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| IMPROVING THE QUALITY AND | |
| EFFICIENCY OF COMMODITY | |
| DISTRIBUTION TO FEDERAL | |
| CHILD NUTRITION PROGRAMS | |
| HEARING | |
| BEFORE THE | |
| COMMITTEE ON EDUCATION | |
| AND THE WORKFORCE | |
| U.S. HOUSE OF REPRESENTATIVES | |
| ONE HUNDRED EIGHTH CONGRESS | |
| FIRST SESSION | |
| October 7, 2003 | |
| Serial No. 108-36 | |
| Printed for the use of the Committee on Education and the Workforce | |
| ( | |
| Available via the World Wide Web: http://www.access.gpo.gov/congress/house | |
| or | |
| Committee address: http://edworkforce.house.gov | |
| 90-141 PDF | |
| WASHINGTON : | |
| 2004 | |
| U.S. GOVERNMENT PRINTING OFFICE | |
| For sale by the Superintendent of Documents, U.S. Government Printing Office | |
| Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 | |
| Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 | |
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| COMMITTEE ON EDUCATION AND THE WORKFORCE | |
| JOHN A. BOEHNER, Ohio, Chairman | |
| Thomas E. Petri, Wisconsin, Vice Chairman | |
| Cass Ballenger, North Carolina | |
| Peter Hoekstra, Michigan | |
| Howard P. ‘‘Buck’’ McKeon, California | |
| Michael N. Castle, Delaware | |
| Sam Johnson, Texas | |
| James C. Greenwood, Pennsylvania | |
| Charlie Norwood, Georgia | |
| Fred Upton, Michigan | |
| Vernon J. Ehlers, Michigan | |
| Jim DeMint, South Carolina | |
| Johnny Isakson, Georgia | |
| Judy Biggert, Illinois | |
| Todd Russell Platts, Pennsylvania | |
| Patrick J. Tiberi, Ohio | |
| Ric Keller, Florida | |
| Tom Osborne, Nebraska | |
| Joe Wilson, South Carolina | |
| Tom Cole, Oklahoma | |
| Jon C. Porter, Nevada | |
| John Kline, Minnesota | |
| John R. Carter, Texas | |
| Marilyn N. Musgrave, Colorado | |
| Marsha Blackburn, Tennessee | |
| Phil Gingrey, Georgia | |
| Max Burns, Georgia | |
| George Miller, California | |
| Dale E. Kildee, Michigan | |
| Major R. Owens, New York | |
| Donald M. Payne, New Jersey | |
| Robert E. Andrews, New Jersey | |
| Lynn C. Woolsey, California | |
| Rube´n Hinojosa, Texas | |
| Carolyn McCarthy, New York | |
| John F. Tierney, Massachusetts | |
| Ron Kind, Wisconsin | |
| Dennis J. Kucinich, Ohio | |
| David Wu, Oregon | |
| Rush D. Holt, New Jersey | |
| Susan A. Davis, California | |
| Betty McCollum, Minnesota | |
| Danny K. Davis, Illinois | |
| Ed Case, Hawaii | |
| Rau´ l M. Grijalva, Arizona | |
| Denise L. Majette, Georgia | |
| Chris Van Hollen, Maryland | |
| Tim Ryan, Ohio | |
| Timothy H. Bishop, New York | |
| Paula Nowakowski, Staff Director | |
| John Lawrence, Minority Staff Director | |
| (II) | |
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| C O N T E N T S | |
| Hearing held on October 7, 2003 ............................................................................ | |
| Statement of Members: | |
| Boehner, Hon. John A., a Representative in Congress from the State | |
| of Ohio ............................................................................................................ | |
| Prepared statement of ............................................................................... | |
| Hastings, Hon. Doc, a Representative in Congress from the State of | |
| Washington, prepared statement of ............................................................ | |
| Kildee, Hon. Dale E., a Representative in Congress from the State of | |
| Michigan ........................................................................................................ | |
| Miller, Hon. George, a Representative in Congress from the State of | |
| California, prepared statement of ................................................................ | |
| Statement of Witnesses: | |
| Bost, Hon. Eric M., Under Secretary for Food, Nutrition, and Consumer | |
| Services, U.S. Department of Agriculture ................................................... | |
| Prepared statement of ............................................................................... | |
| Response to questions submitted for the record ..................................... | |
| Cockwell, Paula, Manager of Nutrition Services, Adams County School | |
| District #14, and Food Service Director, Mapleton Public School Dis- | |
| trict ................................................................................................................. | |
| Prepared statement of ............................................................................... | |
| Heaney, Dr. Robert P., John A. Creighton University Professor, Professor | |
| of Medicine, Creighton University ............................................................... | |
| Prepared statement of ............................................................................... | |
| Joslin, Robinson W., President, Ohio Soybean Association .......................... | |
| Prepared statement of ............................................................................... | |
| Slavin, Dr. Joanne L., Professor of Nutrition, University of Minnesota ...... | |
| Prepared statement of ............................................................................... | |
| Stenzel, Thomas E., President and CEO, United Fresh Fruit and Vege- | |
| table Association ........................................................................................... | |
| Prepared statement of ............................................................................... | |
| Yates, A.J., Administrator, Agricultural Marketing Service, U.S. Depart- | |
| ment of Agriculture ....................................................................................... | |
| Prepared statement of ............................................................................... | |
| Additional materials supplied: | |
| American Commodity Distribution Association, Statement submitted for | |
| the record ....................................................................................................... | |
| Barnard, Dr. Neal D., President, Physicians Committee for Responsible | |
| Medicine, Statement submitted for the record ........................................... | |
| Additional statement submitted for the record ....................................... | |
| Foster, Nancy E., President and CEO, U.S. Apple Association, Statement | |
| submitted for the record ............................................................................... | |
| The Humane Society of the Unted States, Statement submitted for the | |
| record ............................................................................................................. | |
| Keith, Dr. Jeanette Newton, Assistant Professor of Medicine, Attending | |
| Physician, Nutrition Support Service, The University of Chicago Hos- | |
| pitals, Section Gastroenterology/Clinical Nutrition, Statement sub- | |
| mitted for the record ..................................................................................... | |
| Savaiano, Dr. Dennis A., Professor of Foods & Nutrition, Dean of Con- | |
| sumer and Family Sciences, Purdue University ........................................ | |
| Wittrock, Donna, President, American School Food Service Association .... | |
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| IMPROVING THE QUALITY AND EFFICIENCY | |
| TO | |
| OF | |
| FEDERAL CHILD NUTRITION PROGRAMS | |
| DISTRIBUTION | |
| COMMODITY | |
| Tuesday, October 7, 2003 | |
| U.S. House of Representatives | |
| Committee on Education and the Workforce | |
| Washington, DC | |
| The Committee met, pursuant to call, at 2 p.m., in room 2175, | |
| Rayburn House Office Building, Hon. John A. Boehner (Chairman | |
| of the Committee) presiding. | |
| Present: Representatives Boehner, Petri, McKeon, Norwood, | |
| Biggert, Tiberi, Keller, Osborne, Wilson, Kline, Carter, Kildee, | |
| Payne, Holt, McCollum, Grijalva, and Majette. | |
| Staff Present: Julian Baer, Legislative Assistant; Kevin Frank, | |
| Professional Staff Member; Parker Hamilton, Communications Co- | |
| ordinator; Kate Houston, Professional Staff Member; Sally Lovejoy, | |
| Director of Education and Human Resources Policy; Stephanie | |
| Milburn, Professional Staff Member; Deborah L. Samantar, Com- | |
| mittee Clerk/Intern Coordinator; Denise Forte, Minority Legislative | |
| Associate/Education; Alex Nock, Minority Legislative Associate/ | |
| Education; Joe Novotny, Minority Legislative Assistant/Education; | |
| and Lynda Theil, Minority Legislative Associate/Education. | |
| Chairman BOEHNER. A quorum being present, the Committee on | |
| Education and the Workforce will come to order. | |
| We are meeting today to hear testimony on Improving the Qual- | |
| ity and Efficiency of Commodity Distribution to the Federal Child | |
| Nutrition Programs. | |
| Under Committee rules, opening statements are limited to the | |
