adjusted to reflect average rece~pts 01 dairy products the comrnodites received under the program by

4

Puerto Rico would have approximated the same proportionate dlstribution pattern as that for all US school systems except for peanuts fruits and cereals and grains 1

A number of products used in relatively large quantities in the schools in Puerto Rico ate nltlt federally donated commodities These foods--tanniers (tania) and garbanshyzo peas and papaya and plan~ain--accounted for 17 and 30 percent respectively of the total quantity of vegetables and fruits used

Food Processing Contracts

Schools may use the USDA-donated food products directly as basic ingredients in the preparation of meals or they may have pr9ducts processed under contract by comshymercial food firms into more convenient and usable forms A food processing COntract is a written agreement between a tood processor and a school system to use or al1ocate federally gonated food as ingiedi~nts in processing a different end-use product Having peanut butter piocessed into cookies and flour and shortening into c~ackers are examples These contr~cts hetp schools to economize on food costs Those persons served meals also may penefit from a greater variety of food

Puerto Rico reported using food processing coritracts for three USDA-donated com~ mod~ties ground beef was combined with textured vegetable protein (TVP) dry beans were processed and canried with salt and water added and flour was u~ed as an ingredishyent in crackers

Some Problems with Donated Foods

The USDA Food Distribut-ion Program is substantial middotand diverse During fical year 1975 USDA made available alD0st 400000 tons of fa9d to padicipafing schooi systems throughout the Nation The variety (if products ranged acro_s nearly all comshymopity lines

When determining commodities to be purchased under ~he USDA Food Distribution Program specifie consideration is given to food iii surplus food available undeshyprice support programs and food purchased specifically for school food service proshygramgt Although guidance f9~ purchasing foocl for use in schools involves considerashytion of the food pre~_erences of and product acceptability to c_hildren and school systems schools periodically may receive a less acceptable commodity because of the allocation met_hod used and potentia differences in regi(mal State_ and local- prefershyences

During the study year the Puerto Rico school system reported that it h~d experi- ienced di~ssatisfaction with four products It_ reported that bulgur and cranberry sauce had low acceptance in the school system that it would like to substitute part of its allotment of peanut butter for other commodities and tttat it preferred to receive fruits of higher nutritive vatue l

Infrequently donated products were rejected because they- were unsatisfactory These were chiefly gO-ods that presumably were in storage and then transfe_ired to the school system ~rom the Needy FamIly Program which was being phased out that year Included were flour cornmeal rolled oats rice and cheese which were rejected because of infestation and mold

I Agricultural Statistics 1976 US Department of Agriculture table 767 p 565 2 Puerto Rico no longer receives donated -food that it would rather not accept t beshy

ca~se of changes in the Program- subsequent to the study

5

SCHOOL FOOD SUPPLY

The school fqad S11pply in Puerto Rico has been growing rapidly as a result of increasing enrollment and numhcent_r gf schools offering food service Approximately 62 million lunches under the NSLP and 3 iiIillion breakfasts under the- SBP were served in 1972 By 1975 this had -increased to 74 ~illion lunches and 16 miilion ireakfa_sts

Quantity and Value of Food Used

During ~he 1974-75 school year almost 77 million pounds of food with a wh9~esale value of $35 4 milJion were received by the school systmiddot~m (table 2) This included the cost of purchased food and -the estimated value of UpDA-donated commodities

Table 2--Quantity and value of all food used in Puerto Ricos schools September 1974-August 1975

Quantity Value

Food Per Per Per partici shy Per partici shy

Total student pating Total student pating y student ]) student

1000 1000 pounds ~ - Pounds -- dollars - - Dollars --

Total 766916 1220 1442 353655 5627 6651

Dairy products 5881 2 94 111 45321 721 852 Beef 28168 45 53 23710 377 446 Other meats 43874 70 8 3 41524 661 781 middotPoul try and eggs 11824 19 22 8725 139 1 64 Seafood 22152 35 42 16723 266 315 Vegetables 31148_4 496 586 89099 1418 1676 Fruits 115748 184 21 8 53887 857 1013 Juices and riectars 37128 59 70 6137 98 115 Fats and oils 21888 35 41 1406 7 224 265 Bakery products 9604 15 18 5297 84 1 00 Grain and cereal 42419 67 80 14626 233 275

1_Sugar and sweets 24964 40 47 10709 i 70 201 Beverages 12123 i9 23 7704 123 145

)Prepared foods 8584 14 16 9385 149 177 -Nuts condiments 18144 29 34 6741 1 07 1i7

seasonings

1 Based Qn average attendance

6

I I

i I

I

Commercial purveyors furnished 69 2 ~~llion pounds of food more than 90 percent of that received 1 This food cost $305 million about 86 percentmiddot of the value 01 all food received The difference of 4 percentage points between the quantity and value of food received is due primarily to greater proPClrtionatcent commercial purchases o~ veg~tables than other commodities and the relatively low cost per pound of vezeshytables

F6op middotconsunption per student in attendance was valued at $5627 for the year an average of 318 cents for each day that food service was ava-ilable In terms of quanshytity each student averaged 122 pounds per year or 069 pounds daily during the s4~e period Unless otherwise in9-icated information on per capita consumption by students is based on average attendance figures

Based only on students who actually participa~ed il) the breakfast and lunch proshygrams (excluding the value and poundage of food served to teachers and other adults who ate meals prepared from schooL food supplies) food valued at $6651 and weighing nearly 145 pounds per student was used during the year Averages perday were 376 cents and 082 pounds per participating student

Importance of Individual Commodities

There was considerable variation among commqdities in amounts received and in proshyportions that they represent of the total quantity and value of purchased an4 clonated food used This examination of foltd usage (see t~ble 3) concentrates primarily on relative quantities rather thari values because of price fluctuations that have occurred in recent years

Dairy Products

Dry instant milk accounted for 97 percent of the dairy P1oducts used and averaged over 9 pounds oJ dry ~nstant milk per student for t~e year On a reconstituted basis 14 ounc~s o~ dry is equivalent to 1 fluid gllon~ Adjusted to exclude esti~ated us~ge by adults consumption of fluid milk by students averaged 11 half-pints for each USDA schooi breakfast and Type A lunch served Dry instant milk received through- the USDA Food Distribution Program amounted to 3466500 pounds or about 61 percent of the dry ins tant milk used 91ly 1 lOa pounds of fresh fluid milk weremiddot used and this was pur chased from conimercfal suppliers

Fa ts ana Oils

Use of fats and Oils during the school year equaled 35 pounds and $224 per stushydent Solid shortening was the principal product in this category with about 69 pershycent of the group tot_a The relatively small amounts of butter received were shyfederally donated whereas the bulk of fats and oils was obtained from commercial supshypliers

3 Goods not received by the school system fro~ the USDA Food Distribution Program are treated in tflis report as received from local supply sources and cotnmercial purshyveyors a~th~ugh this category also includes products transferred from the Needy Family Program which was being phased out that year

7

Taoie 3-QuantJty and value of fndividual foods IIsed iii Puerto Rico I s schools September 1974-August 195

Food

Total

Dairy products (including fresh milk and ice cream)- Milkdry Cheese (including

processed) Natural

Fats -and 0115 (including mayonnai~e)

Shorter1ig ~olid Oil cooking and 53189-Butter

Grains and cereals 2 Rice J regul~r- w~i te Spaghettimacaroni dry enriched

Corn meal Cereal dry breakfast 1

Regular package size Farina GingerJread mix Oats rolled

Bakery products 4 Saltines soda crackers Cake Bread (including Spanish and miscellaneous)

Whi te but termilk potato

Beef (including steaksGround Canned

)

Othe-r meats Lunch Ileats

Frankfurters

Total

1000 pounds

766916

58812 57191

1607 1592

21888 15095

4906 1793

424i9 27078

9339 i81 7 1209

932 1054 1023

757

9604 7158 1654

72 2 703

28168 I 7238 10928

43874 40257 28907

Value

per Total student

1

1000 dollars Dollars

353655 5627

45321 721 43682 695

1634 26 1611 26

14067 224 9055 144 3505 56 1454 23

14626 233 8551 1 36

294i 47 331 05

1648 26 1147 18

431 07 401 ()6 254 04

5297 84 455 7 73

326 05

378 06 372 06

23710 377 12952 206 10755 171

41524 661 37776 601 28633 456

Quantity Percentage

of all food

Percent

1000

128 124

5

5

40 26 10

4

41 24

8

1

5

3

1

1

1

15 13

1

1

1

67 37 30

11 7 107 81

Per student

J

Pounds

1220

94 91

3

3

35 24

8

3

67 43

15 3 2 1 2 2 1

15 11

3

1

1

45 27 17

70 64 46

See footnotes at end of table Continued-shy

8

Table 3-Quantity and value of individual foods used in Puerto Rico I s schools September 1974-August 1975--Contlnued

Quantity Value

Food Per

Total student Total 1

1000 1000 pounds Pounds dollars

Luncheon meat 10728 17 8528 Vienna sausage 622 1 61 5

Pork (including chops roas ts and hams) 361 7 6 3748

Canned 3559 6 3684

Poultry and eggs lt824 19 8725 Poultry

Canned 7988 2955

13 5

5068 2050

Chicken parts 2518 4 1074 Turkey (including readyshy

to-cook) Roll

2515 2498

4

4 1944 1940

Eggs dry Whole

3836 3324

6

5 3657 2984

Mix 512 1 673

Seafood_ 22152 35 16723 Cod 14060 22 9664 Tuna 6153 10 6152 Sardines 1939 3 90

Tomato sauce 1124 2 563 Other 815 1 344

Sugars and sweets (including sirup and candy) 24964 40 10709

Sugai white granulated 18567 30 7076 Jam 5890 9 3471

Pineapple and papaya 3445 5 2399 Mango 1832 3 818 Guava 577 t 227

Marmalade 497 1 151

Vegetables (including celery garlic and lettuce) 311484 496 89099

Peas green 11390 18 4402 Beans green-snap 40279 64 15308 Beans and peas other 92408 147 28618

Garbanzo 42905 68 16848 Red black brown 20787 33 5431

Per student

1

Dollars

136 10

60

59

1 39 81 33 17

31

31

58

47

11

266 154

98

14

09

05

1 70 113

55

38

13 04 02

1418 70

244 455 268

86

Percentage of all

food

Percent

24 2

11 10

25 14

6

3

5

5 10

8

2

47 27 17

3

2

1

30 20 10

7

2

1

~

252 12 43 81 48 15

Continued--See footnotes at end of table

9

Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

10

Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

I

I

~ I

Ibull

FOOD SERVICE IN PUERTO RICOS SCHOOLS

Michae~ G Van Dress

INTRODUCTION

Tlie primary objective of the National School Lunch and Child Nutrition Acts is to sa~eguard the health and well-being 0pound the Nation 5 children by providing them wel1shybalanced nutritious m~_als The Food and Nutrition Service of the US Depa~rtme~t of Agriculture (USDA) has direct responsibility fCr carrying out the provi_si~ns of the acts

All public and nonprofit priyate schools throug~ hi-gh s~hool are eligible to pmiddotar t~cipate in the Child Nutrjtion Programs Participating schools are requir~d to serve nutritious nieals on a nonprofit basis and at free or reduced prices to economically needy pupils who cannot afford to pay full price

A study of food service opcentrations in the Nation I s schools was conducted inmiddot the c9n~inental United States 8nd P~erto Rico duriilg a l-yer period beginning Septentber 1974 It was made to obtain information and operating statistics on schciol food sershyvice programs essenti~l to effective program management at each qperatfonai level This report provides findings from ~ttat facet of the study tqat deals with the scho_ol system tn Puerto Rico The primary objectives of the s~rveymiddotwere to obtain ~easures oJ the quantity and value ~f f~od used in Puerto Rico I s schools and ilforma_tion on other economic and physica-l characteristics o~ school food service programs needed by officials who adm~nister them Current food use and preference data are needed to provfde guidance in the acquisition of f~od for schools- under the Department I s Fpcid Dfstribut10n Program Sudi data provide insight into the types and forms of food most acceptabie and the facilities needed to store them Food use data an4 program statisshytics also m~y be of use to such interested parties as the Congress the foodindustry and food seVice officials

The data summarized here were obtained in personal intervie~s with representashytives from the headquarters of the Commonwealth of Puerto Rico school sys (em in San Juan Puerto Rico Quantities ~f ail food products nomally purchased in iiquid form in dozens or by the piece are expressed in pounds (avoirdupois weight) for grouping and evaluation

PROFILE OF THE SCHOOL SYSTEM

Puerto Rico has a population of about 3 ~illion people In- the i974-75 school year P_uerto Rico I s school system included 2737 elementary and secondary schools

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Of the 2~612 schools in the public sector 1978 were classified as elementary 601 as secondary t and 33 ungraded Grade levels were not determined for schools in the private sector No informati~n was obtained on food service op~rations of 39 private schools that did not part_icipate in either the Nationa~_ School Lunch Program (NSLP or the USDA School Breakfast program (SBP) Therefore this report will concentrate scleshylyon data obtained on 2612 pullic and 86 private schools These schools will be referred to 8pound Puerto Ricos school sys~em

Classes normally were in session 190 days during the 1974-75 school year that spann_e_d approximate1y 10 months For 365 schools however cla~ses were in session for a full 12 months Student enrollment w~s 746132 an average of 277 students per school I~aily- attendance averaged 628451 or 84 percent of enrollment

The number of full-time classroom -teachers was reported to be 30517 slightly more than 11 teachers per school with each teacher fnstructing an average of 25 stushydents per class

SCHOOL FOOD SERVICE PROGRAMS

All schools in the public s~c~or and 86 of the 125 schools in the private sector made food service available on a nohproIit basis Children who were riot enrolled in classes and adults who did not work for the school system normally did not eat school food supplies All schools had onsite kitchens for preparing food that- waS served

USDA School Breakfast Program

About 57- percerit (1540) of the schools for which data were obtained participated in theSBP Regulations for this program require that each breakfast provide a minimum one-half cup serving of fruit vegetable or both or full-s-trength fruit or vegetable 1uice one slice of whole grain or enricfled bread or three-f~urths cup of cereal (or an ounce whicheve-r is less) or an equivalent combination and one-half pint of fluid milk used as a beverage on cereal or both To improve tll_e nutritional well-being of parshyticip_ating children an ounce or equivalent serving of meat alternate is recommended a-s ofte~ as practicable

Break-fast was served to an average of 94641 ~tudents each day Breakfast lt)lso was served daily to an average of 2176 members of the teaching staff and other adults who work for the school system Student participation ranged fro~ a daily low of 77157 to a high of 105314 All breakfasts were given to students at no charge

