This memorandum provides clarification on the value pass through methods available under 7 CFR 250.36 and on the timing of processor inventory reductions of USDA Foods under each system.
This memorandum addresses inventory limitations and requirements that USDA Foods processors must follow when manufacturing processed end products for use in child nutrition programs.
This memorandum provides guidance to state distributing agencies and recipient agencies on the use of market basket analysis in procuring processed end products for USDA Foods in Schools and commercial goods for the National School Lunch Program, School Breakfast Program, Summer Food Service Program, and Child and Adult Care Food Program.
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.
This memo, which addresses commodity book inventory reduction at further processors. has been superseded by the July 16, 2021 memo, FD-40: Inventory Drawdown in USDA Foods Processing (Revised).