Agencies receiving USDA foods through the National School Lunch Program (NSLP) can select Direct Diversion processing for receiving finished end-products. Direct diversion processing is the process of sending selected bulk raw USDA foods directly to selected processors to process into finished end-products. With this option, each participating agency is directly responsible for selecting their processors and choosing the finished end-products through a procurement process.
- Processing Brokers and Companies
- Commodity Tracking Websites for USDA Foods Diverted Pounds
- USDA Foods pounds which are diverted to a processor are reported by the processors and manufacturers to third party online tracking company which tracks pound balances and makes available reports and information to schools, state agencies and processors.
- K12 Foodservice and ProcessorLink
- K12 Foodservice
- List of Processing Companies for K12 Foodservice and ProcessorLink
- Excess and Carryover Inventory at the Processors
- Excess Inventory - Federal regulations state that the recipient agencies must not carry excess inventory. Click here for more information.
- Carryover Inventory - schools are expected to use USDA Foods sent to the any processor in the year that it is received. Carrying over pounds is discouraged and should be minimal. Inventory is considered carryover if it is not used and remains at the processor after June 30.
- USDA Foods Processing Fact Sheets
- Value Pass-through Methods (Savings Passed on to the Recipient Agency) Through Processing
Ways the Savings is Passed On Through Processing
In an effort to provide low-cost, nutritious meals to millions of Indiana students, the company (aka processor) is required to return the full value of the USDA Food that is contained in the finished end product. IDOE allows recipient agencies to use one of the following value pass-through options:
Value Pass-Through Method Definition Net Off Invoice The product is purchased by the School District at invoice net price from the Distributor. Distributor submits rebate from Processor. Refund Option Processor sells product to a Distributor for commercial price. The Distributor invoices the School District the commercial price. The School District submits a refund to the Processor. Fee-for-Service The product is delivered to the School District or to the State Contracted Warehouse. The School District is invoiced processing fees and warehouse delivery/storage fees.