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Lesson One in School Food

NEW YORK – Had you told me a year ago that I would attend a conference devoted to
school lunches, I would have laughed. The closest that I have come to eating a
school lunch lately is coach-class food on long-haul flights.

But earlier this month I attended School Food FOCUS’s “National Gathering.” I found
it both heartwarming and thought-provoking.

A little context: In the United States, subsidized school lunches started in 1946 as
a welfare program – but one focused on the welfare of farmers, not schoolchildren.
The primary purpose was to help farmers get rid of – I mean, distribute generously –
their surplus production.

The program was gradually transformed over the years as students, whether out of
choice or necessity, increasingly came to rely on school lunch rather than bringing
their own. The percentage of children who qualify for a free or reduced-price school
lunch has grown – to 48%, or about 20 million – and school lunch (and increasingly,
breakfast and even dinner) is now a significant part of many children’s diets.

Now, new legislation mandates better nutrition, bans sugary drinks and sweets, and
forbids the parallel sale of unhealthy alternatives to the main menu (which had been
a major source of funding for subsidized lunches). But the new laws do not specify
how healthy lunches are to be provided, and local communities are still expected to
provide the funding (except for the surplus commodities). It is one thing to enact
legislation; building the infrastructure to implement it and, in this case, offer a
healthy meal for about $1.50 per child is another matter.

Indeed, how to change school lunches has more to do with money and business than
with health and nutrition. (The latter goals are clear; the challenge is how to
achieve them.) School Food FOCUS, an arm of the New York-based non-profit Public
Health Solutions, convenes its members – food managers from 36 large US school
districts, serving more than four million children daily – and brings in
researchers, partner philanthropies (mostly healthy-food advocates), and food
vendors. Indeed, FOCUS turns the vendors into allies – and sponsors. The National
Gathering was a trade show as much as an event for bureaucrats and philanthropists.

I expected to hear about lobbying efforts and nutrition, but mostly I learned about
supply chains. The discussion focused mainly on how food can be procured, prepared,
and delivered within the constraints of pricing, availability, and each school
district’s facilities (which determine what kind of food they can prepare and
serve).

The school lunch program is the largest discrete market for low-cost, healthy food.
But most food vendors would rather follow the dictates of their shareholders and
sell more expensive, higher-margin food, with little regard for how healthy it is.
For years, they have complained that children (and adults) reject healthy food in
favor of less-healthy food that tastes good. Now, increasingly pushed toward healthy
foods by government regulations, the school-food vendors are trying to figure out
how to boost both healthiness and tastiness, because the government requires that
schools measure not what the children are offered but what they select (though not
what they actually eat rather than throw away).

One could argue that a government cannot and should not control what people eat. But
in this unique market, it is the government that is paying and the customers are
incapable – at least in legal terms – of choosing what is in their own best
interest. That creates an ideal test environment not just for school suppliers, but
also for the broader food market.

The challenge to the vendors is straightforward: make cheap, healthy food that
appeals to the world’s most finicky eaters, grade-school kids. To do that, the first
question to answer is what makes school food so bad.

Aside from the focus on price and the need to absorb US farms’ excess output, school
lunches reflect a broader trend toward turning food preparation into industrial
production. Uniformity is prized above quality, and convenience is valued over
freshness (and often over cost).

Restaurant chains such as McDonald’s, for example, have transformed agriculture
around the world with their homogenizing requirements for meat, bread, potatoes, and
the like. Under the assumption that consistency equals quality, variation in the
size or color of, say, tomatoes has come to be considered bad (unless one calls them
“heirloom” tomatoes and emphasizes their uniqueness).

In schools, too, pre-packaged foods are now considered better than hand-prepared
foods, not only because they can be set out again on Tuesday if the kids do not eat
them on Monday, but also because they all look alike.

This trend is now being reversed in school food, thanks to legislative innovations
such as allowing a preference (of up to about 10%) for locally grown products. But
there is another issue: serving better school lunches often requires restoring the
food-preparation facilities that existed before. Instead of loading docks to unpack
boxes and store packages, schools need stoves, refrigerators, cooking utensils, and
serving dishes, among other things.

One speaker at the National Gathering noted that it is easier to obtain funding for
capital equipment than for daily food purchases. And vendors such as Revolution
Foods, founded by two mothers of school-age children, provide not only food, but
also nutrition curricula for students, and even vocational training for food
workers.

Like most large-scale social change, the shift to mass consumption of healthier food
requires both awareness and capacity. Just as recycling has gained currency through
both regulation and a new social consciousness, vendors who learn how to sell
healthy food to schools may someday tap a much larger adult market, whether because
of regulation, a change in expectations, or the simple fact that their customers
have grown up.

Esther Dyson, principal of EDventure Holdings, is an entrepreneur and investor
concentrating on emerging markets and technologies. Her interests include
information technology, health care, private aviation, and space travel.

Copyright: Project Syndicate

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