REWORK wholesome

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					       REWORK

Wholesome, salvageable
product generated during a
production run that does not
meet quality of approved
finished end product
Rework Examples:

•   Broken patties
•   Nuggets
•   Breading
•   Lumps
•   Ridges
 Rework can be reincorporated in
  subsequent production runs of
    same product as long as
consistent with original formulation
 Rework NOT counted
  when determining if
processor met guaranteed
     minimum yield
  Rework generated during
      production run or
incorporated into subsequent
   production run, GMR
   calculated only on raw
     commodity pounds
      Inventory Draw Down:
• Draw down of raw inventory based on
  pounds of raw commodity in production
  run

• Rework inventory drawn down based on
  amount of rework in production run
         Rework may be:
• Blended into the raw formulated
  batches;
            Rework may be:
• Blended into the raw formulated batches;
• Packaged and returned to the State
  Agency; or
           Rework may be:
• Blended into the raw formulated batches;
• Packaged and returned to the State Agency;
  or
• Saved for use in subsequent
  production runs
      Saved Rework must be:
• Weighed,
• Inventoried, and
• Stored under proper conditions
            Saved Rework:
• Recorded on grading certificate as carryover
  and on subsequent grading certificates as
  added product
• USDA grader will conduct condition exam
Processor may dispose of rework that
      cannot be reincorporated
     Processor Disposal of
           Rework:

• Cooked rework that is not more than 2%
  percent of the raw commodity
• Raw rework that is not more than 1% of
  the raw commodity weight
• Raw commodity weight for poultry is the
  deboned weight
  Any rework disposed of by the
 processor must be weighed and
recorded on the grading certificate
        by a USDA grader
• Rework inventory may be carried
  forward into next contracting year
  with State consent
• Rework inventory may be carried forward into
  next contracting year with State consent
• Processor must pay State value of
  commodity contained in rework if
  contract is terminated
• Rework inventory may be carried forward into
  next contracting year with State consent
• Processor must pay State value of commodity
  contained in rework if contract is terminated
• State has option of transferring
  rework to another State
• Rework inventory may be carried forward into
  next contracting year with State consent
• Processor must pay State value of commodity
  contained in rework if contract is terminated
• State has option of transferring rework to
  another State
• If payment preferred, value
  determined using commodity file
  price

				
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posted:9/10/2012
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