FOOD BANKS IN THE UNITED STATES: THE ROAD AHEAD
- 1. FOOD BANKS IN THE UNITED STATES The road ahead Sanjveen Chandhok schandhok90@outlook.com 2020
- 3. US Households By Food Security Status (2018) 37.2 million people lived in food- insecure households. 11.1 percent (14.3 million) of U.S. households were food insecure at some time during 2018. Down from 11.8 percent in 2017 6.8 percent (8.7 million) of U.S. households had low food security in 2018. Down from 7.3 percent in 2017. Food security specifically refers to a USDA measure of households with “reduced quality, variety, or desirability of diet” with possible effect on food intake (USDA 2015) 6.8% 4.3% Food Secure Households Households With Very Low Food Security Households With Low Food Security 88.9%
- 4. … Prevalence of food insecurity by selected household characteristics, 2018 Prevalence of food insecurity , average 2016-18 0 5 10 15 20 25 30 35 Black, non-Hispanic Men alone Single fathers Income below poverty line All households Married with children Single mothers Women alone Multi-adults, no children With elderly White, non-Hispanic Hispanic Other, non-Hispanic Principal cities Suburban Rural Low Food security Very low food security Note: food-insecure households include those with low food security and very low food security Percent of U.S. households SOURCE: USDA, Economic Research Service using data from the 2018 Current Population Survey Food Security Supplement, U.S. Census Bureau AK HI CA OR WA MT ID NV UT AZ NM CO WY ND SD NE KS OK TX LA AR MO IA MN WI IL MI OH IN KY TN MS AL FL GA SC NC VA PA WV DC MD DE NJ CT RI MA NH NY VT ME Food insecurity below U.S. average Food insecurity below U.S. average (11.7 percent) Food insecurity above U.S. average
- 5. Trends In Prevalence Rates Of Food Insecurity And Very Low Food Security In US Households 0 5 10 15 20 19991995 20081996 20021997 1998 20012000 2003 20062004 2005 20182007 2009 2010 2011 2012 2013 2014 2015 2016 2017 Very low food security Food insecurity (includes low and very low food security) Note: Prevalence rates for 1996 and 1997 were adjusted for the estimated effects of differences in data collection screening protocols used in those years. SOURCE: USDA, Economic Research Service, using data from the Current Population Survey Food Security Supplement
- 6. FOOD BANKS
- 7. Role 1: Food Rescue 3.6 126.0 Food rescued (Feeding America) Food wasted 20B 50B 2B 54B Consumer Businesses Farms Manufactures Homes In 2016, about 40% of ALL food was wasted in the US, which amounts to about 63 million tons (126 billion pounds). Per person, that’s about 400lbs per year. Only a fraction of the food wasted was rescued by Feeding America in the United States.
- 8. Role 2: Meal Distribution 3.0 3.5 4.0 4.5 3.2 3.3 2013 2014 3.7 4.2 2015 2019 4.0 2016 2017 2018 4.2 4.2 Number of meals, Billion The Feeding America network serves more than 40 MILLION PEOPLE each year through a nationwide network of 200 food banks. NOTE: The figures provided are for Feeding America.
- 9. Food Distributed By Feeding America (2018) Pounds Share of total Growth (vs. FY 17) 2.2B 0.6B 1.8B Shelf Stable Freezer Refrigerated 47% 12% 40% 15% -8% 56%
- 10. The Rise and Rise Of Feeding America 1967 First Food Bank opened in Phoenix, Arizona by John Van Hengel 1979 Second Harvest established with $1.5 mn dollars from CSA Started with a federation of 13 food banks 1985 The number of food banks affiliated with Second Harvest reaches 203 - Private sector/ Retail donations grew significantly 2005 Walmart partners with Feeding America 18 Food Banks had been established across United States 1977 Congress passed The Temporary Emergency Food Assistance Program (TEFAP) Act in May 1983 (Public Law 98-8) USDA through TEFAP formalized state support to food banks 1983 Congress passed the Bill Emerson Good Samaritan Food Donation Act (“Bill Emerson Act”) in 1996 The act encourages donation of food and protects donors acting in good faith from any civil or criminal liability should such donated food later cause harm to recipients. 1996 Second Harvest merged with food rescue organization Foodchain. The merger was the largest ever for the nonprofit sector 2000 America’s Second Harvest changed its name to Feeding America 2008
- 11. Number Of Food Banks 402 371 277 Feeding America + Partner Distribution Organizations (2020) 2020 (Approx) 2002 Findings From the Emergency Food Assistance System - Provider Survey conducted in 2002, suggests there were 402 food banks in US. In a more recent study done by Food Bank News in 2020, the number comes to 371.
