How Schools Can Partner with Smaller-Scale Processors to Bring Local Ingredients to Students
August 03, 2026 | By Helenka Ostrum
School districts across the country face a common challenge: how to serve more local, healthy foods while balancing tight budgets and limited staffing. One solution gaining traction is for schools to maximize their funding from the U.S. Department of Agriculture (USDA) by working with food processors, which are companies that turn raw ingredients into ready-to-eat menu items.
Our Partnerships for Local Agriculture & Nutrition Transformation in Schools (PLANTS) grantees are collaborating with processors and farmers to combine locally grown produce with USDA Foods to create ready-to-eat items for school meals. This innovative approach to school food processing is boosting the use of local foods in schools and creating new markets for local farmers.
Before we move on: you might be asking, “Wait…isn’t the Chef Ann Foundation’s mission all about getting ultraprocessed food out of schools?! Yes! But we’re not talking about ultraprocessed food here.
We’re talking about minimally processed or processed foods, which are the kind of foods anyone can make at home from whole, raw ingredients. These foods include apple slices, homemade pasta sauces, and freshly baked bread. Basically, any action taken to alter food from its raw form — like chopping, washing, freezing, and heating — is a form of processing. In contrast, ultraprocessed foods are typically highly manufactured products made with industrial processing techniques and ingredients you wouldn’t normally find in home kitchens.
Ok! Let’s continue…
The Current System
How Schools Work with Food Processors
Schools that participate in the National School Lunch Program get funds from the federal government (called entitlement funds) to purchase food from the USDA Foods Program. Through this program, schools can buy a variety of 100% American-grown fruits and vegetables, dairy products, whole grains, and protein. Examples include raw meat, poultry, fish, beans, cheese, nuts, eggs, flour, pasta, rice, and tortillas. Schools can also buy fresh, frozen, and canned fruits and vegetables. Ingredients bought through the USDA Foods Program make up 15-20% of the food used in school meals each year.
Schools can choose to get USDA Foods delivered directly to their school or to send them to a processor. For example, schools could send fresh apples to a processor to make applesauce, which can save schools time and money. Thousands of schools across the country work with processors in this way.
The Opportunity
Building Relationships Between Schools, Local Farms, and Local Food Processors
Most of the processors currently approved to process USDA Foods are large nationwide companies, specializing in a handful of items produced in large volumes. This work is often on a very large scale, and many of the created ready-to-eat menu items contain preservatives to maintain color, texture, and flavor, as well as other additives. Individual school districts don’t generally have the time, capacity, or buying power to effect significant changes in these formulations to limit preservatives, let alone add locally sourced ingredients.
Through our PLANTS program, schools are working with State agencies, community partners, and the USDA to establish new agreements that allow smaller, local processors to participate, opening doors to new products, innovations, and the integration of local produce in exciting ways.
Our PLANTS grantees are adding local food to the equation. Small- and mid-scale processors can combine USDA Foods with local ingredients to improve taste and nutrition without adding preservatives, while still producing at a sufficient scale to keep costs down. By combining USDA Foods with local ingredients, this innovative model generates new markets for local farmers and new ready-to-use products that schools can buy with their entitlement funds.
It’s a win-win-win: This model provides direct economic benefits to small local processors, local and regional farmers, and schools. Most importantly, it increases access to fresher, more nutritious school meals for students.
Through our PLANTS program, schools are working with State agencies, community partners, and the USDA to establish new agreements that allow smaller, local processors to participate, opening doors to new products, innovations, and the integration of local produce in exciting ways.
Our PLANTS grantees are adding local food to the equation. Small- and mid-scale processors can combine USDA Foods with local ingredients to improve taste and nutrition without adding preservatives, while still producing at a sufficient scale to keep costs down. By combining USDA Foods with local ingredients, this innovative model generates new markets for local farmers and new ready-to-use products that schools can buy with their entitlement funds.
It’s a win-win-win: This model provides direct economic benefits to small local processors, local and regional farmers, and schools. Most importantly, it increases access to fresher, more nutritious school meals for students.
Local Food Processing in Action
Massachusetts
On the East Coast, PLANTS grantees Boston Public Schools (serving 54,000 students) and CommonWealth Kitchen, a nonprofit local food business incubator and commercial kitchen, saw an opportunity to create a product students love at a lower cost and with less labor.
Students at Boston Public Schools loved a tikka masala sauce from Meal Mantra, a product offered by a CommonWealth Kitchen member. But it was too expensive to feature regularly on the menu. The district first tried to cut costs by combining the tikka masala sauce with tomatoes they bought through the USDA Foods program. While the district increased the amount of sauce at a reasonable price, it was a time-consuming process for school nutrition professionals.
The district collaborated with another PLANTS partner, Massachusetts Farm to School, to find an alternative processor for this sauce to save both money and time. Their solution was for CommonWealth Kitchen to apply to become Massachusetts’ first USDA Foods processor. After a successful trial period, Massachusetts approved CommonWealth Kitchen’s application. They can now process domestically sourced USDA Foods, as well as locally and regionally sourced ingredients, and combine them to make ready-to-use menu items for nearby schools.
The district collaborated with another PLANTS partner, Massachusetts Farm to School, to find an alternative processor for this sauce to save both money and time. Their solution was for CommonWealth Kitchen to apply to become Massachusetts’ first USDA Foods processor. After a successful trial period, Massachusetts approved CommonWealth Kitchen’s application. They can now process domestically sourced USDA Foods, as well as locally and regionally sourced ingredients, and combine them to make ready-to-use menu items for nearby schools.
