Montana Cottage Food Laws and Regulations: How to sell your homemade foods in Montana

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Montana Cottage Food Laws and Regulations: How to sell your homemade foods in Montana

Montana Cottage Food Laws, Regulations and Facts

Date of the enactment of HB 478: October 1, 2015

Amended: SB 199 effective 4/30/2021
Most perishable (refrigerated) foods are now allowed and producers no longer need any type of permit from the health or agriculture department.

Which foods are subject to the Montana Cottage Food law?

Allowed foods

• Bread, Bagels, Biscuits
• Brownies, Cakes, Cookies, Doughnuts, Muffins
• Pizzelles, Rolls, Scones, Sweet breads, Tortillas
• Baked candy, Brittles, Chocolate, Cotton candy, Fudge, Condiments
• Honey
• Ketchup, Mustard,
• Nut butters
• Oils
• Pickles
• Salsas, Sauces
• Vinegars
• Cereals
• Coffee beans
• Dried fruit, Dried vegetables, Herbs
• Mixes
• Pasta noodles
• Spices & Seasonings
• Tea leaves
• Pastries, Cones, Empanadas, Other Pastries
• Pies, Snacks
• Popcorn, Popcorn balls, Caramel corn, Kettle corn
• Chocolate-covered items
• Crackers & Pretzels
• Fruit leathers
• Granola
• Marshmallows
• Nuts & seeds
• Preserves, Fruit butters, Jams & jellies and preserves that comply with the standard described in part 150 of Title 21 of the code of Federal Regulations, Marmalades

Prohibited foods

• TCS (Temperature Control for Safety) are not allowed.  Basically, if it needs to be refrigerated to maintain safety or quality, you can't sell it!
• Pet foods

 

General requirements

• Register register with your local health department for a $40 fee. If you ONLY sell at farmers markets, you do not need to register as a cottage food operation.
• Food labeling is required, see below.
• There is no limit on much you can sell
• Cottage Foods FAQ
• Additional cottage food resources from AERO MT
• Safe Handling Guidelines for Cottage Food Operators
• Cottage Food Brochure
• Honey Sales FAQ

Guidance Document and Application

• Montana DPHHS Cottage Food Operation Guidance and Registration - contains the information and registration form for cottage foods.
• Montana DPHHS Cottage Food Operations Registration pdf fillable form - contains a pdf fillable version of the registration form for cottage foods.  The file must be completed then printed to be saved. 

Example: Cottage Food Label

Laws

• Statute for: Retail Food, Temporary Event Permitting and Cottage Foods (50-50-101, MCA through 50-50-403)

Administrative Rules and Notices

• Title 37, Chapter 110, Subchapter 5 Cottage Food Operations

 

Where may Cottage Food Production Operations sell the food products?

A registered cottage food producer can sell the food they make from: direct to the consumer, online, farm markets, farm stands. Delivery must be in person (deliver to or customer picks up).

If your food product does not meet the definition of a Cottage Food:

Don't give up. You may still be able to make and sell it commercially, through a startup approach.

First, you may be able to rent space in a local licensed commercial kitchen.

Second, if that doesn't work, you may be able to get a co-packer to make the food for you.

See this page for detailed information about selling foods that do not meet the Cottage Food definition

Definitions:

• "home food

Licensing

• Forming your business - links to each state's Secretary of State's Office website
• Local state departments of health.

 

Labeling requirements

Cottage Food Production Operations must label all of their food products properly, which includes specified information on the label of each unit of food product offered or distributed for sale.

All processed packaged foods bear a label stating the

• name and address of the manufacturer/processor preparing the food,
• common name of the food,
• name of all the ingredients in the food in descending order of predominance by weight.
• the net weight of the food in English or metric units.

It is recommended that honey manufacturers/processors include this additional statement to their product label: "Honey is not recommended for infants less than twelve (12) months of age".

Here is a free Microsoft Word label template which you can download and edit.  These labels are already formatted to fit on Avery Template 22820  Print-to-the-Edge Oval, Labels 2" x 3-1/3", 8 per Sheet, Glossy White. You can get the label stock online (see at right). 

