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Feeling the Pinch: The Impact of Increasing Food Prices on School Lunch.

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Presentation on theme: "Feeling the Pinch: The Impact of Increasing Food Prices on School Lunch."— Presentation transcript:

1 Feeling the Pinch: The Impact of Increasing Food Prices on School Lunch

2 Commodity and Food Prices Milk Prices Increasing Source: NASS, USDA

3 Commodity and Food Prices Corn Prices Increasing Source: NASS, USDA

4 Commodity and Food Prices Wheat Prices Increasing Source: NASS, USDA

5 Commodity and Food Prices Fruit and Vegetables Increasing Source: NASS, USDA

6 On the School Lunch Tray Bread Up 12% Milk Up 17% Pasta Up 13% Cheese Up 15% Source: USDA Economic Research Service, 2007

7 Energy Prices Crude Oil Prices Increasing Source: Energy Information Admin

8 Benefit & Insurance Costs Increasing Health Care Premiums Source: Kaiser Family Foundation

9 What Does it Cost to Prepare a School Meal? Cost Type Cost Food Costs$1.15 Non-Food Costs$0.14 Labor Costs$1.26 Indirect Costs$0.11 TOTAL COSTS $2.70 (national school lunch cost average: $2.60 to $3.10) **Preliminary Figures** Source: SNA Preliminary

10 Average Cost of a School Meal Average Meal Prices for Students Reimbursement Rates (SY 2007-2008) Total Revenue per Lunch Full Paid Lunches Elementary: $1.66 Middle: $1.85 High: $1.90 $0.23 Elementary: $1.89 Middle: $2.08 High: $2.13 Reduced Price Lunch* $0.38 - $0.40$2.07$2.45 - $2.47 Free Lunch** $0.00$2.47 *Students with household incomes between 130%-185% of the poverty level receive meals at a reduced price rate. **Students with household incomes below 130% of the poverty level receive meals for free. Sources: School Nutrition Operations Report: The State of School Nutrition 2007 and the U.S. Department of Agriculture (USDA)

11 Across the Country Of school nutrition directors surveyed: –86.1% of saw an increase in food costs –83.2% saw an increase in labor costs –84.6% saw an increase in transportation costs –46.6% saw an increase in indirect costs (i.e. gas, electricity, water) (SNA 2007 Trends Report, August 2007, School Nutrition Association)

12 How School Districts are Coping In 2006-2007, 1/3 rd of school districts increased full-paid lunch meal prices. Full-paid lunch prices increased a median of 9% (5 cents) and breakfast prices increased a median of 15% in districts that raised prices. Source: 2007 SNA School Nutrition Operations Report

13 How School Districts are Coping New York City replaced grape tomatoes for sliced tomatoes at salad bars. Charlotte-Mecklenburg, NC switched lasagna for spaghetti. Spring, TX switched baby carrots for hand cut carrots. Hoover, AL is serving more bananas and apples instead of grapes.


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