| Chairman and Ranking Minority Member of the Committee. There- | |
| fore, if other members have statements, they may be included in | |
| the hearing record. And with that, I ask unanimous consent for the | |
| hearing record to remain open for 14 days to allow members’ state- | |
| ments and other extraneous material referenced during today’s | |
| hearing to be submitted in the official hearing record. Without ob- | |
| jection, so ordered. | |
| STATEMENT OF HON. JOHN BOEHNER, CHAIRMAN, | |
| COMMITTEE ON EDUCATION AND THE WORKFORCE | |
| Good afternoon. Let me thank all of you for coming today, espe- | |
| cially those of you who will serve on your panels today. This is an | |
| important hearing on Improving the Quality and Efficiency of the | |
| (1) | |
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| 2 | |
| Commodity Distribution Program to the Federal Child Nutrition | |
| Programs. These programs are central to providing the Nation’s | |
| needy children with access to safe, affordable, and nutritious food. | |
| This marks the first Full Committee hearing to help prepare | |
| members of this Committee for the upcoming reauthorization of the | |
| Child Nutrition Act and the Richard B. Russell National School | |
| Lunch Act. There is general agreement on the importance of good | |
| nutrition for everyone, especially growing children. And while par- | |
| ents obviously bear the first responsibility for ensuring their chil- | |
| dren eat well and exercise regularly, programs authorized under | |
| the Child Nutrition Act and the National School Lunch Act play a | |
| positive role as well, helping to provide disadvantaged children | |
| with access to nutritious meals and snacks. | |
| Programs such as the National School Lunch and Breakfast Pro- | |
| grams, WIC, the Summer Food Service Program, and the Child and | |
| Adult Care Food Program are helping many of these children | |
| achieve full physical development and success in school. The Fed- | |
| eral child nutrition programs were conceived to offer wholesome | |
| meals and snacks to children in need and to support the health of | |
| lower-income pregnant women, breastfeeding mothers, and their | |
| young children. | |
| These programs represent a huge national investment totaling | |
| more than $12 billion per year. And while these programs have | |
| been generally heralded as successful, this Committee is seeking | |
| new ways to improve access to safe, healthy, and affordable meals | |
| and to better serve all program participants. | |
| Today’s hearing will focus on a critical component of many Feder- | |
| ally funded child nutrition programs: commodity distribution. The | |
| U.S. Department of Agriculture provides commodity support for the | |
| School Lunch Program, the Child and Adult Care Food Program, | |
| and the Summer Food Service Program as well. | |
| Last year, the United States Department of Agriculture provided | |
| commodities to these programs valued at more than $700 million. | |
| The Department of Agriculture has two major objectives in its mis- | |
| sion to provide food products to schools. One objective is to pur- | |
| chase products as part of the Department’s price support and sur- | |
| plus removal program. The second is to provide schools with high- | |
| quality nutritious foods so that children have access to meals that | |
| are both healthful and appealing. | |
| Now, these objectives are frequently at odds, which poses an on- | |
| going challenge for the Department. And because the Department | |
| is charged with stabilizing agricultural markets and children’s pref- | |
| erences, food quality and nutrition must frequently compete with | |
| economic factors when the Department decides which commodities | |
| to purchase and supply. | |
| In 1999 the USDA undertook a broad evaluation of its com- | |
| modity procurement and distribution systems to improve food dis- | |
| tribution to schools and other beneficiaries. The Department’s ulti- | |
| mate goal was to better serve producers and consumers by improv- | |
| ing both the efficiency of the distribution process and the quality | |
| of the foods delivered. | |
| USDA convened a blue ribbon panel, Food Distribution 2000, | |
| which included representatives from industry, schools, and State | |
| commodity distribution agencies as well. The result was a report | |
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| 3 | |
| that made many valuable recommendations for improving USDA’s | |
| food distribution systems. Since that time the Department has cre- | |
| ated a number of pilot programs and other initiatives to improve | |
| upon the current system. However, additional efforts are needed | |
| and several recommendations have yet to be implemented. | |
| Last month I sent a letter to Agriculture Secretary Ann | |
| Veneman requesting information about the Department’s efforts to | |
| implement the recommendations of the Food Distribution 2000 | |
| panel. I look forward to working with the Secretary, Under Sec- | |
| retary for Food and Nutrition, Eric Bost, Ag Marketing Services | |
| Administrator, A. J. Yates, and our partners in the food industry | |
| and school food service providers to continue the good work that | |
| has been started to make meaningful reforms in the commodity | |
| distribution system. | |
| Today we will hear from experts who will help us shed light on | |
| the commodity distribution to child nutrition programs, what works | |
| well, what needs improvement. Several of today’s witnesses will | |
| tell us about progress made by the Department to act upon the rec- | |
| ommendations of the Food Distribution 2000 report and how Con- | |
| gress can help. | |
| I am certain all of our witnesses today will offer unique perspec- | |
| tives on child nutrition and program operations that will be helpful | |
| to the Members of this Committee as we work to improve these | |
| programs, and we look forward to all of your comments. | |
| Now, I would yield to our Ranking Member today, my good friend | |
| from the State of Michigan, Mr. Kildee. | |
| [The prepared statement of Chairman Boehner follows:] | |
| Statement of the Honorable John A. Boehner, Chairman, Committee on | |
| Education and the Workforce | |
| Good Afternoon. Thank you for joining us today for this important hearing on im- | |
| proving the quality and efficiency of commodity distribution to federal child nutri- | |
| tion programs. These programs are central to providing the nation’s needy children | |
| with access to safe, affordable, and nutritious food. This marks the first Full Com- | |
| mittee hearing to help prepare Members of this Committee for the upcoming reau- | |
| thorization of the Child Nutrition Act and the Richard B. Russell National School | |
| Lunch Act. | |
| There is general agreement on the importance of good nutrition for everyone, es- | |
| pecially growing children. While parents obviously bear first responsibility for en- | |
| suring their children eat well and exercise regularly, programs authorized under the | |
| Child Nutrition Act and National School Lunch Act play a positive role as well, | |
| helping to provide disadvantaged children access to nutritious meals and snacks. | |
| Programs such as the National School Lunch and Breakfast Programs, WIC, the | |
| Summer Food Service Program, and the Child and Adult Care Food Program are | |
| helping many of these children achieve full physical development and success in | |
| school. | |
| The federal child nutrition programs were conceived to offer wholesome meals and | |
| snacks to children in need, and to support the health of lower-income pregnant | |
| women, breastfeeding mothers, and their young children. These programs represent | |
| a huge national investment totaling more than $15 billion per year. While these pro- | |
| grams have been generally heralded as successful, this Committee is seeking new | |
| ways to improve access to safe, healthy, and affordable meals and to better serve | |
| all program participants. | |
| Today’s hearing will focus on a critical component of many federally-funded child | |
| nutrition programs—commodity distribution. The U.S. Department of Agriculture | |
| provides commodity support for the National School Lunch, the Child and Adult | |
| Care Food, and the Summer Food Service program. Last year, the United States De- | |
| partment of Agriculture provided commodities to these programs valued at more | |
| than $700 million. | |
| VerDate 0ct 09 2002 09:18 May 18, 2004 Jkt 000000 PO 00000 Frm 00007 Fmt 6633 Sfmt 6621 H:\DOCS\90141.SF EDUWK PsN: NNIXON | |
| 4 | |
| The Department of Agriculture has two major objectives in its mission to provide | |
| food products to schools. One objective is to purchase products as part of the Depart- | |
