Processing USDA Foods

Processing: The conversion of USDA food or foods into a convenient, usable form by an approved commercial enterprise at a commercial facility. (known as an end product)

Four Value Pass Thru Systems – Part I

Direct Discount

Indirect Refund Sale

Fee-for-Service

Indirect Discount

Direct Discount Sale

Processor sells and ships end product directly to an eligible Recipient Agency

Processor School

Indirect Refund Sale

Processor sells end product containing USDA Foods to a commercial distributor at commercial price, then distributor sells end product to an eligible RA at commercial price, plus delivery costs. RA or distributor submits sales to processor for refund of value of USDA Foods.

Bulk Cheese Cheese Pizza

Fee-For-Service Sale

Processor charges by pound or by case for all other ingredients to make up the end product.

Bulk Beef FC Beef Patties

Fee-For-Service thru Distributor

Also known as Modified Fee for Service, where Distributor acts as the purchasing agent for the RA and invoices RA at the gross price excluding USDA Foods, plus distribution fees.

Bulk Beef FC Meatballs

Indirect Discount Sale

Also known as “NOI/Net-Off Invoice”, where Processor sells end product to Distributor at commercial/gross price and Distributor sells to eligible RA at a net price.

Alaskan Pollock Fish FC Brd Fish Fillets

Summary End Product Data Schedule Components

SEPDS A SUMMARY END PRODUCT DATA SCHEDULE: For all donated foods excluding guaranteed minimum return. MANUFACTURER ABC

National Summary Value Pass-Thru System

(EPDS approved by USDA) THIS IS AN ORIGINAL SUMMARY SCHEDULE UNLESS CHECKED BELOW:Direct Sale

State Summary Reflects Change in Formulation (Italic)

Refund to Recipient Agency

(EPDS approved by state agency)

Additional Products Listed

Net Price Through Distributor (NOI)

CorrectionFee for Service (billed by Processor)Fee for Service (billed by Distributor)

Information Certified as Accurate from Approved EPDS (requires signature from agency that approved EPDS)Certified by State Agency

End Product Code & Description

Net Weight

Per Case

Servings Per Case

Net Weight

per Serving

Item Code

New WBSCM

Item Code

New WBSCM Description

Commodity Inventory

Drawdown per case

By Products Produced*

(none unless line is

checked)

Value per pound of commodit

y (contract

value)

Value of Commodity

per Case (F x H)

Effective Date

State Agency Acceptance/App

roval

A B C D E F G H I J K

A12345 Manufacturer A 4x6 Cheese Pizza 30.00 80 6 oz. B077 100042

CHEESE MOZ LM PART SKIM UNFZ PROCESSR PK 5.00   $1.3882 $6.94 7/1/2006  

                   

    

                           

                           

                           

                           

                           

Processor Name

Value Pass Thru Systems

Discount or Refund value per case of end product.

Information of USDA Foods used in the creation of end product.

The amount of USDA Foods used to create a case of end product.

End product information

Tracking Tools – Part II

K12 Foodservice (15 processors)

Processor Link (14 processors)

Lunchline, Inc. (2 processors)

Internal Systems (9 processors)

USDA Food Draw Down Targets“Ideal Schedule”

Months YTD Usage Remaining BalanceSeptember 30th 10% 90%October 31st 25% 75%November 30th 35% 65%December 31st 45% 55%January 31st 55% 45%February 28th 65% 35%March 31st 75% 25%April 30th 90% 10%May 31st 100% 0%

Processing Resources

ADE Food Distribution Webpage: www.ade.az.gov/health-safety/cnp/fdp

FNS Food Distribution Webpage: www.fns.usda.gov/fdd/processing

USDA Foods Fact Sheet: www.fns.usda.gov/fdd/processing/cp_faqfacts.htm

Code of Federal Regulations to govern USDA Food Processing: www.fns.usda.gov/fdd/regs/fd_regulations.htm

RA Processing Handbook: www.commodityfoods.org/processing