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Do Large School Food Authorities Pay Less for Food used in the National School Lunch

Author

Listed:
  • Ollinger, Michael
  • Guthrie, Joanne
  • Peo, Audrey

Abstract

School food authorities (SFAs) run meal service programs in each school district and are reimbursed at a national rate for meals served to eligible students participating in the National School Lunch Program (NSLP). Previous research (Ollinger et al., 2011) showed that meal costs were lower for SFAs that serve more meals, and Newman, Ralston, and Clauson (2008) found that some large volume buyers reduce their food costs by negotiating price discounts. This paper builds on that research by examining factors affecting purchase costs. The main findings are that cost dropped with the volume of product purchased and with the number of meals served for most foods and varied across regions. A major surprise was that small and middle size SFAs in buying cooperatives and SFAs using school food management companies had higher costs than did other SFAs not using co-operatives or food management companies.

Suggested Citation

  • Ollinger, Michael & Guthrie, Joanne & Peo, Audrey, 2016. "Do Large School Food Authorities Pay Less for Food used in the National School Lunch," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235687, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235687
    DOI: 10.22004/ag.econ.235687
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    References listed on IDEAS

    as
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    3. Ollinger, Michael & Ralston, Katherine L. & Guthrie, Joanne F., 2010. "School Food Service Costs: Does Location Matter?," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 60690, Agricultural and Applied Economics Association.
    4. Inderst, Roman & Wey, Christian, 2007. "Buyer power and supplier incentives," European Economic Review, Elsevier, vol. 51(3), pages 647-667, April.
    5. Oliveira, Victor, "undated". "The Food Assistance Landscape: FY 2014 Annual Report," Economic Information Bulletin 262117, United States Department of Agriculture, Economic Research Service.
    6. Jerry Hausman, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    7. Ollinger, Michael & Ralston, Katherine & Guthrie, Joanne, "undated". "School Foodservice Costs: Location Matters," Economic Research Report 262241, United States Department of Agriculture, Economic Research Service.
    8. Oliveira, Victor, "undated". "Food Assistance Landscape: FY 2012 Annual Report," Economic Information Bulletin 262127, United States Department of Agriculture, Economic Research Service.
    9. Ollinger, Michael & Guthrie, Joanne, 2015. "Economies of Scale, the Lunch-Breakfast Ratio, and the Cost of USDA School Breakfasts and Lunches," Economic Research Report 212480, United States Department of Agriculture, Economic Research Service.
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