For the 2026-2027 school year, Commonwealth Kitchen is working with 85 school districts across Massachusetts to produce nearly 20,000 gallons of sauces, including tikka masala and a blended marinara sauce. This amount of sauce is enough for over 850,000 servings in year one of the project! Commonwealth Kitchen will source nearly 40,000 pounds of Massachusetts-grown tomatoes required for the project through a partnership with Boston Food Hub.
They are also leveraging the sale of the blended marinara and tikka masala sauce to introduce other items to school districts, including a yellow field pea fritter that is on menus at 15 districts. The strong participation from so many school districts is a clear indication of the demand for these types of innovative regional-scale solutions.
For the 2026-2027 school year, Commonwealth Kitchen is working with 85 school districts across Massachusetts to produce nearly 20,000 gallons of sauces, including tikka masala and a blended marinara sauce. This amount of sauce is enough for over 850,000 servings in year one of the project! Commonwealth Kitchen will source nearly 40,000 pounds of Massachusetts-grown tomatoes required for the project through a partnership with Boston Food Hub.
They are also leveraging the sale of the blended marinara and tikka masala sauce to introduce other items to school districts, including a yellow field pea fritter that is on menus at 15 districts. The strong participation from so many school districts is a clear indication of the demand for these types of innovative regional-scale solutions.
Montana and Washington
In the Pacific Northwest, NorthEast Washington Educational Service District 101 is helping create cross-state partnerships with a Montana-based processor. The district wanted to expand access to locally grown and regionally produced foods and to save money by combining them with USDA Foods to create ready-to-serve foods for its students.
The closest processor to the Washington state district is Mission West Community Development Partners in Montana. Mission West has successfully operated an in-state processing agreement to make a Montana marinara sauce since 2021. That recipe uses Montana-grown butternut squash, carrots, onions, safflower oil, and USDA Foods from Montana schools.
Their current goal is to produce a Washington-grown marinara sauce that blends USDA Foods tomatoes and Washington-grown produce.
Since the USDA Foods allocated to Washington schools will cross state lines for processing, Mission West must apply for and secure a National Processing Agreement with USDA. This agreement must be in place before Washington schools can send USDA Foods to Montana and then order products from the out-of-state processor.
Mission West’s initial National Processing Agreement was denied. However, the PLANTS grant has enabled these partners to learn invaluable lessons and build strategic relationships with State agencies to strengthen their application.
The application process for securing an agreement required strong communication and planning between partners. School districts had to show demand for the marinara sauce, using their school lunch participation rates to predict future need. The processor and school districts also had to demonstrate to USDA that they could efficiently manage their food inventories. These key lessons are learning opportunities for other processors and partners that want to pursue a National Processing Agreement. They also shed light on how schools and their partners creatively navigate complex systems to ultimately get more local foods on school trays.
Mission West’s initial National Processing Agreement was denied. However, the PLANTS grant has enabled these partners to learn invaluable lessons and build strategic relationships with State agencies to strengthen their application.
The application process for securing an agreement required strong communication and planning between partners. School districts had to show demand for the marinara sauce, using their school lunch participation rates to predict future need. The processor and school districts also had to demonstrate to USDA that they could efficiently manage their food inventories. These key lessons are learning opportunities for other processors and partners that want to pursue a National Processing Agreement. They also shed light on how schools and their partners creatively navigate complex systems to ultimately get more local foods on school trays.
Boosting Local Food in Schools
These projects highlight opportunities for increasing access to local food in schools while strengthening local economies. By building partnerships between schools and small and local processors, farmers can access new markets for their products, while schools have more access to local foods in the form of ready-to-use products.
Ready-to-use foods can improve schools’ capacity to prepare meals from scratch. For example, the Massachusetts schools that purchase locally sourced, pre-made sauce have more time to scratch-cook other dishes.
Plus, relationships with small, local processors let schools give more input on ingredients and ensure products meet USDA school nutrition standards. By strategically leveraging USDA Foods, schools can stretch their dollars to develop new locally sourced, ready-to-serve menu items and strengthen local food systems.
Boosting Local Food in Schools
These projects highlight opportunities for increasing access to local food in schools while strengthening local economies. By building partnerships between schools and small and local processors, farmers can access new markets for their products, while schools have more access to local foods in the form of ready-to-use products.
Ready-to-use foods can improve schools’ capacity to prepare meals from scratch. For example, the Massachusetts schools that purchase locally sourced, pre-made sauce have more time to scratch-cook other dishes.
Plus, relationships with small, local processors let schools give more input on ingredients and ensure products meet USDA school nutrition standards. By strategically leveraging USDA Foods, schools can stretch their dollars to develop new locally sourced, ready-to-serve menu items and strengthen local food systems.
About Partnerships for Local Agriculture & Nutrition Transformation
The PLANTS program seeks to strengthen relationships between schools and community-based food system stakeholders, as well as expand scratch-cooking in schools to build more sustainable and nourishing school meal programs.
PLANTS is funded by the USDA’s Food and Nutrition Administration, as part of its Healthy Meals Incentives Initiative, and is administered by Chef Ann Foundation in partnership with Kitchen Sync Strategies Collaborative and National Farm to School Network.
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