Jock ... Ni." Stot. s..p.,i..,_.." of School.. G....io Dopo,'...'" of fdueo'io... . . Offie. of School Ad ..i"i.tro'i... So,.. ie Food Porehasing School lunch 6 Food Purchasing PURCHAS ING SLV This course is designed to help school food service managers become more proficient in the purchasing of food in quantity. Purchasing requires technical knowledge of nutrition, economics, marketing and food processing. It is dynamic. and ever~changing with new products and new processes being constantly developed. It is hoped that the information contained in this course of study will provide the information needed by school food service managers in making purchasing decisions. Much of the information in this outline has been obtained from the following publications: U. S. Department of Agriculture. Purchasing for Food Service Establishments, 1965. Cooperative Extension Service, University of Massachusetts. Kotschevar, Lendal, Quantity Food ~rchasing, John Wiley and Sons, New York, 1961. California Department of Education, Facts About Food Purchasing, June, 1962. UNIT I. TABLE OF CONTENTS iNTRODUCTION TO PURCHASING General Purchasing Procedures Page 1 UNIT II. KNOWLEDGE OF THE MARKET 5 Market Marketing Functions Sources of Marketing Information Marketing Regulations Standards, Laws, Labels Pure Food, Drug and Cosmetic Act Labeling Requirements Standards of Identity Standards of Fill Standards of Quality Meat Inspection Act 1906 Poultry Products Inspection Act 1959 UNIT Ill. FACTORS IN PURCHASING PROCESSED FOODS 16 Canned Canning Process Grades Style of Pack Variety Scoring System Containers Packing Media fill of Container Siz e or Count Drai ned Weight Density Specifications for the Purchase of Canned Fruits and Vegetables Code Markings Defects on Canned Products Inspection Services of Department of Agri cu 1. tu re Purchasing Canned Fruits and Vegetables Frozen Foods Packing Grading Dried Fruits and Vegetables Types of Dried Foods Dried Rais'ins Dried Prunes Dehydrated vegetables UNIT IV. Page FACTORS IN PURCHASING FRESH FRUITS AND VEGETABLES . . . . . . 34 Inspection Services of The United States Department of Agriculture General Information on Fruits and Vegetables U. S. Grades Major Questions in Purchasing Fresh Fruits and Vegetables General Guides to Buying Kinds of Fruit Kinds of Vegetables Fresh Vegetables, varieties, quality factors, buying hints, and' grafles. ' , Fresh lirui ts, varieties, quali ty factors, buying hints and grades BIBLIOGRAPHY 1-14 PURCHASING FOOD FOR SCHOOL FOOD SERVICE PROGRAMS A Variety of Knowledge is Needed Food purchasing can be defined as having the right product at the right place at the right time and at the right price. It is a major operating function in school food service management. Good purchasing has much influence on the success or failure of a school food service program, and like a manufacturing enterprise, receives food supplies (raw materials), manufactures them into various dishes (products) and then serves (distributes) them to pupils. Anyone can order food, but ordering is not purchasing. Purchasing is complex and a good food buyer needs to have the knowledge on which to base buying decisions. This includes: Knowledge of school food service Knowledge of school food service requirements and the nutritional needs of pupils Knowledge of the quantity of food he must purchase Knowledge of the food market in which he buys Knowledge of the products he must purchase Knowledge of the procedures he must use Knowledge of the results, including the storage of the purchases The ability to communicate the needs of the school food service program. UNIT I Introduction to Purchasing Objective: To show that purchasing decisions must be based on the needs of school food service programs. Factors Influencing Purchases for the School Food Service Program Nutritional - Purchase foods that make maximum contribution to the type A lunch. For example, potato chips are less nutritious than potatoes, ice cream less nutritious than milk. 1 Aesthetic and Educational - Purchase a quality of food that will encourage pupils to learn to eat new foods and develop good food habits. Consider price, quality and service, not price alone. Storage- The amount and type of storage will determine whether frozen, dry, pr proce~s~d foods are pbrch~sed. Availability and Skill of Personnel - The food production skill of personnel will determine what is purchased. For example, making schoolmade bread versus purchasing bakery made bread products. Type of Service - Whether or not choice between type A lun~hes is permitted. Seasonability and Availability of Food. Food Habits of Pupils - The socio-economic background of the pupils as well as geographical region. Labor Costs - in relation