[Federal Register Volume 64, Number 1 (Monday, January 4, 1999)]
[Notices]
[Pages 71-73]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34789]
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DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
Food Distribution Program: Substitution of Donated Beef and Pork
With Commercial Beef and Pork
AGENCY: Food and Nutrition Service, USDA.
ACTION: Notice.
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SUMMARY: This notice announces the Food and Nutrition Service's (FNS)
intent to implement a demonstration project to test program changes
designed to improve the State processing of donated foods by allowing
the substitution of donated beef and pork supplied by the Department of
Agriculture (the Department)with
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commercial beef and pork. FNS is invoking its authority under 7 CFR
250.30(t) to waive the current prohibition in 7 CFR 250.30(f)(1)(i)
against the substitution of meat and poultry items and to establish the
criteria under which substitution would be permitted. The Department
will use the demonstration project results to further examine whether
allowing this type of substitution will result in increased processor
participation and provide a greater variety of processed end products
to recipient agencies in a more timely manner and/or at lower costs.
DATES: The proposals described in this Notice may be submitted to FNS
through June 30, 2000. The demonstration project runs until June 30,
2001.
ADDRESSES: Proposals should be sent to Les Johnson, Director, Food
Distribution Division, Food and Nutrition Service, U.S. Department of
Agriculture, Park Office Center, Room 501, 3101 Park Center Drive,
Alexandria, Virginia 22302-1594.
FOR FURTHER INFORMATION CONTACT: David Brothers, Schools and
Institutions Branch, at (703) 305-2644.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This notice has been determined to be not significant and therefore
was not reviewed by the Office of Management and Budget under Executive
Order 12866.
Executive Order 12372
This program is listed in the Catalog of Federal Domestic
Assistance under 10.550 and is subject to the provisions of Executive
Order 12372, which requires intergovernmental consultation with State
and local officials (7 CFR Part 3015, Subpart V and final rule-related
notices published at 48 FR 29114, June 24, 1983 and 49 FR 22675, May
31, 1984).
Regulatory Flexibility Act
This action is not a rule as defined by the Regulatory Flexibility
Act (5 U.S.C. 601-612) and is thus exempt from the provisions of that
Act.
Background
Section 250.30 of the current Food Distribution Program regulations
(7 CFR Part 250) sets forth the terms and conditions under which
distributing agencies, subdistributing agencies, and recipient agencies
may enter into contracts with commercial firms for processing donated
foods and prescribes the minimum requirements to be included in such
contracts. Section 250.30(t) authorizes FNS to waive any of the
requirements contained in 7 CFR Part 250 for the purpose of conducting
demonstration projects to test program changes designed to improve the
State processing of donated foods.
Current Program Requirements
The State processing regulations at Section 250.30(f)(1)(i)
currently allow for the substitution of certain donated food items with
commercial foods, with the exception of meat and poultry. Section
250.30(g) provides that, when donated meat or poultry products are
processed or when any commercial meat or poultry product is
incorporated into an end product containing one or more donated foods,
all of the processing shall be performed in plants under continuous
Federal meat or poultry inspection, or continuous State meat or poultry
inspection in States certified to have programs at least equal to the
Federal inspection programs. In addition to Food Safety Inspection
Service (FSIS) inspection, all donated meat and poultry processing must
be performed under Agricultural Marketing Service (AMS) acceptance
service grading.
Currently, only a few companies process donated beef and pork.
Those processors have stated that the current policy prohibiting the
substitution of donated beef and pork reduces the quantity of donated
beef and pork they are able to accept and process during a given
period. Processors must schedule production around deliveries of the
donated beef and pork because those products are highly perishable.
Some of the processors must schedule production around deliveries of
donated beef and pork for up to 30 States. Vendors do not always
deliver donated beef and pork to the processors as scheduled, causing
delays in production. These delays may be alleviated if the processors
can replace donated beef and pork with their commercial beef and pork.