Depending on the size of your business, your label must comply with Federal label regulations and with the new nutritional labeling law. You can download a copy of the FDA Food Labeling Guide here it s an illustrated booklet that should answer all your questions. You may see that the sample label does not include a "nutritional panel" (calories, fat, protein, vitamins, etc.) . This is because if you sell (in the U.S. only) fewer than 10,000 units and hire fewer than 10 full-time employees yearly; you do not have to have a nutrition panel on your label, nor file a small business nutritional labeling exemption notice with the FDA.

Where may Cottage Food Production Operations sell the food products?

Cottage Food Products may not be sold across state lines.  In other words,  only be sold within the state. They may be sold directly to the consumer from the home where the products are produced. They may also be sold through grocery stores, registered farm markets, church bake sales, schools, registered farmers markets, and sold and/or used in preparing food in a restaurant.

Other requirements

• Individuals can only sell their products directly to consumers, (that allows sales from home and at events)
• Cottage food operations can sell up to $50,000 of products per year.
• A new billHB 410 went into effect on August 28, 2017, allows onlne sales

Recommendations:

Beyond the requirements, common sense, good practices and reducing liability suggests you should do the following.

Training

Take the ServSafe® training classes for Manager and employees, the 7th Edition Book that accompanies this course should be purchased here.. 

Testing of pH

It's best to use a pH meter, properly calibrated on the day used. I use this one, which is reliable and inexpensive. And this pH meter is really good, but isn't always available.
Short-range paper pH test strips, commonly known as litmus paper, may be used instead, if the product normally has a pH of 4.0 or lower and the paper's range includes a pH of 4.6.

Record-keeping is suggested

Keep a written record of every batch of product made for sale, including:

• ​Recipe, including procedures and ingredients
• Amount canned and sold
• Canning date
• Sale dates and locations
• Gross sales receipts
• Results of any pH test

Sanitation

Although inspections are not required, you should consider doing the following:

• ​Use clean equipment that has been effectively sanitized prior to use
• Clean work surfaces and then sanitize with bleach water before and after use
• Keep ingredients separate from other unprocessed foods
• Keep household pets out of the work area
• Keep walls and floors clean
• Have adequate lighting
• Keep window and door screens in good repair to keep insects out
• Wash hands frequently while working
• Consider annual testing of water if using a private well

Best Practices

• Allergens:  Most state home baking acts require an "ingredient statement" and/or an "allergen listing" on the label of the bakery item for sale; but if your state does not, you should anyway. The eight major food allergens are
  • milk,
  • eggs,
  • fish,
  • crustacean shellfish,
  • tree nuts,
  • peanuts,
  • wheat and
  • soybean.
• Cross-allergenicity: There are also ingredients available, even flours, that can cause a cross-allergenicity. The American Academy of Allergy Asthma & Immunology explains cross-allergenicity as an allergic reaction when proteins in one substance are similar to the proteins found in another substance. For example, consumption of lupine flour may trigger an allergic reaction to peanuts, and cricket flour may trigger an allergic reaction to shellfish. Again, providing such information might be a beneficial marketing tool and help keep potential consumers safe.
• The 2 Hour/4 Hour Rule -   Anyone wishing to make and sell refrigerated bakery items should remember to follow the "2 Hour/4 Hour Rule." This is a system that can be implemented when potentially hazardous foods are out of temperature control (temperatures greater than 45 degrees Fahrenheit) during preparation, serving or display for sale. The rule guidelines are as follows:
  • If a potentially hazardous food has been out of temperature control for 2 hours or less, then it may continue to be used or be placed back in the refrigerator.
  • If a potentially hazardous food has been out of temperature control for more than 2 hours but less than 4 hours, it needs to be used quickly or discarded.
  • If a potentially hazardous food has been out of temperature control for more than 4 hours, it must be discarded.

More resources:

• FDA Food labeling information.
• Good to know (not a requirement): Guidelines for Determining Metric Equivalents of Household Measures (October 1, 1993)
•  Massachusetts has a Food Processors Resource Manual that is a practical guide for specialty food and start-up food processors published by the Massachusetts Department of Agricultural Resources. The marketing and practical tips can be very useful to a cottage food kitchen in any state.  The chapters are available online and as a downloadable document pdf format
  Introduction
  Starting Out
  Production
  Residential Kitchens: Questions and Answers
  Developing a Business Plan
  Label and Product Regulations
  Label Design
  Promotion
  Distribution and Sales
  Trade Shows
  Using the Internet for Marketing

Questions? Contact Information: