January 21, 2015 Webcast (9:00 – 10:30 AM)file2.pasbo.org/handouts/MaximizeCommodities/WH_Maximize...MAXIMIZING YOUR COMMODITY DOLLARS January 21, 20 15 Webcast (9:00 – 10:30 AM)

2014-2015 Workshop Series

MAXIMIZING YOUR COMMODITY DOLLARS January 21, 2015 Webcast (9:00 – 10:30 AM)

The commodity system was designed with the dual purpose of providing food at low or zero cost to schools, while at the same time providing a guaranteed market for agricultural products. However, some Food Service Directors incorrectly perceive commodity dollars as “free” money. This webinar will discuss different perspectives and best practices for utilizing various commodity programs. Learn about: - How to use commodity funding wisely - Commodity products vs. commercial products – considering market price - Department of Defense Fresh Fruit/Vegetable Program - Manufacturers’ perspective of commodity use INTENDED AUDIENCE: Food Service Directors, Business Managers PRESENTERS: Jack Koser, Emeritus Christopher Dunn, PRSBO, Director of Food Service, Cocalico SD Kim Schneider, Regional K-12 Sales Manager, Advance Pierre Foods ANNOUNCEMENTS: � All participants must sign-in on a Webcast Attendance Form for attendance/credit tracking. Forms are at

the back of the handout packet. There are two forms – each attendee need complete only ONE form as follows: - HOST LEA FORM – use for all attendees from the same school/organization as the Host registrant. - GUEST FORM – use for all Guest attendees from a school/organization different than the Host registrant. Host sites are asked to collect and submit information on every participant at your site. For credit to be given, Attendance Forms must be returned to PASBO by January 28.

� If you are disconnected at any time during the program, please repeat the logon procedure to reconnect. � You can submit a question at any time using the “Chat” function at the left side of your screen – type your

question in the message box and click on “Enter” to send. � Please track your CEU credits for PASBO Professional Registration. (Professional Registration CEUs = 1) � Your evaluation of this program is important to us. The primary contact will receive an evaluation link via

email. Please provide feedback to ensure that PASBO programs are meeting your needs. � This program is being recorded to provide access to those not able to participate in the live program and

serve as a review tool. Find information in your handout. Check out the PASBO Store at http://www.pasbo.org/store_home.asp for other webcast titles.

Thank you for your participation!

Pennsylvania Association of School Business OfficialsMailing Address: Office Location:

P.O. Box 6993 2608 Market Place

Harrisburg, PA 17112-0993 Harrisburg, PA 17110

Telephone 717-540-9551 www.pasbo.org FAX 717-540-1796

PASBO Webcast Presentation 1

MAXIMIZING YOUR COMMODITY DOLLARS

January 21, 2015 Webcast (9:00 – 10:30 AM)

Pennsylvania Association of School Business Officials

Listen to audio over your computer speakers (If you prefer to listen by phone, you may dial-in using the

numbers at the top of your screen. Phone lines will be available 10 minutes prior to the event start.)

1

Presenters

• Jack Koser, Emeritus• Christopher Dunn, PRSBO, Director of

Food Service, Cocalico SD• Kim Schneider, Regional K-12 Sales

Manager, Advance Pierre Foods

2


Smart Business + Informed Decisions = Great Schools

Challenges/Opportunity• Be smart – each school district needs to maximize

their dollars• Make sure you have filled out the survey that

Amanda at PA Department of Agriculture sends out each year. Due 1/16

a) It allows us to decide what she will purchase for us

b) Gives you a chance to see what the items cost and is it worth to buy

3


Interesting Statistics

• Two largest turkey processors processed 1,532,399 lbs of turkey but over 100,000 lbs were unused

• Two largest potato processors processed 1,589,588 lbs of potatoes and over 100,588 lbs where unused

• Pa. had over 100,000 cases of food sitting at distributors for over 6 months

4



Factors to consider• FSD need to only order pounds that they will actually

use. They should use the commodity calculator before they order to figure what they will use for the year.

• As everyone saw as of 7/1/2014, everyone’s banks were emptied and brown box items were taken away

• This year Amanda will be looking at usage each month so set a day ½ through the month and check K-12 and Processor link for your draw downs.

5


Things you need to know1. Check prices of all brown box products, compared to prices

of same items on your bid. (See examples)

2. Is commodity processing a good deal? (See examples)

3. Do you check refusal list sent out by Amanda?

4. Do you check your invoices to make sure you are getting commodity allowances

5. Do you look on processors link and K-12 to see if you are set-up to the proper distributor,

6. When you see you are running low in your bank, do you check with your brokers to see if they can get you more lbs

6



Calculating cost plus delivery of product

Examples1. Peach cups(35.54 plus 3.00 handling) for 96 portions for a unit cost

35 cents. Bid price 50 cents so commodity product is cheaper

2. Brown box roasted chicken (68.07 plus 3.00 handling)for a cost of 2.36 per lb bid price

3. Pre-cooked meatballs cost before processing $2.79 lb. Our bid price through distributor $2.02 without using any commodities in the product

4. Burgers reg cost w/o commodities .36 cents. With commodities 9-11 cents

5. Cooked steak meat w/o commodities .63 cents. With commodities.20 cents

7


Comparison of cost of brown box, processed and open market

• Some examples of cost comparisons• Frozen vegetables

a. corn brown box .57cents lb-commercial .64b. gr. beans br. box .51cents-commercial- .59c. veg. beans 6/10 cns $15.13-commercial $19.44 -

$4.31 cs savings

8



Examples 1. Using bid price plus utilizing a coupon can save you more than processing.

a. Contadina pizza sauce bid price 25.59 less $15. per case up to 20 cs per school and the coupon is offered twice a year so your cost is 10.59 compared to Red gold price 24.29 less 4.44 commodity allowance for a net price of $19.85 savings of 9.26 per cs

2. using opportunity buys – instead of using chopped and formed product and paying 1.75 before commodity allowance. So is it worth using your dollars to buy something that is 25 cents more a lbBefore you use your commodity dollars.

a. solid muscle B/S breast filets 1.50 lbb. Solid muscle tenders 1.46 lb c. Solid muscle breaded Filets 1.50 lb

9


Commercial quantity orders

Can you take direct shipments from manufacturers -either commercial or processed product you can save anywhere from 10% to 20% .Allows you to get the bid price from the manufacturer, the commodity allowance and get the items you want when you want them.

