GRAINS FOR HEALTH FOUNDATION WHOLE GRAINS IN SCHOOLS A Supply Chain Approach The Future of Grains in Schools Task Force May 2012 This white paper examines the relationships of a sampling of stakeholders of the grain-based foods supply chain, namely growers, manufacturers, distributors, and school foodservice, as they work together to ensure the smooth and seamless delivery of whole grain foods into schools. Each player in the whole grain food system has a role and impact, and benefit is maximized when people are willing to collaborate. Task Force Members and Advisers Renee Rosen Wendy Knight Lecturer/ Researcher Coordinator of Food and Nutrition University of Minnesota Services Independent School District 196 Paul Darrow Business Development Director Jessica Wellnitz Kellogg Company Senior Food Technologist Cargill Bakery Category Paul Lynch Executive Chef Paul Lynch Stephanie Cooks Radisson Plaza Hotel Minneapolis Nutritionist USDA-FNS Mary Ellen Wagner Product Promotion Director Advisers South Dakota Wheat Commission David Garvin Kristine Igo Adjunct Assistant Professor Assistant Director Agronomy/Plant Genetics Healthy Foods, Healthy Lives Institute University of Minnesota University of Minnesota Barbara Griffiths Julie Boettger Food and Nutrition Services Supervisor Director of Food and Nutrition Services Independent School District 196 School City of Hammond Gary Vonck Len Marquart Vice President Education Sales Associate Professor KeyImpact Sales & Systems Food Science and Nutrition University of Minnesota Pam Fleming Director, Education Sales Denise Hauge Fox River Foods, Inc Director Grains for Health Foundation Shelly Melroe Confluency, LLC WHOLE GRAINS IN SCHOOLS Introduction The status and future of whole grains changed dramatically with the January 2012 release of the U.S. Department of Agriculture (USDA) Nutrition Standards in the 1 National School Lunch and School Breakfast Programs (NSLP and SBP) . With whole grain foods required on school breakfast and lunch menus as of July 1, 2012, whole grain - rich foods quickly transition ed from aspirational to a required part of school meal s . T he food industry , anticipating the new legislation and in response to a report on school meals by the Institute of Medicine , School Meals: Building Blocks for Healthy 2 Children , increased the development and production of whole grain products for schools in the period leading up to the new guidelines. It now is incumbent on members of the supply chain for whole grain-rich foods in schools to develop relationships and lines of communication for working together to create an efficient and effective system. The school foodservice industry is one of the most complex food business segments. It has a high number of purchase decision influencers, receives unprecedented scrutiny from the community, and utilizes a supply chain system that includes the USDA and group purchasing organizations in addition to the standard food distribution system, all while feeding tens of millions of school children every school day. It is critical to 3 successfully manage this supply chain to reduce cost and increase efficiency . One must view w hole grains in schools from a supply chain perspective b ecause this approach can consider all stakeholders from both supply and demand sectors, and facilitates a number of critical process steps that are necessary for delivering whole grain foods to schools and their students. The whole grain supply chain provides a flexible framework for analysis, creates a common language for all stakeholders, encourages cross - functional collaboration and planning, and emphasizes horizontal rather than vert ical integration of all involved. Stakeholders The Future of Grains in Schools Task Force, in conjunction with research conducted at 4 the University of Minnesota , identified 10 key stakeholders in the school whole grains supply chain: wheat breeders and geneticists, growers , millers, government agencies, manufacturers, local bakers, local food supply, school food buyers groups and distributors, and school foodservice (Figure 1) . Students are not included because they sit on the demand s ide of the chain, but they are the primary recipient of whole grain foods and make deci sions t hat affect the viability of the overall system. Figure 1. Supply Chain for Whole Grains in Schools This white paper examines the relationships of a sampling of those stakeholders, namely growers, manufacturers, distributors, and school foodservice, as they work together to ensure the smooth and seamless delivery of whole grain foods into schools. Each player in the whole grain food system has a role and impact, and benefit is maximized when people are willing to collaborate. Goals The goals of this white paper are to encourage stakeholders in the foodservice supply chain to work together to support whole grains in schools, identify opportunities for success and barriers to overcome, showcase strategies along the whole grains supply chain, motivate involved parties to continue to improve the taste and quality of whole grain foods for schools, and manage product costs. A streamlined and efficient system, including effective