With unemployment reaching record levels, the demand for food from food banks have also reached new highs. The report gives a detailed overview of Feeding America, the largest hunger relief organization in the United States and the challenges facing food banks at a time when its needed the most.
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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
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
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
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