| ment’s price-support and surplus-removal programs. The second is to provide | |
| schools with high quality, nutritious foods so that children have access to meals that | |
| are both healthful and appealing. These objectives are frequently at odds, which | |
| poses an ongoing challenge for the Department. Because the Department is charged | |
| with stabilizing agriculture markets, children’s preferences, food quality and nutri- | |
| tion must frequently compete with economic factors when the Department decides | |
| which commodities to purchase and supply. | |
| In 1999, USDA undertook a broad evaluation of its commodity procurement and | |
| distribution systems to improve food distribution to schools and other beneficiaries. | |
| The Department’s ultimate goal was to better serve producers and consumers by im- | |
| proving both the efficiency of the distribution process and the quality of foods deliv- | |
| ered. USDA convened a blue ribbon panel, Food Distribution 2000, which included | |
| representatives from industry, schools, and State commodity distribution agencies. | |
| The result was a report that made many valuable recommendations for improving | |
| USDA’s food distribution system. | |
| Since that time, the Department has created a number of pilot programs and | |
| other initiatives to improve upon the current system. However, additional efforts are | |
| needed and several recommendations have yet to be implemented. Last month, I | |
| sent a letter to Agriculture Secretary Ann Veneman requesting information about | |
| the Department’s efforts to implement the recommendations of the Food Distribu- | |
| tion 2000 panel. I look forward to working with Secretary Veneman, Under Sec- | |
| retary for Food and Nutrition, Eric Bost, Agriculture Marketing Service Adminis- | |
| trator, A.J. Yates, our partners in the food industry, and school food service pro- | |
| viders to continue the good work that has been started in making meaningful re- | |
| forms to the commodity distribution system. | |
| Today, we will hear from experts who will help shed light on commodity distribu- | |
| tion to child nutrition programs—what works well and what needs improvement. | |
| Several of today’s witnesses will tell us about progress made by the Department to | |
| act upon the recommendations of the Food Distribution 2000 report and how Con- | |
| gress can help. I am certain all of today’s witnesses will offer unique perspectives | |
| on child nutrition and program operations that will be tremendously helpful to the | |
| Members of this Committee as we work to improve these programs. We look forward | |
| to their comments. | |
| With that, I would like to recognize the Committee’s distinguished Ranking Mem- | |
| ber, Mr. Miller. | |
| STATEMENT OF HON. DALE KILDEE, A REPRESENTATIVE IN | |
| CONGRESS FROM THE STATE OF MICHIGAN | |
| Mr. KILDEE. Thank you, Mr. Chairman. Thank you very much | |
| for having this very important hearing. I have been involved with | |
| child nutrition since about 1954, when I became a teacher. I see | |
| people are there in the background that I have known since I have | |
| been here in Congress, 27 years. It is certainly a very, very impor- | |
| tant program. | |
| Some people forget that the program really began after World | |
| War II when it was discovered that many people entering the mili- | |
| tary in the draft at that time were physically unable to enter the | |
| military because of poor nutrition. Of course, many of them had | |
| grown up during the 1930’s, when we had the Great Depression. | |
| So it really became apparent to the Federal Government, Franklin | |
| Roosevelt, and before him, Harry Truman, that nutrition was very, | |
| very important for the long-term health of young people and for the | |
| long-term health of this Nation. | |
| I have been through every permutation that this program has | |
| gone under, cash in lieu of commodities, everything, every per- | |
| mutation of that. But generally speaking, the Federal Government | |
| has kept its commitment. There are times when we had some prob- | |
| lems with trying to call ketchup a vegetable and things like that, | |
| which we do muse about from time to time. But generally, all of | |
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| 5 | |
| the Administrations have been aware of the fact that this is a very, | |
| very important program. | |
| One of the programs I visited recently in my district—Congress | |
| established a vegetable pilot program in four different States and | |
| one Indian reservation. That was very important. One of the States | |
| happened to be Ohio, the other was Michigan. I am not sure how | |
| we got in there. But I visited the program in Linden, Michigan and | |
| was very, very much impressed. | |
| I know we always have to go through changes and new ideas. | |
| But this program is really one of the great programs, and I would | |
| hope that that pilot program would be expanded and that the De- | |
| partment look at that. When Secretary Veneman announced the | |
| award of that $6 million, and that Michigan was one of those, I | |
| was determined to go out and visit the programs. You have done | |
| a very, very good job in that program and I commend you for it. | |
| When I taught school, we had no such thing as a formal break- | |
| fast program for students. As a matter of fact, there was a great | |
| deal of controversy when the breakfast programs started, the idea | |
| that that might weaken the family. But the breakfast program has | |
| been very, very important. | |
| Having taught school, I could recognize the students who arrived | |
| at school not having had breakfast and how that did affect their | |
| learning. I started the first breakfast program for one student, at— | |
| you have heard me tell that story many times—at Flint Central | |
| High School. I had noted that every day in my homeroom, some- | |
| one’s lunch was being stolen. Very often students packed their | |
| lunch and brought it to school. It was being stolen. And I was | |
| raised in a family where stealing was a very, very—. | |
| Chairman BOEHNER. Mr. Kildee, nobody attempted to ever steal | |
| my lunch. | |
| eye on it. | |
| Mr. KILDEE. Very good. Well, you probably kept a very watchful | |
| Chairman BOEHNER. I would have gladly given it to them. | |
| Mr. KILDEE. It was the quality then, right? | |
| But I finally caught the young man who was stealing the lunch. | |
| And stealing was not only considered a very serious crime in my | |
| family, but a sin. So I was going to turn him into the principal who | |
| would have suspended him for several weeks. But I found out that | |
| his mother was in no position to get him a breakfast in the morn- | |
| ing. And whenever he got to school, his first task was to find some- | |
| thing to eat. | |
| But then he said to me, he said, Mr. Kildee, I never steal the | |
| same lunch from the same person in the same week. And I figured, | |
| this kid has ethics. So I took him down to the cafeteria where we | |
| had no breakfast program, and said to Mrs. Pelkey, who was in | |
| charge of the cafeteria, ‘‘Mrs. Pelkey, Robert will be coming down | |
| here every morning for breakfast, and you get him something for | |
| breakfast and then send me a bill.’’ Well, he got breakfast for 3 | |
| years, and I never got a bill. But since then, of course, we have es- | |
| tablished breakfast programs in many schools. | |
| So I look forward to your hearing today. You are involved in | |
| something so important. Nutrition is so important. And the Federal | |
| Government has a great responsibility in this area. I look forward | |
| to your testimony. Thank you, Mr. Chairman. | |
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| 6 | |
| Chairman BOEHNER. Thank you, Mr. Kildee. | |
| I want to introduce our first panel of witnesses today. Our first | |
| witness will be the Honorable Eric M. Bost, who is the Department | |
| of Agriculture’s Under Secretary for Food, Nutrition, and Consumer | |
| Services. As Under Secretary, he is responsible for the administra- | |
| tion of the Department’s 15 nutrition assistance programs, includ- | |
| ing the Food Stamp Program, the National School Lunch Program, | |
| the School Breakfast Programs, and WIC. Before his appointment, | |
| Mr. Bost served as Commissioner and Chief Executive Officer of | |
| the Texas Department of Human Services. | |
| Our next witness will be Mr. A. J. Yates, who is the current ad- | |
| ministrator of USDA’s Agriculture Marketing Service. Mr. Yates | |
| oversees more than 50 programs designed to maintain a stable | |
| marketing environment for the benefit of America’s farmers, ranch- | |
| ers and consumers. Prior to his appointment, he served as both the | |