Demonstration Project
From October 1, 1998 to June 30, 2001, the Department will operate
a demonstration project under which it will permit selected processors
to substitute donated beef and pork in the State processing program for
commercial beef and pork. Processors may submit proposals and be
approved to participate in the demonstration project during this time.
FNS is invoking its authority under 7 CFR 250.30(t) to waive the
current prohibition in 7 CFR 250.30(f)(1)(i) against substitution of
beef and pork for purposes of this demonstration project.
The term substitution in 7 CFR 250.3 is defined to mean the
replacement of donated foods with like quantities of domestically
produced commercial foods of the same generic identity and equal or
better quality.
FNS is soliciting interested beef and pork processors to submit
written proposals to participate in the demonstration project. The
following basic requirements will apply to the demonstration project:
As with the processing of donated beef and pork into end
products, AMS graders must monitor the process of substituting
commercial beef and pork to ensure program integrity is maintained.
Only bulk beef and pork delivered by USDA vendors to the
processor will be eligible for substitution. No backhauled product will
be eligible. (Backhauled product is typically frozen beef and pork in 9
pound chubbs delivered to schools which may be sent to processors for
further processing at a later time.)
Commercial beef and pork substituted for donated beef and
pork must be certified by an AMS grader as complying with the same
product specifications as the donated beef and pork. The age of any
commercial product that is used in replacement for donated food may not
exceed six months.
Substitution of commercial beef and pork may occur in
advance of the actual receipt of the donated beef and pork by the
processor. However, no substitution may occur before the notice to
deliver for that processor is issued by USDA. Lead time between the
purchase and delivery of donated beef and pork may be up to five weeks.
Any variation between the amount of commercial beef and pork
substituted and the amount of donated beef and pork received by the
processor will be adjusted according to guidelines furnished by USDA.
Any donated beef and pork not used in end products because
of substitution must only be used by the processor in other commercial
processed products and cannot be sold as an intact unit. However, it
may be used to fulfill other USDA contracts provided all terms of the
other contract are met.
The only regulatory provision or State processing contract
term affected by the demonstration project is the prohibition on
substitution of beef and pork (section 250.30(f)(1)(i) of the
regulations). All other regulatory and contract requirements remain
unchanged and must still be met by
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processors participating in the demonstration project.
The demonstration project will enable FNS to evaluate whether to
amend program regulations to allow the substitution of donated beef and
pork with commercial beef and pork in the State processing program.
Particular attention will be paid to whether such an amendment of the
regulations would increase the number of processors participating, and
whether it would increase the quantity of donated beef and pork that
each processor accepts for processing. Further, FNS will attempt to
determine whether the expected increase in competition and the expected
increase in the quantity of donated beef and pork accepted for
processing will enable processors to function more efficiently,
producing a greater variety of processed end products more quickly and/
or at lower costs.
Interested processors should submit a written proposal to FNS
outlining how they plan to carry out the substitution while complying
with the above conditions. The proposal must contain (1) a step-by-step
description of how production will be monitored; and (2) a complete
description of the records that will be maintained for (a) the
commercial beef and pork substituted for the donated beef and pork and
(b) the disposition of the donated beef and pork delivered by USDA. All
proposals will be reviewed by representatives of the Food Distribution
Division of FNS and by representatives of the AMS Livestock Division's
Commodity Procurement Branch and Grading Branch. Companies approved for
participation in the demonstration project will be required to enter
into an agreement with FNS and AMS which authorizes the processor to
substitute donated beef and pork with commercial bulk beef and pork in
fulfilling any current or future State processing contracts during the
demonstration project period. Participation in the demonstration
project will not ensure that processors will be awarded any State
processing contracts.
Dated: December 22, 1998.
Samuel Chambers, Jr.,
Administrator, Food and Nutrition Service.
[FR Doc. 98-34789 Filed 12-31-98; 8:45 am]
BILLING CODE 3410-30-U