The fo-od cost for a USDA schoo- breltkfast including the value of USDA-donated commodities averaged 20 cents during t~e ~974-75 school year

National School Lunch Program

Lunch service under the NSLP was available to students _in all p~b1oic schools and in 86 of 125 private schools in Puerto Rico during the 1974-75 school year Meals served under this program must conform to a meal pattern referred to as the Type A Pattern To meet requirem-ents u-nder the NSLP du~ing the time of this study the Type A-lunch contained a minimum of 2 ounces of cooked iean meat (edible portion as served) or an equivalent serving of meat alternate three-fourths cup of two or morevegeshytables fI-u1ts or both (full strength vegetable or frui1 juice may be counted to meet up to one-fourth cup of this requirement) a slice 9f whole grain or enrich~d bread or a_lternate one-half -pint of fluid milk served as a -beverage and a teaspoon of but_ter or frtified margarine As part of the bread middotrequirement in Puerto Rico the following

f I ~

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products may be seIVed a starchy vegetable or fruit such as tanniers plantafns and sweet potatoes or an elri~hed whole grain cereal product such as macaroni and noodles Only the Type A lunch was served a la carte foods were not available for purchasemiddot Planned daily menus geared to a 20-day cycle were followed Men~s used were flexible however) and could be adjusted to accommodate changes in availability of federally donatedmiddot food and to take adyantage of and provide for a holiday luncheon or special celebration

D~ring the school year ~he lunches served to students daily ranged from 363548 to 439540 and averaged 417400 Based on average attendalice during this period the rate of student participation ranged between a low of 578 percent and a high of 699 percent the average was 664 percent

Sc~ool lunches also were available to the teaching st~ff and other adults who worked for the school system An average of 17287 nonstudents availed themselves of this service each day Consequently about 4 percent of the lunches served from the school middotfood supp--y were co~sumed by persons other than students

Al~ students except those~ho we~e members of nonresident families living in Puerto Rico--primarl1y children of US military families stationed there--received lunches at no charge An average ofmiddot 1150 children of nonresident fam~lies particishypated in the lunch program at a price of 55 cents per meal Te~chermiddots did not pay for lunches however this cost was und~rwritten by the Commonwealth of Puerto Rico

The cost of food for a Type A lunch includirig the value of USDA-donated commodishyties averaged 44 cents during the sch~ol year

Special Milk Program

Puerto Ricos school system Was nOt authorized by law to participate in the USDA Special Milk Program until 1975 The school system is now authorized to use reconstIshytuted dry milk to meet requi reIlents under the Special Milk Jrogram Schools also are authorized to serve reconstituted dry milk to meet the fluid milk requirements under the SBP and the NSLP

USDA Food Distribution Program

Each year millions of dollars worth of food is donated to schools throughout the Nation and in participating territories These donated foods are made availabte by the Dep~rtment of Agriculture under school iunch price support and surplus removal legislation They are distributed to schools by a cooperative food handling System ~nvolving Federal State and local agencies During fiscal year 1975 about 764 million pounds of foCd costing $418 million were distributed to ~chool lunch programs

Quantity and Value of Federally Donated Food

DUring the 1974-75 school year Puerto Ricos school system received 7518100 pounds of food of all types under the USDA Food Distribution Program (table 1) This represented about 10 percent of the total quantity of food used and was valued at over $middot48 million Dairy products accounted for more than 46 percent of the total quantity of donated ~ood received meats about 24 percent poultry products 11 pershycent and vegetables 8 percent

Dairy products sent to all U S school systeJl1s were about 21 percent of the federshy

ally donated foods far less than that received by Puerto Rico middots school system As

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Table l--Quantity and value of donated food used in Puerto Ricos school September 1974~August 1975

Quantity Value

Food Per Percentage Per Per~~en tage

Total stlident of all Total student of all il food II food

1000 1000 pounds Pounds Percent dollars Dollars Percent

Total 75181 120 1000 48351 769 1000

Dairy products 34665 55 461 2429middot9 387 502 Milk nonfat dry 34665 55 461 24290 387 502

Fats and oils 1793 3 2 4 1454 23 30 B11tfer 1793 3 24 145 23 30

Meat 17844 28 237 14055 224 291 Beef ground 16345 26 21 7 12729 203 263 Eork middotcanned 1499 2 20 1326 21 27

Poultry 7971 13 106 5064 81 105 Chicken canned 2955 5 39 2050 33 42 Chicken parts 251 8 4 34 1074 17 22 Turkey roll 2498 4 33 1940 31 40

Vegetables 617 2 10 82 1253 20 26 Beans green 4047 6 54 689 11 14 Sweet potatoes canned 2125 3 28 564 09 12

Fruits 4236 7 56 1008 16 21 Cranberry sauce 2266 4 30 479 08 10 Peache-s canned 1970 3 26 529 08 11

Nuts 2500 4 33 1227 20 25 Peanut butter 1832 3 24 81 6 13 17 Peanut granules 668 1 9 411 07 9

lJ Based on average a~tendalce 1

bull earlier indicated Puerto Rico was authorized to serve reconsti~lIted dry milk in place of fresh fluid mi-lk a1d it met part of its fluid mi-lk requirement~ under both middotthe SBP arid the NSLP -with dry milk received unltler the USDA Food Distribution rrog-~am

If the quantity of donated food received by Puerto Rico were adjusted to reflect average rece~pts 01 dairy products the comrnodites received under the program by

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Puerto Rico would have approximated the same proportionate dlstribution pattern as that for all US school systems except for peanuts fruits and cereals and grains 1

A number of products used in relatively large quantities in the schools in Puerto Rico ate nltlt federally donated commodities These foods--tanniers (tania) and garbanshyzo peas and papaya and plan~ain--accounted for 17 and 30 percent respectively of the total quantity of vegetables and fruits used

Food Processing Contracts

Schools may use the USDA-donated food products directly as basic ingredients in the preparation of meals or they may have pr9ducts processed under contract by comshymercial food firms into more convenient and usable forms A food processing COntract is a written agreement between a tood processor and a school system to use or al1ocate federally gonated food as ingiedi~nts in processing a different end-use product Having peanut butter piocessed into cookies and flour and shortening into c~ackers are examples These contr~cts hetp schools to economize on food costs Those persons served meals also may penefit from a greater variety of food

Puerto Rico reported using food processing coritracts for three USDA-donated com~ mod~ties ground beef was combined with textured vegetable protein (TVP) dry beans were processed and canried with salt and water added and flour was u~ed as an ingredishyent in crackers

Some Problems with Donated Foods

The USDA Food Distribut-ion Program is substantial middotand diverse During fical year 1975 USDA made available alD0st 400000 tons of fa9d to padicipafing schooi systems throughout the Nation The variety (if products ranged acro_s nearly all comshymopity lines

When determining commodities to be purchased under ~he USDA Food Distribution Program specifie consideration is given to food iii surplus food available undeshyprice support programs and food purchased specifically for school food service proshygramgt Although guidance f9~ purchasing foocl for use in schools involves considerashytion of the food pre~_erences of and product acceptability to c_hildren and school systems schools periodically may receive a less acceptable commodity because of the allocation met_hod used and potentia differences in regi(mal State_ and local- prefershyences

During the study year the Puerto Rico school system reported that it h~d experi- ienced di~ssatisfaction with four products It_ reported that bulgur and cranberry sauce had low acceptance in the school system that it would like to substitute part of its allotment of peanut butter for other commodities and tttat it preferred to receive fruits of higher nutritive vatue l

Infrequently donated products were rejected because they- were unsatisfactory These were chiefly gO-ods that presumably were in storage and then transfe_ired to the school system ~rom the Needy FamIly Program which was being phased out that year Included were flour cornmeal rolled oats rice and cheese which were rejected because of infestation and mold

I Agricultural Statistics 1976 US Department of Agriculture table 767 p 565 2 Puerto Rico no longer receives donated -food that it would rather not accept t beshy

ca~se of changes in the Program- subsequent to the study

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SCHOOL FOOD SUPPLY

The school fqad S11pply in Puerto Rico has been growing rapidly as a result of increasing enrollment and numhcent_r gf schools offering food service Approximately 62 million lunches under the NSLP and 3 iiIillion breakfasts under the- SBP were served in 1972 By 1975 this had -increased to 74 ~illion lunches and 16 miilion ireakfa_sts

Quantity and Value of Food Used

During ~he 1974-75 school year almost 77 million pounds of food with a wh9~esale value of $35 4 milJion were received by the school systmiddot~m (table 2) This included the cost of purchased food and -the estimated value of UpDA-donated commodities

Table 2--Quantity and value of all food used in Puerto Ricos schools September 1974-August 1975

Quantity Value

Food Per Per Per partici shy Per partici shy

Total student pating Total student pating y student ]) student

1000 1000 pounds ~ - Pounds -- dollars - - Dollars --

Total 766916 1220 1442 353655 5627 6651

Dairy products 5881 2 94 111 45321 721 852 Beef 28168 45 53 23710 377 446 Other meats 43874 70 8 3 41524 661 781 middotPoul try and eggs 11824 19 22 8725 139 1 64 Seafood 22152 35 42 16723 266 315 Vegetables 31148_4 496 586 89099 1418 1676 Fruits 115748 184 21 8 53887 857 1013 Juices and riectars 37128 59 70 6137 98 115 Fats and oils 21888 35 41 1406 7 224 265 Bakery products 9604 15 18 5297 84 1 00 Grain and cereal 42419 67 80 14626 233 275

1_Sugar and sweets 24964 40 47 10709 i 70 201 Beverages 12123 i9 23 7704 123 145

)Prepared foods 8584 14 16 9385 149 177 -Nuts condiments 18144 29 34 6741 1 07 1i7

seasonings

1 Based Qn average attendance

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Commercial purveyors furnished 69 2 ~~llion pounds of food more than 90 percent of that received 1 This food cost $305 million about 86 percentmiddot of the value 01 all food received The difference of 4 percentage points between the quantity and value of food received is due primarily to greater proPClrtionatcent commercial purchases o~ veg~tables than other commodities and the relatively low cost per pound of vezeshytables

F6op middotconsunption per student in attendance was valued at $5627 for the year an average of 318 cents for each day that food service was ava-ilable In terms of quanshytity each student averaged 122 pounds per year or 069 pounds daily during the s4~e period Unless otherwise in9-icated information on per capita consumption by students is based on average attendance figures

Based only on students who actually participa~ed il) the breakfast and lunch proshygrams (excluding the value and poundage of food served to teachers and other adults who ate meals prepared from schooL food supplies) food valued at $6651 and weighing nearly 145 pounds per student was used during the year Averages perday were 376 cents and 082 pounds per participating student

Importance of Individual Commodities

There was considerable variation among commqdities in amounts received and in proshyportions that they represent of the total quantity and value of purchased an4 clonated food used This examination of foltd usage (see t~ble 3) concentrates primarily on relative quantities rather thari values because of price fluctuations that have occurred in recent years

Dairy Products

Dry instant milk accounted for 97 percent of the dairy P1oducts used and averaged over 9 pounds oJ dry ~nstant milk per student for t~e year On a reconstituted basis 14 ounc~s o~ dry is equivalent to 1 fluid gllon~ Adjusted to exclude esti~ated us~ge by adults consumption of fluid milk by students averaged 11 half-pints for each USDA schooi breakfast and Type A lunch served Dry instant milk received through- the USDA Food Distribution Program amounted to 3466500 pounds or about 61 percent of the dry ins tant milk used 91ly 1 lOa pounds of fresh fluid milk weremiddot used and this was pur chased from conimercfal suppliers

Fa ts ana Oils

Use of fats and Oils during the school year equaled 35 pounds and $224 per stushydent Solid shortening was the principal product in this category with about 69 pershycent of the group tot_a The relatively small amounts of butter received were shyfederally donated whereas the bulk of fats and oils was obtained from commercial supshypliers

3 Goods not received by the school system fro~ the USDA Food Distribution Program are treated in tflis report as received from local supply sources and cotnmercial purshyveyors a~th~ugh this category also includes products transferred from the Needy Family Program which was being phased out that year

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Taoie 3-QuantJty and value of fndividual foods IIsed iii Puerto Rico I s schools September 1974-August 195

Food

Total

Dairy products (including fresh milk and ice cream)- Milkdry Cheese (including

processed) Natural

Fats -and 0115 (including mayonnai~e)

Shorter1ig ~olid Oil cooking and 53189-Butter

Grains and cereals 2 Rice J regul~r- w~i te Spaghettimacaroni dry enriched

Corn meal Cereal dry breakfast 1

Regular package size Farina GingerJread mix Oats rolled

Bakery products 4 Saltines soda crackers Cake Bread (including Spanish and miscellaneous)

Whi te but termilk potato

Beef (including steaksGround Canned

)

Othe-r meats Lunch Ileats

Frankfurters

Total

1000 pounds

766916

58812 57191

1607 1592

21888 15095

4906 1793

424i9 27078

9339 i81 7 1209

932 1054 1023

757

9604 7158 1654

72 2 703

28168 I 7238 10928

43874 40257 28907

Value

per Total student

1

1000 dollars Dollars

353655 5627

45321 721 43682 695

1634 26 1611 26

14067 224 9055 144 3505 56 1454 23

14626 233 8551 1 36

294i 47 331 05

1648 26 1147 18

431 07 401 ()6 254 04

5297 84 455 7 73

326 05

378 06 372 06

23710 377 12952 206 10755 171

41524 661 37776 601 28633 456

Quantity Percentage

of all food

Percent

1000

128 124

5

5

40 26 10

4

41 24

8

1

5

3

1

1

1

15 13

1

1

1

67 37 30

11 7 107 81

Per student

J

Pounds

1220

94 91

3

3

35 24

8

3

67 43

15 3 2 1 2 2 1

15 11

3

1

1

45 27 17

70 64 46

See footnotes at end of table Continued-shy

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Table 3-Quantity and value of individual foods used in Puerto Rico I s schools September 1974-August 1975--Contlnued

