How to Sell Homemade Food

One of my readers has a friend that makes homemade breads, yogurts and more, and she has encouraged her to seek out sales opportunities for these goods. My reader asked me to find more information on how to sell homemade food. Ask and you shall receive.

Can I Sell Homemade Food?

The opportunity to sell homemade food products is largely dictated by location. State regulations for food sales on a small scale are often found under laws called “cottage food laws” or “baker’s bills.” These bills are constructed to allow for small business owners to start a food crafting business without some of the big financial barriers, such as owning a commercial kitchen. As of now, 32 states allow citizens to prepare food products in their homes that will later be sold for profit. Here are some things typically outlined in these bills:

Licensing is required in some states with a cottage food law. This typically costs around $10 to $100 annually. Some states require a home kitchen inspection prior to licensing, others simply reserve this right in the event of a complaint or suspected unsafe food handling.

Sanitation standards are a must. Many organizations offer food safety training, in some cases for free. Contact your local Small Business Association for possible references.

Income of food crafters is capped in many locations. In Texas for example, a food crafter can earn no more than $50,000 per year. In New Hampshire the limit is $10,000. Once that threshold is met, the business is required to follow the same regulations as a commercial food preparer.

Type of food may also be the “deal-breaker” for potential small business owners in some locations. Some states only allow for the sale of “non-hazardous food products.” This category typically includes food items such as jams, jellies, granola, nut mixes, dry goods, roasted coffee and other items that have small potential of carrying food-borne diseases and do not require refrigeration.

Labeling is strictly regulated in most states with cottage food laws. Food crafters are usually required to list ingredients, name of the producer, address, and known food allergens. Some states also require labels to include a phone number and expiration date.

How to Sell Homemade Food

If your state allows for this type of business, you can sell your products in a number of ways:

• Direct to Consumer
• Farmer’s Markets
• Local Stores or Restaurants

Homemade food items can only be sold in the state in which they are produced. The federal government controls interstate commerce, and they currently have no cottage food laws in place. Therefore, you cannot simply hop online and start selling your award-winning jams nationwide. You must keep your sales local.

What If My State Does Not Have a Cottage Food Law?

If your state does not have a cottage food law that does not mean you are out of luck. You will simply need to follow the same rules and regulations required of the “big guys.” If this is too cost prohibitive, you can likely still participate in “food swaps.” These events bring together local food crafters to exchange homemade goods. For example, trade your family’s bread for honey. Though you cannot make money with this option, you can save money by participating in this barter system.

You can find out more information about your location’s law by contacting your local Small Business Association. These offices can provide guidance at no charge. Please note that homemade food products and backyard produce fall under different regulations in most states.