communication, a common understanding of the school food system, and clarity of ingredients in whole grain-rich foods, will ensure that students receive the healthiest grain foods possible while eating at school. Whole grains, defined 5 As defined by the Whole Grains Council , w hole grains and foods made from them contain all the essential parts and naturally - occurring nutrients of the entire grain seed. Whole grain ingredients such as flours must contain 100 percent of the grain k ernel , including its bran, germ, and endosperm . Consumers can select whole grain products by looking on the label for 100 percent whole wheat or whole grain; ingredient lists also are a tool for identifying whole grain foods based on prominent position on the list and ingredient name, including such terms as cracked or crushed wheat (See Table 1). 6 Table 1. Common identifiers for whole wheat and whole grain Cracked wheat Crushed wheat Whole - wheat flour Graham flour Entire - wheat flour Bromated who le - wheat flour Whole durum wheat flour … berries Whole …, whole grain … Groats Oatmeal Brown rice Wild rice Less common whole grains (amaranth, buckwheat, Kamut®, millet, quinoa, spelt) The definition of whole grain products to be served in schools is more complicated. The 2010 IOM report2 was the first to spell out recommendations for whole grains in schools in an effort to better align school meals with the Dietary Guidelines for Americans. The Final Rule issued on January 25, 2012 and based on the Healthy, Hunger- Free Kids Act of 20101 set forth the following requirements, as defined in an April 26, 7 2012, memo on grain requirements :  For lunch, beginning July 1, 2012 (SY 2012-2013), through June 30, 2014, half of the grains offered during the school week as part of NSLP must meet the whole grain-rich criteria. Beginning July 2, 2014, (SY 2014-2015), all grains must meet the whole grain-rich criteria.  For SBP, beginning July 1, 2013 (SY 2013-2014), half of the grains offered during the school week must meet the whole grain-rich criteria. Beginning July 1, 2014, (SY 2014-2015), all grains must meet the whole grain-rich criteria.  For both NSLP and SBP, all grain foods must follow weekly grains ranges and the daily minimum requirement (Table 2). Table 2. USDA grain food regulations for school meals, servings in oz eq per week 8 (minimum per day) Grades K-5 Grades 6-8 Grades 9-12 Breakfast 7-10 (1) 8-10 (1) 9-10 (1) Lunch 8-9 (1) 8-10 (1) 10-12 (2) Up to 2 oz eq per week can be in the form of a grain-based dessert The April 26, 2012, memo also defines whole grain-rich items for schools as foods that contain 100 percent whole grain or contain a blend of whole grain meal and/or flour and enriched meal and/or flour of which at least 50 percent is whole grain. Whole grain- rich products must contain at least 50 percent whole grains and the remaining grain, if any, must be enriched. School Food Authorities (SFAs) also can use a checklist to ascertain that a grain product is whole grain-rich (Table 3). Conversations with school foods service directors suggest that Element 2c, identifying whole grain-rich foods based on position of whole grains on the ingredient list, is commonly used in schools. It presents an easy way for schools to determine which foods qualify and is less onerous on manufacturers because they do not have to list grams of whole grain or a whole grain claim. Table 3. Criteria for whole grain-rich school foods7 Element #1: A serving of the food item must meet portion size requirements for the Grains/Breads component as defined in Food and Nutrition Service (FNS) guidance. AND Element #2: The food must meet at least one of the following: a. The whole grain content oz eq must be ≥ 8 grams. This information may be determined from information provided on the product packaging or by the manufacturer, if available. b. The product bears the Food and Drug Administration (FDA)-approved whole grain health claim on its packaging -- “Diets rich in whole grain foods and other plant foods and low in total fat, saturated fat and cholesterol may reduce the risk of heart disease and some cancers.” c. Product ingredient listing lists whole grain first. For non -mixed dishes such as breads and cereals, whole grains must be the primary ingredient by weight , with the exception of water. When the whole grain content comes from multiple ingredients, the combined whole grain ingredients may be the primary ingredient by weight even though a whole grain is not listed as the first ingredient. For mixed dishes such as pizza and corn dogs, whole grains must be the primary grain ingredient by weight and be the first grain ingredient listed. For foods prepared by school food service, the recipe will guide determination of whether the total weight of whole grain ingredients exceeds the total weight of non-whole grain ingredients. A ready-to-eat (RTE) breakfast cereal must list a whole grain as the primary ingredient and be fortified to be creditable. If the grain product includes enriched ingredients, or the product itself is enriched, the ingredients or the grain product must meet the FDA’s standards of identity for enrichment (21 CFR