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Section 5000

    Receipt of Commodities

Table of Contents

5100 How Commodities Are Obtained

5200 Commercial Distribution

    5210 Commercial Distribution Conditions

    5220 Forty Case Minimum

5300 Direct U.S. Department of Agriculture Shipments

5400 Switching Between Direct Delivery and Commercial

    Distribution

5500 Inspection of Commodities

5600 Transportation of Commodities During Winter Months

5700 Receiving Irradiated Commodities

Texas Department of Agriculture September 2009 Receipt of Commodities - 1

    Food Distribution Program Handbook

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Receipt of Commodities - 2 Texas Department of Agriculture September 2009

Food Distribution Program Handbook

    5000

    Receipt of Commodities

5100 How Commodities Are Obtained

The Texas Department of Agriculture (TDA) contracts with commercial distributors to receive,

    handle and distribute U.S. Department of Agriculture (USDA)-donated commodities to

    recipient agencies (RAs). TDA selects commercial distributors through competitive bids for

    service to specific areas of the state (see Item 5200, Commercial Distribution).

Except as specified below, TDA's rules require RAs to receive USDA-donated commodities,

    including processed commodities, through commercial distribution.

EXCEPTIONS:

? RAs and co-ops that apply for and meet the criteria for direct USDA shipments are not

    required to participate in commercial distribution (see Item 5300, Direct U.S. Department of

    Agriculture Shipments).

? USDA ships certain commodities directly to processors for further processing. If

    arrangements can be made with the processors, RAs may, without meeting criteria for direct

    USDA shipments, have their processed commodities delivered directly to them or a

    warehouse of their choosing. However, the RAs must receive other USDA commodities

    through commercial distribution.

NOTE: TDA rules for direct USDA shipments identify co-ops whose RA members are

    independent school districts as "school co-ops." RAs not school related may form co-ops

    identified in rules as "non-school co-ops."

5200 Commercial Distribution

After approving an application for USDA-donated commodities, the TDA notifies the

    commercial distributor serving that area. The commercial distributor then:

? Contacts the approved RA, and

    ? Arranges for delivery or pickup of commodities.

5210 Commercial Distribution Conditions

? TDA contracts with commercial distributors for handling, storage, pickup and delivery

    services. RAs are responsible for paying for these services.

    ? Regularly scheduled deliveries are between 6:30 a.m. and 2:30 p.m. RAs must be notified 30

    days in advance before any change to the delivery schedule.

    Texas Department of Agriculture September 2009 Receipt of Commodities - 3 Food Distribution Program Handbook

? Pickup hours are between 8 a.m. and 3 p.m. and time slots must be scheduled in advance.

    ? Commercial distributors must notify RAs of schedule changes before the scheduled time

    passes.

NOTE: RAs should maintain pallets for exchange with commercial distributors when deliveries

    are made. Bulkheads should be used to separate frozen, chilled and dry commodities.

5220 Forty Case Minimum

For any calendar month, the first delivery or pick-up of USDA-donated foods, including

    processed end products, the TDA contracted distributor may charge the RA up to the

    contracted rate, regardless of the number of cases of food. After the first delivery or pick-up of

    the month, the RA must pay at least the 40 case minimum rate for delivery or pick-up, even if

    the shipment is fewer than 40 cases. If the delivery or pick-up is more than 40 cases, the

    distributor will bill the RA the contracted rate.

EXAMPLES:

Fewer than 40 cases:

1. The RA is allocated 20 cases and chooses four deliveries per month of five cases each. The

    RA pays the Schedule Rate for 5 (five) cases for the first delivery of the month, and the

    Schedule Rate for 40 cases for the next three additional deliveries that month, even though

    they are receiving only five cases with each delivery.

2. The RA is allocated 20 cases and chooses to pick up 10 cases the first of the month and

    return in two weeks for the remaining 10 cases. The RA pays the contracted distributor’s

    pick-up rate for the first pick-up of the month (10 cases) and the distributor’s rate for the 40

    case minimum for the remaining 10 cases.

Forty or more cases:

1. The RA is allocated 220 cases and chooses four deliveries per month of 55 cases each. The

    RA pays the Schedule Rate for 55 cases for each delivery.

2. The RA is allocated 220 cases and chooses to pick up 100 cases in the first pick-up of the

    month and return in two weeks for the remaining 120 cases. The RA pays the contracted

    pick-up rate for the first pick-up of the month (100 cases) and the pick-up rate per case for

    the remaining 120 cases.

