Purchasing Produce 1 Produce Safety University

Factors to Evaluate Before Purchasing Budget Menu Labor Equipment Storage Delivery 2

Vendor Options Broadline Distributor Produce Distributor Produce Cooperative Direct from Farm School Garden …..or a combination 3

Liability Insurance Coverage Food product liability General farm liability Other type(s) of liability – Product recall (Growers only) – Accidental contamination – Malicious tampering 4

Direct from Farm Establish product liability needs Typically $1 million minimum Rule of Thumb: $1000 for $1 million 1998 informal survey: $ Source: Rejesus R.M. and Dunlap A Insurance Coverage Options for Fresh Produce Growers. AG-710 5

Liability Insurance Coverage Funded by USDA’s Risk Management Agency Food Safety Project: Building on Farmer’s Input 25 assessments with producers in 4 states 76% with 20 acres or less in fruit or vegetables 66 Community Food Security Coalition Survey (2010) Ins-EmergingIssues.pdf

Liability Insurance Coverage 72% indicated they held product liability coverage 67% indicated no difficulties in securing coverage 64% had customers require product liability insurance 77 Community Food Security Coalition Survey (2010)

Liability Insurance Coverage 60% stated customers have no food safety program requirements 48% did not keep on farm food safety records 68% have participated in food safety training 88 Community Food Security Coalition Survey (2010)

Liability Insurance Coverage 42% use non-profit growers’ organizations as a source for guidance on food safety issues 93% identified a method they were using for managing manure or compost to prevent food safety problems 99 Community Food Security Coalition Survey (2010)

Liability Insurance Coverage Creative solutions to reduce insurance premiums – Group insurance for farmers in purchasing cooperative – Lower coverage amount for local growers – Research liability insurance options for farmers 10 Community Food Security Coalition Survey (2010)

Federal/State Requirements Currently no federal food safety requirements for fresh produce purchased locally Some states have state requirements – Example: Oklahoma 11

FDA Food Safety Modernization Act FDA charged with: – Defining high-risk products – Developing minimum standards for growing and harvesting produce – Improving traceability Tester Amendment addresses small farms – Expected to provide some exemptions 12

Distributors Provide variety and year-round availability Typically carry liability insurance Require food safety practices of supplier(s) Internal food safety program May already source local produce May be willing to source local produce 13

Tips for Sourcing Local Produce Through a distributor Ask if distributor is currently purchasing from any local farms If not, ask if they are interested Include requirement in bid specifications – To source local produce when available – Number of days from harvest to delivery for local produce 14

Produce Cooperative One delivery from multiple farms May offer greater variety Streamlined ordering and receiving Reduced paperwork – Invoice – Payment 15

Produce Cooperative Transportation and repacking may be concerns Commingling may occur Need to evaluate food safety practices from all sources Does the Cooperative have insurance? Do not exist throughout USA 16

Direct from Farm Buy with the seasons Create flexible menus Advertise menus are subject to change Innovative, creative recipes Is your staff supportive? 17

Direct from Farm May require more of your time – Communication – More than one call to place order – Multiple invoices/paperwork – Multiple deliveries 18

Direct from Farm/Purchasing Cooperative Pricing – Negotiate wholesale pricing – Expect quality produce at the price you can afford Order as early as possible Delivery – Vehicles – Packaging – Use of reusable containers – Handling quality concerns upon delivery Pay on time 19

Direct from Farm/Purchasing Cooperative 20 Oklahoma Farm to School Website – Produce Calculator Example:

School Garden Garden produce may be sold if funded by school nutrition program School nutrition may purchase from school organizations (e.g. FFA) 21

What’s the Right Fit for your Operation? Group discussion – Distributor – Farm to school – School garden 22

Formal and Informal Purchasing USDA requires that all purchases made by local school officials are conducted in accordance with all Federal procurement requirements A good procurement is a competitive procurement - this goes for local, too Formal and informal bidding process What is your informal threshold? Cannot split purchases 23

Formal and Informal Purchasing Write clear and detailed specifications – Clarifies what you want – Provides consistency from supplier to supplier Remove unwanted statements from the bid Provide estimated amount to be purchased Establish procedures for rejecting or returning product Expect safe handling of product at all times 24

Specifications Bid specification: Apples, variety name, 40 lb. case, 125 count, quantity to be purchased during bid period: 200 cases 25

Specifications Bid specification: Apples, variety name, 40 lb. case, 125 count, quantity to be purchased during bid period: 200 cases Price per case: $

Specifications Bid specification: Apples, McIntosh, 40 lb. case, 125 count, U.S. Extra Fancy or U.S. Fancy only, quantity to be purchased during bid period:

Specifications U.S. Extra Fancy- $26.00 U.S. Fancy- $

Specifications 29

Specifications U.S. No. 1 $21.00 U.S. Fancy $29.00 U.S. Extra Fancy $33.00 per case 30

After the Purchase Receive or reject Inspect the delivery vehicle Take and record temperatures Safely store, handle, and serve

Other Bid Considerations Climate controlled trucks for delivery GAP/GHP certification of sources Vendor HACCP plan Identify number of days from harvest to delivery

Geographic Preference – 2008 Farm Bill allowed schools to apply a geographic preference when buying locally grown produce – Rule may only be applied to the purchase of locally grown, unprocessed agricultural products – Unprocessed agricultural products may be chopped, cut, sliced, diced or shucked 33

What is local? What is your definition of local? – Within state borders? – Within county border? – Within a day’s drive? – Within 100 miles? – Discussion 34

Other Bid Considerations Product traceability documentation 35 Farm CO-OPSDistributor School School garden Produce Distributor ProcessorShipper

Traceability Farm CO-OPSDistributor School School garden Produce Distributor ProcessorShipper

Traceback/Traceforward Traceability Scenario – Team Activity – Break into small groups 37

Ensuring Traceability of Fresh Produce in Schools Purchasing records Receiving and storing (Avoid commingling) Document service of fresh produce Traceability for internal distribution Conduct a mock recall 38

Maintain harvest records – Product name – Harvest date – Name of harvester(s) Do not commingle 39 Ensuring Traceability of Fresh Produce in School Gardens

Distributor Expectations: Supplier identity and contact information Batch and lot number(s) Shipment dates when produce received by distributor and shipped to customer Customer contact record(s) 40 Ensuring Traceability of Fresh Produce in Schools

Distributor Expectations, continued: Internal traceability within facility May require GAPs GS1 Global Traceability Standards – Voluntary – Neutral, not-for-profit – 108 countries participate – Bar codes, radio frequency identification (RFID) – Data bar 41 Ensuring Traceability of Fresh Produce in Schools

Traceback/Traceforward USA = Size 7 Australia = Size 5.5 China = Size 38 UK = Size GS1 Global Standard Example 42

Traceback/Traceforward 43 GS1 Global Label Example 43

Farm and purchasing cooperative – Harvest records Harvest and pack date Field identifier Harvester(s) Customer records – Product is not commingled (purchasing coop) – Farmer has documented traceability system 44 Ensuring Traceability of Fresh Produce in Schools

Visit Your Sources Visit ALL sources Confirm GAPs certification if applicable Request documentation of food safety practices from your distributors’ suppliers Ask questions and verify when possible Use “checklist” tools to clarify food safety practices 45

Verifying On-Farm Food Safety Finding a farm Planning your farm visit Preparing for the farm visit Farm operations to observe After the visit 46

Summary Menu Staff buy in Vendor(s) Traceability Liability Food safety 47