Many programs have succeeded based on local foods and the key factors are always the same: making kids (and teachers) work at meal preparation and eliminating sugar (especially juice drinks). You point to the "low fat and flavored milk instead of non fat milk". Nobody should drink milk if the fat has been removed. Either drink actual milk or none. Everything else is a waste product of cheese making. It's basically deceiving the body like artificial sweeteners that cause people to gain weight. There's no satiety.
We keep coming up with processes and purchases that make people sick and corporations rich. If a school can't get students involved in the most basic function of life, then it's just another corporation extracting value for the benefit of a system, not contributing to the student or the future of the places they will live.
It's almost never the food per se; it's what we do to it. This applies especially when the person doesn't do anything but purchase and eat. It's not just what we do to the food, but what we don't do. Children need to know that preparing food is necessary for humans.