Quantity Value

Food Per

Total student Total 1

1000 1000 pounds Pounds dollars

Luncheon meat 10728 17 8528 Vienna sausage 622 1 61 5

Pork (including chops roas ts and hams) 361 7 6 3748

Canned 3559 6 3684

Poultry and eggs lt824 19 8725 Poultry

Canned 7988 2955

13 5

5068 2050

Chicken parts 2518 4 1074 Turkey (including readyshy

to-cook) Roll

2515 2498

4

4 1944 1940

Eggs dry Whole

3836 3324

6

5 3657 2984

Mix 512 1 673

Seafood_ 22152 35 16723 Cod 14060 22 9664 Tuna 6153 10 6152 Sardines 1939 3 90

Tomato sauce 1124 2 563 Other 815 1 344

Sugars and sweets (including sirup and candy) 24964 40 10709

Sugai white granulated 18567 30 7076 Jam 5890 9 3471

Pineapple and papaya 3445 5 2399 Mango 1832 3 818 Guava 577 t 227

Marmalade 497 1 151

Vegetables (including celery garlic and lettuce) 311484 496 89099

Peas green 11390 18 4402 Beans green-snap 40279 64 15308 Beans and peas other 92408 147 28618

Garbanzo 42905 68 16848 Red black brown 20787 33 5431

Per student

1

Dollars

136 10

60

59

1 39 81 33 17

31

31

58

47

11

266 154

98

14

09

05

1 70 113

55

38

13 04 02

1418 70

244 455 268

86

Percentage of all

food

Percent

24 2

11 10

25 14

6

3

5

5 10

8

2

47 27 17

3

2

1

30 20 10

7

2

1

~

252 12 43 81 48 15

Continued--See footnotes at end of table

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Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

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Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

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fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

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Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

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Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

I

Of the 2~612 schools in the public sector 1978 were classified as elementary 601 as secondary t and 33 ungraded Grade levels were not determined for schools in the private sector No informati~n was obtained on food service op~rations of 39 private schools that did not part_icipate in either the Nationa~_ School Lunch Program (NSLP or the USDA School Breakfast program (SBP) Therefore this report will concentrate scleshylyon data obtained on 2612 pullic and 86 private schools These schools will be referred to 8pound Puerto Ricos school sys~em

Classes normally were in session 190 days during the 1974-75 school year that spann_e_d approximate1y 10 months For 365 schools however cla~ses were in session for a full 12 months Student enrollment w~s 746132 an average of 277 students per school I~aily- attendance averaged 628451 or 84 percent of enrollment

The number of full-time classroom -teachers was reported to be 30517 slightly more than 11 teachers per school with each teacher fnstructing an average of 25 stushydents per class

SCHOOL FOOD SERVICE PROGRAMS

All schools in the public s~c~or and 86 of the 125 schools in the private sector made food service available on a nohproIit basis Children who were riot enrolled in classes and adults who did not work for the school system normally did not eat school food supplies All schools had onsite kitchens for preparing food that- waS served

USDA School Breakfast Program

About 57- percerit (1540) of the schools for which data were obtained participated in theSBP Regulations for this program require that each breakfast provide a minimum one-half cup serving of fruit vegetable or both or full-s-trength fruit or vegetable 1uice one slice of whole grain or enricfled bread or three-f~urths cup of cereal (or an ounce whicheve-r is less) or an equivalent combination and one-half pint of fluid milk used as a beverage on cereal or both To improve tll_e nutritional well-being of parshyticip_ating children an ounce or equivalent serving of meat alternate is recommended a-s ofte~ as practicable

Break-fast was served to an average of 94641 ~tudents each day Breakfast lt)lso was served daily to an average of 2176 members of the teaching staff and other adults who work for the school system Student participation ranged fro~ a daily low of 77157 to a high of 105314 All breakfasts were given to students at no charge

The fo-od cost for a USDA schoo- breltkfast including the value of USDA-donated commodities averaged 20 cents during t~e ~974-75 school year

National School Lunch Program

Lunch service under the NSLP was available to students _in all p~b1oic schools and in 86 of 125 private schools in Puerto Rico during the 1974-75 school year Meals served under this program must conform to a meal pattern referred to as the Type A Pattern To meet requirem-ents u-nder the NSLP du~ing the time of this study the Type A-lunch contained a minimum of 2 ounces of cooked iean meat (edible portion as served) or an equivalent serving of meat alternate three-fourths cup of two or morevegeshytables fI-u1ts or both (full strength vegetable or frui1 juice may be counted to meet up to one-fourth cup of this requirement) a slice 9f whole grain or enrich~d bread or a_lternate one-half -pint of fluid milk served as a -beverage and a teaspoon of but_ter or frtified margarine As part of the bread middotrequirement in Puerto Rico the following

f I ~

bull

J

2

products may be seIVed a starchy vegetable or fruit such as tanniers plantafns and sweet potatoes or an elri~hed whole grain cereal product such as macaroni and noodles Only the Type A lunch was served a la carte foods were not available for purchasemiddot Planned daily menus geared to a 20-day cycle were followed Men~s used were flexible however) and could be adjusted to accommodate changes in availability of federally donatedmiddot food and to take adyantage of and provide for a holiday luncheon or special celebration

D~ring the school year ~he lunches served to students daily ranged from 363548 to 439540 and averaged 417400 Based on average attendalice during this period the rate of student participation ranged between a low of 578 percent and a high of 699 percent the average was 664 percent

Sc~ool lunches also were available to the teaching st~ff and other adults who worked for the school system An average of 17287 nonstudents availed themselves of this service each day Consequently about 4 percent of the lunches served from the school middotfood supp--y were co~sumed by persons other than students

Al~ students except those~ho we~e members of nonresident families living in Puerto Rico--primarl1y children of US military families stationed there--received lunches at no charge An average ofmiddot 1150 children of nonresident fam~lies particishypated in the lunch program at a price of 55 cents per meal Te~chermiddots did not pay for lunches however this cost was und~rwritten by the Commonwealth of Puerto Rico

The cost of food for a Type A lunch includirig the value of USDA-donated commodishyties averaged 44 cents during the sch~ol year

Special Milk Program

Puerto Ricos school system Was nOt authorized by law to participate in the USDA Special Milk Program until 1975 The school system is now authorized to use reconstIshytuted dry milk to meet requi reIlents under the Special Milk Jrogram Schools also are authorized to serve reconstituted dry milk to meet the fluid milk requirements under the SBP and the NSLP

USDA Food Distribution Program

Each year millions of dollars worth of food is donated to schools throughout the Nation and in participating territories These donated foods are made availabte by the Dep~rtment of Agriculture under school iunch price support and surplus removal legislation They are distributed to schools by a cooperative food handling System ~nvolving Federal State and local agencies During fiscal year 1975 about 764 million pounds of foCd costing $418 million were distributed to ~chool lunch programs

Quantity and Value of Federally Donated Food

DUring the 1974-75 school year Puerto Ricos school system received 7518100 pounds of food of all types under the USDA Food Distribution Program (table 1) This represented about 10 percent of the total quantity of food used and was valued at over $middot48 million Dairy products accounted for more than 46 percent of the total quantity of donated ~ood received meats about 24 percent poultry products 11 pershycent and vegetables 8 percent

Dairy products sent to all U S school systeJl1s were about 21 percent of the federshy

ally donated foods far less than that received by Puerto Rico middots school system As

3

Table l--Quantity and value of donated food used in Puerto Ricos school September 1974~August 1975

Quantity Value

Food Per Percentage Per Per~~en tage

Total stlident of all Total student of all il food II food

1000 1000 pounds Pounds Percent dollars Dollars Percent

Total 75181 120 1000 48351 769 1000

Dairy products 34665 55 461 2429middot9 387 502 Milk nonfat dry 34665 55 461 24290 387 502

Fats and oils 1793 3 2 4 1454 23 30 B11tfer 1793 3 24 145 23 30

Meat 17844 28 237 14055 224 291 Beef ground 16345 26 21 7 12729 203 263 Eork middotcanned 1499 2 20 1326 21 27

Poultry 7971 13 106 5064 81 105 Chicken canned 2955 5 39 2050 33 42 Chicken parts 251 8 4 34 1074 17 22 Turkey roll 2498 4 33 1940 31 40

Vegetables 617 2 10 82 1253 20 26 Beans green 4047 6 54 689 11 14 Sweet potatoes canned 2125 3 28 564 09 12

Fruits 4236 7 56 1008 16 21 Cranberry sauce 2266 4 30 479 08 10 Peache-s canned 1970 3 26 529 08 11

Nuts 2500 4 33 1227 20 25 Peanut butter 1832 3 24 81 6 13 17 Peanut granules 668 1 9 411 07 9

lJ Based on average a~tendalce 1

bull earlier indicated Puerto Rico was authorized to serve reconsti~lIted dry milk in place of fresh fluid mi-lk a1d it met part of its fluid mi-lk requirement~ under both middotthe SBP arid the NSLP -with dry milk received unltler the USDA Food Distribution rrog-~am

If the quantity of donated food received by Puerto Rico were adjusted to reflect average rece~pts 01 dairy products the comrnodites received under the program by

4

Puerto Rico would have approximated the same proportionate dlstribution pattern as that for all US school systems except for peanuts fruits and cereals and grains 1

A number of products used in relatively large quantities in the schools in Puerto Rico ate nltlt federally donated commodities These foods--tanniers (tania) and garbanshyzo peas and papaya and plan~ain--accounted for 17 and 30 percent respectively of the total quantity of vegetables and fruits used

Food Processing Contracts

Schools may use the USDA-donated food products directly as basic ingredients in the preparation of meals or they may have pr9ducts processed under contract by comshymercial food firms into more convenient and usable forms A food processing COntract is a written agreement between a tood processor and a school system to use or al1ocate federally gonated food as ingiedi~nts in processing a different end-use product Having peanut butter piocessed into cookies and flour and shortening into c~ackers are examples These contr~cts hetp schools to economize on food costs Those persons served meals also may penefit from a greater variety of food

Puerto Rico reported using food processing coritracts for three USDA-donated com~ mod~ties ground beef was combined with textured vegetable protein (TVP) dry beans were processed and canried with salt and water added and flour was u~ed as an ingredishyent in crackers

Some Problems with Donated Foods

The USDA Food Distribut-ion Program is substantial middotand diverse During fical year 1975 USDA made available alD0st 400000 tons of fa9d to padicipafing schooi systems throughout the Nation The variety (if products ranged acro_s nearly all comshymopity lines

When determining commodities to be purchased under ~he USDA Food Distribution Program specifie consideration is given to food iii surplus food available undeshyprice support programs and food purchased specifically for school food service proshygramgt Although guidance f9~ purchasing foocl for use in schools involves considerashytion of the food pre~_erences of and product acceptability to c_hildren and school systems schools periodically may receive a less acceptable commodity because of the allocation met_hod used and potentia differences in regi(mal State_ and local- prefershyences

During the study year the Puerto Rico school system reported that it h~d experi- ienced di~ssatisfaction with four products It_ reported that bulgur and cranberry sauce had low acceptance in the school system that it would like to substitute part of its allotment of peanut butter for other commodities and tttat it preferred to receive fruits of higher nutritive vatue l

Infrequently donated products were rejected because they- were unsatisfactory These were chiefly gO-ods that presumably were in storage and then transfe_ired to the school system ~rom the Needy FamIly Program which was being phased out that year Included were flour cornmeal rolled oats rice and cheese which were rejected because of infestation and mold

I Agricultural Statistics 1976 US Department of Agriculture table 767 p 565 2 Puerto Rico no longer receives donated -food that it would rather not accept t beshy

ca~se of changes in the Program- subsequent to the study

5

SCHOOL FOOD SUPPLY

The school fqad S11pply in Puerto Rico has been growing rapidly as a result of increasing enrollment and numhcent_r gf schools offering food service Approximately 62 million lunches under the NSLP and 3 iiIillion breakfasts under the- SBP were served in 1972 By 1975 this had -increased to 74 ~illion lunches and 16 miilion ireakfa_sts

Quantity and Value of Food Used

During ~he 1974-75 school year almost 77 million pounds of food with a wh9~esale value of $35 4 milJion were received by the school systmiddot~m (table 2) This included the cost of purchased food and -the estimated value of UpDA-donated commodities

Table 2--Quantity and value of all food used in Puerto Ricos schools September 1974-August 1975

Quantity Value

Food Per Per Per partici shy Per partici shy

Total student pating Total student pating y student ]) student

1000 1000 pounds ~ - Pounds -- dollars - - Dollars --

Total 766916 1220 1442 353655 5627 6651

Dairy products 5881 2 94 111 45321 721 852 Beef 28168 45 53 23710 377 446 Other meats 43874 70 8 3 41524 661 781 middotPoul try and eggs 11824 19 22 8725 139 1 64 Seafood 22152 35 42 16723 266 315 Vegetables 31148_4 496 586 89099 1418 1676 Fruits 115748 184 21 8 53887 857 1013 Juices and riectars 37128 59 70 6137 98 115 Fats and oils 21888 35 41 1406 7 224 265 Bakery products 9604 15 18 5297 84 1 00 Grain and cereal 42419 67 80 14626 233 275

1_Sugar and sweets 24964 40 47 10709 i 70 201 Beverages 12123 i9 23 7704 123 145

)Prepared foods 8584 14 16 9385 149 177 -Nuts condiments 18144 29 34 6741 1 07 1i7

seasonings

1 Based Qn average attendance

6

I I

i I

I

Commercial purveyors furnished 69 2 ~~llion pounds of food more than 90 percent of that received 1 This food cost $305 million about 86 percentmiddot of the value 01 all food received The difference of 4 percentage points between the quantity and value of food received is due primarily to greater proPClrtionatcent commercial purchases o~ veg~tables than other commodities and the relatively low cost per pound of vezeshytables

F6op middotconsunption per student in attendance was valued at $5627 for the year an average of 318 cents for each day that food service was ava-ilable In terms of quanshytity each student averaged 122 pounds per year or 069 pounds daily during the s4~e period Unless otherwise in9-icated information on per capita consumption by students is based on average attendance figures

Based only on students who actually participa~ed il) the breakfast and lunch proshygrams (excluding the value and poundage of food served to teachers and other adults who ate meals prepared from schooL food supplies) food valued at $6651 and weighing nearly 145 pounds per student was used during the year Averages perday were 376 cents and 082 pounds per participating student

Importance of Individual Commodities

There was considerable variation among commqdities in amounts received and in proshyportions that they represent of the total quantity and value of purchased an4 clonated food used This examination of foltd usage (see t~ble 3) concentrates primarily on relative quantities rather thari values because of price fluctuations that have occurred in recent years

Dairy Products

Dry instant milk accounted for 97 percent of the dairy P1oducts used and averaged over 9 pounds oJ dry ~nstant milk per student for t~e year On a reconstituted basis 14 ounc~s o~ dry is equivalent to 1 fluid gllon~ Adjusted to exclude esti~ated us~ge by adults consumption of fluid milk by students averaged 11 half-pints for each USDA schooi breakfast and Type A lunch served Dry instant milk received through- the USDA Food Distribution Program amounted to 3466500 pounds or about 61 percent of the dry ins tant milk used 91ly 1 lOa pounds of fresh fluid milk weremiddot used and this was pur chased from conimercfal suppliers

