Starting a Small Food Business in North Dakota: Understanding Cottage Food Laws and Licensing

North Dakota provides a welcoming framework for individuals looking to start small food businesses, particularly through its cottage food laws. These regulations enable home-based entrepreneurs to create and sell certain low-risk foods without the need for a commercial kitchen. 

1. Overview of North Dakota’s Cottage Food Laws

North Dakota’s Cottage Food Law permits the production and sale of specific homemade foods from a residential kitchen. The law aims to support small-scale food entrepreneurs while ensuring consumer safety. The types of food that can be produced under this law include:

  • Baked goods (cookies, bread, cakes)
  • Jams and jellies
  • Candies and confections
  • Dried herbs and spices
  • Honey

These items are categorized as non-potentially hazardous, meaning they do not require refrigeration and are safe for consumer consumption.

2. Regulations for Cottage Food Producers

While North Dakota’s cottage food laws offer flexibility, there are several requirements that producers must follow:

  • Sales Limit: Cottage food producers can generate up to $25,000 in gross sales annually. If your sales exceed this amount, you will need to transition to a licensed food establishment.
  • Labeling Requirements: All cottage food products must be clearly labeled, including:
    • The name and address of the producer
    • The name of the product
    • A list of ingredients, with allergens highlighted
    • A statement indicating that the product was made in a home kitchen not subject to regular inspections

This labeling ensures transparency and helps consumers make informed choices about the food they purchase.

3. Licensing and Registration Requirements

In North Dakota, a formal food license is not required for cottage food producers, but there are important steps to ensure compliance:

  • Local Health Department Registration: It is advisable to check with your local health department to confirm any specific local regulations that may apply to your cottage food business.
  • Food Safety Training: While not mandatory, completing a food safety training course is strongly encouraged. This training helps you understand best practices for safe food handling and reduces the risk of foodborne illnesses.

4. Steps to Launch Your Cottage Food Business

To successfully start your cottage food business in North Dakota, consider the following steps:

  • Choose Your Products: Identify the low-risk foods you want to produce, ensuring they comply with state regulations.
  • Create Your Labels: Develop labels that include all required information, ensuring transparency for consumers.
  • Market Your Products: Begin selling your goods directly to consumers at local farmers markets, community events, or online platforms. Building a strong local presence can help you establish a loyal customer base.

5. Transitioning to a Licensed Food Business

If your business expands to include potentially hazardous foods or if your sales surpass the cottage food cap, you will need to obtain a full food license. This entails operating from a licensed commercial kitchen and adhering to more stringent 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.