|DATE:||January 12, 2005|
|MEMO CODE:||FD-040: State Processing|
|SUBJECT:||Commodity Inventory Reduction at Further Processors|
It has been brought to our attention that further processors are unclear about the timing of book inventory reductions for commodities used in the manufacture of finished end products. The Food Distribution regulations at 7 CFR 250 do not specifically address this issue. Therefore, we issue the following policy for commodity book inventory reduction at further processors.
There are four main value pass through systems currently in use nationwide. Each system has unique timing for the processor to reduce book inventory for commodities provided by the Department for use in making finished end products to provide to eligible recipients.
FDD policy memorandum FD-007 and FD-025 allow variations of the systems described above, but those variations should not affect the timing of commodity book inventory reductions at a processor.
Food Distribution Division
The contents of this guidance document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.