| Deputy Secretary and the Under Secretary for the California De- | |
| partment of Food and Agriculture. He has been actively involved | |
| in providing leadership to a variety of organizations supporting ag- | |
| riculture and education. | |
| For those of you that may not be aware, in addition to chairing | |
| this Committee, I am also the Vice Chairman of the House Com- | |
| mittee on Agriculture. So I am glad to have both of these gentle- | |
| men here. | |
| Mr. Bost, with that you may begin your testimony. | |
| STATEMENT OF ERIC M. BOST, UNDER SECRETARY, FOOD, NU- | |
| TRITION, AND CONSUMER SERVICES, U.S. DEPARTMENT OF | |
| AGRICULTURE | |
| Mr. BOST. Good afternoon, and thank you so very much, Mr. | |
| Chairman and members of the Committee. I am Eric Bost, the | |
| Under Secretary for Food, Nutrition, and Consumer Services at the | |
| United States Department of Agriculture. I appreciate this oppor- | |
| tunity to review the Department’s Commodity Nutrition Assistance | |
| Program and consider how this vital program can be enhanced as | |
| it relates to the National School Lunch Program. | |
| As you know, the Child Nutrition reauthorization process gives | |
| the Administration and Congress the opportunity to support local | |
| schools, parents, and communities to move toward an environment | |
| that values and fosters the health of our children. The commodities | |
| are used in school meals in over 98,000 schools nationwide. Over | |
| 28 million lunches are served each day in the National School | |
| Lunch Program. In fiscal year 2003, USDA provided schools with | |
| over 705 million in entitlement commodities and $75 million in | |
| bonus commodities for their school meal programs. | |
| Of course, the commodity programs are equally important to | |
| American farms and ranchers because they provide the Depart- | |
| ment with a means to stabilize agricultural markets. | |
| There has been considerable attention paid to the fat, sodium, | |
| and sugar content of school meals. I would like to ensure the Com- | |
| mittee of our continuing and abiding concern in this area and share | |
| a few of the things that we have done to address this. | |
| The Department has, one, reviewed and modified recipes, com- | |
| modity specifications, and other materials that support compliance | |
| with the dietary guidelines. We have also worked with schools to | |
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| 7 | |
| more closely align the meals they serve with the dietary guidelines. | |
| We are working hard to improve the quality, variety, and nutri- | |
| tional content of commodities we provide the schools, including of- | |
| fering reduced-fat meat and cheese products, reducing the salt con- | |
| tent of canned vegetables, and reducing the sugar added to canned | |
| fruit. | |
| We have also strongly encouraged schools to offer more nutri- | |
| tious choices to students and provide food service workers with the | |
| training and technical assistance to help them prepare more nutri- | |
| tious and appealing meals. Today, over 80 percent of these Na- | |
| tional School Lunch Program schools, we believe, offer meals that | |
| are consistent with good health. | |
| We have also asked our partners in industry and State and local | |
| agencies for their suggestions in order to identify how we can im- | |
| prove the delivery of the commodity programs to States and | |
| schools. Earlier the Chairman made reference to the Food Distribu- | |
| tion 2000 report that we use as a blueprint for change. | |
| There are a couple of things I would like to say about what we | |
| have done to address many of the recommendations, we believe, all | |
| of the recommendations that were noted in that report. We have | |
| implemented an Internet-based, commodity-based ordering system | |
| called the electronic commodity ordering system. This new system | |
| provides greater access and speed in food distribution processes at | |
| the Federal, State and recipient agency levels. States can now | |
| place, cancel, or modify food orders online that previously were | |
| handled through paper transactions. We plan to roll the system out | |
| in schools, at the State’s option, beginning next year. | |
| We have also done some things to align the commodity programs | |
| with commercial practices. To bring our commodity programs more | |
| in line with commercial practices, we have now allowed vendors to | |
| use commercial labels on USDA commodities in lieu of USDA la- | |
| bels; permitted recipient agencies to maintain single inventory | |
| records, instead of requiring separate accounting for USDA com- | |
| modities and commercial products; and reviewed all USDA com- | |
| modity specifications and improving or modifying them when fea- | |
| sible, to better align them with commercial specifications. | |
| In addition to that, we have also revised regulations that allow | |
| for full substitution of all commodities with the exception of beef | |
| and pork, and with limited substitution for poultry products, which | |
| allows processors more flexibility in scheduling their production. | |
| In addition to that, we have also initiated a long-term contract | |
| for certain commodities, including cheese, some fruits, frozen chick- | |
| en and turkey products, bringing consistency and predictability to | |
| the commodity program. | |
| ‘‘Best value’’ as opposed to ‘‘lowest cost’’ contracts are also being | |
| tested to focus on overall product quality and service. There is also | |
| a concern to ensure that the food that we serve as a part of this | |
| program is also safe. So we have worked very closely with the De- | |
| partment’s Food Safety and Inspection Service to ensure that that | |
| occurs. We have established and implemented written procedures | |
| and timeframes to address commodity holds and/or recalls resulting | |
| from safety concerns. This initiative reduces the hold time on com- | |
| modities, removes products quickly from schools and other outlets, | |
| and expedites product replacement and/or reimbursements. | |
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| 8 | |
| As with other Distribution 2000 initiatives, this was a joint effort | |
| by us, the Food and Nutrition Service, the Agricultural Marketing | |
| Service, the Farm Service Agency, and the Food Safety Inspection | |
| Service. In keeping with the dietary guidelines, we have estab- | |
| lished helpful standards for canned fruit and vegetables offered in | |
| our nutrition programs. We have also worked to ensure that we in- | |
| crease and encourage the purchase and consumption of fresh fruits | |
| and vegetables for our School Lunch Program. | |
| We have successfully teamed with the Department of Defense | |
| Supply Center of Philadelphia to deliver high-quality fresh produce | |
| to school children and Indian tribes. Under this program, partici- | |
| pating schools nationwide order fresh produce directly from DOD | |
| prime vendors. In fiscal year 2003, USDA purchased $50 million | |
| worth of fresh fruit produce for schools, and the program has prov- | |
| en to be very popular and is currently in about 41 States. | |
| With Food Distribution 2000, we have worked cooperatively, as | |
| I noted, with all four of the agencies, and I am very pleased to an- | |
| nounce that today, later on this afternoon, we will go live with a | |
| USDA commodity food network Web site, which allows customers | |
| to go to a single portal for all USDA commodity program needs. It | |
| is an E-government resource designed to provide a wealth of infor- | |
| mation about the purchase and distribution of USDA’s commod- | |
| ities. This portal combines the resources and information from all | |
| four agencies and other partners in the commodity distribution net- | |
| work into a one-stop shopping for our customers. It is no longer | |
| necessary to understand the roles of each of the agencies individ- | |
| ually, but you are able to go to one place and receive information | |
| about how the commodity program works. | |
| In conclusion, Mr. Chairman, USDA would be pleased to work | |
| with you and this Committee as we embark on reauthorizing the | |
| child nutrition programs to ensure the continued improvement and | |
| success of our nutrition programs for the Nation’s children and the | |
| continued success of our commodity programs. | |
| Mr. Chairman, this concludes my testimony. Of course, I am | |
| happy to answer any questions that you or the Committee Mem- | |
| bers may have. | |
| Chairman BOEHNER. Mr. Bost, thank you for your testimony. | |
| [The prepared statement of Mr. Bost follows:] | |
| Statement of Eric M. Bost, Under Secretary of Food, Nutrition, and Con- | |
| sumer Services, U.S. Department of Agriculture, Food and Nutrition Serv- | |
