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Cottage Food Laws



Many enterprising individuals happen to also be great cooks, bakers, or creators of sweet treats. Sometimes those passions will align and these individuals decide to take the steps necessary to make their passion for creating delicious goods into a business. All great businesses have to start somewhere, and often food businesses start out of the entrepreneur’s home. If you find yourself in that situation, you must be cognizant that there are laws that govern the creation and distribution of food made from your home, known as the Cottage Food Laws. These laws will allow you to make and sell food from your home without obtaining a Michigan food license. This post will explain how to comply  with the Cottage Food Laws in Michigan.

 While utilizing these laws allows for one to make and sell food without a license, there are three elements to keep in mind when making food with the intent to utilize the Cottage Food Laws in Michigan: the product, the packaging, and the distribution.

 The Product

 The state of Michigan is quite particular about what constitutes a cottage food and what the food product that is sold can be. To start, all food for sale must be made in the kitchen of your permanent residence. This means that rented and community kitchens will disqualify you from receiving protection under the Cottage Food Laws. The foods that are made can only be those foods classified as non-potentially hazardous foods. These include foods that can be kept safely at room temperature and do not require refrigeration. Examples include: fruit jams/jellies, breads and similar baked goods, cookies, and cakes. For a complete list of foods that are accepted and those that should be avoided, be sure to look at the information posted by the Michigan Department of Agriculture & Rural Development at the bottom of this post.

The Packaging

 Due to the fact that local health departments do not directly oversee  these foods, there are stringent labeling requirements for products sold under the Cottage Food Laws.

 The requirements for each label are:

       Name and physical address of the Cottage Food operation (You must use the physical address of your home kitchen; Post Office Box addresses are not adequate).

       Name of the Cottage Food product (All capital letters or upper/lower case are both acceptable).

       The ingredients of the Cottage Food product, in descending order of predominance by weight. If you use a prepared item in your recipe, you must list the sub-ingredients as well.

o   For example: soy sauce is not acceptable, soy sauce (wheat, soybeans, salt) would be acceptable, please see the label below for further examples.

       The net weight or net volume of the Cottage Food product (must also include the metric equivalent).

       Allergen labeling as specified in federal labeling requirements.

o   Allergen labeling requires you to identify if any of your ingredients are made from one of the following food groups: milk, eggs, wheat, peanuts, soybeans, fish (including shellfish, crab, lobster, or shrimp), and tree nuts (such as almonds, pecans, or walnuts).

       The following statement: "Made in a home kitchen that has not been inspected by the Michigan Department of Agriculture & Rural Development" in at least the equivalent of 11-point font (about 1/8" tall) and in a color that provides a clear contrast to the background (All capital letters or upper/lower case are both acceptable).

 

 An example of a complaint label is below:

 Example:  

Chuck’s Moon Cookies LLC

Chocolate Chip Cookie

Charles Mahone

123 Foodstuff Lane

Confection City, MI 82682

Ingredients: Enriched flour (Wheat flour, niacin, reduced iron, thiamine, mononitrate, riboflavin and folic acid), butter (milk, salt), chocolate chips (sugar, cocoa butter, butterfat (milk), Soy lecithin as an emulsifier), walnuts, sugar, eggs, salt, artificial vanilla extract, baking soda

Contains: wheat, eggs, milk, soy, walnuts

Net Wt. 3 oz (85.05 g)

Made in a home kitchen that has not been inspected by the Michigan Department of Agriculture & Rural Development

 Distribution 

There are a few restrictions that you need to keep in mind when selling and advertising your Cottage Foods. Although we are firmly in the digital age, there are restrictions on the sale of Cottage Food goods solely over the internet. It is okay to advertise the goods on the internet, however, the actual sale and transfer of funds must take place in-person. When selling goods, you must apply the appropriate tax as well as keep records of your sales and present them upon request to a food inspector. You also are not allowed to exceed annual gross sales of $25,000.Should you want to make more than $25,000, you will need to apply for a Michigan food license.

 Final Thoughts 

Utilizing the Cottage Foods Laws is a great option for a food business that is just starting operations, and it is a great step before obtaining a Michigan food license. As long as you comply with the above specifications, you will fall under the Cottage Food Laws provisions and it is not necessary to apply or fill out any forms. While the Cottage Food Laws offer state protections, keep in mind that you must comply with local zoning laws.

 To get more information about how to comply with Cottage Food Laws in Michigan, look at the Michigan Department of Agriculture & Rural Development here:

 https://www.michigan.gov/mdard/0,4610,7-125-50772_45851-240577--,00.html#CottageFoodChecklist

 

 By Charles Mahone

 

 

 

 


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