Food prices a test for NH schools

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By JOHN WHITSON
New Hampshire Union Leader Staff

Anyone who has driven to the grocery store, bought a supply of food and tried to make it stretch through a week knows how expensive that routine has become.Imagine doing the same thing for thousands of kids a day, and you get a sense of the pressures weighing on school district food directors. "It's really the perfect storm of costs, with everything that's going on," said Jeanette Kimbell, Nashua's director of food services, citing fuel and energy costs, as well as food prices that have spiked in nearly every category.Add to that the push toward offering healthier (more expensive) food options that are labor-intensive (more expensive) to prepare, and you get a witches brew not seen in decades."It's been since the mid-1970s since we've had food product costs rise across the board this quickly," said Erik Peterson, spokesman for the School Nutrition Association, a nonprofit foundation representing school food workers nationwide."We're hearing from a lot of districts trying to balance a host of challenging, costly issues," he said.From June 2007 to June 2008, the U.S. Department of Agriculture shows eggs up 23 percent, milk up 7 percent, cheese up 15 percent, fresh vegetables up 8 percent and bakery products up 10 percent.

Aiming to break even

School food budgets are crafted with a break-even goal: offset spending with income from food sales .......

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Peterson said his organization's annual surveys show one-third of districts across the country raised prices in 2006-07, with a 15-cent hike average for lunch.  Results for 2007-08 aren't in yet, but Peterson said anecdotal evidence shows the percentage was higher and that the trend will continue into this fall. "It's the rule rather than the exception now," he said. Spiraling costs prompted Portsmouth's school board to raise lunch prices in June. Milk and breakfast were left unchanged, but elementary and middle school lunch will cost a quarter more, and high school students will have to shell out $3 for lunch, 50 cents more than just a few months ago. "This year is really rough," said Patricia Laska, school nutrition director in Portsmouth. Nashua's school board recently approved a 25-cent price hike for lunches at each grade level, the first increase in three years, with the high school cost topping out at $2.50.

Federal squeeze

Along with escalating food and fuel costs, Kimball said, every district is getting squeezed by the federal government. The USDA recently tossed another dime onto the amount it pays for subsidized lunch, bringing the total to $2.57. Kimball said one-third of Nashua children are in the federal program, and the district loses nearly 50 cents on each of their meals. "The ($2.57) definitely does not cover the full cost of lunch," said Kimball. She puts the real cost for her district at $3.05. In Manchester, the percentage of kids getting subsidized meals went up 3 percent last year to 52 percent. "It's the first time it's ever been over half," said Mark Burkush, the district's food and nutrition director. Manchester's school board recently approved a 10-cent hike for lunches at each grade level. Even with the increase, school meals in the Queen City remain a relative bargain. Elementary school lunches will be $1.80; middle and high school students will pay $2.05.Burkush said he was hoping to hold the line on any price hikes this year.

Additional costs

But fewer companies bid on supply contracts than in the past, and those that did came in high and with a surprise. An anticipated 3 percent price hike in bids turned into 6 1/2 percent. And for the first time, companies are including a $5 to $10 per-delivery fuel service charge. "We never had one before, or at least it wasn't singled out on the invoice," said Burkush. "Now they're saying, 'We want you to realize this is part of the cost increase.'" Another cost factor, he said, is that the few suitors the district is seeing aren't interested in a lasting relationship. "They don't want to commit to long-term pricing," said Burkush. "We got some, but not the numbers as in years past." Peterson said his organization is seeing that trend sweep the nation. Many vendors took a bath on 2007-08 school contracts, he said, so for the first time in memory he's hearing about month-to-month contracts. "Bids would lock in for most things for the full year," said Peterson. "Last year ... by January the vendor was losing money. "A lot of them just broke their contracts. Now it's much more common to have monthly escalator contracts."Portsmouth pools its bargaining power as part of 14 districts in the New Hampshire Buying Group, but it also had trouble drawing interest. "This year, at the very last minute, one of our prime bidders pulled out," said Laska. "In the past we've had up to five companies bidding for us, but this year we had just two."

Changing menus

Food directors say they try to keep menus as fluid as possible, so they can swap fruits and vegetables if a certain item spikes in price. But federal standards dictate portions can't be cut, and the push toward more whole grains and higher quality pasta and bread are also cost considerations. Laska said she's been trying for years to offer more fresh fruits and veggies, but this year she will put less expensive canned fruits side by side with the fresh offerings. She said another popular savings idea -- job cuts -- doesn't jibe with expectations from parents and government standards to offer kids healthy, fresh food choices. "It takes more labor to produce those items than it does to serve processed chicken nuggets," said Laska. A saving grace in Manchester, incredibly, is pizza.Though the tasty pies remain a delicate topic after months-long controversy raged over a vendor in 2006, Burkush said fierce competition for that contract has kept prices stable.

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1 Comments

Jackie Freeman said:

Excuse me for my ignorance, but what ever happened to bringing lunch to school??? Is this something that is unheard of these days? A hundred years ago when I was in school (I never thought I would say ‘in my day’) we could buy milk. Period. There was nothing else. We HAD to bring lunch. I used to bring jelly sandwiches to school during bad times, PB&J during hard times and cheese sandwiches when the weather was warmer. And guess what? I wasn’t overweight either. More Importantly, I didn’t rely on the school to give me lunch. I know people don’t have a lot of money, but PB&J is resonable. it’s the processed foods and lunches that costs. What about using microwaves? Now there’s something I wish I had had as a kid. Nothing beats a leftover homemade meal!

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