5000

							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




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                                                                                  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.


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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.

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.




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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).




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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.


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.


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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 science-
    based information about irradiation so informed decisions can be made about the
    consumption of irradiated products.




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