This memorandum addresses inventory limitations and requirements that USDA Foods processors must follow when manufacturing processed end products for use in child nutrition programs.
In order to update and streamline policy guidance for the USDA Foods Processing Program, FNS is cancelling policy memoranda FD-009, FD-025, FD-130, FD-102, FD-030, FD-038, FD-048, FD-103, and FD-108. The guidance provided by these memoranda is outdated and has been superseded by the Final Rule: Revisions and Clarifications in Requirements for the Processing of Donated Foods, which was published on May 1, 2018.
The attached memorandum is Food Distribution Policy Memo FD-110, which clarifies requirements in crediting for, and use of, USDA donated foods in contracts with food service management companies, and provides guidance to ensure compliance with such requirements in the first and final years of such contracts.