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Cost Per Meal
$0.35 and $0.50

The Idaho Foodbank is able to keep our cost per meal surprisingly low (often between $0.35 and $0.50 per meal) thanks to a combination of strategic sourcing, economies of scale, volunteer labor, and partnerships. Here’s a clear breakdown of how it works:

How it works

1. Bulk Sourcing & Large-Scale Donations
  • Food donations from manufacturers, grocers, and farmers make up the majority of the food supply. These are often surplus, close-dated, mislabeled, or cosmetically imperfect products that are still perfectly safe to eat.
  • Food banks often receive truckloads of donated products, which dramatically reduces the per-unit cost compared to retail pricing.
  • National networks (including Feeding America) negotiate donations and distribute them to local food banks, lowering acquisition costs further.

2. Purchasing Power at Wholesale or Below
  • When food banks do need to purchase food, they often do so at wholesale or below-market rates, thanks to direct relationships with producers and bulk purchasing agreements.
  • Many food banks participate in co-ops or shared purchasing programs to get volume discounts.
3. Heavy Use of Volunteers
  • A significant portion of sorting, packing, distribution, and administrative work is done by volunteers, which dramatically lowers labor expenses.
  • Paid staff typically focus on logistics, compliance, and partnership management rather than hands-on packing for every box.
4. Efficient Warehousing & Distribution
  • Food banks use centralized warehouses with industrial storage and inventory systems, which lets them move large quantities efficiently.
  • Many food banks operate on hub-and-spoke models—warehouses act as hubs that distribute to hundreds of partner pantries, schools, and mobile sites, minimizing duplication of overhead.

5. Strategic Partnerships & Grants
  • Partnerships with government programs (like The Emergency Food Assistance Program [TEFAP] and USDA Commodity Programs) provide large quantities of food at no cost.
  • Corporate sponsors and private donors often cover transportation or operational costs, allowing food banks to stretch every donated dollar further.
6. Low Overhead & Mission-Driven Efficiency
  • Many food banks operate as nonprofits with lean administrative budgets.
  • Because their mission is service rather than profit, any efficiencies or donations are reinvested directly into providing more meals, lowering the effective “cost per meal.”
Minimal Overhead Means

Low Cost Per Meal

Example:

A food bank might receive 40,000 pounds of donated produce, use volunteers to sort and pack it, and deliver it through its network of pantries. The only major costs incurred are transportation and minimal operational overhead — which, spread across tens of thousands of meals, leads to a very low cost per meal.