Cheese Rebate Program

October

• The Wisconsin Department of Public Instruction (DPI) emails SFAs that the list of processors approved to participate in this program next school year is posted our website.

November

• SFAs start the procurement process to select a prime vendor. SFAs develop a product list that includes end products that use Cheese Mozzarella Bulk (110244). In the procurement documents, SFAs provide this product list, including estimated number of cases.

January

• After prime vendor is awarded, SFA asks the prime vendor which of the eligible processors they can select during the Annual Order Survey.
• Before the Annual Order Survey opens in February, SFAs use meal plans to estimate the number of cases to order and calculate the number of USDA cheese bulk pounds to commit to approved processors.

February

• In February, during the Annual Order Survey, SFAs will commit the number of pounds, as close as possible, to what their SFA will use at each processor during the next school year.

During the School Year

• SFAs order finished pizza like end products from their prime vendor(s) to draw down pounds at the processor.
• Important: When ordering from the commercial distributors, SFAs need to select the USDA Foods option, not the commercial option, to drawdown their pounds.
• Per the requirements of 7 CFR 250.36(h), processors are required to provide SFAs with a mechanism to track quantities of raw donated food. Most processors use third-party systems like K12 Foodservice or ProcessorLink.
• SFAs must track pound usage and balances at the processor to ensure all pounds are used at all processors by the end of the school year. Please refer to “Monitoring” on the Direct Diversion webpage.
• When plans change, SFAs work with processors, brokers, and commercial distributors to use pounds, and if available, receive more pounds.
• SFAs must confirm that 1) the prime vendor has communicated the rebate to the processor, 2) the SFA has received the value of the rebate, and 3) the processor has drawn down the pounds. Receiving the value of the rebate is normally electronic, but some vendors may instruct SFAs to mail in rebates to processors for payment.
• At the end of the school year, any of the SFAs’ unused pounds are swept into the DPI State Account. Unused pounds will be redistributed at the beginning of the next school year based on results of the February Annual Order Survey.

1. If my SFA doesn’t participate in the program this year, can I commit to participate in the next school year?
   1. Yes. During the Wisconsin USDA Foods Annual Order Survey, in February, each SFA that opts to participate in the Cheese Rebate Program will commit bulk pounds of cheese to their procured vendor(s) for next school year. Participation in this program is an annual decision.
2. How do I get my pizza and pizza-type products delivered to my school?
   1. You will order the end products through your prime vendor or commercial distributor(s) at the same time as your other commercial purchases. The commercial distributor will deliver the products to your SFA.
3. If I change my prime vendor, can I change my bulk cheese commitment to any of the other processor(s) during the school year?
   1. No. Your bulk commitment to the processor(s) is for the entire school year, or until the cheese inventory has been depleted.
4. What if I don’t use all the bulk cheese my SFA committed to the processor(s) for one school year?
   1. Any unused pounds are swept into the Wisconsin State Account on June 30, at the end of the school year. DPI will redistribute pounds in the next school year. To avoid this, SFAs should calculate cheese commitments carefully and commit an amount that can be used during the school year. For complete details, refer to the Department of Public Instruction’s Inventory Sweep Policy.
5. Can I commit cheese that I currently have stored at my school?
   1. No. The cheese order for the Cheese Rebate Program is directly diverted from the USDA contracted vendor to the cheese processors.
6. How do I calculate my savings?
   1. The example below shows the difference between the commercial price and the net price with the rebate savings per case (not actual USDA Foods Value):

If you have any questions regarding this program, please contact dpisnusdafoods@dpi.wi.gov or (608)267-4599.