| ice | |
| Good afternoon, Mr. Chairman and Members of the Committee. I am Eric M. | |
| Bost, Under Secretary for Food, Nutrition and Consumer Services (FNCS) at the | |
| U.S. Department of Agriculture (USDA). I appreciate this opportunity to join you | |
| once again as you review the Department’s commodity nutrition assistance program | |
| and consider how this vital program can be enhanced as it relates to the National | |
| School Lunch Program (NSLP). As you know, the Child Nutrition reauthorization | |
| process gives the Administration and Congress the opportunity to support local | |
| schools, parents, and communities to move toward a nutrition environment that val- | |
| ues and fosters the health of our children. | |
| The Department of Agriculture is very proud of its commodity programs and the | |
| role they play in supplementing and supporting our other nutrition assistance pro- | |
| grams. USDA commodities are used in school meals in over 98,000 schools nation- | |
| wide. In Fiscal Year 2003, USDA provided schools with over $705 million in entitle- | |
| ment commodities and $79 million in bonus commodities for their school meals pro- | |
| grams. Nationwide, over 28 million lunches are served each day in the National | |
| School Lunch Program. Of course, the commodity programs are equally important | |
| VerDate 0ct 09 2002 09:18 May 18, 2004 Jkt 000000 PO 00000 Frm 00012 Fmt 6633 Sfmt 6621 H:\DOCS\90141.SF EDUWK PsN: NNIXON | |
| 9 | |
| to American farms and ranches because they provide the Department with a means | |
| to stabilize agricultural markets. | |
| I would like to begin today by saying a few words about the nutritional aspects | |
| of our school meal programs. There has been considerable attention paid to the fat, | |
| sodium, and sugar content of these meals. I would like to assure the Committee of | |
| our continuing and abiding concern in this area. The Department has reviewed and | |
| modified the recipes, commodity specifications and other materials that support | |
| compliance with the Dietary Guidelines for Americans. | |
| USDA has worked with schools to more closely align the meals they serve with | |
| the Dietary Guidelines. Today, over 80 percent of NSLP schools offer meals that are | |
| consistent with good health. We have worked hard to improve the quality, variety, | |
| and nutritional content of the commodities we provide to schools and will continue | |
| to make improvements in the future. At the same time, we are strongly encouraging | |
| schools to offer more nutritious choices to students and we are providing food serv- | |
| ice workers with the training and technical assistance to help them prepare more | |
| nutritious and appealing meals. | |
| As many of you recall, back in the 1990’s, the Department became aware of a | |
| growing gap between the way we were delivering our commodity support to schools | |
| and the way States, schools and industry could most efficiently and safely produce, | |
| deliver, store and serve a quality product. We asked our partners in industry, the | |
| State, and local agencies for their suggestions in order to identify how we could close | |
| this gap, and we incorporated these recommendations, along with our own, into a | |
| report entitled, ‘‘Food Distribution 2000,’’ and used it as a blueprint for change. | |
| Recognizing and Responding to a Challenge | |
| The Food Distribution 2000 Report identified numerous ways in which USDA’s | |
| commodity program for schools was overly cumbersome and burdened with red tape. | |
| Commodity ordering was handled by seven different regional offices, rather than | |
| centrally at USDA’s Food and Nutrition Service headquarters. Orders were sub- | |
| mitted on paper, not electronically. | |
| The Department’s program was significantly out of step with commercial prac- | |
| tices. Vendors were required to use USDA labels on commodities, which entailed | |
| running separate production lines and no interchangeable products. The Depart- | |
| ment required States and recipient agencies to maintain separate inventories for | |
| USDA products and account for them aside from commercial products. Specifications | |
| for USDA commodities often deviated from the specifications commonly used for | |
| commercial products. The vendor contracting process—short-term lowest cost con- | |
| tract awards—made USDA the customer of last resort and created inconsistent and | |
| unpredictable product quality and service. | |
| Other key issues the report addressed were how USDA agencies could better co- | |
| ordinate their efforts, improve food safety protocols, and promote fresh fruits and | |
| vegetables. | |
| I am pleased to report that USDA has addressed each of the issues raised by the | |
| Food Distribution 2000 Report, took action, and has now implemented most of the | |
| Report’s recommendations, some of which I would like to share with you this after- | |
| noon. | |
| Making Commodity Programs More Responsive to Customer Needs | |
| To make our commodity programs more responsive to our customers, USDA has | |
| implemented an Internet-based commodity ordering system called the Electronic | |
| Commodity Ordering System (ECOS). This new system provides greater access, | |
| speed and transparency to the food distribution process at the Federal, State, and | |
| recipient agency levels. States can now place, cancel, or modify food orders online | |
| that previously were handled by paper transactions. We plan to roll the system out | |
| to schools, at the State’s option, beginning next year. | |
| Aligning Commodity Programs with Commercial Practices | |
| To bring our commodity programs more in line with commercial practices, USDA | |
| now: | |
| labels; | |
| • Allows vendors to use commercial labels on USDA commodities in lieu of USDA | |
| • Permits recipient agencies to maintain single inventory records, instead of re- | |
| quiring separate accounting for USDA commodities and commercial products; | |
| and | |
| • Reviews all USDA commodity specifications, and improves/modifies them when | |
| feasible, to better align them with commercial specifications. | |
| We have revised regulations to allow for full substitution of all commodities, with | |
| the exception of beef and pork, and with limited substitution for poultry products. | |
| Substitution allows processors more flexibility in scheduling production. Through | |
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| 10 | |
| the use of the Standard Yield Program, schools can now obtain seamless distribu- | |
| tion of commodities and commercial purchases. | |
| We have also initiated long-term contracts for certain commodities, including | |
| cheese, some fruits, frozen chicken and turkey products. This procurement method | |
| brings consistency and predictability to the commodity program. ‘‘Best value’’, as op- | |
| posed to ‘‘lowest cost’’ contracts are also being tested to focus on overall product | |
| quality and service. | |
| Improving Food Safety Protocols | |
| To ensure that the commodities we offer to schools are safe as well as nutritious, | |
| all meat and poultry product specifications are reviewed and/or amended in con- | |
| sultation with the Department’s Food Safety Inspection Service (FSIS). | |
| Ground beef suppliers must operate under new process control protocols similar | |
| to those required by large volume commercial buyers of ground beef. | |
| USDA has also established and implemented written procedures and time frames | |
| to address commodity holds and/or recalls resulting from safety concerns. This ini- | |
| tiative reduces the hold time on commodities, removes product quickly from schools | |
| and other outlets, and expedites product replacement/reimbursement. As with other | |
| Food Distribution 2000 initiatives, this was a joint effort by FNS, the Agricultural | |
| Marketing Service (AMS), the Farm Service Agency (FSA), and FSIS. | |
| Promoting Fresh Fruit and Vegetables | |
| As many of us here today recall from our own school days, the National School | |
| Lunch Program of the 1950’s and 60’s served canned fruits and vegetables almost | |
| exclusively, and in keeping with the tastes and nutrition knowledge of the times, | |
| they were often flavored with plenty of salt and heavy syrup. Since those days, and | |
| in keeping with our Dietary Guidelines, we have established much more healthful | |
| standards for canned fruits and vegetables offered in our nutrition programs. The | |
| sodium specifications for the vegetables we offer to schools are the minimum | |
| amount possible that still assures palatability of the products. Canned fruit is | |
| packed only in natural juice or light syrup. | |
| Recently, the Department has embarked on a major effort to increase and encour- | |
