Starting a Small Food Business in New Mexico: Understanding Cottage Food Laws and Licensing

New Mexico presents a vibrant landscape for aspiring food vendors, especially those interested in launching a cottage food business. The state’s cottage food laws allow individuals to create and sell specific low-risk foods from their home kitchens, making it easier to turn culinary passions into viable businesses. 

1. Overview of New Mexico’s Cottage Food Laws

New Mexico’s cottage food laws permit home-based food producers to prepare and sell certain non-hazardous foods without requiring a commercial kitchen. The law encourages local entrepreneurs by allowing them to sell various low-risk foods, such as:

  • Baked goods (cookies, bread, cakes)
  • Jams and jellies
  • Honey
  • Dried fruits and vegetables
  • Snack foods (e.g., popcorn, trail mix)

These items are classified as non-potentially hazardous, meaning they do not require refrigeration for safety.

2. Regulations for Cottage Food Producers

While New Mexico’s cottage food law facilitates home-based food sales, it comes with specific regulations that producers must follow:

  • Sales Cap: Cottage food producers can generate up to $50,000 in gross sales annually. If your earnings surpass this limit, you will need to transition to a licensed commercial kitchen.
  • Labeling Requirements: All cottage food products must include clear labels stating:
    • The producer’s name and address
    • The product name and list of ingredients
    • Any allergens present
    • A statement indicating that the food was prepared in a home kitchen not subject to regular inspection

These labels help inform consumers about the products they are purchasing.

3. Licensing and Registration Requirements

New Mexico does not require a formal food license for cottage food producers, but there are essential steps to ensure compliance:

  • Registration with the Health Department: It is advisable to register your cottage food business with your local health department. This can help clarify any specific local regulations that may apply.
  • Food Safety Training: Although not legally mandated, completing a food safety training course is highly recommended. This training ensures that you understand safe food handling and preparation practices, reducing the risk of foodborne illnesses.

4. Steps to Launch Your Cottage Food Business

To successfully start your cottage food business in New Mexico, consider the following steps:

  • Select Your Products: Choose which non-hazardous foods you plan to sell, ensuring they comply with the cottage food regulations.
  • Prepare Your Labels: Develop labels for your products that meet state requirements, including the necessary information about the product and its ingredients.
  • Market Your Products: Begin selling your items directly to consumers at farmers markets, local fairs, or online. Engaging with the community can help you build a loyal customer base.

5. Transitioning to a Licensed Food Business

If your business expands to include potentially hazardous foods or your gross sales exceed the cottage food limit, you will need to obtain a full food license. This requires operating out of a licensed commercial kitchen and adhering to stricter health and safety regulations.

*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.