Fa ts ana Oils

Use of fats and Oils during the school year equaled 35 pounds and $224 per stushydent Solid shortening was the principal product in this category with about 69 pershycent of the group tot_a The relatively small amounts of butter received were shyfederally donated whereas the bulk of fats and oils was obtained from commercial supshypliers

3 Goods not received by the school system fro~ the USDA Food Distribution Program are treated in tflis report as received from local supply sources and cotnmercial purshyveyors a~th~ugh this category also includes products transferred from the Needy Family Program which was being phased out that year

7

Taoie 3-QuantJty and value of fndividual foods IIsed iii Puerto Rico I s schools September 1974-August 195

Food

Total

Dairy products (including fresh milk and ice cream)- Milkdry Cheese (including

processed) Natural

Fats -and 0115 (including mayonnai~e)

Shorter1ig ~olid Oil cooking and 53189-Butter

Grains and cereals 2 Rice J regul~r- w~i te Spaghettimacaroni dry enriched

Corn meal Cereal dry breakfast 1

Regular package size Farina GingerJread mix Oats rolled

Bakery products 4 Saltines soda crackers Cake Bread (including Spanish and miscellaneous)

Whi te but termilk potato

Beef (including steaksGround Canned

)

Othe-r meats Lunch Ileats

Frankfurters

Total

1000 pounds

766916

58812 57191

1607 1592

21888 15095

4906 1793

424i9 27078

9339 i81 7 1209

932 1054 1023

757

9604 7158 1654

72 2 703

28168 I 7238 10928

43874 40257 28907

Value

per Total student

1

1000 dollars Dollars

353655 5627

45321 721 43682 695

1634 26 1611 26

14067 224 9055 144 3505 56 1454 23

14626 233 8551 1 36

294i 47 331 05

1648 26 1147 18

431 07 401 ()6 254 04

5297 84 455 7 73

326 05

378 06 372 06

23710 377 12952 206 10755 171

41524 661 37776 601 28633 456

Quantity Percentage

of all food

Percent

1000

128 124

5

5

40 26 10

4

41 24

8

1

5

3

1

1

1

15 13

1

1

1

67 37 30

11 7 107 81

Per student

J

Pounds

1220

94 91

3

3

35 24

8

3

67 43

15 3 2 1 2 2 1

15 11

3

1

1

45 27 17

70 64 46

See footnotes at end of table Continued-shy

8

Table 3-Quantity and value of individual foods used in Puerto Rico I s schools September 1974-August 1975--Contlnued

Quantity Value

Food Per

Total student Total 1

1000 1000 pounds Pounds dollars

Luncheon meat 10728 17 8528 Vienna sausage 622 1 61 5

Pork (including chops roas ts and hams) 361 7 6 3748

Canned 3559 6 3684

Poultry and eggs lt824 19 8725 Poultry

Canned 7988 2955

13 5

5068 2050

Chicken parts 2518 4 1074 Turkey (including readyshy

to-cook) Roll

2515 2498

4

4 1944 1940

Eggs dry Whole

3836 3324

6

5 3657 2984

Mix 512 1 673

Seafood_ 22152 35 16723 Cod 14060 22 9664 Tuna 6153 10 6152 Sardines 1939 3 90

Tomato sauce 1124 2 563 Other 815 1 344

Sugars and sweets (including sirup and candy) 24964 40 10709

Sugai white granulated 18567 30 7076 Jam 5890 9 3471

Pineapple and papaya 3445 5 2399 Mango 1832 3 818 Guava 577 t 227

Marmalade 497 1 151

Vegetables (including celery garlic and lettuce) 311484 496 89099

Peas green 11390 18 4402 Beans green-snap 40279 64 15308 Beans and peas other 92408 147 28618

Garbanzo 42905 68 16848 Red black brown 20787 33 5431

Per student

1

Dollars

136 10

60

59

1 39 81 33 17

31

31

58

47

11

266 154

98

14

09

05

1 70 113

55

38

13 04 02

1418 70

244 455 268

86

Percentage of all

food

Percent

24 2

11 10

25 14

6

3

5

5 10

8

2

47 27 17

3

2

1

30 20 10

7

2

1

~

252 12 43 81 48 15

Continued--See footnotes at end of table

9

Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

10

Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

products may be seIVed a starchy vegetable or fruit such as tanniers plantafns and sweet potatoes or an elri~hed whole grain cereal product such as macaroni and noodles Only the Type A lunch was served a la carte foods were not available for purchasemiddot Planned daily menus geared to a 20-day cycle were followed Men~s used were flexible however) and could be adjusted to accommodate changes in availability of federally donatedmiddot food and to take adyantage of and provide for a holiday luncheon or special celebration

D~ring the school year ~he lunches served to students daily ranged from 363548 to 439540 and averaged 417400 Based on average attendalice during this period the rate of student participation ranged between a low of 578 percent and a high of 699 percent the average was 664 percent

Sc~ool lunches also were available to the teaching st~ff and other adults who worked for the school system An average of 17287 nonstudents availed themselves of this service each day Consequently about 4 percent of the lunches served from the school middotfood supp--y were co~sumed by persons other than students

Al~ students except those~ho we~e members of nonresident families living in Puerto Rico--primarl1y children of US military families stationed there--received lunches at no charge An average ofmiddot 1150 children of nonresident fam~lies particishypated in the lunch program at a price of 55 cents per meal Te~chermiddots did not pay for lunches however this cost was und~rwritten by the Commonwealth of Puerto Rico

The cost of food for a Type A lunch includirig the value of USDA-donated commodishyties averaged 44 cents during the sch~ol year

Special Milk Program

Puerto Ricos school system Was nOt authorized by law to participate in the USDA Special Milk Program until 1975 The school system is now authorized to use reconstIshytuted dry milk to meet requi reIlents under the Special Milk Jrogram Schools also are authorized to serve reconstituted dry milk to meet the fluid milk requirements under the SBP and the NSLP

USDA Food Distribution Program

Each year millions of dollars worth of food is donated to schools throughout the Nation and in participating territories These donated foods are made availabte by the Dep~rtment of Agriculture under school iunch price support and surplus removal legislation They are distributed to schools by a cooperative food handling System ~nvolving Federal State and local agencies During fiscal year 1975 about 764 million pounds of foCd costing $418 million were distributed to ~chool lunch programs

Quantity and Value of Federally Donated Food

DUring the 1974-75 school year Puerto Ricos school system received 7518100 pounds of food of all types under the USDA Food Distribution Program (table 1) This represented about 10 percent of the total quantity of food used and was valued at over $middot48 million Dairy products accounted for more than 46 percent of the total quantity of donated ~ood received meats about 24 percent poultry products 11 pershycent and vegetables 8 percent

Dairy products sent to all U S school systeJl1s were about 21 percent of the federshy

ally donated foods far less than that received by Puerto Rico middots school system As

3

Table l--Quantity and value of donated food used in Puerto Ricos school September 1974~August 1975

Quantity Value

Food Per Percentage Per Per~~en tage

Total stlident of all Total student of all il food II food

1000 1000 pounds Pounds Percent dollars Dollars Percent

Total 75181 120 1000 48351 769 1000

Dairy products 34665 55 461 2429middot9 387 502 Milk nonfat dry 34665 55 461 24290 387 502

Fats and oils 1793 3 2 4 1454 23 30 B11tfer 1793 3 24 145 23 30

Meat 17844 28 237 14055 224 291 Beef ground 16345 26 21 7 12729 203 263 Eork middotcanned 1499 2 20 1326 21 27

Poultry 7971 13 106 5064 81 105 Chicken canned 2955 5 39 2050 33 42 Chicken parts 251 8 4 34 1074 17 22 Turkey roll 2498 4 33 1940 31 40

Vegetables 617 2 10 82 1253 20 26 Beans green 4047 6 54 689 11 14 Sweet potatoes canned 2125 3 28 564 09 12

Fruits 4236 7 56 1008 16 21 Cranberry sauce 2266 4 30 479 08 10 Peache-s canned 1970 3 26 529 08 11

Nuts 2500 4 33 1227 20 25 Peanut butter 1832 3 24 81 6 13 17 Peanut granules 668 1 9 411 07 9

lJ Based on average a~tendalce 1

bull earlier indicated Puerto Rico was authorized to serve reconsti~lIted dry milk in place of fresh fluid mi-lk a1d it met part of its fluid mi-lk requirement~ under both middotthe SBP arid the NSLP -with dry milk received unltler the USDA Food Distribution rrog-~am

If the quantity of donated food received by Puerto Rico were adjusted to reflect average rece~pts 01 dairy products the comrnodites received under the program by

4

Puerto Rico would have approximated the same proportionate dlstribution pattern as that for all US school systems except for peanuts fruits and cereals and grains 1

A number of products used in relatively large quantities in the schools in Puerto Rico ate nltlt federally donated commodities These foods--tanniers (tania) and garbanshyzo peas and papaya and plan~ain--accounted for 17 and 30 percent respectively of the total quantity of vegetables and fruits used

Food Processing Contracts

Schools may use the USDA-donated food products directly as basic ingredients in the preparation of meals or they may have pr9ducts processed under contract by comshymercial food firms into more convenient and usable forms A food processing COntract is a written agreement between a tood processor and a school system to use or al1ocate federally gonated food as ingiedi~nts in processing a different end-use product Having peanut butter piocessed into cookies and flour and shortening into c~ackers are examples These contr~cts hetp schools to economize on food costs Those persons served meals also may penefit from a greater variety of food

Puerto Rico reported using food processing coritracts for three USDA-donated com~ mod~ties ground beef was combined with textured vegetable protein (TVP) dry beans were processed and canried with salt and water added and flour was u~ed as an ingredishyent in crackers

Some Problems with Donated Foods

The USDA Food Distribut-ion Program is substantial middotand diverse During fical year 1975 USDA made available alD0st 400000 tons of fa9d to padicipafing schooi systems throughout the Nation The variety (if products ranged acro_s nearly all comshymopity lines

When determining commodities to be purchased under ~he USDA Food Distribution Program specifie consideration is given to food iii surplus food available undeshyprice support programs and food purchased specifically for school food service proshygramgt Although guidance f9~ purchasing foocl for use in schools involves considerashytion of the food pre~_erences of and product acceptability to c_hildren and school systems schools periodically may receive a less acceptable commodity because of the allocation met_hod used and potentia differences in regi(mal State_ and local- prefershyences

During the study year the Puerto Rico school system reported that it h~d experi- ienced di~ssatisfaction with four products It_ reported that bulgur and cranberry sauce had low acceptance in the school system that it would like to substitute part of its allotment of peanut butter for other commodities and tttat it preferred to receive fruits of higher nutritive vatue l

Infrequently donated products were rejected because they- were unsatisfactory These were chiefly gO-ods that presumably were in storage and then transfe_ired to the school system ~rom the Needy FamIly Program which was being phased out that year Included were flour cornmeal rolled oats rice and cheese which were rejected because of infestation and mold

I Agricultural Statistics 1976 US Department of Agriculture table 767 p 565 2 Puerto Rico no longer receives donated -food that it would rather not accept t beshy

ca~se of changes in the Program- subsequent to the study

5

SCHOOL FOOD SUPPLY

The school fqad S11pply in Puerto Rico has been growing rapidly as a result of increasing enrollment and numhcent_r gf schools offering food service Approximately 62 million lunches under the NSLP and 3 iiIillion breakfasts under the- SBP were served in 1972 By 1975 this had -increased to 74 ~illion lunches and 16 miilion ireakfa_sts

Quantity and Value of Food Used

During ~he 1974-75 school year almost 77 million pounds of food with a wh9~esale value of $35 4 milJion were received by the school systmiddot~m (table 2) This included the cost of purchased food and -the estimated value of UpDA-donated commodities

Table 2--Quantity and value of all food used in Puerto Ricos schools September 1974-August 1975

Quantity Value

Food Per Per Per partici shy Per partici shy

Total student pating Total student pating y student ]) student

1000 1000 pounds ~ - Pounds -- dollars - - Dollars --

Total 766916 1220 1442 353655 5627 6651

Dairy products 5881 2 94 111 45321 721 852 Beef 28168 45 53 23710 377 446 Other meats 43874 70 8 3 41524 661 781 middotPoul try and eggs 11824 19 22 8725 139 1 64 Seafood 22152 35 42 16723 266 315 Vegetables 31148_4 496 586 89099 1418 1676 Fruits 115748 184 21 8 53887 857 1013 Juices and riectars 37128 59 70 6137 98 115 Fats and oils 21888 35 41 1406 7 224 265 Bakery products 9604 15 18 5297 84 1 00 Grain and cereal 42419 67 80 14626 233 275

1_Sugar and sweets 24964 40 47 10709 i 70 201 Beverages 12123 i9 23 7704 123 145

)Prepared foods 8584 14 16 9385 149 177 -Nuts condiments 18144 29 34 6741 1 07 1i7

seasonings

1 Based Qn average attendance

6

I I

i I

I

Commercial purveyors furnished 69 2 ~~llion pounds of food more than 90 percent of that received 1 This food cost $305 million about 86 percentmiddot of the value 01 all food received The difference of 4 percentage points between the quantity and value of food received is due primarily to greater proPClrtionatcent commercial purchases o~ veg~tables than other commodities and the relatively low cost per pound of vezeshytables

F6op middotconsunption per student in attendance was valued at $5627 for the year an average of 318 cents for each day that food service was ava-ilable In terms of quanshytity each student averaged 122 pounds per year or 069 pounds daily during the s4~e period Unless otherwise in9-icated information on per capita consumption by students is based on average attendance figures

Based only on students who actually participa~ed il) the breakfast and lunch proshygrams (excluding the value and poundage of food served to teachers and other adults who ate meals prepared from schooL food supplies) food valued at $6651 and weighing nearly 145 pounds per student was used during the year Averages perday were 376 cents and 082 pounds per participating student

Importance of Individual Commodities

There was considerable variation among commqdities in amounts received and in proshyportions that they represent of the total quantity and value of purchased an4 clonated food used This examination of foltd usage (see t~ble 3) concentrates primarily on relative quantities rather thari values because of price fluctuations that have occurred in recent years