to the purchase of frozen, fabricated and portion-ready products. Amount of Money - available to spend for food. Type and Amount of Equipment. General Purchasing Procedures Select Sources of Supply Secure at least two sources of supply for all categories of items purchased. For example, at least two frozen food vendors, two wholesale grocers and two meat vendors. Generally the choice of a supply source is among wholesalers, institutional suppliers, sales representatives, manufacturers of food products, truck jobbers, brokers and cooperatives. Choice of suppliers is widest for programs located near large urban areas. Some suppliers handle a complete line of products while others specialize in one or a few lines. Certain products may be offered by a vendor specializing in that particular food. Example: Supplies of fresh fruits and vegetables are purchased from a termi.nalmarket, by a wholesaler or from a vendor specializing in produce. Meat is available through large packing plants or from local sources. Processed foods are usually purchased from a wholesaler. Investigate all sources of supply in your vicinity. Make a list of good sources on 3 x 5 cards for easy reference. Information should include: Name of Fi rm Address Telephone Number Discounts or Terms Data on Quality of Products Response on Bids . 2 Select vendors who possess qualifications listed below. It is a manager's responsibility to inform vendors exactly what is expected of them. Purchase from vendors who possess these qualifications: Honest Reputable Has integrity Dependable Complies with terms of contract Products delivered meet specifications Offers good delivery service makes deliveries as promised Offers good and consistant quality Maintains sanitary facilities Buy at the wholesale level. Receive sales representatives courteously. Advise them of your policies. Do not keep salesman waiting. Have orders ready - if possible telephone orders. Keep all buying on a professional basis. Select foods that are in season. Choice between fresh, frozen, and canned items varies depending on the season. Certain fresh items are inexpensive, plentiful and taste best when in season. The cost of these same products are prohibitive out of season. Plan purchases so that orders may be given weekly for produce, meats, poultry and eggs, frozen foods; monthly or semi-monthly for staples. Food is the largest single expenditure in a quantity food operation and unless it is purchased scientifically with intelligence there is little chance of keeping costs down. The key to successful purchasing is knowledge and this knowledge must be put into action by proper procedures and good controls. These controls include: The menu - take into account the popularity of the menu item, cost of each item and quality needed. Determine yields - knowledge of the number of 2 oz. protions per 29# turkey is important. Compare yields from different grades. Make comparisons of food quality and yield in relation to price. Compare cost per serving and make decisions based on cost per serving. Forecasting - To put ordering, purchasing and preparation procedures on a sound basis learn to predict by keeping accurate purchase records. Analyze the percentage food dollar spent for dairy products, bakery products, meats, etc. Purchase by specification - This is a statement of what the buyer expects to purchase with careful attention to details. All food purchased should be described by specification using government grades. This is necessary for purchasing and receiving. Specify the grade desired by specifying U.S. Grades. Decide on the quality and size best suited for intended use. For example, tomatoes for soup may be a lower grade than those intended for table use. 3 Purchase only quantities required for planned menus. Estimate usage from purchase records. purchase by weight whenever possible. Some foods are purchased by count or size per container. State minimum weight on foods bought by package or container. Purchase, if possible, by competitive bids. This method of pur~ chasing provides protection to the buyer, by establishing definite conditions and specifications. If competitive bidding is im~ practical, secure price quotation from three or more reliable vendors. Check all purchases on delivery to see that the delivery conforms to the order in count, size, and style. Wise purchasing demands that the delivery conform to specifications. 