| age the purchase and consumption of fresh fruits and vegetables for the school | |
| lunch program. | |
| USDA has successfully teamed up with the Department of Defense (DoD) Supply | |
| Center of Philadelphia to deliver high quality fresh produce to school children and | |
| Indian tribes. Under this program, participating schools nationwide order fresh | |
| produce directly from DoD prime vendors. In fiscal year 2003, USDA purchased $50 | |
| million worth of fresh produce for schools and the program has proven to be very | |
| popular in the 41 States that took part in it last year. | |
| Improving USDA Inter–Agency Coordination | |
| Food Distribution 2000 has been a collective and unprecedented effort of four | |
| USDA agencies. Together, FNS, AMS, FSA, and FSIS have forged a partnership to | |
| eliminate inter-agency barriers and work together to bring about major structural | |
| changes to the commodity programs our Department administers. The success of | |
| these commodity improvement initiatives is due to the commitment, support, and | |
| considerable effort put forth by each agency at every level. | |
| I am proud to announce today that one of our inter-agency partnering goals has | |
| resulted in the creation of a one-stop USDA Commodity Food Network (CFN) | |
| website. This website—which goes ‘‘live’’ this afternoon—allows our customers to go | |
| to a single portal for all USDA Commodity Program needs. It is an e-government | |
| resource designed to provide a wealth of information about the purchase and dis- | |
| tribution of USDA commodities. This portal combines the resources and information | |
| from all four agencies, and other partners in the commodity distribution network, | |
| into ‘‘one-stop shopping’’ for our customers. It is no longer necessary to understand | |
| the role of an individual USDA agency in order to obtain commodity information. | |
| The website enables schools, community feeding sites, State agencies, Native | |
| American Tribal Organizations and others to have instant access to information | |
| about USDA’s commodities and distribution programs. CFN also provides direct | |
| links to other commodity distribution partner websites, such as the American Com- | |
| modity Distribution Association and the American School Food Service Association. | |
| Conclusion | |
| Mr. Chairman, USDA would be pleased to work with you and this Committee as | |
| we embark on reauthorizing the Child Nutrition programs to ensure the continued | |
| improvement and success of our nutrition programs for the nation’s children and the | |
| continued success of our commodity programs. | |
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| 11 | |
| Mr. Chairman, this concludes my testimony. I would be happy to answer any | |
| questions. | |
| Chairman BOEHNER. Mr. Yates, you may begin. | |
| STATEMENT OF A. J. YATES, ADMINISTRATOR, AGRICULTURAL | |
| MARKETING SERVICE, U.S. DEPARTMENT OF AGRICULTURE | |
| Mr. YATES. Mr. Chairman, members of the Committee, thank | |
| you for the invitation to appear before you today to discuss the role | |
| of the Agricultural Marketing Service, AMS, in the National School | |
| Lunch Program. | |
| I am A. J. Yates, Administrator of AMS, and I am pleased to be | |
| here with Under Secretary Bost. While USDA’s Food and Nutrition | |
| Service administers the National School Lunch Program, AMS is | |
| responsible for purchasing many of the commodities for this and | |
| other domestic food assistance programs. We support the National | |
| School Lunch Program, providing nutritious, high-quality food to | |
| school children through our purchases of red meat, fish, poultry, | |
| eggs, fruit and vegetable products. USDA’s Farm Service Agency | |
| purchases flours, grains, peanut products, dairy products, oils and | |
| shortening. All of these purchases help to stabilize the agricultural | |
| market by balancing supply and demand, thus helping domestic | |
| farmers and ranchers. | |
| Let me briefly describe the purchase process and AMS’s role in | |
| it. The process begins long before AMS announces that it plans to | |
| purchase particular food items. AMS specialists knowledgeable in | |
| food processing work with potential vendors, Food Nutrition Serv- | |
| ice, and food safety officers in developing specifications for each | |
| item that will be purchased. Many of these items are similar to the | |
| popular commercial items. | |
| Other items are developed specifically to meet the special nutri- | |
| tional needs of our recipients. The specification provides details on | |
| product formulation, manufacturing, packaging, sampling and test- | |
| ing requirements and quality assurance provisions. By coordinating | |
| the development of specifications with specialists from all aspects | |
| of food processing, AMS ensures the purchase of high-quality, | |
| wholesome, appealing products that meet recipients’ needs and | |
| Federal standards for nutrition. | |
| Prior to conducting any purchase, AMS economists assess market | |
| conditions and determine the availability for commodities the agen- | |
| cy is considering buying. During this time, AMS also works closely | |
| with Food Nutrition Service to determine recipient preferences. Or- | |
| ders are taken by FNS and provided to AMS so that purchases can | |
| be made. | |
| Although weekly meal patterns must meet Federal standards, | |
| local school authorities make the decisions about what specific | |
| foods to serve and how they are prepared. Moreover, USDA’s com- | |
| modities comprise less than 20 percent of the food products put on | |
| school childrens’ plates. AMS and FSA are responsible for issuing | |
| and accepting bids and awarding and administering contracts. | |
| FNS is responsible for taking commodity orders from States, | |
| monitoring purchases and entitlements throughout the year, and | |
| the overall administration of the commodity nutrition programs. | |
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| 12 | |
| Actual purchasing begins with AMS and Farm Service Agency | |
| notifying specific industries, through press releases and other | |
| means, of their intent to purchase particular food products. These | |
| agencies invite bids under a formal advertised competitive bid pro- | |
| gram. These invitations give specific details on when bids are due | |
| for a particular purchase. All products must be US-produced and | |
| of domestic origin. Under Federal acquisition regulations, vendors | |
| must be deemed responsible prior to participating in the program. | |
| For instance, they must have a satisfactory performance record and | |
| adequate financial resources to demonstrate their ability to produce | |
| and deliver the product within designated timeframes. | |
| It is essential that USDA-purchased food products arrive on | |
| time, as recipients depend on it. Bids are received from responsible | |
| vendors, analyzed, and contracts are awarded by AMS or Farm | |
| Service Agency. Contracts are then administered by the agencies to | |
| make sure that the terms and conditions are followed. | |
| All products purchased by USDA are produced in compliance | |
| with applicable food safety—Federal food safety laws and regula- | |
| tions. Red meat, poultry, and egg products must be processed | |
| under USDA’s Food Safety and Inspection Service regulations. And | |
| all fruit, vegetable and fish products are subject to Food and Drug | |
| Administration regulations. | |
| FSIS and FDA ensure that such products are wholesome and | |
| that processing plants operate under sanitary conditions. In addi- | |
| tion to FSIS inspection, AMS inspectors are present during produc- | |
| tion and shipping of all red meat and poultry items to ensure com- | |
| pliance with all specification requirements, including those for raw | |
| material processing, packaging, and testing. | |
| Plants supplying processed fruit and vegetable products undergo | |
| a survey by AMS inspectors to ensure compliance with FDA re- | |
| quirements, including that agency’s good manufacturing practices. | |
| Additionally, fish products are produced in facilities operating | |
| under the National Marine Fisheries Service voluntary seafood in- | |
| spection program. For certain types of products, such as ground | |
| beef, egg products and fruit juices, additional product handling and | |
| testing protocols are required. | |
| AMS also works with FSIS to distribute educational materials | |
| for food service professionals about proper handling and cooking | |
| techniques. These materials are available both in Spanish and | |
| English, and are designed to assist food service professionals in | |
| every school participating in the National School Lunch Program. | |
