Page 288 - Onboarding May 2017

Lettuce Romaine 24 ct— Contract vs USDA Mandated items are required to be purchased
from approved suppliers and are contracted 100%
18 18 $30.00 M system wide. Optional items support core menu
B
16 16 Å and are contracted by CSCS. As more Members are
$25.00 J
14 14 H committing to purchase optional items from CSCS
12 12 $20.00 Ç F contracts, we are able to further leverage volume.
10 10 $15.00 É Ñ When comparing twelve-month contract pricing
8 8 Ñ É versus market pricing, we have seen historically
$10.00
6 6 F Ç lower average prices. We are also optimizing pack
$5.00 sizes, reducing waste, and making sure product is
4 4 H Å
2 2 $0 J M as fresh as possible.
0 0 Q1 B Q2 Q3 Q4
Benefits of utilizing CSCS contracts for
optional items include Member protection
Onion Yellow Whole 50 lb — Contract vs USDA
by indemnifications outlined in contractual
$18.00 agreements and price management during active
markets. For example, the included graph on
$16.00
Romaine Lettuce shows when market prices have
$14.00
been extremely high, CSCS manages the extremes
$12.00
and flattens prices for core menu produce through
$10.00
agreed upon triggers with grower/shippers.
$8.00
$6.00 To create further cost savings advantages, CSCS
$4.00 allows processors of certain items to purchase
whole product from the CSCS contracts. This allows
$2.00
the processor to offer a pre-cut product, while
$0
Q1 Q2 Q3 Q4 CSCS manages market extremes on raw materials.
Onions are a good example of leveraging more
volume in order to recognize additional savings
which are passed through to Members.

Weekly crop report updates are posted to the
Member website. The crop report is designed
to identify active markets and crop quality for
produce items. Active market conditions are also
communicated to Members as they occur in the
weekly newsletter.

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