4 KNOWLEDGE OF THE MARKET UNIT II Objective: To understand that a buyer must have knowledge of the food market, how it functions and how it is regulated so' that purchasing decisions may be m~de. The market may be defined as a place where transfer of ownership takes place. Markets may be' described by: The type of food being purchased. Most markets for institutions are specialized. You may purchase from a meat vendor, frozen food vendor or a vendor specializing in processed foods and groceries. This is in contrast to a super market where housewives may purchase most of their needs at one stop. All school food service programs should purchase at the wholesale level. The marketing agent - for example, a food may be purchased directly from the manufacturer, through wholesalers or 'through brokers. The location of the market may be primary, secondary or local deperldirlg on geographical location. Depending on the season, the local market may offer food in the most plentiful supply at the best quality and price. Marketing functions include: Exchange of Goods - This includes buying, selling, price setting, and merchandising, which is the presentation of a commodity in such a way as to create interest and a sale. Information - This includes activities that bring market information to buyers and sellers, such as The Daily Market Report. This report is available from the United States Department of Agriculture and shows prices paid to wholesalers. The wholesale produce vendors usually charge a mark-up so the price is greater when produce is received by the school. Market reports show: Foods in supply Comparative prices Grading - One of the most important marketing functions is the establishment of grades. Without grades the market would function with difficulty. Grades are important because: Processors are able to standardize products. Personal inspection for quality may not be required. Financing is easier because a value may be established. 5 Grades may be: Government grades Trade standards Brands - Branded products tend to be of higher quality than unbranded products. Brands, however, are only what make the manufacturer or distributor wishes to make them. Aids in providing continuous physical food supply by: Improved packaging and partial preparation. Improved storage and transportation facilities. Improved facilities for highly perishable foods with temperature, hUmidity, and the quantity of oxygen controlled. Rapid rail, truck or air freight bring foods to the market quickly and provide for qUick distribution. Sources of Marketing Information State and Federal daily market reports contain information about agricultural products such as fruits and vegetables, poultry, eggs, and meats. These can be read in the daily paper. Trade association bulletins - fruit and vegetable vendors may provide these bulletins. An occasional visit to the market is a great benefit. Marketing Regulations We would find it difficult to operate or even to exist without certain definite sets of rules or standards on which to rely. Efforts are continu ally put forth to standardize traffic regulations. Our children receive "standardized" tests in school. We use standard recipes. It is only when a standard is established, against which we can measure achievement, that we are able to judge performance. Regulations safeguard (1) purity, (2) quality, (3) nutritive value and (4) labeling. It has become important to establish standards for certain foods. More foods are processed, packaged, or even prepared. This makes it difficult to know what actually goes into a product such as quality, quantity, condition, or cleanliness. It used td be that the customer bought a barrel of apples from his neighbor. He saw the apples; he judged for himself whether they were good or bad, whether the barrel was full, whether the apples were perfect or less so. The purchaser knew when he bought them whether they suited him. If apples are made into applesauce, however, or they are canned as slices, or if they come to us as frozen apples, the consumer is far less well qualified to judge the product, particularly if many additional ingredients have been added. 6 Long ago it became necessary to establish standards or guides on which food processors, handlers, and consumers could base judgment and know what they were buying. Consumers may be unaware of most food standards except as they appear to them in the form of grades. Grades have standards behind them. Standards, Laws and Labels Since the early days of this century, food laws have helped assure Americans of wholesome, unadulterated food. The chief purposes of food laws are to: Insure real food value Maintain integrity of foods Protect quality and quantity of all basic food To protect the health of the consumer To protect the pocketbook of the consumer Promote honesty Provide accurate labeling Provisions of the Pure Food, Drug and Cosmetic Act of 1938 and of the 1958 Amendment: Prohibits the shipment in interstate commerce of misbranded food products. A food is deemed to be misbranded if its labeling