| As you know, in 1998, USDA policy officials met with representa- | |
| tives of the American School Food Service Association and the | |
| American Commodity Distribution Association, with the aim of im- | |
| proving the commodity procurement and distribution process. AMS | |
| played a key role in developing and implementing the initiatives | |
| contained in the ‘‘Food Distribution 2000—USDA’s Reinvention | |
| Plan for Change’’ report. | |
| Some of the key initiatives contained in this report that AMS has | |
| implemented include the expanded use of long-term contracts with | |
| proven suppliers; expanded use of best-value contracting; revised | |
| product specifications to align them with commercially available | |
| products; purchase of commercially labeled products; use of com- | |
| mercial and commodity products interchangeably by further proc- | |
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| 13 | |
| essors in the manufacture of fruit and vegetables products, and, on | |
| a more limited basis, poultry products; implemented formal com- | |
| modity product hold and recall procedures for use by State and | |
| local authorities; and relaxed truckload delivery requirements al- | |
| lowing multiple stops within a State or city. | |
| Mr. Chairman, AMS is proud of the role it plays in providing | |
| food products to this Nation’s school children. We are proud of the | |
| relationship we have built with other Federal agencies, State agen- | |
| cies, and the school food community to carry out this most impor- | |
| tant responsibility. We look forward to working with you in any | |
| way that we can as the Child Nutrition Act and Richard B. Russell | |
| National School Lunch Act reauthorization process continues. | |
| This concludes my statement, Mr. Chairman, and I would be | |
| pleased to respond to any questions that you may have. | |
| Chairman BOEHNER. Mr. Yates, thank you for your testimony. | |
| [The prepared statement of Mr. Yates follows:] | |
| Statement of A. J. Yates, Administrator, Agricultural Marketing Service, | |
| U.S. Department of Agriculture | |
| Mr. Chairman and Members of the Committee, thank you for the invitation to ap- | |
| pear before you today to discuss the role of the Agricultural Marketing Service | |
| (AMS) in the National School Lunch Program. I am A. J. Yates, Administrator of | |
| AMS, and I am pleased to be here with Under Secretary Bost. | |
| In 1946, Congress passed the National School Lunch Act, providing a healthy | |
| lunch to millions of schoolchildren. Over 55 years later, the program continues to | |
| help improve the health of children, especially those at nutritional risk. | |
| While USDA’s Food and Nutrition Service (FNS) administers the National School | |
| Lunch Program (NSLP), AMS is responsible for purchasing many of the commod- | |
| ities for this and other domestic food assistance programs. We support the NSLP | |
| by providing nutritious, high quality food to schoolchildren through our purchases | |
| of red meat, fish, poultry, egg, fruit, and vegetable products. USDA’s Farm Services | |
| Agency (FSA) purchases flours, grains, peanut products, dairy products, oils, and | |
| shortenings. All of these purchases help to stabilize prices in agricultural markets | |
| by balancing supply and demand, thus helping domestic farmers and ranchers. Let | |
| me briefly describe the purchase process and AMS’ roll in it. | |
| The process begins long before AMS announces that it plans to purchase par- | |
| ticular food items. AMS specialists knowledgeable in food processing work with po- | |
| tential venders, FNS, and food safety officials to develop a specification for each | |
| item that will be purchased. Many of these items are similar to popular commercial | |
| items. Other items are developed specifically to meet the special nutritional needs | |
| of our recipients. The specification provides details on product formulations; manu- | |
| facturing, packaging, sampling, and testing requirements; and quality assurance | |
| provisions. By coordinating the development of specifications with specialists from | |
| all aspects of food processing, AMS ensures the purchase of high-quality, whole- | |
| some, appealing products that meet recipients’ needs and Federal standards for nu- | |
| trition. | |
| Prior to conducting any purchase, AMS economists assess market conditions and | |
| determine the availability for commodities the Agency is considering buying. During | |
| this time AMS also works closely with FNS to determine recipient preferences. Or- | |
| ders are taken by FNS and provided to AMS so that purchases can be made. Al- | |
| though weekly meal patterns must meet Federal standards, local school authorities | |
| make the decisions about what specific foods to serve and how they are prepared. | |
| Moreover, USDA commodities comprise less than 20 percent of the food products put | |
| on schoolchildrens plates. | |
| AMS and FSA are responsible for issuing and accepting bids and awarding and | |
| administering contracts. FNS is responsible for taking commodity orders from | |
| States, monitoring purchases and entitlements throughout the year, and the overall | |
| administration of the commodity nutrition programs. | |
| Actual purchasing begins with AMS and FSA notifying specific industries through | |
| press releases and other means of their intent to purchase particular food products. | |
| The agencies invite bids under a formally advertised competitive bid program. These | |
| ‘‘invitations’’ give specific details on when bids are due for a particular purchase. | |
| All products must be U.S.-produced and of domestic origin. | |
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| 14 | |
| Under Federal Acquisition Regulations, vendors must be deemed ‘‘responsible’’ | |
| prior to participating in the program. For instance, they must have a satisfactory | |
| performance record and adequate financial resources to demonstrate their ability to | |
| produce and deliver the product within designated timeframes. It is essential that | |
| USDA purchased food products arrive on time as recipients depend on it. | |
| Bids are received from responsible vendors, analyzed, and contracts are awarded | |
| by AMS and FSA. Contracts are then administered by the agencies to make sure | |
| that terms and conditions are followed. | |
| All products purchased by USDA are produced in compliance with applicable Fed- | |
| eral food safety laws and regulations. Red meat, poultry, and egg products must be | |
| processed under USDAs Food Safety and Inspection Service (FSIS) regulations, and | |
| all fruit, vegetable, and fish products are subject to Food and Drug Administration | |
| (FDA) regulation. FSIS and FDA assure that such products are wholesome and that | |
| processing plants operate under sanitary conditions. | |
| In addition to FSIS inspection, AMS inspectors are present during production and | |
| shipping of all red meat and poultry items to ensure compliance with all specifica- | |
| tion requirements—including those for raw materials, processing, packaging, and | |
| testing. Plants supplying processed fruit and vegetable products undergo a survey | |
| by AMS inspectors to assure compliance with FDA requirements, including that | |
| Agency’s Good Manufacturing Practices. Additionally, fish products are produced in | |
| facilities operating under the National Marine Fisheries Service voluntary seafood | |
| inspection program. For certain types of products, such as ground beef, egg prod- | |
| ucts, and fruit juices, additional product handling and testing protocols are required. | |
| AMS also works with FSIS to distribute educational materials for food service | |
| professionals about proper handling and cooking techniques. These materials, avail- | |
| able in both Spanish and English, are designed to assist food service professionals | |
| in every school participating in the NSLP. | |
| As you know, in 1998, USDA policy officials met with representatives of the | |
| American School Food Service Association and the American Commodity Distribu- | |
| tion Association with the aim of improving the commodity procurement and dis- | |
| tribution process. AMS played a key role in developing and implementing the initia- | |
| tives contained in the ‘‘Food Distribution 2000—USDA’s Reinvention Plan for | |
| Change’’ report. Some of the key initiatives contained in this report that AMS has | |
| implemented include: | |
| • Expanded use of long-term contracts with proven suppliers; | |
| • Expanded use of best-value contracting; | |
| • Revised product specifications to align them with commercially available prod- | |
| • Purchase of commercially labeled products; | |
| • Use of commercial and commodity products interchangeably by further proc- | |
