Cottage Food Laws Explained
The introduction of cottage food laws in the United States since 2011 has been part of a growing movement to promote food transparency, safety, and the right to food sovereignty. Such laws are an essential ingredient for fostering small businesses that would otherwise be unable to afford regulatory costs and hurdles. The cottage food movement is also about protecting family farmers, supporting local economies, and empowering consumers.
Cottage food laws are state regulations that exempt clerically simple, low-risk foods from expensive commercial licensing requirements, so small-scale producers of baked goods, jams, pickles, hot sauce, or value-added specialty foods can sell those creations directly to their neighbors . While the particulars vary from state to state, most cottage food laws allow home cooks to produce small amounts of these low-risk foods in their homes and sell them at farmers’ markets, roadside stands, neighborhood stores, or via the internet. Many states offer producers the option of self-registration, issue registration certificates good for one to three years, and require no more than a basic food safety course to sell homemade food.
Louisiana Specific Cottage Food Laws
In Louisiana, these foods may be sold at farmer markets, roadside stands, or by direct order from the consumer. The finished goods must be stored, transported and displayed in a sanitary manner. Any cottage food foods sold for income, must be labeled with the price, a statement saying that the food is not prepared in an inspected kitchen and a clear list of ingredients in descending order of proportion. This labeling requirement aims to keep unsuspecting consumers from purchasing foods that could have allergens or other potentially harmful substances.
Louisiana’s cottage food law became effective on August 15th, 2012 and farmers markets were regulated by Act No 661 of the Louisiana Legislature. Louisiana has no licensing or other fees required, as long as an annual registration is maintained. As of now, artisanal foods produced within the state are not required to undergo safety inspections.
The following may be sold under Louisiana’s cottage food law: As well as several other cottage food categories, such as jams & jellies, pickled (but not fermented) vegetables, preparations containing dried fruits or vegetables, vinegar and mustard products, cereal granola and roll mixes, popcorn and popcorn balls, food bars, candy bars and fudge, flour and meals, rolled pancake mixes, dry beverage and soup mixes, dry rubs, dips and oil dips, nut butters, dog biscuits, snack foods, spaghetti sauce, salsa, tomato sauce, bouillon, caramel corn and mixed nuts.
What Foods Are Allowed by Louisiana Law
Under the cottage food law, Louisiana residents may sell certain foods from their personal homes. These foods include muffins, breads, pastries, cookies, chocolate-covered pretzels, granola, cereal granola bars, candy, jams and jellies, fruit preserves, maple sugar candy, popcorn, cinnamon applesauce or other fruit chips, pickles, sauces and condiments, dry herbs must be dried at room temperature, dry herb mixes, dry seasoning mixes, dry baking mixes, dry tea blends, pre-prepared dry gravy mixes, dry cereal flakes, dry herb-flavored or non-herb-flavored flavored vinegar, flavored smoked oils, pop corn, dry meat jerkies, and popcorn.
Products made from meat and obligate filth, food for dogs and cats, and the like are outside of the Cottage Food Law. These products include kernel corn for popping, various chocolates, edible hibiscus flowers, wine, a short-term stay in a private home (such as a B&B), homemade bath oils and salts, soaps, and herbal poultices.
Requirements for Cottage Food Producers
Requirements for Cottage Food Producers in Louisiana
To become eligible to sell under the Cottage Food Law, the first step is to obtain a license that indicates you are a home-based vendor of cottage foods. In addition to providing your name, home address, phone number, and email address, you will also need a copy of your current Louisiana driver’s license or identification card from the Department of Public Safety and Corrections to prove your identity.
You must never sell cottage foods at a commercial location. Any cottage food sold must be sold directly from your home to the final consumer. Cottage foods cannot be sold over the internet, at farmers’ markets, nor can they be sold or delivered to restaurants or grocery stores.
The law requires that producers keep records of all the cottage foods produced during production for a period of three years. You must also show proof that your cottage food has been tested by a registered laboratory. In some cases, it is required that the local health department gives you written approval before selling the cottage food.
If the laboratory test shows signs of contamination in your cottage food, you may not sell the cottage food under the Cottage Food Law and will have to take appropriate action on the cottage food before proceeding with sales.
All cottage foods sold must also provide labeling that states:
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There may also be additional requirements according to your parish or city government. This is why it is important to communicate with your local government, so that you can familiarize yourself with the set rules and regulations you should follow. You can check with your local health department, or the Secretary of State’s office if you want more detailed information on the requirements for your specific city or county.
Labeling and Packaging Requirements
Every package of cottage food must have a label with the following information:
- (1) the name of the food;
- (2) the name, city, and state of the cottage food vendor who prepared the food, including street address, city, state, and ZIP code , or a telephone number and an e-mail address through which the vendor may be reached; and
- (3) the ingredients of the food in descending order of predominance by weight.
The label must also include a statement that the food was not prepared in a commercial kitchen as follows:
"Made in a home kitchen (or home kitchen name) that has not been inspected by the Department of Health and Hospitals or any other state or local health agency."
These labels need to be legible and the same information must be provided in English and French when sold in the City of New Orleans. Additionally, if the product is intended for sale to children under 12 years of age, it must not feature cartoon characters. It must also not make health or nutrient content claims in the labeling, unless such claims are approved by the FDA.
How The Louisiana Cottage Food Law Affects the Economy
The economic impact of the cottage food law in Louisiana is substantial, particularly for those local communities that have seen the most growth from its implementation.