is false or misleading in any particular. Prohibits the shipment in interstate commerce of adulterated food products. A food is de~med to b~ adult~rit~d if it contains-any poisonous or deleterious substance that may render it injurious to health. Establishes definitions and standards of identity, standards of quality, and standards of fill of container for foods, whenever such action will promote honesty and fair dealing in the interest of consumers. This act is administered by the Pure Food and Drug Administration. Labeling Requirements Labeling requirements made mandatory by the Pure Food, Drug and Cosmetic Act are: (1) The common or usual names of all ingredients, listed in the descending order of their predominance by weight. (2) The name and address of the manufacturer, packer, or distributor. (3) The statement of the quantity of the contents in weight, measure, or numerical count . (4) The name of the artificial flavoring, coloring, or chemical preservative. 7 Descriptive labeling which may be added voluntarily by canners: (1) Brand name. (2) Size and maturity of the product. (3) Illustration of the product. (4) Seasoning, if used. (5) Contents of can, measured by cups or number of pieces. (6) Number of servings. (7) Recipes and suggestions for use of the product. Food Standards Food standards are regulated by the pure food and drug law and are used as a guide by food manufacturers to insure the quantity and quality of all food. Standards of Identity Describes the nature and character of a given item. Specifies the kinds and amount of ingredients that must go into a product. The standard of identity for a specific food tells what is in it, how it is made, how the product looks and sets limits such as fat and moisture content. It is the recipe for that product. Fill of Container Standards Standards for fill of container regulate the quantity of the food in the container. They tell the packer how full the container must be to avoid deceiving the consumer. In general, standards 9f fill require packages to contain the maximum quantity of food that can be sealed in the container and processed without damaging the food. These standards apply to products that may shake down or settle after filling, or, those which are made up of a number of units or pieces, packed in a liquid, For example, a packer is not allowed to half-fill a can with peas and fill the rest of the can with water. Standards of fill of container have been established for most canned fruits and vegetables, tomato products and shellfish. Quality Standards Quality standards which must be met apply chiefly to canned fruits and vegetables and describe the ingredients which go into the product. These standards limit and describe the number and kinds of defects permitted. They do not provide a basis for comparing foods as grades do, but establish a minimum. Canned foods that fall below standard in appearance must be labeled "Substandard" or "Below Standard in Quality" and "Good Quality--Not High Grade" with the reason, such as "excess peeling." The adoption of quality standards has driven substandard products off markets. Dealers and consumers shy away from foods bearing a label with the substandard legend. These foods are, however, wholesome and entirely suitable for some uses, particularly in prepared dishes where the original appearance and texture of the 8 food is lost. This represents U. S. Grade C. Anything above U. S. Grade C is voluntary and is administered by the United States Department of Agriculture. The grade of a product is a clue to quality. Top grades go to the most perfect products and are based on standards. Selling by grade is more common with farmers and at the wholesale level. The Meat Inspection Act of 1906 authorizes the establishement of standards of composition and labeling requirements for meat and meat products which: Gives the name of the product Sets the minimum amount of meat that shall be used Limits le~s expensive ingredients such as fat, cereal and other extenders. For example, composition standards for ground beef include: Not more than 30," fat No cereal or extender No ice All meat weinel'S may include: Up to 3.5% extenders - cereal or dried milk. Anything over 3.51. must show on labels as extenders added except in Pennsylvania where all extenders are prohibited. 