Companies awarded contracts through the U.S. Department of Agriculture’s Buy Fresh programs, will be boxing the produce themselves to distribute to food banks, and the program is expected to last for six months at $100 million in produce a month.
The produce — which must be grown in the U.S., as with any commodity purchase program through the USDA — will come from regional and local distributors, which will deliver them to food banks and similar charities, according to an April 21 web seminar.
The program allows for flexibility, giving distributors the choice to focus on just produce, meat or dairy, or all three.
Federal contracts will also pay for $100 million each of cooked meat products and dairy items each month for the duration of the program, as outlined in the USDA’s Coronovirus Farm Assistance Program.
With nearly 4,000 people registering for the web seminar across several agricultural industries, USDA Agricultural Marketing Service Deputy Administrator David Tuckwiller said the agency is out of its “comfort zone” in preparing for the purchases.
“We are attempting to move at lightning speed,” during the web seminar. “We purchase agricultural products on a regular basis to meet both domestic and international nutrition assistance and food aid program needs; this program, however, is going to be completely different than any of the ways that we’ve ever done business before.”
The need is great, he said, noting growers and dairy producers who have had to plow under crops and dump milk, even as food banks are short-staffed and need more donations.
“This program was designed to attempt to address some of these challenges by linking together producers (and processors) and distributors that can take the food, put it in boxes to then provide to nonprofit organizations such as food banks,” he said.
The United Fresh Produce Association praised the USDA’s approach.
“We ask the industry to lean in and support this effort and show the diversity and ingenuity of how our supply chain can work with the federal government to get our delicious and healthy products to those most in need.” Robert Guenther, senior vice president of public policy for the United Fresh Produce Association, said in a news release.
Tuckwiller said the USDA will contract with distributors, who choose what non-profits to support from a USDA-approved list. Not all firms who want contracts will get them, he said.
Companies with contracts will be responsible for all supply chain and logistics activities necessary to ensure the boxes are distributed to persons in need of food.
“You as a contractor can invoice USDA and then we’ll pay,” he said. “One of the expectations is to make sure payments are flowing through all the way; we will expect (prompt) payment of any subcontractors, which can include growers, producers, processors.”
The USDA expects to ask for proposals from distributors on April 24, according to the United Fresh release. Awards are expected to be announced by May 8 and the program should be operational a week later, according to the release.
The AMS said there are five options for the commodity boxes:
- fresh fruits and vegetables;
- dairy products;
- pre-cooked meat;
- Combination box of fresh produce, dairy products, and pre-cooked meat; and
- fluid milk products by unit size.
Guidelines for the fresh produce boxes are:
- Products and processing must be of domestic origin;
- Consumer-friendly packaging (but not necessarily retail packs) is specified;
- Awardees must identify and manage relationships with non-profits, with a delivery schedule and box type terms; and
- Contracts will be issued in seven region and proposals can be submitted for multiple or partial regions.
Requirements and specifications will be available April 24, according to the USDA. To receive updates by e-mail from the agency, subscribe online by visiting the USDA website.
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