By allowing small business owners to launch home-based food operations without the need for expensive permits and equipment, the law creates entrepreneurial opportunities in areas that are often economically underdeveloped.
This doesn’t just mean more business opportunities for residents of those areas; it means new jobs, new investments and increased revenue for local entrepreneurs.
Operations currently licensed under the law include custom wedding cake shops, catering companies, produce farms, meal delivery businesses, jam and jelly creators, chefs who create dog treats, beekeepers, medical herbalists and many others who have launched businesses as a secondary source of income, or on occasion, their only source of income.
All of them started with very small investments and low overhead, creating an opportunity to earn income in their communities that didn’t require them to relocate.
The cottage food law also presents an opportunity for underemployed individuals to present their products to a larger market. Veteran’s groups, disabled individuals and other community organizations have utilized the cottage food law with great success, earning enough income to support themselves while still serving their community.
Small business owners (those with fewer than 100 employees) are critical to the development and sustainability of Louisiana’s up and coming economy. The United States Small Business Administration (US SBA) reports that, in 2016, 98.4% of all businesses in the state of Louisiana were small business, which employed over 52% of the state’s entire workforce.
That means that this small group of businesses is shouldering over half of the state’s job development burden. Small businesses are responsible for the growth of two-thirds of all jobs.
Per capita personal income (PCI) is a common indicator of a region’s economic wellbeing. According to the Bureau of Economic Analysis, an economic research division of the U.S. Department of Commerce, Louisiana’s PCI in 2017 was approximately $23,000, about 15% below the national average of $27,000.
Since most cottage food law businesses are not required to have any employees other than the owner, it may be impossible to attribute any incremental increases in Louisiana’s PCI to the presence of the cottage food law. Still, it is reasonable to estimate that, with more than 1,100 registered cottage food marketers, the low barrier to entry created by the cottage food law has positively impacted the PCI of at least a few individuals or families, even if the overall "proportionate" impact has been negligible.
Without the cottage food law, these individuals or families would not have been able to successfully acquire the hard assets (such as ovens, cake equipment, commercial mixers or specialized food preparation equipment) necessary to define and build a successful business. In fact, the US SBA lists lack of startup capital as one of the most widely experienced challenges faced by small business owners. With the significant costs of startup and licensing required of more sophisticated food establishments, this challenge would be nearly insurmountable.
The cottage food law has provided much needed support to the new small businesses of Louisiana – a demographic vital to the local economy.
With low startup costs, no travel expense to a commercial kitchen, affordable primary or secondary stream revenue options, and significant marketing help from parish and state governments, financial institutions and local chambers of commerce, it is easy to see why Louisiana’s cottage food law continues to be so popular, even with the growing reports of local health officials showing that many cottage food businesses are operating without the proper licensing.
Problems and Legal Aspects
Cottage food producers in Louisiana aren’t immune from the law or its consequences. Because the cottage food industry is based primarily in the home, it is subject to the same health and safety regulations that apply to most industries. The state has the right to inspect any cottage food kitchen that registers with them. Further, the local health department has the authority to shut down a cottage food business if there’s reason to believe it’s contaminating food, mislabeling food or breaking any other relevant food safety laws.
If you want to remain within the law, be prepared for inspections and comply with any requests for documentation.
In addition to complying with state regulations, cottage food producers should take care to create and document legally sound contracts with clients. Specifically, you should determine how and when each party sends, receives and pays for products, as well as reinspects products and handles returns or defective products.
All of these provisions should be explicitly stated so that clients have no questions about your policy.
Even the most careful cottage food producers are not immune to legal risk. Having a comprehensive insurance policy is an important part of protecting your business. Insurance is required by law in certain cases. For example, if you own a brick-and-mortar business and hire employees, workers’ compensation insurance may be required. From the home, insurance is necessary to protect you against liability for things like product spoilage. An insurance agent can help identify potential risks associated with your specific cottage food business and decide how best to cover those risks.
Louisiana is one of the more permissive states when it comes to cottage food laws. If you’re considering a cottage food business in Ingram County, you likely have the freedom to test your food production and sales idea with relatively few state restrictions, especially compared to many other states. That being said, conduct ample research and talk to professionals about the types of insurance you may need and how to comply with existing regulations.
Every cottage food business is different, and keeping your organization above board requires a commitment to legal compliance and consumer safety.
Future of the Cottage Food Laws in Louisiana
In the coming years, cottage food laws in Louisiana are expected to evolve along with consumer preferences and market demand. As the demand for locally sourced, homemade products grows, it is likely that lawmakers will consider additional amendments to existing laws to better accommodate small-scale producers. Legislative trends in Louisiana have shown a willingness to revisit and revise legislation to address the needs of small food businesses. For example, the 2019 session witnessed an increase in sales caps and the addition of new allowable foods. Similar changes may be on the horizon in the years to come as legislators monitor the success of the cottage food industry and its impact on the local economy. Moreover , growing consumer awareness about the benefits of purchasing homemade foods may also play a significant role in shaping the future of cottage food laws in Louisiana. Increased public support can lead to more robust advocacy efforts, urging lawmakers to consider legislative recommendations put forth by consumer groups and grassroots organizations. As the cottage food industry continues to thrive in Louisiana, its future looks promising. With ongoing legislative support and growing consumer awareness, small-scale food producers will likely continue to play a pivotal role in Louisiana’s food landscape for years to come.