Schools hit by rising food costs

By Ruth Mantell, MarketWatch

Last Update: 7/9/2008 11:40:00 AM

WASHINGTON (MarketWatch) — Schools are being overwhelmed by growing food costs,
and some are cutting back on meals for kids and “downgrading” menus, lawmakers
are being told Wednesday.

It will cost an additional $1.5 billion to prepare lunches this school year,
according to an estimate from Katie Wilson, president-elect of the School
Nutrition Association, who is testifying before the House Education and Labor
Committee.

Wilson’s estimate is based on preliminary findings from a recent survey of school
nutrition directors that show the cost of school meal preparation will rise 30
cents per meal per child per day — 5 billion lunches were served last year — to
a national average of $2.88.

“As food costs continue to rise, we are challenged to do more with much less,”
Wilson said.

Committee chairman Rep. George Miller, D-Calif., said the federal reimbursement
rate for child nutrition programs increased last year by 3% to 4%, lagging cost
gains for lunch staples.

“With the fall fast approaching, these increases are forcing school districts
operating under already-tight budgets to make some very tough choices,” Miller
said. “Many report having to use frozen vegetables instead of fresh vegetables,
processed wheat products instead of whole grains, and prepackaged foods instead
of more nutritious entrees that involve additional preparation costs.”

Due to rising food costs, some schools are cutting back universal free meals,
Wilson testified, citing a North Carolina district that will stop offering free
breakfasts to students at six district schools.

“While students eligible for free meals will continue to receive breakfast, all
other students must now pay,” Wilson said. “This is an unfortunate consequence,
as there is a strong link between breakfast and improved academic achievement.”

Other schools are “downgrading” menus to include cheaper options, she said,
citing one school that is replacing lasagna with spaghetti, and another that is
replacing baby carrots with carrots cut on site.

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