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					Section 5000 Receipt of Commodities
Table of Contents
5100 5200 How Commodities Are Obtained Commercial Distribution
5210 5220 Commercial Distribution Conditions Forty Case Minimum

5300 5400

Direct U.S. Department of Agriculture Shipments Switching Between Direct Delivery and Commercial Distribution Inspection of Commodities Transportation of Commodities During Winter Months Receiving Irradiated Commodities

5500 5600 5700

Texas Department of Agriculture –September 2009 Food Distribution Program Handbook

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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.

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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."

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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.

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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.
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Texas Department of Agriculture –September 2009 Food Distribution Program Handbook

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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.

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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.

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Texas Department of Agriculture – September 2009 Food Distribution Program Handbook

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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).

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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.

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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 Food Distribution Program Handbook

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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.

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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 Rail/Pool Car Delivery October 15-April 15 Type of Protective Service Insulated car and/or heater service. A mechanical car with heater capabilities may be used in place of an insulated car. Remarks on the Notice to Deliver, which are to be shown on the Bill of Lading, state: "Load only in fully insulated trucks [containers]. Protect from freezing."

Truck and Piggyback

November 1-March 31

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.

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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.

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Texas Department of Agriculture – September 2009 Food Distribution Program Handbook

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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 sciencebased information about irradiation so informed decisions can be made about the consumption of irradiated products.

Texas Department of Agriculture –September 2009 Food Distribution Program Handbook

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