Discount System [Food Distribution] Law and Legal Definition

According to 7 CFR 250.3 [Title 7—Agriculture; Subtitle B -- Regulations of the Department of Agriculture; Chapter II -- Food and Nutrition Service, Department of Agriculture; Subchapter B -- General Regulations and Policies -- Food Distribution; Part 250 -- Donation of Foods for Use in the United States, its Territories and Possessions and Areas under its Jurisdiction; Subpart A – General], discount system means “a system whereby a recipient agency purchases end products directly from a processor at an established wholesale price minus the contract value of the donated foods contained in the end products.”