Section 137). Bran and germ are not creditable in school meal programs. The new NSLP and SBP regulations establish serving size for whole grain-rich grain products based on oz eq rather than bread or bread alternate, and with 16 grams of grains per serving (Table 4). As this differs from the previous standard of 14.75 grams of grains and may require retooling and relabeling on the part of manufacturers, the USDA is allowing SFAs and school food program operators to use the 14.75 gram benchmark through SY 2012-2013. The requirement for whole grain-rich foods can be met by multiple food items each contributing a fraction of an oz eq, and one-quarter of an oz eq is the smallest amount allowable for credit. Breaded and battered products must be counted toward the maximum grain requirement beginning in SY 2013-2014. The USDA has established the equivalent minimum weights for a wide variety of purchased food items to meet the oz eq criteria7. Table 4. Grain product servings Baked goods (breads, bagels, biscuits) – 1 oz eq requires 16 grams of creditable grain ingredients Cereals and grain products (oatmeal, brown rice, pasta) – 1 oz eq equals 28 grams, or 1/2 cup cooked Ready-to-eat (RTE) breakfast cereal – 1 oz eq equals 28 grams, or 1 cup flakes or rounds, 1 1/4 cups puffed, or 1/4 cup granola Current state of whole grain consumption in schools Schools increased whole grain servings well in advance of the new school meals legislation. The School Nutrition Association 2010 Back to School Trends Survey found that over 90% of districts across all geographic regions planned to add more whole grain 9 products to their menus. Common whole grain breakfast items at that time included cereals, rolls, toaster pastries , and pancakes, while lunch items ranged from breads and rolls to whole grain pizza crust, whole grain pasta, brown rice, and whole grain cereals. 10 In a 2011 School Nutrition Association survey of 1,294 foodservice directors , 97% reported serving whole grain foods . Whole grain foods are important to students for their place in a healthful diet and potential health benefits. They have been linked to reduced risk of several chronic 11 12 13 diseases , including weight gain and obesity , cardiovascular disease , and type 2 14,15 diabetes . It is postulated that their health benefits result from the presence of all parts of the grain and the synergies of their potentially bioactive components – dietary fiber, folate, antioxidants, vitamins E and B6, the minerals potassium and magnesium, and the phytochemicals phytic acid and phenolic acids. The success of whole grains has resulted in good measure from the efforts of foodservice directors to introduce and promote whole grain foods in their schools. However, continued success will require coordinated efforts by all members of the supply chain, and, in particular, growers, manufacturers, distributors, and foodservice personnel. Focus on the supply chain – Growers At the top of the school whole grain supply chain are wheat growers. Wheat is the third largest crop in the United States after corn and soybeans. Since 1990, the planted acreage of wheat in the United States has decreased by about one-third while acreage 16 for both corn and soybeans has increased . However, total wheat yields continually increase due to superior genetics and p roduction practices, so while acreage has been reduced , the yield per acre has gone up . A nother positive development for growers has been the increasing use of white whole wheat flour in whole grain products, with resultant increases in p roduction , sales, and domestic use for the general market , as well as for schools . Hard white wheat is a strain of wheat that lacks the genes to develop the phenol - rich dark bran of red wheat . As such, it is lighter in color and has a milder flavor than red wheat . Ground white whole wheat flour resembles white flour in appearance but matches whole wheat in nutrition . Compared to traditional whole wheat flour, i t offers premium baking performance and a softer texture in the final product . The growing success of whole grain products in schools is due in good measure to the ready acceptance among children of whole wheat products made with white whole wheat flour . Opportunities Growers respond to market demand. A positive development such as the new school meals regulations should be beneficial to growers as demand increases for products made with white whole wheat flour. For growers, communications opportunities often are limited to business contact with those who purchase their products domestically. These can include large grain processors such as Cargill who provide marketing, contract, and crop management services. Barriers Despite widespread acceptance of white whole wheat products, production of hard 17 white wheat has lagged behind the more traditional hard red wheat . The Grain Inspection, Packers and Stockyards Administration (GIPSA) believes that this may be the result of lack of government incentive, lower demand from the export market , special handling require ments for stor ing a nd process ing white wheat apart from red wheat, and alternative crops with greater profit