Feeling the Pinch:

The Impact of Increasing Food Prices on School Lunch

Commodity and Food Prices Milk Prices Increasing

Source: NASS, USDA

Commodity and Food Prices Corn Prices Increasing

Source: NASS, USDA

Commodity and Food Prices Wheat Prices Increasing

Source: NASS, USDA

Commodity and Food Prices Fruit and Vegetables Increasing

Source: NASS, USDA

On the School Lunch Tray

Bread

Up 12%

Milk

Up 17%

Pasta

Up 13%

Cheese

Up 15%

Source: USDA Economic Research Service, 2007

Energy PricesCrude Oil Prices Increasing

Source: Energy Information Admin

Benefit & Insurance CostsIncreasing Health Care Premiums

Source: Kaiser Family Foundation

What Does it Cost to Prepare a School Meal?

Cost Type Cost

Food Costs $1.15

Non-Food Costs $0.14

Labor Costs $1.26

Indirect Costs $0.11

TOTAL COSTS $2.70

(national school lunch cost average: $2.60 to $3.10)

**Preliminary Figures**

Source: SNA Preliminary

Average Cost of a School MealAverage Meal

Prices for Students

Reimbursement Rates

(SY 2007-2008)

Total Revenue per Lunch

Full Paid Lunches

Elementary: $1.66

Middle: $1.85

High: $1.90

$0.23

Elementary: $1.89

Middle: $2.08

High: $2.13

Reduced Price Lunch* $0.38 - $0.40 $2.07 $2.45 - $2.47

Free Lunch** $0.00 $2.47 $2.47

*Students with household incomes between 130%-185% of the poverty level receive meals at a reduced price rate.

**Students with household incomes below 130% of the poverty level receive meals for free.

Sources: School Nutrition Operations Report: The State of School Nutrition 2007 and the U.S. Department of Agriculture (USDA)

Across the Country

• Of school nutrition directors surveyed:– 86.1% of saw an increase in food costs– 83.2% saw an increase in labor costs– 84.6% saw an increase in transportation

costs– 46.6% saw an increase in indirect costs (i.e.

gas, electricity, water)

(SNA 2007 Trends Report, August 2007, School Nutrition Association)

How School Districts are Coping

• In 2006-2007, 1/3rd of school districts increased full-paid lunch meal prices.

• Full-paid lunch prices increased a median of 9% (5 cents) and breakfast prices increased a median of 15% in districts that raised prices.

Source: 2007 SNA School Nutrition Operations Report

How School Districts are Coping

• New York City replaced grape tomatoes for sliced tomatoes at salad bars.

• Charlotte-Mecklenburg, NC switched lasagna for spaghetti.

• Spring, TX switched baby carrots for hand cut carrots.

• Hoover, AL is serving more bananas and apples instead of grapes.