commodity purchases

I love it when business travel doesn’t feel so much like a commitment as it does an adventure. That’s the feeling I had this year (and every year) as I packed my bag and headed to the School Nutrition Association’s Annual National Convention (SNA-ANC) in Boston, MA. I was eager and anticipated a week full of sharing, learning, and exploring with a large number of our stakeholders!

I was excited to share with the audience the mission of the commodity purchase program for my agency, the Agricultural Marketing Service (AMS). The program supports U.S. agricultural markets by stabilizing demand, while providing safe, quality foods to federal nutrition assistance programs. At one end of the supply chain, USDA’s domestic food purchases support markets that America’s farms, ranches, and fisheries rely on. On the other end, the “USDA Foods” that we purchase are a critical element in our nation’s food and nutrition safety net.

USDA’s purchase programs were created to support our nation’s farmers through the purchase of domestic products and to increase Americans’ access to nutritious food.  Many businesses who sell to USDA find that the programs also create other opportunities for growth.

Companies like Wawona Frozen Foods have used the Commodity Purchase Program, administered by USDA’s Agricultural Marketing Service (AMS), as a reliable outlet for their products.  The consistent opportunities offered through government contracting allowed them to eventually expand into commercial foodservice and retail markets.  For nearly 20 years, Wawona competitively bid for contracts and provided quality, nutritious foods to USDA programs. As a dependable USDA vendor, they supply more than 50 million frozen fruit cups to the National School Lunch Program each year.

Logistics is not just a fancy buzz word; it is the oil that keeps the engine of an interconnected global market running smoothly. For U.S. food purchasing agencies, logistics means ordering, procuring, and delivering nearly 8.5 billion pounds of domestically-produced foods by successfully awarding nearly $3 billion in contracts during the last fiscal year. It means using the Web-Based Supply Chain Management System (WBSCM) – a tool developed by USDA that helped hundreds of companies deliver quality foods to recipients in the National School Lunch Program, other federal food assistance programs and even victims of disasters.

Before it could facilitate the ordering and delivery of all these foods, WBSCM had to integrate the business processes and needs of recipient agencies, external vendors/contractors and employees from five agencies with unique missions. The Agricultural Marketing Service (AMS), Food and Nutrition Service (FNS), Farm Service Agency (FSA) and Foreign Agricultural Service (FAS) are all USDA agencies, while the U.S. Agency for International Development (USAID) is an entirely different department. Creating a system that successfully tracks data covering the entire process – from gathering orders and soliciting bids to making sure that vendors are paid – was not an easy task. It requires a reliable, flexible system and an efficient staff to make it all come together.