40 - 601. pork and beef ratio. Establishes standards of identity which specifies the kinds and proportions of ingredients in a product. For example, sausage must not contain more than 50," fat. Assures the consumer that meat and meat products are clean, wholesome, free from disease, free from adulteration and truthfully labe led. Requires inspection of all "official eatablhhments" where meat products are slaughtered and processed to see that animals are disease tree and that product~ are packed under lanitary conditions. The foultry Prodycts Inspection Act This act, first effective in 1959: Requires fresh and frozen ready-to-cook poultry and canned poultry, and, canned and frozen poultry products with two percent or more of cooked poultry meat, to be inspected for wholesomeness by the Poultry Division of the Consumer Mar~eting Service, U.~. Depart-. ment of Agriculture, 1f sold in interstate or foreign commerce. 9 Requires the official mark of inspection to appear on the immediate container in which fresh or frozen poultry is shipped and also on the shipping container. 10 u.s. GRADES AT A GLANCE Product 1st Grade 2nd Grade 3rd Grade 4th Grade 5th Grade 6th Grade Beef USDA Prime USDA Choice USDA Good USDA Standard USDA Commercial U.S. Utility Veal USDA Prime USDA Choice USDA Good USDA Standard USDA Utility Calf USDA Prime USDA Choice USDA Good USDA Standard USDA Utility Lamb USDA Prime USDA Choice USDA Good USDA Utility USDA Cull Yearling USDA Prime USDA Choice USDA Good USDA Utility USDA Cull ........ Mutton Mutton ..... USDA Choice USDA Good USDA Utility USDA Cull Butter U.S. Grade AA (U.S. 93 Score) . . . . . U.S. Grade A U.S. Grade B (U.S. 92 Score) (U.S. 90 Score' . . Cheddar Cheese U.S. Grade AA U.S. Grade A U.S. Grade B U.S. Grade C Nonfat Dry Milk U.S. Extra Grade U. S. Standard Grade ...... ...... . Cottage Cheese No Grades -- May be marked USDA "Quality Approved" Poultry 1st Grade U.S. Grade A 2nd Grade U.S. Grade B 3rd Grade U.S. Grade C 4th Grade Eggs Milled Rice Fresh Fancy Quality U.S. Grade AA U.S. No.1 U. S. Grade A U.S. No.2 U. S. Grade B U.S. No. 3 U.S. Grade C U.S. No. 4 U.S. No. 5 Brown Rice U.S. No. 1 U.S. No.2 U.S. No. 3 U.S. No. 4 Dried Beans U.S. Choice U.S. No.1 U.S. No.2 U.S. No. 3 Handpicked Handpicked Handpicked Handpicked U.S. No. 1 U.S. No. 2 U.S. No. 3 .N.... Dried Peas U.S. No.1 U.S. No. 2 U.S. No.3 Processed fruits and vegetables (and related products)c U.S. Grade A U.S. Grade B (Fancy) (Choice or Ex.Std.) U.S. Grade C (Standard) B.rhree lowest grades are USDA Utility, Cutter, and Canner. bLowest grade in USDA Cull. cGrades used for these products are usually as listed here, but there are same exceptions. PRODUCT Beet Greens Potatoes Broccoli (Italian Sprouting) Brussels Sprouts Carrots Corn (Husked, on the cob) CONSUMER GRADES 1st Grade 2d Grade U. S. Grade A ... ... 1st Grade U. S. No.1 WHO L E SAL E 2d Grade G R A D E so. ~d Grade . ..... ..... . 4th Grade U. S. Grade A Large U. S. Grade A Medium to Large U. S. Grade A Medium U. S. Grade A Small U. S. Grade B Large U. S. Grade B Medium to Large U. S. Grade B Medium U. S. Grade B Small U. S. Fancy U. S. No.1 U. S. Commercial U. S. No.2 U. S. Grade A U. S. Grade B U. S. Fancy U. S. No.1 U. S. No.2 .l."..".l U. S. Grade A U. S. Grade B U. S. No.1 U. S. No.2 ....... U. S. Grade A U. S. Grade A U. S. Grade B U. S. Grade B (Topped carrots) U. S. Extra No.1 (Green Corn) U. S. Fancy U. S. No.1 U. S. No.1 U. S. No.2 U. S. No.2 Cranberries Kale Parsnips Spinach Leaves -Tomatoes Turnips Celery Apples U. S. Grade A . . . . . . . ... U. S. Grade A U. S. Grade B U. S. No.1 U. S. Grade A U. S. Grade B U. S. No.1 U. S. Grade A U. S. Grade A U. S. Grade B U. S. Extra No.1 U. S. Grade B U. S. No.1 U. S. Grade A U. S. Grade AA None U. S. Grade B U. S. Grade A (3d GradeU. S. Grade B) None (Topped turnips) U. S. No.1 U. S. Extra No.1 U. S. Extra Fancy ....... U. S. Commercial . U. S. No.2 . U. S. No. 1 U. S. Commercial U. S. Combination U. S. No. 2 U. S. No. 2 U. S. No.1 U. S. No.2 U. S. No.3 .....j.". U. S. Fancy U. S. No.1 UC. oSo.keNrsoe.1 U. S. ~o. 1 Early U. S. Hail Gradeg U. S. Utility eS ame as U. S. No.1 except for color. fS ame as U. S. No.1 except for color, maturity, and size. gSame as U. S. No.1 except for hail injury. Source: Shopper's Guide to U. S. Grades for Food, Home and Garden Bulletin No. 58 (Revised January, 1961), pp. 12-13 . U. S. Department of Agriculture, Washington, D. C.). AMS- 2-'2 USDA GRADE MARKS and the Foods on Which They Are Used The grade names on the various grade marks shown here are merely illustrative.- There is a range of grades for each of these products bu~ different grade names are used. For a list of grades see "Grade Names Used in U. S. Standards for Farm Products II (AH-157) and 'Shopper' s Guide to U. S. Grades for F oodll (HG-5B). DN-886 MEAT beef calf lamb veal mutton yearlin~ mutton BN-lIln3 ht'4'"''l' .': " POULTRY fryers, broilers stewing chickens turkeys ducks geese guineas '."{- ., _ I " (, fl fI [) E . . . BLUE "'WHI.TE BN-3513 BN-4296 EGGS FRESH FRUITS AND VEGETABLES 15 USDA GRADE MARKS IUId the foods on which they are uaed . . . BLUE ... WHITE ... RED u. s. GRADE B