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New Program Fees for Agencies Receiving USDA Foods


Nutrition Services Division Management Bulletin

Purpose: Policy, Beneficial Information

To: Food Distribution Program Recipient Agencies

Attention: Food Service Directors

Number: FDP-03-2017

Date: September 2017

Supersedes: Management Bulletins FDP-02-2016: Fees for Agencies Receiving U.S. Department of Agriculture Foods, and NSD-FDP-03-2011: Fee Reduction for Agencies Receiving U.S. Department of Agriculture Foods

Subject: New Program Fees for Agencies Receiving U.S. Department of Agriculture Foods


This Management Bulletin provides recipient agencies of U.S. Department of Agriculture (USDA) Foods with the new Food Distribution Program (FDP) fees for items shipped through a state distribution center (SDC), extended storage fees for USDA Foods stored at an SDC, and administrative fees for USDA Foods ordered for direct shipment, including Department of Defense Fresh Fruits and Vegetables (DoD Fresh) and produce received through the Unprocessed Fruits and Vegetables Pilot. The new rates are approximately a 10 percent increase and will be in effect as of July 1, 2018.

Since reducing FDP program fees by 20 percent in 2011, the Nutrition Services Division (NSD) monitored program expenditures to ensure program sustainability and was able to maintain the lowered rates for six years. During School Year 2016–17, the NSD determined that due to increased program costs, which align with the annual rate of inflation, program fees needed to increase to maintain operations. The new FDP rates remain 10 percent below the rates that were in place prior to October 2011.

Warehouse Agency
Fee Type Through June 30, 2018: Rate per case/unit After July 1, 2018: Rate per case/unit
USDA Foods delivered by SDCs
$2.60
$2.85
USDA Foods picked up by agencies
$2.20
$2.40
USDA Foods sent to processors (administrative fee)
$0.80
$0.90
DoD Fresh produce delivered by SDCs
$2.60
$2.85
Pilot Produce (administrative fee)
$0.10
$0.15
State Cooperative (Co-op) Member
Fee Type Through June 30, 2018: Rate per case/unit After July 1, 2018: Rate per case/unit
USDA Foods delivered by SDCs
$2.60
$2.85
USDA Foods sent to processors
$0.80
$0.90
DoD Fresh produce delivered by SDCs
$2.60
$2.85
DoD Fresh delivered by vendor (administrative fee)
$0.10
$0.15
Pilot Produce (administrative fee)
$0.10
$0.15
Direct Ship (DS) and Private Co-ops
Fee Type Through June 30, 2018: Rate per case/unit After July 1, 2018: Rate per case/unit
USDA Foods sent to processors/distributors
$0.80
$0.90
USDA Foods delivered to DS/processors by SDCs
$2.60
$2.85
USDA Foods picked up by DS/processors at SDCs
$2.20
$2.40
DoD Fresh produce (administrative fee)
$0.10
$0.15
Pilot Produce (administrative fee)
$0.10
$0.15
Extended Storage for USDA Foods Maintained at the SDCs

*Fee will be prorated based on the withdrawal date.

Fee Type Old Rate case/unit per month* New Rate case/unit per month*
Dry Storage
$0.30
$0.35
Refrigerated Storage
$0.40
$0.45
Frozen Storage
$0.50
$0.55
Contact Information

If you have any questions regarding this subject, please contact the Food Distribution Program by phone at 916-323-0865 or by e-mail at fooddistribution@cde.ca.gov.

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Thursday, December 5, 2019
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