Dairy Products

Dry instant milk accounted for 97 percent of the dairy P1oducts used and averaged over 9 pounds oJ dry ~nstant milk per student for t~e year On a reconstituted basis 14 ounc~s o~ dry is equivalent to 1 fluid gllon~ Adjusted to exclude esti~ated us~ge by adults consumption of fluid milk by students averaged 11 half-pints for each USDA schooi breakfast and Type A lunch served Dry instant milk received through- the USDA Food Distribution Program amounted to 3466500 pounds or about 61 percent of the dry ins tant milk used 91ly 1 lOa pounds of fresh fluid milk weremiddot used and this was pur chased from conimercfal suppliers

Fa ts ana Oils

Use of fats and Oils during the school year equaled 35 pounds and $224 per stushydent Solid shortening was the principal product in this category with about 69 pershycent of the group tot_a The relatively small amounts of butter received were shyfederally donated whereas the bulk of fats and oils was obtained from commercial supshypliers

3 Goods not received by the school system fro~ the USDA Food Distribution Program are treated in tflis report as received from local supply sources and cotnmercial purshyveyors a~th~ugh this category also includes products transferred from the Needy Family Program which was being phased out that year

7

Taoie 3-QuantJty and value of fndividual foods IIsed iii Puerto Rico I s schools September 1974-August 195

Food

Total

Dairy products (including fresh milk and ice cream)- Milkdry Cheese (including

processed) Natural

Fats -and 0115 (including mayonnai~e)

Shorter1ig ~olid Oil cooking and 53189-Butter

Grains and cereals 2 Rice J regul~r- w~i te Spaghettimacaroni dry enriched

Corn meal Cereal dry breakfast 1

Regular package size Farina GingerJread mix Oats rolled

Bakery products 4 Saltines soda crackers Cake Bread (including Spanish and miscellaneous)

Whi te but termilk potato

Beef (including steaksGround Canned

)

Othe-r meats Lunch Ileats

Frankfurters

Total

1000 pounds

766916

58812 57191

1607 1592

21888 15095

4906 1793

424i9 27078

9339 i81 7 1209

932 1054 1023

757

9604 7158 1654

72 2 703

28168 I 7238 10928

43874 40257 28907

Value

per Total student

1

1000 dollars Dollars

353655 5627

45321 721 43682 695

1634 26 1611 26

14067 224 9055 144 3505 56 1454 23

14626 233 8551 1 36

294i 47 331 05

1648 26 1147 18

431 07 401 ()6 254 04

5297 84 455 7 73

326 05

378 06 372 06

23710 377 12952 206 10755 171

41524 661 37776 601 28633 456

Quantity Percentage

of all food

Percent

1000

128 124

5

5

40 26 10

4

41 24

8

1

5

3

1

1

1

15 13

1

1

1

67 37 30

11 7 107 81

Per student

J

Pounds

1220

94 91

3

3

35 24

8

3

67 43

15 3 2 1 2 2 1

15 11

3

1

1

45 27 17

70 64 46

See footnotes at end of table Continued-shy

8

Table 3-Quantity and value of individual foods used in Puerto Rico I s schools September 1974-August 1975--Contlnued

Quantity Value

Food Per

Total student Total 1

1000 1000 pounds Pounds dollars

Luncheon meat 10728 17 8528 Vienna sausage 622 1 61 5

Pork (including chops roas ts and hams) 361 7 6 3748

Canned 3559 6 3684

Poultry and eggs lt824 19 8725 Poultry

Canned 7988 2955

13 5

5068 2050

Chicken parts 2518 4 1074 Turkey (including readyshy

to-cook) Roll

2515 2498

4

4 1944 1940

Eggs dry Whole

3836 3324

6

5 3657 2984

Mix 512 1 673

Seafood_ 22152 35 16723 Cod 14060 22 9664 Tuna 6153 10 6152 Sardines 1939 3 90

Tomato sauce 1124 2 563 Other 815 1 344

Sugars and sweets (including sirup and candy) 24964 40 10709

Sugai white granulated 18567 30 7076 Jam 5890 9 3471

Pineapple and papaya 3445 5 2399 Mango 1832 3 818 Guava 577 t 227

Marmalade 497 1 151

Vegetables (including celery garlic and lettuce) 311484 496 89099

Peas green 11390 18 4402 Beans green-snap 40279 64 15308 Beans and peas other 92408 147 28618

Garbanzo 42905 68 16848 Red black brown 20787 33 5431

Per student

1

Dollars

136 10

60

59

1 39 81 33 17

31

31

58

47

11

266 154

98

14

09

05

1 70 113

55

38

13 04 02

1418 70

244 455 268

86

Percentage of all

food

Percent

24 2

11 10

25 14

6

3

5

5 10

8

2

47 27 17

3

2

1

30 20 10

7

2

1

~

252 12 43 81 48 15

Continued--See footnotes at end of table

9

Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

10

Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

Table l--Quantity and value of donated food used in Puerto Ricos school September 1974~August 1975

Quantity Value

Food Per Percentage Per Per~~en tage

Total stlident of all Total student of all il food II food

1000 1000 pounds Pounds Percent dollars Dollars Percent

Total 75181 120 1000 48351 769 1000

Dairy products 34665 55 461 2429middot9 387 502 Milk nonfat dry 34665 55 461 24290 387 502

Fats and oils 1793 3 2 4 1454 23 30 B11tfer 1793 3 24 145 23 30

Meat 17844 28 237 14055 224 291 Beef ground 16345 26 21 7 12729 203 263 Eork middotcanned 1499 2 20 1326 21 27

Poultry 7971 13 106 5064 81 105 Chicken canned 2955 5 39 2050 33 42 Chicken parts 251 8 4 34 1074 17 22 Turkey roll 2498 4 33 1940 31 40

Vegetables 617 2 10 82 1253 20 26 Beans green 4047 6 54 689 11 14 Sweet potatoes canned 2125 3 28 564 09 12

Fruits 4236 7 56 1008 16 21 Cranberry sauce 2266 4 30 479 08 10 Peache-s canned 1970 3 26 529 08 11

Nuts 2500 4 33 1227 20 25 Peanut butter 1832 3 24 81 6 13 17 Peanut granules 668 1 9 411 07 9

lJ Based on average a~tendalce 1

bull earlier indicated Puerto Rico was authorized to serve reconsti~lIted dry milk in place of fresh fluid mi-lk a1d it met part of its fluid mi-lk requirement~ under both middotthe SBP arid the NSLP -with dry milk received unltler the USDA Food Distribution rrog-~am

If the quantity of donated food received by Puerto Rico were adjusted to reflect average rece~pts 01 dairy products the comrnodites received under the program by

4

Puerto Rico would have approximated the same proportionate dlstribution pattern as that for all US school systems except for peanuts fruits and cereals and grains 1

A number of products used in relatively large quantities in the schools in Puerto Rico ate nltlt federally donated commodities These foods--tanniers (tania) and garbanshyzo peas and papaya and plan~ain--accounted for 17 and 30 percent respectively of the total quantity of vegetables and fruits used

Food Processing Contracts

Schools may use the USDA-donated food products directly as basic ingredients in the preparation of meals or they may have pr9ducts processed under contract by comshymercial food firms into more convenient and usable forms A food processing COntract is a written agreement between a tood processor and a school system to use or al1ocate federally gonated food as ingiedi~nts in processing a different end-use product Having peanut butter piocessed into cookies and flour and shortening into c~ackers are examples These contr~cts hetp schools to economize on food costs Those persons served meals also may penefit from a greater variety of food

Puerto Rico reported using food processing coritracts for three USDA-donated com~ mod~ties ground beef was combined with textured vegetable protein (TVP) dry beans were processed and canried with salt and water added and flour was u~ed as an ingredishyent in crackers

Some Problems with Donated Foods

The USDA Food Distribut-ion Program is substantial middotand diverse During fical year 1975 USDA made available alD0st 400000 tons of fa9d to padicipafing schooi systems throughout the Nation The variety (if products ranged acro_s nearly all comshymopity lines

When determining commodities to be purchased under ~he USDA Food Distribution Program specifie consideration is given to food iii surplus food available undeshyprice support programs and food purchased specifically for school food service proshygramgt Although guidance f9~ purchasing foocl for use in schools involves considerashytion of the food pre~_erences of and product acceptability to c_hildren and school systems schools periodically may receive a less acceptable commodity because of the allocation met_hod used and potentia differences in regi(mal State_ and local- prefershyences

During the study year the Puerto Rico school system reported that it h~d experi- ienced di~ssatisfaction with four products It_ reported that bulgur and cranberry sauce had low acceptance in the school system that it would like to substitute part of its allotment of peanut butter for other commodities and tttat it preferred to receive fruits of higher nutritive vatue l

Infrequently donated products were rejected because they- were unsatisfactory These were chiefly gO-ods that presumably were in storage and then transfe_ired to the school system ~rom the Needy FamIly Program which was being phased out that year Included were flour cornmeal rolled oats rice and cheese which were rejected because of infestation and mold

I Agricultural Statistics 1976 US Department of Agriculture table 767 p 565 2 Puerto Rico no longer receives donated -food that it would rather not accept t beshy

ca~se of changes in the Program- subsequent to the study

5

SCHOOL FOOD SUPPLY

The school fqad S11pply in Puerto Rico has been growing rapidly as a result of increasing enrollment and numhcent_r gf schools offering food service Approximately 62 million lunches under the NSLP and 3 iiIillion breakfasts under the- SBP were served in 1972 By 1975 this had -increased to 74 ~illion lunches and 16 miilion ireakfa_sts

Quantity and Value of Food Used

During ~he 1974-75 school year almost 77 million pounds of food with a wh9~esale value of $35 4 milJion were received by the school systmiddot~m (table 2) This included the cost of purchased food and -the estimated value of UpDA-donated commodities

Table 2--Quantity and value of all food used in Puerto Ricos schools September 1974-August 1975

Quantity Value

Food Per Per Per partici shy Per partici shy

Total student pating Total student pating y student ]) student

1000 1000 pounds ~ - Pounds -- dollars - - Dollars --

Total 766916 1220 1442 353655 5627 6651

Dairy products 5881 2 94 111 45321 721 852 Beef 28168 45 53 23710 377 446 Other meats 43874 70 8 3 41524 661 781 middotPoul try and eggs 11824 19 22 8725 139 1 64 Seafood 22152 35 42 16723 266 315 Vegetables 31148_4 496 586 89099 1418 1676 Fruits 115748 184 21 8 53887 857 1013 Juices and riectars 37128 59 70 6137 98 115 Fats and oils 21888 35 41 1406 7 224 265 Bakery products 9604 15 18 5297 84 1 00 Grain and cereal 42419 67 80 14626 233 275

1_Sugar and sweets 24964 40 47 10709 i 70 201 Beverages 12123 i9 23 7704 123 145

)Prepared foods 8584 14 16 9385 149 177 -Nuts condiments 18144 29 34 6741 1 07 1i7

seasonings

1 Based Qn average attendance

6

I I

i I

I

Commercial purveyors furnished 69 2 ~~llion pounds of food more than 90 percent of that received 1 This food cost $305 million about 86 percentmiddot of the value 01 all food received The difference of 4 percentage points between the quantity and value of food received is due primarily to greater proPClrtionatcent commercial purchases o~ veg~tables than other commodities and the relatively low cost per pound of vezeshytables

F6op middotconsunption per student in attendance was valued at $5627 for the year an average of 318 cents for each day that food service was ava-ilable In terms of quanshytity each student averaged 122 pounds per year or 069 pounds daily during the s4~e period Unless otherwise in9-icated information on per capita consumption by students is based on average attendance figures

Based only on students who actually participa~ed il) the breakfast and lunch proshygrams (excluding the value and poundage of food served to teachers and other adults who ate meals prepared from schooL food supplies) food valued at $6651 and weighing nearly 145 pounds per student was used during the year Averages perday were 376 cents and 082 pounds per participating student

Importance of Individual Commodities

There was considerable variation among commqdities in amounts received and in proshyportions that they represent of the total quantity and value of purchased an4 clonated food used This examination of foltd usage (see t~ble 3) concentrates primarily on relative quantities rather thari values because of price fluctuations that have occurred in recent years

Dairy Products

Dry instant milk accounted for 97 percent of the dairy P1oducts used and averaged over 9 pounds oJ dry ~nstant milk per student for t~e year On a reconstituted basis 14 ounc~s o~ dry is equivalent to 1 fluid gllon~ Adjusted to exclude esti~ated us~ge by adults consumption of fluid milk by students averaged 11 half-pints for each USDA schooi breakfast and Type A lunch served Dry instant milk received through- the USDA Food Distribution Program amounted to 3466500 pounds or about 61 percent of the dry ins tant milk used 91ly 1 lOa pounds of fresh fluid milk weremiddot used and this was pur chased from conimercfal suppliers

Fa ts ana Oils

Use of fats and Oils during the school year equaled 35 pounds and $224 per stushydent Solid shortening was the principal product in this category with about 69 pershycent of the group tot_a The relatively small amounts of butter received were shyfederally donated whereas the bulk of fats and oils was obtained from commercial supshypliers

3 Goods not received by the school system fro~ the USDA Food Distribution Program are treated in tflis report as received from local supply sources and cotnmercial purshyveyors a~th~ugh this category also includes products transferred from the Needy Family Program which was being phased out that year

7

Taoie 3-QuantJty and value of fndividual foods IIsed iii Puerto Rico I s schools September 1974-August 195

Food

Total

Dairy products (including fresh milk and ice cream)- Milkdry Cheese (including

processed) Natural

Fats -and 0115 (including mayonnai~e)

Shorter1ig ~olid Oil cooking and 53189-Butter

Grains and cereals 2 Rice J regul~r- w~i te Spaghettimacaroni dry enriched

Corn meal Cereal dry breakfast 1

Regular package size Farina GingerJread mix Oats rolled

Bakery products 4 Saltines soda crackers Cake Bread (including Spanish and miscellaneous)

Whi te but termilk potato

Beef (including steaksGround Canned

)

Othe-r meats Lunch Ileats

Frankfurters

Total

1000 pounds

766916

58812 57191

1607 1592

21888 15095

4906 1793

424i9 27078

9339 i81 7 1209

932 1054 1023

757

9604 7158 1654

72 2 703

28168 I 7238 10928

43874 40257 28907

Value

per Total student

1

1000 dollars Dollars

353655 5627

45321 721 43682 695

1634 26 1611 26

14067 224 9055 144 3505 56 1454 23

14626 233 8551 1 36

294i 47 331 05

1648 26 1147 18

431 07 401 ()6 254 04

5297 84 455 7 73

326 05

378 06 372 06

23710 377 12952 206 10755 171

41524 661 37776 601 28633 456

Quantity Percentage

of all food

Percent

1000

128 124

5

5

40 26 10

4

41 24

8

1

5

3

1

1

1

15 13

1

1

1

67 37 30

11 7 107 81

Per student

J

Pounds

1220

94 91

3

3

35 24

8

3

67 43

15 3 2 1 2 2 1

15 11

3

1

1

45 27 17

70 64 46

See footnotes at end of table Continued-shy

8

Table 3-Quantity and value of individual foods used in Puerto Rico I s schools September 1974-August 1975--Contlnued