| essors in the manufacture of fruit and vegetable products and, on a more lim- | |
| ited basis, poultry products; | |
| • Implemented formal commodity product hold and recall procedures for use by | |
| State and local authorities; and | |
| • Relaxed truckload delivery requirements allowing multiple stops within a State | |
| ucts; | |
| or city. | |
| Mr. Chairman, AMS is proud of the role it plays in providing food products to this | |
| Nations schoolchildren. We are proud of the relationships we have built with other | |
| Federal agencies, State agencies, and the school food community to carry out this | |
| most important responsibility. We look forward to working with you any way we can | |
| as the Child Nutrition Act and Richard B. Russell National School Lunch Act reau- | |
| thorization process continues. | |
| This concludes my statement, Mr. Chairman. I would be pleased to respond to | |
| questions from the Committee. | |
| Chairman BOEHNER. USDA’s commodity distribution program | |
| really has two objectives. One is to stabilize the agricultural mar- | |
| ketplace, and, second, to provide high-quality nutritious foods to | |
| Federal nutrition programs. And I am trying to—wearing both of | |
| my hats of interest—trying to understand what really drives this | |
| process: what is good for the nutrition programs in terms of what | |
| the schools want; or is it the economics of the marketplace in terms | |
| of the stabilization of certain commodity markets? | |
| So I would like to ask both of you, just help me understand | |
| which objective wins when it is all said and done. | |
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| 15 | |
| Mr. BOST. Mr. Chairman, let me take a stab at it. I don’t know | |
| if it is a question of which objective wins. I think what we have | |
| attempted to do in the Department is to ensure that there is a bal- | |
| ance, and that essentially they balance one or the other out in | |
| terms of us making some decisions that are going to address both | |
| entities. | |
| On the one side, of course, what the farmers and ranchers | |
| produce and they want us to buy; and on the other hand, a very | |
| important consideration that we have to give—we are interested in | |
| giving to ensure that we provide nutritious, healthy food to the 29 | |
| million children in our schools. | |
| And also the other issue of dealing with the bonus buys that are | |
| out there. So we try to bring all of those to the table and balance | |
| them out in terms of some decisions that we make. | |
| Interestingly enough, that is why there are essentially two com- | |
| ponents of the program. One, of course, is entitlements. There are | |
| 143—145 items on that list that schools are actually able to order | |
| from. The other is bonus buys. The bonus buys afford the Depart- | |
| ment a great deal of flexibility in terms of when and what they buy | |
| and how much. | |
| And so that tends to be somewhat of a lever, because it affords | |
| us an opportunity to attempt to balance all of those things out, a | |
| challenge. It is a major challenge for us. Because there is a great | |
| deal of pressure coming, of course, from one side on occasion, say- | |
| ing ‘‘Well, I want you to buy X.’’ It could be peaches, it could be | |
| tree nuts. It could be, ‘‘Well, I want you to buy more beef.’’ . | |
| On the other hand, it could be, we are interested in ensuring | |
| that the foods that we do buy, one, that we can afford to buy them; | |
| and, two, that they are going to meet the nutritional needs of | |
| school children. And, most importantly, that even when we do buy | |
| them, that the children are going to eat them. We have people who | |
| come to see us who are interested in, say, two of my favorites, as- | |
| paragus and brussel sprouts. You know, there are not too many | |
| second graders that that is at the top of their list, you know, in | |
| terms of interest and taste. | |
| So we try to ensure that we balance all of those things out. | |
| Chairman BOEHNER. Mr. Yates. | |
| Mr. YATES. Mr. Chairman, it is a balancing act. And we at AMS | |
| work very closely with FNS. We will have a number of different ag- | |
| ricultural commodity groups come before us in a period of time | |
| with a statement that our commodity is in surplus, we are having | |
| a difficult time. And the first thing that we always do, is we go to | |
| FNS and we say, here is what the industry has out there in sur- | |
| plus. Can you use it in any of the school lunch programs? Are the | |
| recipients interested in this type of product? | |
| It is a very close relationship that we have with FNS in this re- | |
| gard. And as the Under Secretary said, some of these commodities | |
| are wanted much more than others. And we look for ways of put- | |
| ting nutritious items together, even if it is a dried fruit mix, that | |
| would allow us to use certain commodities that by themselves | |
| might not be so appealing to an individual, a young student, but | |
| by combining these nutritious dried fruits together, it provides | |
| something that was very popular last year in the purchases that | |
| we made and the deliveries to the schools. | |
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| 16 | |
| Chairman BOEHNER. In Food Distribution 2000, the panel rec- | |
| ommended that specifications be written to resemble, as close as | |
| possible, the specifications used in commercial food system procure- | |
| ment. I know the Department has reviewed some of these. But how | |
| are we coming in terms of the implementation of all of those rec- | |
| ommendations? | |
| Mr. YATES. Well, I think we have been very successful in imple- | |
| menting most of those. One of the issues that the Under Secretary | |
| and I both stated in our testimony is the substitution issue in re- | |
| gards to fruit and vegetables. It is fairly broad in substitution | |
| there. And it is limited when it comes to poultry and to beef and | |
| pork products. | |
| For the poultry products, if our inspectors are in the facility | |
| where we have continuous inspection, the company can be making | |
| either commercial or school product, and actually we allow them to | |
| use their own label on the product. And so if it has passed under | |
| AMS inspection, those products can be interchanged. | |
| With beef, with the new beef specifications that we put in place | |
| last spring dealing with microbial testing, we allow no substitution | |
| because the health of one of the most at-risk groups of people we | |
| have in the country, the young people in school, we are going to | |
| assure to the best of our ability that we deliver a product that is | |
| safe and healthful. | |
| And so there—our testing begins at the carcass. And it goes | |
| through the boneless beef, on to after-processing. What we are | |
| looking at now in addressing the issue I think that you had raised | |
| is that we would entertain delivering on time to a processor, | |
| chilled, boneless beef for further processing that has gone through | |
| our inspection process and microbial testing. And I believe that | |
| that would provide a product that is more economical, and also a | |
| fresher product for school children. | |
| Chairman BOEHNER. I can see my time has expired. We will | |
| come back to that after all of the members have had a chance to | |
| ask their questions. Mr. Kildee. | |
| Mr. KILDEE. Thank you, Mr. Chairman. We understand that the | |
| Department has conducted studies to determine how to reduce | |
| overcertification of eligibles. Do you believe that these—that there | |
| are program safeguards built into your proposal to reduce overcer- | |
| tification that protect children, and to make sure that we aren’t | |
| dropping those that should still be in? And what are these safe- | |
| guards? | |
| I have in mind, for example, that I have taught at an inner-city | |
| school. We had homeless kids. We had illegal immigrants. We had | |
| migrant workers. We had children in barely functional families, if | |
| not dysfunctional families. We had really a cross-section. How have | |
| you built safeguards in to make sure that in your zeal to reduce | |
| overcertification that you weren’t really dropping those who legiti- | |
| mately need program? | |
| Mr. BOST. I think it is real important to note that, first of all, | |
| it is not necessarily just overcertification. We are interested in en- | |
| suring that every eligible child is able to participate in the pro- | |
| gram, because we have a significant number of eligible children, | |
| that for whatever reason, are not participating. So it is just not | |
| overcertification, but it is ensuring that those children that are eli- | |
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