Oregon is an excellent place to start a small food business, particularly if you’re interested in selling homemade goods. The state’s cottage food laws make it easier for home-based entrepreneurs to produce and sell certain low-risk food products without needing a commercial kitchen.
1. Overview of Oregon’s Cottage Food Laws
Oregon’s Farm Direct Marketing Law allows the sale of certain homemade, non-hazardous food products without a food license. Under this law, individuals can sell directly to consumers at farmers markets, roadside stands, or from their homes. Cottage food operations in Oregon can produce:
- Baked goods (cakes, cookies, breads)
- Jams and jellies
- Preserves
- Fruit butters
- Honey
Foods that require refrigeration or are considered potentially hazardous (like meat or dairy products) cannot be sold under Oregon’s cottage food laws and would require a commercial food license.
2. Labeling and Sales Regulations
Cottage food producers in Oregon must comply with specific labeling and sales guidelines, including:
- Labeling Requirements: All products must include a label with:
- The name of the product
- The producer’s name and address
- A list of ingredients
- A statement indicating the product is homemade and has not been inspected by the state.
- Proper labeling ensures transparency and allows consumers to make informed choices about the food they purchase.
- Sales Limitations: Oregon’s Farm Direct Marketing Law only allows for direct sales to consumers. This means you can sell your products at farmers markets, community events, or from your home, but not through third-party vendors or retail stores.
3. Food License Requirements in Oregon
Most home-based food producers operating under the cottage food law are exempt from requiring a food license in Oregon. However, if you plan to sell potentially hazardous foods like dairy products, meats, or foods that require temperature control, you will need to:
- Obtain a Food License: If your products fall outside the allowed cottage food items, you will need to operate out of a licensed commercial kitchen. You’ll also be required to obtain a food handler’s permit and pass inspections from the local health department.
- Oregon Department of Agriculture (ODA) License: The ODA oversees food safety regulations, and any business operating beyond the cottage food scope will need to meet their licensing standards.
4. Steps to Start Your Cottage Food Business in Oregon
If you’re interested in launching your food business under Oregon’s cottage food laws, here’s what you need to do:
- Choose Your Products: Identify which non-hazardous foods you want to produce and sell. Ensure your offerings comply with Oregon’s Farm Direct Marketing Law.
- Design Compliant Labels: Create labels that meet Oregon’s labeling standards, including a clear indication that the product is homemade and not inspected by the state.
- Market Your Goods: Focus on direct-to-consumer sales at farmers markets, roadside stands, and community events. You can also advertise locally or set up an online platform to promote your products.
5. Transitioning to a Licensed Food Business
If your business grows or you wish to produce a wider range of food items, you’ll need to transition from a cottage food operation to a licensed food business. This will involve using a licensed commercial kitchen and following stricter food safety regulations. You may also need to register with the Oregon Department of Agriculture and pass food safety inspections.
*Disclaimer: This article or any content hereof is not a substitute for professional legal advice, does not create an attorney-client relationship, nor is it a solicitation to offer legal advice.