Quantity Value

Food Per

Total student Total 1

1000 1000 pounds Pounds dollars

Luncheon meat 10728 17 8528 Vienna sausage 622 1 61 5

Pork (including chops roas ts and hams) 361 7 6 3748

Canned 3559 6 3684

Poultry and eggs lt824 19 8725 Poultry

Canned 7988 2955

13 5

5068 2050

Chicken parts 2518 4 1074 Turkey (including readyshy

to-cook) Roll

2515 2498

4

4 1944 1940

Eggs dry Whole

3836 3324

6

5 3657 2984

Mix 512 1 673

Seafood_ 22152 35 16723 Cod 14060 22 9664 Tuna 6153 10 6152 Sardines 1939 3 90

Tomato sauce 1124 2 563 Other 815 1 344

Sugars and sweets (including sirup and candy) 24964 40 10709

Sugai white granulated 18567 30 7076 Jam 5890 9 3471

Pineapple and papaya 3445 5 2399 Mango 1832 3 818 Guava 577 t 227

Marmalade 497 1 151

Vegetables (including celery garlic and lettuce) 311484 496 89099

Peas green 11390 18 4402 Beans green-snap 40279 64 15308 Beans and peas other 92408 147 28618

Garbanzo 42905 68 16848 Red black brown 20787 33 5431

Per student

1

Dollars

136 10

60

59

1 39 81 33 17

31

31

58

47

11

266 154

98

14

09

05

1 70 113

55

38

13 04 02

1418 70

244 455 268

86

Percentage of all

food

Percent

24 2

11 10

25 14

6

3

5

5 10

8

2

47 27 17

3

2

1

30 20 10

7

2

1

~

252 12 43 81 48 15

Continued--See footnotes at end of table

9

Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

10

Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

Puerto Rico would have approximated the same proportionate dlstribution pattern as that for all US school systems except for peanuts fruits and cereals and grains 1

A number of products used in relatively large quantities in the schools in Puerto Rico ate nltlt federally donated commodities These foods--tanniers (tania) and garbanshyzo peas and papaya and plan~ain--accounted for 17 and 30 percent respectively of the total quantity of vegetables and fruits used

Food Processing Contracts

Schools may use the USDA-donated food products directly as basic ingredients in the preparation of meals or they may have pr9ducts processed under contract by comshymercial food firms into more convenient and usable forms A food processing COntract is a written agreement between a tood processor and a school system to use or al1ocate federally gonated food as ingiedi~nts in processing a different end-use product Having peanut butter piocessed into cookies and flour and shortening into c~ackers are examples These contr~cts hetp schools to economize on food costs Those persons served meals also may penefit from a greater variety of food

Puerto Rico reported using food processing coritracts for three USDA-donated com~ mod~ties ground beef was combined with textured vegetable protein (TVP) dry beans were processed and canried with salt and water added and flour was u~ed as an ingredishyent in crackers

Some Problems with Donated Foods

The USDA Food Distribut-ion Program is substantial middotand diverse During fical year 1975 USDA made available alD0st 400000 tons of fa9d to padicipafing schooi systems throughout the Nation The variety (if products ranged acro_s nearly all comshymopity lines

When determining commodities to be purchased under ~he USDA Food Distribution Program specifie consideration is given to food iii surplus food available undeshyprice support programs and food purchased specifically for school food service proshygramgt Although guidance f9~ purchasing foocl for use in schools involves considerashytion of the food pre~_erences of and product acceptability to c_hildren and school systems schools periodically may receive a less acceptable commodity because of the allocation met_hod used and potentia differences in regi(mal State_ and local- prefershyences

During the study year the Puerto Rico school system reported that it h~d experi- ienced di~ssatisfaction with four products It_ reported that bulgur and cranberry sauce had low acceptance in the school system that it would like to substitute part of its allotment of peanut butter for other commodities and tttat it preferred to receive fruits of higher nutritive vatue l

Infrequently donated products were rejected because they- were unsatisfactory These were chiefly gO-ods that presumably were in storage and then transfe_ired to the school system ~rom the Needy FamIly Program which was being phased out that year Included were flour cornmeal rolled oats rice and cheese which were rejected because of infestation and mold

I Agricultural Statistics 1976 US Department of Agriculture table 767 p 565 2 Puerto Rico no longer receives donated -food that it would rather not accept t beshy

ca~se of changes in the Program- subsequent to the study

5

SCHOOL FOOD SUPPLY

The school fqad S11pply in Puerto Rico has been growing rapidly as a result of increasing enrollment and numhcent_r gf schools offering food service Approximately 62 million lunches under the NSLP and 3 iiIillion breakfasts under the- SBP were served in 1972 By 1975 this had -increased to 74 ~illion lunches and 16 miilion ireakfa_sts

Quantity and Value of Food Used

During ~he 1974-75 school year almost 77 million pounds of food with a wh9~esale value of $35 4 milJion were received by the school systmiddot~m (table 2) This included the cost of purchased food and -the estimated value of UpDA-donated commodities

Table 2--Quantity and value of all food used in Puerto Ricos schools September 1974-August 1975

Quantity Value

Food Per Per Per partici shy Per partici shy

Total student pating Total student pating y student ]) student

1000 1000 pounds ~ - Pounds -- dollars - - Dollars --

Total 766916 1220 1442 353655 5627 6651

Dairy products 5881 2 94 111 45321 721 852 Beef 28168 45 53 23710 377 446 Other meats 43874 70 8 3 41524 661 781 middotPoul try and eggs 11824 19 22 8725 139 1 64 Seafood 22152 35 42 16723 266 315 Vegetables 31148_4 496 586 89099 1418 1676 Fruits 115748 184 21 8 53887 857 1013 Juices and riectars 37128 59 70 6137 98 115 Fats and oils 21888 35 41 1406 7 224 265 Bakery products 9604 15 18 5297 84 1 00 Grain and cereal 42419 67 80 14626 233 275

1_Sugar and sweets 24964 40 47 10709 i 70 201 Beverages 12123 i9 23 7704 123 145

)Prepared foods 8584 14 16 9385 149 177 -Nuts condiments 18144 29 34 6741 1 07 1i7

seasonings

1 Based Qn average attendance

6

I I

i I

I

Commercial purveyors furnished 69 2 ~~llion pounds of food more than 90 percent of that received 1 This food cost $305 million about 86 percentmiddot of the value 01 all food received The difference of 4 percentage points between the quantity and value of food received is due primarily to greater proPClrtionatcent commercial purchases o~ veg~tables than other commodities and the relatively low cost per pound of vezeshytables

F6op middotconsunption per student in attendance was valued at $5627 for the year an average of 318 cents for each day that food service was ava-ilable In terms of quanshytity each student averaged 122 pounds per year or 069 pounds daily during the s4~e period Unless otherwise in9-icated information on per capita consumption by students is based on average attendance figures

Based only on students who actually participa~ed il) the breakfast and lunch proshygrams (excluding the value and poundage of food served to teachers and other adults who ate meals prepared from schooL food supplies) food valued at $6651 and weighing nearly 145 pounds per student was used during the year Averages perday were 376 cents and 082 pounds per participating student

Importance of Individual Commodities

There was considerable variation among commqdities in amounts received and in proshyportions that they represent of the total quantity and value of purchased an4 clonated food used This examination of foltd usage (see t~ble 3) concentrates primarily on relative quantities rather thari values because of price fluctuations that have occurred in recent years

Dairy Products

Dry instant milk accounted for 97 percent of the dairy P1oducts used and averaged over 9 pounds oJ dry ~nstant milk per student for t~e year On a reconstituted basis 14 ounc~s o~ dry is equivalent to 1 fluid gllon~ Adjusted to exclude esti~ated us~ge by adults consumption of fluid milk by students averaged 11 half-pints for each USDA schooi breakfast and Type A lunch served Dry instant milk received through- the USDA Food Distribution Program amounted to 3466500 pounds or about 61 percent of the dry ins tant milk used 91ly 1 lOa pounds of fresh fluid milk weremiddot used and this was pur chased from conimercfal suppliers

Fa ts ana Oils

Use of fats and Oils during the school year equaled 35 pounds and $224 per stushydent Solid shortening was the principal product in this category with about 69 pershycent of the group tot_a The relatively small amounts of butter received were shyfederally donated whereas the bulk of fats and oils was obtained from commercial supshypliers

3 Goods not received by the school system fro~ the USDA Food Distribution Program are treated in tflis report as received from local supply sources and cotnmercial purshyveyors a~th~ugh this category also includes products transferred from the Needy Family Program which was being phased out that year

7

Taoie 3-QuantJty and value of fndividual foods IIsed iii Puerto Rico I s schools September 1974-August 195

Food

Total

Dairy products (including fresh milk and ice cream)- Milkdry Cheese (including

processed) Natural

Fats -and 0115 (including mayonnai~e)

Shorter1ig ~olid Oil cooking and 53189-Butter

Grains and cereals 2 Rice J regul~r- w~i te Spaghettimacaroni dry enriched

Corn meal Cereal dry breakfast 1

Regular package size Farina GingerJread mix Oats rolled

Bakery products 4 Saltines soda crackers Cake Bread (including Spanish and miscellaneous)

Whi te but termilk potato

Beef (including steaksGround Canned

)

Othe-r meats Lunch Ileats

Frankfurters

Total

1000 pounds

766916

58812 57191

1607 1592

21888 15095

4906 1793

424i9 27078

9339 i81 7 1209

932 1054 1023

757

9604 7158 1654

72 2 703

28168 I 7238 10928

43874 40257 28907

Value

per Total student

1

1000 dollars Dollars

353655 5627

45321 721 43682 695

1634 26 1611 26

14067 224 9055 144 3505 56 1454 23

14626 233 8551 1 36

294i 47 331 05

1648 26 1147 18

431 07 401 ()6 254 04

5297 84 455 7 73

326 05

378 06 372 06

23710 377 12952 206 10755 171

41524 661 37776 601 28633 456

Quantity Percentage

of all food

Percent

1000

128 124

5

5

40 26 10

4

41 24

8

1

5

3

1

1

1

15 13

1

1

1

67 37 30

11 7 107 81

Per student

J

Pounds

1220

94 91

3

3

35 24

8

3

67 43

15 3 2 1 2 2 1

15 11

3

1

1

45 27 17

70 64 46

See footnotes at end of table Continued-shy

8

Table 3-Quantity and value of individual foods used in Puerto Rico I s schools September 1974-August 1975--Contlnued

Quantity Value

Food Per

Total student Total 1

1000 1000 pounds Pounds dollars

Luncheon meat 10728 17 8528 Vienna sausage 622 1 61 5

Pork (including chops roas ts and hams) 361 7 6 3748

Canned 3559 6 3684

Poultry and eggs lt824 19 8725 Poultry

Canned 7988 2955

13 5

5068 2050

Chicken parts 2518 4 1074 Turkey (including readyshy

to-cook) Roll

2515 2498

4

4 1944 1940

Eggs dry Whole

3836 3324

6

5 3657 2984

Mix 512 1 673

Seafood_ 22152 35 16723 Cod 14060 22 9664 Tuna 6153 10 6152 Sardines 1939 3 90

Tomato sauce 1124 2 563 Other 815 1 344

Sugars and sweets (including sirup and candy) 24964 40 10709

Sugai white granulated 18567 30 7076 Jam 5890 9 3471

Pineapple and papaya 3445 5 2399 Mango 1832 3 818 Guava 577 t 227

Marmalade 497 1 151

Vegetables (including celery garlic and lettuce) 311484 496 89099

Peas green 11390 18 4402 Beans green-snap 40279 64 15308 Beans and peas other 92408 147 28618

Garbanzo 42905 68 16848 Red black brown 20787 33 5431

Per student

1

Dollars

136 10

60

59

1 39 81 33 17

31

31

58

47

11

266 154

98

14

09

05

1 70 113

55

38

13 04 02

1418 70

244 455 268

86

Percentage of all

food

Percent

24 2

11 10

25 14

6

3

5

5 10

8

2

47 27 17

3

2

1

30 20 10

7

2

1

~

252 12 43 81 48 15

Continued--See footnotes at end of table

9

Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

10

Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

SCHOOL FOOD SUPPLY

The school fqad S11pply in Puerto Rico has been growing rapidly as a result of increasing enrollment and numhcent_r gf schools offering food service Approximately 62 million lunches under the NSLP and 3 iiIillion breakfasts under the- SBP were served in 1972 By 1975 this had -increased to 74 ~illion lunches and 16 miilion ireakfa_sts

Quantity and Value of Food Used

During ~he 1974-75 school year almost 77 million pounds of food with a wh9~esale value of $35 4 milJion were received by the school systmiddot~m (table 2) This included the cost of purchased food and -the estimated value of UpDA-donated commodities

Table 2--Quantity and value of all food used in Puerto Ricos schools September 1974-August 1975

Quantity Value

Food Per Per Per partici shy Per partici shy

Total student pating Total student pating y student ]) student

1000 1000 pounds ~ - Pounds -- dollars - - Dollars --

Total 766916 1220 1442 353655 5627 6651

Dairy products 5881 2 94 111 45321 721 852 Beef 28168 45 53 23710 377 446 Other meats 43874 70 8 3 41524 661 781 middotPoul try and eggs 11824 19 22 8725 139 1 64 Seafood 22152 35 42 16723 266 315 Vegetables 31148_4 496 586 89099 1418 1676 Fruits 115748 184 21 8 53887 857 1013 Juices and riectars 37128 59 70 6137 98 115 Fats and oils 21888 35 41 1406 7 224 265 Bakery products 9604 15 18 5297 84 1 00 Grain and cereal 42419 67 80 14626 233 275

1_Sugar and sweets 24964 40 47 10709 i 70 201 Beverages 12123 i9 23 7704 123 145

)Prepared foods 8584 14 16 9385 149 177 -Nuts condiments 18144 29 34 6741 1 07 1i7

seasonings

1 Based Qn average attendance

6

I I

i I

I

Commercial purveyors furnished 69 2 ~~llion pounds of food more than 90 percent of that received 1 This food cost $305 million about 86 percentmiddot of the value 01 all food received The difference of 4 percentage points between the quantity and value of food received is due primarily to greater proPClrtionatcent commercial purchases o~ veg~tables than other commodities and the relatively low cost per pound of vezeshytables