potential. GIPSA suggests that this could cause shortages that would critically impact manufacturers of products made with white whole wheat flour and therefore affec t availability of white whole wheat products in schools. However, as the market for white whole wheat flour and products made from it increases, growers are likely to respond by planting more acreage of hard white wheat. Patent protection has arisen regarding the use of white wheat flour. If the production of white whole wheat flour that matches the nutrients of whole wheat while offering the texture, taste, and characteristics of refined flour can be protected by patent and therefore limited in use, the marketplace for growers of hard white wheat may become more limited and restrictive. Supply chain communications opportunities for growers With grain companies  Seek out information on market demand  Work collaboratively toward improvement of whole grain crop management and yield With manufacturers  Explore the value of specific grains  Inquire regarding which grains work best in their manufacturing processes  Seek out information on development of new whole wheat- rich products and types of grains required Focus on the supply chain – Manufacturers and industry Manufacturers of whole grain products for schools include companies of all sizes, from industry giants such as Kellogg’s and General Mills to small bakers who contract with local school districts. Large companies are highly dedicated to the schools market,w ith entire sales teams and product development divisions that service schools and foodservice providers. Many manufacturers worked ahead of the new school meals regulations, addressing ways to use whole grains in existing and new products, cost management for whole grain products, and ingredient technology. Established products such as crackers, cereal bars, cereals, and other grain products were renovated to meet the “whole grain first” ingredient criteria of the new regulations. A major goal of current and future product development is to utilize different grain combinations and varieties to create new whole grain-rich items whose taste and texture will be accepted by students. Opportunities For large manufacturers, whole grain product development ideas generally originate in- house. However, they are not created in a vacuum. The sales force, marketing team, school education liaisons, and other company personnel are in constant contact with school districts to discuss their needs. By the time a new product enters the development phase, the manufacturer is reasonably assured that the product will be of value to schools. While large manufacturers generally are unable to develop custom new products for particular school districts, they may be able to change packaging for larger districts, for example, switching from a single-serve box to a bowl. Food manufacturers communicate with districts about products both directly and through foodservices distributors and providers. Each year, manufacturers present and discuss their product line for the coming school year with school food personnel. Bid specifications may be due as early as December for the following school year and some districts complete their ordering of commodities and development of menus by April. Both product orders and feedback help guide the development of new products to meet school district needs. Manufacturers also can stay connected with school district needs through trade associations. The School Nutrition Association offers membership and sponsorship options that help companies both stay apprised of issues and trends surrounding the provision of foods in schools and network with members who also supply products for school meals. The Alliance for a Healthier Generation, an initiative of the William J. Clinton Foundation, encourages manufacturers to join its industry group and pledge to help America’s schools serve healthier meals at affordable prices. Producers of whole grain-rich products generally are conservative in their approach to student outreach. While some companies provide teacher and classroom materials, many communicate their whole grain message via product packaging with the Whole Grain Stamp, wording indicating that a product is made with whole grains, or incorporation of whole grain into the product name. Barriers Manufacturers worry about whole grain supply. They require consistent, quality ingredients in order to create a quality product. To ensure a steady supply, manufacturers continuously explore new grain varieties and seek out more efficient technologies. Whole grain products cost more to produce than those made with refined flour. Furthermore, manufacturers must subject any new whole grain ingredient to a costly quality assurance process to ensure that the grain meets company standards for quality, safety, and other measures. The switch to whole grain might be easier for smaller companies who store their flour in sacks rather than silos that require comprehensive cleaning before being filled with a different type of flour. In order to switch from refined to whole grain flour, a large manufacturer has to find alternate storage facilities for its