- 12. Food Banks Supply Chain Food sources & funds Distributed toCollected & sorted Retail Consumer Distributor Growers Government food & fund Manufac- turers Private donations Shelters Senior centers School program Soup kitchens Food pantries Donation Shipment Receiving Storage according product Selection and classification Crossdocking/ storage Packaging Food Banks
- 13. Feeding America Storage Space (2018) Square footage Share Growth (vs. FY 14) 7.9M 1.0M 0.9M Freezer Dry Refrigerated 81% 10% 9% 2% 7% 15% Feeding America Has 9.8 million square feet of storage space, up 4% in 3 years. The truck fleet size of Feeding America is estimated to be between 2000 to 2500
- 14. Supply Chain Challenges Food Pantries or Charities are highly dependent on food banks limited resources Difficult to anticipate food demand as it varies according to levels of income and unemployment Food Pantries limited storage capacity and location constraints makes it difficult to collect food from food banks Difficult to anticipate supply in terms of quantity, quality and frequency
- 15. Feeding America Top 4 Sources Of Meals Contribution Of Retail has increased more than 10 times from 99 Million pounds in 2008 to 1.68 billion pounds in 2019 . Meals Distributed (Food in Million Pounds) 1,066 1,200 1,440 1,560 1,729 1,680 1,680 881 695 791 1,200 587 746 500 1,000 1,500 2,000 20182013 2014 20162015 2017 2019 Retail Manufacturing Federal Commodities Fresh Produce
- 16. Supply Chain Impact A shift towards retail led to shift in supply chain network and made it more complex and difficult to manage A significant increase in food donation by retail means more labor is needed to sort food Uncertainty in quantity and type of food donated makes it difficult to anticipate routes, truck fleet, frequency and capacity Inefficient use of storage space due to uncertainty in type and quantity of food donated
- 17. Feeding America Expenses Food Procurement Expenses 1.077 1.045 1.038 1.036 1.034 1.044 1.038 1.025 1.050 1.075 1.100 2010 1.059 2011 1.048 2012 2013 20152014 2016 1.035 2017 2018 2019 A dollar spent for procuring every dollar food donated has been declining
- 18. THE COVID EFFECT
- 19. Unemployment: The Story So Far 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 5,500,000 6,000,000 6,500,000 7,000,000 04 Jan 11 Jan 25 Jan 22 Feb 21 Mar15 Feb18 Jan 09 May01 Feb 08 Feb 29 Feb 07 Mar 14 Mar 28 Mar 04 Apr 11 Apr 18 Apr 25 Apr 02 May 16 May23 May30 May 27 Jun06 Jun 13 Jun 20 Jun The weekly initial unemployment claims saw a sudden and significant surge in March 2020. 2020
- 20. Trends In Prevalence Rates Of Food Insecurity And Very Low Food Security In US Households 0 10 20 30 40 1995 20201996 1997 2002200119991998 20092000 2003 2004 2005 2006 20082007 2010 2011 2012 2013 2014 2015 2016 2017 2018 Food insecurity (includes low and very low food security) As of April 2020, a whopping 22-38% of US Households are estimated to be food insecure, a rate never seen before in history Note: Prevalence rates for 1996 and 1997 were adjusted for the estimated effects of differences in data collection screening protocols used in those years. SOURCE: USDA, Economic Research Service, using data from the Current Population Survey Food Security Supplement
- 21. Meals Distributed (Projected) 6.5 6.0 3.0 3.5 4.0 5.5 4.5 5.0 2015 4.2 20192013 3.2 3.3 2014 3.7 4.0 2016 4.2 2017 4.2 2018 6.0 2020 (Projected) Number of meals, Billion NOTE: The figures provided are for Feeding Americarovided are for feeding America.
- 22. Increase unemployment and decrease in household income leading to rise in number of Americans facing hunger 6Feeding America estimates one in six Americans could face hunger 8Before the Pandemic it was one in eight Americans
- 23. Factors In Play: A Triple Whammy Feeding America reported a sudden and significant rise in food demand and a corresponding drop in donations and volunteers serving at food banks across the United States. Drop in food donation by feeding America affiliated food banks (64%) Drop in volunteers (60%) Increase in demand for food in affiliated food banks (92%)
- 24. Reasons Behind The Factors Grocery stores have less to donate as fear of coronavirus sends consumers into grocery- hoarding frenzy A sudden spike in unemployment has led to a significant rise in demand of food from food banks Restaurants, hotels and casinos have shut down who in the past donated large amounts of food The drop in number of food bank volunteers due to the pandemic has impacted operations A third of food pantries nationally have closed in recent weeks, according to the New York City Mission Society.
- 25. Future Outlook This unusual demand will persist even when the coronavirus dies down Food banks foresee people struggling financially for a long time Aside from raising money, there are concerns on where the food will come from in the near future A possibility of vendors closing operation in the future would further impact availability of food to feed the hungry
- 26. Solutions Support mechanisms for coordination, information sharing, and preparedness for better forecasting and operational efficiencies Reducing over dependence on retail food donations and to increase procurement from other sources such as farms and manufacturers IT-enabled transportation and storage, logistics software. Use of technologies such as predictive analytics to increase efficiencies. Effectively used by for profit companies. It helps in forecasting needs effectively To have an enabling policy and regulations Making use of operations research techniques for creating a resilient supply chain that can adapt according to different situations Require efficient systems to reduce food waste at every step of the supply chain by ensuring greater public awareness, commitment to waste reduction by businesses and operational improvements for efficient redistribution
- 27. This Presentation is intended for educational purposes only and do not replace independent professional judgement. I do not endorse or approve, and assume no responsibility for the content, accuracy or completeness of the information presented. DISCLAIMER