F6op middotconsunption per student in attendance was valued at $5627 for the year an average of 318 cents for each day that food service was ava-ilable In terms of quanshytity each student averaged 122 pounds per year or 069 pounds daily during the s4~e period Unless otherwise in9-icated information on per capita consumption by students is based on average attendance figures

Based only on students who actually participa~ed il) the breakfast and lunch proshygrams (excluding the value and poundage of food served to teachers and other adults who ate meals prepared from schooL food supplies) food valued at $6651 and weighing nearly 145 pounds per student was used during the year Averages perday were 376 cents and 082 pounds per participating student

Importance of Individual Commodities

There was considerable variation among commqdities in amounts received and in proshyportions that they represent of the total quantity and value of purchased an4 clonated food used This examination of foltd usage (see t~ble 3) concentrates primarily on relative quantities rather thari values because of price fluctuations that have occurred in recent years

Dairy Products

Dry instant milk accounted for 97 percent of the dairy P1oducts used and averaged over 9 pounds oJ dry ~nstant milk per student for t~e year On a reconstituted basis 14 ounc~s o~ dry is equivalent to 1 fluid gllon~ Adjusted to exclude esti~ated us~ge by adults consumption of fluid milk by students averaged 11 half-pints for each USDA schooi breakfast and Type A lunch served Dry instant milk received through- the USDA Food Distribution Program amounted to 3466500 pounds or about 61 percent of the dry ins tant milk used 91ly 1 lOa pounds of fresh fluid milk weremiddot used and this was pur chased from conimercfal suppliers

Fa ts ana Oils

Use of fats and Oils during the school year equaled 35 pounds and $224 per stushydent Solid shortening was the principal product in this category with about 69 pershycent of the group tot_a The relatively small amounts of butter received were shyfederally donated whereas the bulk of fats and oils was obtained from commercial supshypliers

3 Goods not received by the school system fro~ the USDA Food Distribution Program are treated in tflis report as received from local supply sources and cotnmercial purshyveyors a~th~ugh this category also includes products transferred from the Needy Family Program which was being phased out that year

7

Taoie 3-QuantJty and value of fndividual foods IIsed iii Puerto Rico I s schools September 1974-August 195

Food

Total

Dairy products (including fresh milk and ice cream)- Milkdry Cheese (including

processed) Natural

Fats -and 0115 (including mayonnai~e)

Shorter1ig ~olid Oil cooking and 53189-Butter

Grains and cereals 2 Rice J regul~r- w~i te Spaghettimacaroni dry enriched

Corn meal Cereal dry breakfast 1

Regular package size Farina GingerJread mix Oats rolled

Bakery products 4 Saltines soda crackers Cake Bread (including Spanish and miscellaneous)

Whi te but termilk potato

Beef (including steaksGround Canned

)

Othe-r meats Lunch Ileats

Frankfurters

Total

1000 pounds

766916

58812 57191

1607 1592

21888 15095

4906 1793

424i9 27078

9339 i81 7 1209

932 1054 1023

757

9604 7158 1654

72 2 703

28168 I 7238 10928

43874 40257 28907

Value

per Total student

1

1000 dollars Dollars

353655 5627

45321 721 43682 695

1634 26 1611 26

14067 224 9055 144 3505 56 1454 23

14626 233 8551 1 36

294i 47 331 05

1648 26 1147 18

431 07 401 ()6 254 04

5297 84 455 7 73

326 05

378 06 372 06

23710 377 12952 206 10755 171

41524 661 37776 601 28633 456

Quantity Percentage

of all food

Percent

1000

128 124

5

5

40 26 10

4

41 24

8

1

5

3

1

1

1

15 13

1

1

1

67 37 30

11 7 107 81

Per student

J

Pounds

1220

94 91

3

3

35 24

8

3

67 43

15 3 2 1 2 2 1

15 11

3

1

1

45 27 17

70 64 46

See footnotes at end of table Continued-shy

8

Table 3-Quantity and value of individual foods used in Puerto Rico I s schools September 1974-August 1975--Contlnued

Quantity Value

Food Per

Total student Total 1

1000 1000 pounds Pounds dollars

Luncheon meat 10728 17 8528 Vienna sausage 622 1 61 5

Pork (including chops roas ts and hams) 361 7 6 3748

Canned 3559 6 3684

Poultry and eggs lt824 19 8725 Poultry

Canned 7988 2955

13 5

5068 2050

Chicken parts 2518 4 1074 Turkey (including readyshy

to-cook) Roll

2515 2498

4

4 1944 1940

Eggs dry Whole

3836 3324

6

5 3657 2984

Mix 512 1 673

Seafood_ 22152 35 16723 Cod 14060 22 9664 Tuna 6153 10 6152 Sardines 1939 3 90

Tomato sauce 1124 2 563 Other 815 1 344

Sugars and sweets (including sirup and candy) 24964 40 10709

Sugai white granulated 18567 30 7076 Jam 5890 9 3471

Pineapple and papaya 3445 5 2399 Mango 1832 3 818 Guava 577 t 227

Marmalade 497 1 151

Vegetables (including celery garlic and lettuce) 311484 496 89099

Peas green 11390 18 4402 Beans green-snap 40279 64 15308 Beans and peas other 92408 147 28618

Garbanzo 42905 68 16848 Red black brown 20787 33 5431

Per student

1

Dollars

136 10

60

59

1 39 81 33 17

31

31

58

47

11

266 154

98

14

09

05

1 70 113

55

38

13 04 02

1418 70

244 455 268

86

Percentage of all

food

Percent

24 2

11 10

25 14

6

3

5

5 10

8

2

47 27 17

3

2

1

30 20 10

7

2

1

~

252 12 43 81 48 15

Continued--See footnotes at end of table

9

Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

10

Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

I I

i I

I

Commercial purveyors furnished 69 2 ~~llion pounds of food more than 90 percent of that received 1 This food cost $305 million about 86 percentmiddot of the value 01 all food received The difference of 4 percentage points between the quantity and value of food received is due primarily to greater proPClrtionatcent commercial purchases o~ veg~tables than other commodities and the relatively low cost per pound of vezeshytables

F6op middotconsunption per student in attendance was valued at $5627 for the year an average of 318 cents for each day that food service was ava-ilable In terms of quanshytity each student averaged 122 pounds per year or 069 pounds daily during the s4~e period Unless otherwise in9-icated information on per capita consumption by students is based on average attendance figures

Based only on students who actually participa~ed il) the breakfast and lunch proshygrams (excluding the value and poundage of food served to teachers and other adults who ate meals prepared from schooL food supplies) food valued at $6651 and weighing nearly 145 pounds per student was used during the year Averages perday were 376 cents and 082 pounds per participating student

Importance of Individual Commodities

There was considerable variation among commqdities in amounts received and in proshyportions that they represent of the total quantity and value of purchased an4 clonated food used This examination of foltd usage (see t~ble 3) concentrates primarily on relative quantities rather thari values because of price fluctuations that have occurred in recent years

Dairy Products

Dry instant milk accounted for 97 percent of the dairy P1oducts used and averaged over 9 pounds oJ dry ~nstant milk per student for t~e year On a reconstituted basis 14 ounc~s o~ dry is equivalent to 1 fluid gllon~ Adjusted to exclude esti~ated us~ge by adults consumption of fluid milk by students averaged 11 half-pints for each USDA schooi breakfast and Type A lunch served Dry instant milk received through- the USDA Food Distribution Program amounted to 3466500 pounds or about 61 percent of the dry ins tant milk used 91ly 1 lOa pounds of fresh fluid milk weremiddot used and this was pur chased from conimercfal suppliers

Fa ts ana Oils

Use of fats and Oils during the school year equaled 35 pounds and $224 per stushydent Solid shortening was the principal product in this category with about 69 pershycent of the group tot_a The relatively small amounts of butter received were shyfederally donated whereas the bulk of fats and oils was obtained from commercial supshypliers

3 Goods not received by the school system fro~ the USDA Food Distribution Program are treated in tflis report as received from local supply sources and cotnmercial purshyveyors a~th~ugh this category also includes products transferred from the Needy Family Program which was being phased out that year

7

Taoie 3-QuantJty and value of fndividual foods IIsed iii Puerto Rico I s schools September 1974-August 195

Food

Total

Dairy products (including fresh milk and ice cream)- Milkdry Cheese (including

processed) Natural

Fats -and 0115 (including mayonnai~e)

Shorter1ig ~olid Oil cooking and 53189-Butter

Grains and cereals 2 Rice J regul~r- w~i te Spaghettimacaroni dry enriched

Corn meal Cereal dry breakfast 1

Regular package size Farina GingerJread mix Oats rolled

Bakery products 4 Saltines soda crackers Cake Bread (including Spanish and miscellaneous)

Whi te but termilk potato

Beef (including steaksGround Canned

)

Othe-r meats Lunch Ileats

Frankfurters

Total

1000 pounds

766916

58812 57191

1607 1592

21888 15095

4906 1793

424i9 27078

9339 i81 7 1209

932 1054 1023

757

9604 7158 1654

72 2 703

28168 I 7238 10928

43874 40257 28907

Value

per Total student

1

1000 dollars Dollars

353655 5627

45321 721 43682 695

1634 26 1611 26

14067 224 9055 144 3505 56 1454 23

14626 233 8551 1 36

294i 47 331 05

1648 26 1147 18

431 07 401 ()6 254 04

5297 84 455 7 73

326 05

378 06 372 06

23710 377 12952 206 10755 171

41524 661 37776 601 28633 456

Quantity Percentage

of all food

Percent

1000

128 124

5

5

40 26 10

4

41 24

8

1

5

3

1

1

1

15 13

1

1

1

67 37 30

11 7 107 81

Per student

J

Pounds

1220

94 91

3

3

35 24

8

3

67 43

15 3 2 1 2 2 1

15 11

3

1

1

45 27 17

70 64 46

See footnotes at end of table Continued-shy

8

Table 3-Quantity and value of individual foods used in Puerto Rico I s schools September 1974-August 1975--Contlnued

Quantity Value

Food Per

Total student Total 1

1000 1000 pounds Pounds dollars

Luncheon meat 10728 17 8528 Vienna sausage 622 1 61 5

Pork (including chops roas ts and hams) 361 7 6 3748

Canned 3559 6 3684

Poultry and eggs lt824 19 8725 Poultry

Canned 7988 2955

13 5

5068 2050

Chicken parts 2518 4 1074 Turkey (including readyshy

to-cook) Roll

2515 2498

4

4 1944 1940

Eggs dry Whole

3836 3324

6

5 3657 2984

Mix 512 1 673

Seafood_ 22152 35 16723 Cod 14060 22 9664 Tuna 6153 10 6152 Sardines 1939 3 90

Tomato sauce 1124 2 563 Other 815 1 344

Sugars and sweets (including sirup and candy) 24964 40 10709

Sugai white granulated 18567 30 7076 Jam 5890 9 3471

Pineapple and papaya 3445 5 2399 Mango 1832 3 818 Guava 577 t 227

Marmalade 497 1 151

Vegetables (including celery garlic and lettuce) 311484 496 89099

Peas green 11390 18 4402 Beans green-snap 40279 64 15308 Beans and peas other 92408 147 28618

Garbanzo 42905 68 16848 Red black brown 20787 33 5431

Per student

1

Dollars

136 10

60

59

1 39 81 33 17

31

31

58

47

11

266 154

98

14

09

05

1 70 113

55

38

13 04 02

1418 70

244 455 268

86

Percentage of all

food

Percent

24 2

11 10

25 14

6

3

5

5 10

8

2

47 27 17

3

2

1

30 20 10

7

2

1

~

252 12 43 81 48 15

Continued--See footnotes at end of table

9

Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

10

Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

Taoie 3-QuantJty and value of fndividual foods IIsed iii Puerto Rico I s schools September 1974-August 195

Food

Total

Dairy products (including fresh milk and ice cream)- Milkdry Cheese (including

processed) Natural

Fats -and 0115 (including mayonnai~e)

Shorter1ig ~olid Oil cooking and 53189-Butter

Grains and cereals 2 Rice J regul~r- w~i te Spaghettimacaroni dry enriched

Corn meal Cereal dry breakfast 1

Regular package size Farina GingerJread mix Oats rolled

Bakery products 4 Saltines soda crackers Cake Bread (including Spanish and miscellaneous)

Whi te but termilk potato

Beef (including steaksGround Canned

)

Othe-r meats Lunch Ileats

Frankfurters

Total

1000 pounds

766916

58812 57191

1607 1592

21888 15095

4906 1793

424i9 27078

9339 i81 7 1209

932 1054 1023

757

9604 7158 1654

72 2 703

28168 I 7238 10928

43874 40257 28907

Value

per Total student

1

1000 dollars Dollars

353655 5627

45321 721 43682 695

1634 26 1611 26

14067 224 9055 144 3505 56 1454 23

14626 233 8551 1 36

294i 47 331 05

1648 26 1147 18

431 07 401 ()6 254 04

5297 84 455 7 73

326 05

378 06 372 06

23710 377 12952 206 10755 171

41524 661 37776 601 28633 456

Quantity Percentage

of all food

Percent

1000

128 124

5

5

40 26 10

4

41 24

8

1

5

3

1

1

1

15 13

1

1

1

67 37 30

11 7 107 81

Per student

J

Pounds

1220

94 91

3

3

35 24

8

3

67 43

15 3 2 1 2 2 1

15 11

3

1

1

45 27 17

70 64 46

See footnotes at end of table Continued-shy

8

Table 3-Quantity and value of individual foods used in Puerto Rico I s schools September 1974-August 1975--Contlnued

Quantity Value

Food Per

Total student Total 1

1000 1000 pounds Pounds dollars

Luncheon meat 10728 17 8528 Vienna sausage 622 1 61 5

Pork (including chops roas ts and hams) 361 7 6 3748

Canned 3559 6 3684

Poultry and eggs lt824 19 8725 Poultry

Canned 7988 2955

13 5

5068 2050

Chicken parts 2518 4 1074 Turkey (including readyshy

to-cook) Roll

2515 2498

4

4 1944 1940

Eggs dry Whole

3836 3324

6

5 3657 2984

Mix 512 1 673

Seafood_ 22152 35 16723 Cod 14060 22 9664 Tuna 6153 10 6152 Sardines 1939 3 90

Tomato sauce 1124 2 563 Other 815 1 344

Sugars and sweets (including sirup and candy) 24964 40 10709

Sugai white granulated 18567 30 7076 Jam 5890 9 3471

Pineapple and papaya 3445 5 2399 Mango 1832 3 818 Guava 577 t 227

Marmalade 497 1 151

Vegetables (including celery garlic and lettuce) 311484 496 89099

Peas green 11390 18 4402 Beans green-snap 40279 64 15308 Beans and peas other 92408 147 28618