Receipt of Commodities - 4 Texas Department of Agriculture September 2009

     Food Distribution Program Handbook

5300 Direct U.S. Department of Agriculture Shipments

RAs and co-ops may apply to receive direct shipment of USDA-donated commodities only:

? At initial application, or

    ? During the annual contract update process.

While all criteria must be met, a major requirement is that an individual RA or co-op must be

    capable of receiving, storing and handling a truckload of a single commodity (approximately

    40,000 pounds).

5400 Switching Between Direct Delivery and Commercial

    Distribution

Anytime during the year, an RA or co-op that receives direct USDA shipments may switch to

    commercial distribution. (Note: Systemic changes by TDA, USDA and commercial distributors

    to make a switch between direct delivery and commercial distribution may result in a delay

    before the switch occurs). However, an RA or co-op that participates in commercial distribution

    may apply to switch to receiving direct USDA shipments only during the annual contract

    update process.

NOTE: Prior to the effective month of a switch from commercial distribution to direct delivery,

    an RA or co-op must transfer USDA commodities stored in the commercial warehouse to a

    private account at the warehouse or move the commodities to its own storage facility.

5500 Inspection of Commodities

Before taking possession of and signing for commodities (whether delivered or picked up), the

    representative of the RA or co-op must inspect all items to ensure that the product:

    ? And quantity are as identified on the delivery or pickup document (for example, bill of

    lading or invoice);

    ? Is in good condition, and

    ? Belongs to the RA or co-op.

Refuse and do not unload product that:

? Is infested with living animals or insects; or

    ? Has evidence of infestation (contains dead animals or insects, dead animal or insect parts,

    nesting material).

Texas Department of Agriculture September 2009 Receipt of Commodities - 5

    Food Distribution Program Handbook

If the product is in questionable condition (damaged or spoiled) or quantity is not correct, the

    representative of the RA should:

? Note an exception on the delivery or pickup document when signing;

    ? Sign the delivery or pickup document and have the driver sign it, as well; and

    ? Notify TDA immediately.

5600 Transportation of Commodities During Winter Months

Each year, carriers of USDA-donated commodities must protect certain foods (such as canned

    processed commodities) from freezing during shipping in winter months.

The standards required for protecting commodities from freezing, via the

    various modes of transportation are as follows:

    Mode Delivery Type of Protective Service Rail/Pool Car October 15-April 15 Insulated car and/or heater service. A mechanical

    car with heater capabilities may be used in place

    of an insulated car.

    Truck and November 1-March 31 Remarks on the Notice to Deliver, which are to

    Piggyback be shown on the Bill of Lading, state: "Load only

    in fully insulated trucks [containers]. Protect

    from freezing."

NOTE: In some instances, carriers may request exceptions to these rules from USDA, but in all

    circumstances, USDA ensures that the carrier is responsible for protecting the commodities

    during shipping.

5700 Receiving Irradiated Commodities

Irradiation has been approved by the Food and Drug Administration as one of several tools that

    can be used to help protect against food borne illness. Irradiation is not a substitute for safe food

    handling techniques. RAs may obtain irradiated foods through the Food Distribution Program.

The USDA makes irradiated commodities available only at the request of TDA and RAs.

? Irradiated products are identified in the Texas Commodity System.

    ? You have the option to choose irradiated or non-irradiated products. ? Ordering irradiated commodities will have no effect on your National School Lunch

    Program meal reimbursement or your commodity entitlement. However, prices for

    irradiated commodities are dictated by competition, so they may not be the same price as

    the non-irradiated product.

Receipt of Commodities - 6 Texas Department of Agriculture September 2009

     Food Distribution Program Handbook

    ? Irradiated commodities will arrive clearly labeled with the radura symbol or another

    prominently displayed printed notice of irradiation.

    ? You must not mix irradiated commodities in the same containers with non-irradiated foods.

If you order irradiated products, you:

    ? Should ensure that they remain clearly labeled with the radura symbol or another

    prominently displayed printed notice of irradiation;

    ? Should inform parents, students and the school community that they have the choice to eat

    or not eat irradiated products;

    ? Are encouraged to offer non-irradiated alternatives when irradiated commodities are served;

    and

    ? Are encouraged to conduct informational and educational activities that provide science-

    based information about irradiation so informed decisions can be made about the

    consumption of irradiated products.

Texas Department of Agriculture September 2009 Receipt of Commodities - 7

    Food Distribution Program Handbook

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