10


Smart Business + Informed Decisions = Great Schools11

ITEM DIRECT PRICE DISTRIBUTOR PRICE – NOI

SAVINGS

Tyson BeefPatty 2.15oz

$14.99 $19.81 $4.82

Land O Lakes160 Slice American

$28.20 $45.47 $17.27

Mickey’sWG 8 cut

$5.03/ Pizza.63c / slice

$6.97 /Pizza.84c /slice

$1.94/pizza.24c / slice


Processed Commodities• Fee For Service (FFS) – Processed product is delivered

to designated warehouse or school district. Billing comes from manufacturer to school district.

• Modified Fee For Service (MFFS) – Processed product is delivered from distributor, billing comes from distributor. Commodity product can be stocked or special order.

• Net off Invoice (NOI) – Processed product is delivered from distributor. The pass thru value (PTV) of the commodity, is rebated off the invoice.

12



WEBSCM CODE #100208/ #100219/ #100220/ #100224/ #100225 #100212

Item # DescriptionCN

Equivalant(oz.)

Case Count/Serving Size

Case Weight (lbs.)

Servings Per

Menu

Num. of Cases / Menu

Num of Menus /

SY

Num. of Cases /

SY

Lbs. DF Drawdown per case

$DFV Total DF LBS

101041 Chunky Applesauce

1/2 cup fruit 96 / 4.60 oz. 27.60 0.00 0.00 20.84 10.31 0.00

102041 Cinnamon Applesauce

1/2 cup fruit 96 / 4.60 oz. 27.60 0.00 0.00 27.05 0.00 0.00

110401 Applesauce 1/2 cup fruit 96 / 4.60 oz. 27.60 0.00 0.00 27.05 0.00 0.00

801401 Peach Fruit Cup

1/2 cup fruit 96 / 4.75 oz. 28.50 0.00 0.00 25.20 0.00 0.00

802401 Pear Fruit Cup

1/2 cup fruit 96 / 4.75 oz. 28.50 0.00 0.00 26.70 0.00 0.00

A12621

Mixed Fruit Cup (w/grapes) CY ONLY

1/2 cup fruit 96 / 4.75 oz. 28.50 0.00 0.00 27.00 0.00 0.00

0.00

Cost of commodity apples 14-15 .4947 lbs

13


Commodity BalancesProcessor Link / K-12 Foodservice

• http://processorlink.com• http://K-12Foodservice.com• Log in frequently for Commodity Balances• Commodity Balance drawdown of 10% per month. • 10% or less remaining by the end of the school year.

14



Department of Defense Fresh Fruits and Vegetable

Program

15






• Send text questions using the “Chat” function at the left side of your screen.

• Type message in box and click “Enter” to send.

Time for Questions

19

Thank you for your participation!

REMINDER: Webcast host sites are asked to have every participant sign-in on an Attendance Form and return to the PASBO Office for attendance and credit purposes. Please note there are two different forms:- HOST LEA FORM – use for all attendees from the same school/organization as the Host registrant.- GUEST FORM – use for all Guest attendees from a school/organization different than the host registrant.

Forms must be received by January 28.

20


Join us at these upcoming workshops:

- Complying with GASB Pension Reporting* - January 22/Webcast- Elements of Food Service Administration* - January 27/

Harrisburg - Title IX Compliance Officer Duties - January 29/Webcast- Applications in Data Management - February Online Course

(Course launch February 2)- Transporting Students with Behavioral Needs - February 10/

Webcast - Auditorium and Performing Arts Safety - February 11/ Webcast

For info, visit www.pasbo.org/workshops

21


USDA Farm to School Program Fact Sheet: Using DoD Fresh to Purchase Local Produce 1

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MAXIMIZING YOUR COMMODITY DOLLARS

Webcast Recording Order Form The commodity system was designed with the dual purpose of providing food at low or zero cost to schools, while at the same time providing a guaranteed market for agricultural products. However, some Food Service Directors incorrectly perceive commodity dollars as “free” money. This webinar will discuss different perspectives and best practices for utilizing various commodity programs. Learn about: - How to use commodity funding wisely - Commodity products vs. commercial products – considering market price - Department of Defense Fresh Fruit/Vegetable Program - Manufacturers’ perspective of commodity use

A recording of the webcast program will be available for download approximately two weeks after program date. Whether you use it as a review or share it with fellow employees unable to attend the live webcast, the information is at your fingertips!

Fill out and send your order form to PASBO today! Name: Title:

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Webcast Attendee by February 4* Non-Attendee or after February 4 (*Available to paid webcast attendees only)

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Use this form to submit the names of all Guest attendees from a School/Organization different than the Host registrant. Host site should collect forms and return to PASBO within 7 days following program.

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Documents

January 21, 2015 Webcast (9:00 – 10:30 AM)file2.pasbo.org/handouts/MaximizeCommodities/WH_Maximize...MAXIMIZING YOUR COMMODITY DOLLARS January 21, 20 15 Webcast (9:00 – 10:30 AM)