Garbanzo 42905 68 16848 Red black brown 20787 33 5431

Per student

1

Dollars

136 10

60

59

1 39 81 33 17

31

31

58

47

11

266 154

98

14

09

05

1 70 113

55

38

13 04 02

1418 70

244 455 268

86

Percentage of all

food

Percent

24 2

11 10

25 14

6

3

5

5 10

8

2

47 27 17

3

2

1

30 20 10

7

2

1

~

252 12 43 81 48 15

Continued--See footnotes at end of table

9

Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

10

Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

Table 3-Quantity and value of individual foods used in Puerto Rico I s schools September 1974-August 1975--Contlnued

Quantity Value

Food Per

Total student Total 1

1000 1000 pounds Pounds dollars

Luncheon meat 10728 17 8528 Vienna sausage 622 1 61 5

Pork (including chops roas ts and hams) 361 7 6 3748

Canned 3559 6 3684

Poultry and eggs lt824 19 8725 Poultry

Canned 7988 2955

13 5

5068 2050

Chicken parts 2518 4 1074 Turkey (including readyshy

to-cook) Roll

2515 2498

4

4 1944 1940

Eggs dry Whole

3836 3324

6

5 3657 2984

Mix 512 1 673

Seafood_ 22152 35 16723 Cod 14060 22 9664 Tuna 6153 10 6152 Sardines 1939 3 90

Tomato sauce 1124 2 563 Other 815 1 344

Sugars and sweets (including sirup and candy) 24964 40 10709

Sugai white granulated 18567 30 7076 Jam 5890 9 3471

Pineapple and papaya 3445 5 2399 Mango 1832 3 818 Guava 577 t 227

Marmalade 497 1 151

Vegetables (including celery garlic and lettuce) 311484 496 89099

Peas green 11390 18 4402 Beans green-snap 40279 64 15308 Beans and peas other 92408 147 28618

Garbanzo 42905 68 16848 Red black brown 20787 33 5431

Per student

1

Dollars

136 10

60

59

1 39 81 33 17

31

31

58

47

11

266 154

98

14

09

05

1 70 113

55

38

13 04 02

1418 70

244 455 268

86

Percentage of all

food

Percent

24 2

11 10

25 14

6

3

5

5 10

8

2

47 27 17

3

2

1

30 20 10

7

2

1

~

252 12 43 81 48 15

Continued--See footnotes at end of table

9

Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

10

Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

Tabi~ 3--Quantity and value of individual foods used in Puerto Rico f scho~)s September 1974-August 1975--Continued

Food

White B1ackeyed

Corn (including corn on cob) Off cob

Carrots Potatoes white

Fresh Dried

PotatiJesmiddot sweet canned Tomatoes

Tomato puree Tomatoes

Pump~in canned Tannier-s Vegetables mixed Cabbage Onions Green salad mix Pepper-s sweet

Fruits (including fruit cocktail)

Plantain Ripe in sirup canned Fresh

Pineapple canned Peaches canned Plums canned Apricot halves canned -Papaya canned Prunes dried Cranberry sauce

Juices and nectars (including glava juice)

Guava nectar Orange juice concentrated Pineapple juice Grapefruit juice

Quantity

Per Total student

1

1000 pounds Pounds

14799 24 1391 7 22 36391 58 36189 58 30343 48 27024 43 24398 39

2626 4 14220 23 26365 42 22508 36

i857 6 12840 20

8647 14 4394 7 2881 5 2658 4

933 1 647 1

115748 184 43998 70 31216 50

7550 12 5232 bull B

20344 32 19840 32 17200 27

5533 9 3141 5 3066 5 2266 4

37128 59 14921 24 12850 20

4676 7 4675 7

Value

Total

1000 dollars

3474 2865 9753 9694 6426 5039 3656 1383 4321 8024 6756 1268 2386 1931 1io1 464 547 301 457

53887 16730 11095

5102 533

17126 7299 6846 30~0 1027 1160

479

6B 2497 2122

759 758

Per student

1

Dollars

55

46 155 154 102

80

58

22

69 1 28 108

20

38

31

18

07

09

05

07

857 266 177

81

08 273 116 109

49

16

18

08

98

40

34

12

12

Percentage of all

food

Percent

10 8

28 27 18 14 10

4 12 23 19

4

7

5

3 1

2

1

1

152 47 31 14

2 48 21 19

9

3

3

1

17 7 6 2 2

See footnotes at end of table Continued-shy

10

Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

Table 3--Quantity and value of individual foods used in Puerto Ricos schools September 1974-August 1975--Continued

Quantity Valuemiddot Percentage Food of-all

Per Pe-r food Total stude1t Total student

1 1

1000 1000 pounds Pounds dollars Dollars Pe-rcent

Beverages (including ground and instant coffee) 12123 19 7704 123 22

Cocoa _mix dry 12118 19 7701 1 23 22

Nuts condiments and seasonings lj 18144 29 6741 107 19

Ground and powdefed sea~oning 8543 14 4807 76 14

Salt 6786 11 5500 09 2 Peanut butter 1832 3 816 13 2 Peanut granules 668 1 411 07 1

Prepare~ food sect 8584 14 9385 149 27 Corned beef 6968 11 741 2 118 21 Pasteles 1259 2 1884 30 5

11 B~sed qn a-v~-rage attendance 2 Includes all-purpose flour and pancake mix 31 Includes individual servings of dry breakfast -cereal ~I -Includes hot dog rye and soft rolls cupcakes and yeast-type jelly doughnuts 51 Includes miscellaneous jams jellies and preserves 6 Less than 05 percent71 I~cludes vinegar vanilla extract and c~nnamon sectj Includes textured vegetable protein (TVP)

Grains and Cereals

Consumption of grain and cereal products averaged 67 pounds per student in 1974shy75 Rice accounted for 64 percent of this category All grain and cereal products were obtained from local sources

Bakery Products

A~l bakery products were purchas-ed from commercial sources however a food pioshycessing contract was used to convert federally donated flour into crackers Crackers accounted for 75 percent of this -category

Bread middotservings amounted to only 01 pound per studen_t indicating little is serVed with rn~als This is about I meal in 60 with a se-rving o bread Evidently cereal is being substituted for the bread requir~ment in ~he USDA school breakfast and a starchy

11

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

fruit or veget~ble or a1) e_nriched whole grain cereal product is being substituted for bread in the lype A lunch Crackers also may be substituted for the bread requirement Consumption of bakery products averaged 15 pounds per st_udent

Beef-

Ground anq canned beef made up nearly all of the beef category Apout 58 percent of all beef u~_ecl was federally donated and 95 percent of the ground beef was received under the USDA Food Dist~ibution Program Average use of beef per student in the 194shy75 school year was 45 pounds

Other Meats

Lunch meat and pork comprised the category (lather meats-II Corisumption of other meats averaged 7 pounds per student The -princLtlal it~ni in this _cent_ategory was frankfurshyters with 66 percent of the quantiiy Ali but a small amount of canned pork was supshyplied through _local sources

Poul tory and Eggs

Average consumption of poultry- and eggs was 19 pounds per student Poultry made up about 68 penent of this categ~ry Fede-rally donated foods accounted for all of the canned poult-ry chicken pa_rts and turlltey rolls received The balance of the category was obtained l~ocally

Seafood

Cod and tuna were major it~ms in this ~a~e-gory a-cs9upting fQr 64 and -28 percent respectively of the 22 million pounds of seafood received all of which wa_s obtained througl- commercial channels Use of seafood averaged 35 pounds per student duri~g the 1974-75 school year

Sugars and Sweets

This category included granulated sugar jam and marmalade and averaged 4 poun~s per stugent Sugar was the main product- with 74 percent of the P9u1)4age Comshymercial p~rveyors supplied all food in middotthis group

Vegetables

This was t~e largest categ-ory of food ifioing into the school system Use per student averaged almost 50 pounds Canned vegetables represented about 85 pe~cent of the amount used Vegetables accounted for 40 percent of the food received but beshycause of the relatively low cost represented only 25 percent oJ total value Use of beal~ including green-snap was substantially greater than that of any other vegeshytabie

About 10percent of the greel beans and 15 percent of the sweet potatoes were fe~eral donat-ions The balance of these products and all other vegetables were obshytain~cl from local supply sources

12

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

Fruits

This was the second most important group f products received amounting to over 18 pounds pet student in 1974-75 More than 95 percent of the fruit was obtained 10- cally P1~ntain with 5 pounds per student was the major ~_tem middotin this category Plantain is a staple food in Puerto Rico and may be served in s~hoo~s there as part of the bread requirement of the Type A lunch

Juices and Nectars

Use of this category amounted to a~mot 6 pounds per student all of whIch Was supplied by local sources Guava nectar and concentrated 0Fange jui~e were major items accoUI~ting for 40 and 35 percent respectiveiy of t1is categltry

Beverages

pry cocoa mix constituted almost the entire category which amounted to nearly 2 pounds per st~denL ~ll beverages were obtained through commercLai chanlels

Nuts Condiments and Seasonings

Use of this categ9ry amounted to almost 3 pounds per student About 14 percent was federally donated in the form of p~anut butter and peanut granules Salt wi-thO 37 percent and ground powdered seasonings wit~ 47 percent were major products in this

group All scentasonings were purchased throug~ comme~cial sources

Prepared Food

Prepared food played only a minor role in the diets of children in Puerto Rico I s schools and al( ~uch food was purchased from commercial sources

Availability of Storage Facil1ties and Food Form

AvaIlabil-ityof different tYPts of storage facilities is likely to have a s1gn1fishycant influence in determi~1I)g the fqrms of foo_d acq~ired by schools particularly froshyzen and fresh food Availabillty of storage facilities also woul9- ii~fluence purchasing p~actices and Impact on the frequency of purchases and deliveries on the type ar~ loshycation of suppliers ~nd qn irivcent~t9ry levels and management

About 24500 cubic feet of reach-in refrigerator storage spce was available inI the schools smiddottudied No walk-in refrigerator space was reported RefrigeratOr storshyage consisted of 1065 singledoor refrigerators about one refriger~tor for ~very 25 schools Freezer s torage was even more sca-ree consis ting of 81 single-door freezers wIth a total of 1863 cubic feet of ava11abie space All freez~rs were of the reachshyin type Only 3 percent of the schools had freezer storage or about 1 school in 33

The l~mited avail~bility of refrigerator and freezer sp~ce in the schools is evishydenced by the very low usage of frozen or fresh food requiring refrigeration Qnly 5 percent of all food received w~s froze[l over naIf of tnis w~s federally donated Ten percent of the food was fresh but many ite~s such as ~~kery pmiddotroduc~f did not r_equire refrfgeration Includingmiddot canned goods which made up 65 percent of the ~otal more than 85 percent of the food dfd not require any form of refrigeration (table 4)

13

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

Table 4--Food forms used in Puerto Ricos schools September 1974-August 1975

Food Frozen Dry Canned Fresh

Percent

Total 46 207 643 104 Purcha~ed 20 179 685 116 Donated 284 461 255

Dairy products )) 972 28 Beef 612 388 1 Other meats 1 999 IJ Poultry and eggs 424 324 250 1 Seatood 1000 ~

Vegetables 18 853 129 Fruit~ 26 726 248 Juices and nectars 1000 Fats apd oils 1000 Bakery products 1000 Grains and cereals 1000 Sugar and sweets 744 256 Beverages 1000 Prepared food 42 958 Nuts c-ondiments and seasonings 845 155

= not applicable 1) Less than 05 percent

Food Acquisition Practices

The schoot system in Puer~o B-ico O1dered all purchased food centr-cHly through comshypetitive purchasing contr_act~- Even in an emergency bids were required from three to fi ve food purveYoi~-

The school system appears to have received well over 75 products during the study period However qv-e~ half die value of all food used was accounted for by only 10 products Th~gte were frankfurters I fish I green beans garbanzo peas corn i dry milk bananas- plantain pineapple and ground meat

Wholesalers and brokers were primary suppliers of purchased ~food utilized by schools in Puerto Rico Fluid milk the only i tern not obtained frommiddlemen or through federal ~onations was bought locally fr6m dairies

Potential Savings in Volume Purchases

A costbenefit analysis of Puerto Ricos school f~od PEocurement system was not a part of this study However some of the cnaract-eristics of this system suggest that

14

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

l certain procurem~nt and supply principles and practices warrant exa~inationfor their potential to provide cost savings and other efficiencies

These principles and practices would be ~pplicable to all schools and State and local g6vernment a-gencies involved in mass feeding For example the fact that about 10 items accougted for more than half of the value of all food used by the s~hools sugshygests opportunities -to save on food cost and handling practices from volume purchases

I Most of the food for the school systemwas purchaseq by a central authority Op-I

portunit_~_es to realize benefits from purchasing in volume could be realized in some1-shyother school middotsyte)1ls by consolidation of food purchases The objet-tive is to obtainI the lowest unit price without lowering quality standards This frequently is accompshy

I~ lished by purchasing in truck or car lots for delivery at a single destination Pur-middot chases may be totally or partially consolidated to build volume not only among schools and sc~ool systems but conceivably among two or more different ~g~ncies 6f the saine jurisdic~ion This might be especially applicable to the problem of some hig margin items which are purchased fr~quently but in small quantities By building volume a food procurement system couI~ benefi~ directly from lower unit food costs Indirectly a larger volume could encourage the interest of additional suppliers in servicing the account thus increasing competition and poten~ial for further cost benefits

~ alternative to accrue savings also is available to food procurement systems that already are ryighly consolidated such as Puerto Ricos By placing greater proshyportionate effort on those products whic_h accou~t for a substantial part of the value

~ of all food purchases a procurement system could benefit from a ~otal co~t s_~vJngs as I well as potential handling and storage economies For products that are purchased in I above normal quaritit-ies bids could be obtained from a larger number of potential supshy

pliers atmiddot presumably lower prices tDan otherwise would be the case

4 Study of School Food Procurement Practices vols I and II AT Kearney Hanshyagment Cqnsulta1ts Feb L978 prepared for the Food and Nutrition Service contains a discussion of alternative food procurement systems

f U S GOVERNMENT PRINTING OFFICE 1978 261-470

15

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON DC 20250

POSTAGE AND FEES PAID US DEPARTMENT OF

AG-RiCULTURE AGA 101 Ua_L

THIRD CLASS