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Oregon

Oregon’s new cottage food law (SB 320) went into effect on January 1st, 2016, which makes starting a cottage food operation much easier. Although the new law comes with many more restrictions, those who want more flexibility can still get a Domestic Kitchen license. Also, Oregon’s Farm Direct Bill allows farmers and growers to bypass many requirements.

Starting a cottage food operation in Oregon is relatively simple, requiring only food handlers training, with no license or inspection from the ag department needed. However, operations can only sell up to $20,000 of non-PHF baked and confectionary goods each year. Also, indirect sales (via stores and restaurants) and online sales are prohibited.

Some types of food are completely exempt from agriculture department licensing, like candy and honey (see Product section).

Selling

Although you cannot sell products online, you can use the internet to advertise.

If you want to sell your products in stores, restaurants, or online, you can get a domestic kitchen license.

Allowed Foods

Only non-PHF baked and confectionary goods are allowed under this law. If you want to sell more types of products, you can get a domestic kitchen license. If you grow the main ingredient in your product (e.g. you grow strawberries and make strawberry jam), you may be able to use Oregon’s Farm Direct Bill.

Some products are exempt from ag department licensing:

  • Candy, candied apples, and other non-PHF confections*
  • Coffee, tea, and other non-PHF drinks* (does not include fresh fruit juice)
  • Honey
    • All direct sales to a consumer are exempt
    • Indirect sales (wholesale) are exempt if the producer owns no more than 20 hives, but the producer must apply for the exemption
  • Pet food that does not contain meat

* must be sold in individual-sized portions, for immediate consumption only

Only "non-potentially hazardous" foods are allowed, but certain non-PHFs may not be allowed. Most foods that don't need to be refrigerated (foods without meat, cheese, etc.) are considered non-potentially hazardous. Learn more

Limitations

Limitations
Sales are limited to $20,000 per year

You must keep annual sales records for at least three years, including the types of foods produced.

To sell more than $20,000 of products per year, you can get a domestic kitchen license.

Business

Food handler training program

Each person who prepares food for the business must complete a food safety training course to acquire an Oregon food handler card. The test can be taken online for $10.

Labeling

Sample Label

Chocolate Chip Cookies

"This product is homemade and is not prepared in an inspected food establishment."


Forrager Cookie Company

123 Chewy Way, Cookietown, OR 73531


Phone: (123) 456-7890


Ingredients: enriched flour (wheat flour, malted barley flour, niacin, iron, thiamin mononitrate, riboflavin, folic acid), butter (cream, salt), semi-sweet chocolate (sugar, chocolate, cocoa butter, milkfat, soy lecithin, natural flavors), brown sugar, granulated sugar, eggs, vanilla extract (vanilla bean extract, alcohol, sugar), baking soda, salt (salt, calcium silicate)


Contains: milk, eggs, wheat, soy


NET WT 2 lb 4 oz (1.02 kg)


If the label makes any health claims (low-fat, cholesterol-free, etc), a nutrition label is required.

Resources

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Comments

I really appreciate what you are doing here! But unfortunately, this website contains some misleading information concerning Oregon’s Farm Direct Marketing Rules.

For instance, Jams and Jellies are listed as being prohibited here. But within the Oregon Department of Agriculture’s FAQ list it states that they are exempt.

Can I make preserves in jars and sell them without a license?

If you grow the principal ingredients yourself, the Farm Direct Marketing Rules exempt shelf-stable products, including syrups, jams, preserves, jellies, and canned fruit, from ODA licensing. In some cases pickles, chutneys, relishes, sauerkraut, and some salsas may be sold under this exemption.

FAQS
http://www.oregon.gov/ODA/programs/FoodSafety/Pages/FSFAQs.aspx

—-

Some PDF files concerning the subject:

Farm Direct Marketing Producer Processed Products:
https://www.oregon.gov/ODA/shared/Documents/Publications/FoodSafety/FarmDirectMarketingProcessedProducers.pdf

Farm Direct Agricultural Products:
http://www.oregon.gov/ODA/shared/Documents/Publications/FoodSafety/FarmDirectMarketingAgProducts.pdf

ODA’s website (for complete up-to-date information):
http://www.oregon.gov/ODA/programs/FoodSafety/FSLicensing/Pages/WithoutLicense.aspx

Thanks,
Kayla

Can partnership operate under under CFO? There are two of us and we want to try sell our homemade baking goods. Just wonder if we can work together under the same business name or each of us have to get own business licence? Thank you!

    Although this isn’t allowed in some states (like CA), I don’t see anything that would prevent it here. You can apply for a partnership when you get your business license. However, this might limit you to $20,000 of sales for the two of you, which doesn’t seem ideal. You should contact the ag dept to see if that would be the case.

Hi David, I own a small business where I go to people’s homes and cook for them. However, I’ve been wanting to start making baked goods/desserts in my own home to sell at markets and to my clients. I have a food handlers card and business licenses for my local city. Do I need anything else to start selling the goodies? Thank you for having this amazing site! It’s been super helpful!

First, I think this website is great! Easy to read and understand. I’m looking to start selling homemade baked goods in Oregon. To start doing this, you don’t need a business license or inspection from the health department, right? As long as you follow the regulations, you can sell your items at farmer’s markets/events (with their permission, I assume). Just want to make sure there’s no other preliminary steps other than the food handler’s card and prep work like making labels and such.

I spoke with a person at Oregon’s Dept. of Ag, who is one of the inspectors. She tells me fruit pies are not allowed at farmers markets from the unlicensed kitchen. What is it about fruit pies that requires refrigeration? I know I can do these to order. Just curious. Thanks,

    That doesn’t seem right. Are you sure that she’s aware of SB 320? If so, what did she say is allowed? I think you should press more for details… the law clearly says that non-PHF baked goods are allowed.

    Thanks David. I agree with you, but will leave them out for now, as they are really labor-intensive. We start tomorrow, and I’ve got more than I can handle as it is. I’ll see how this market goes. Oh, and she had thoroughly read the law before we talked, so this might be something we disagree on. More later, and wish me luck tomorrow!

I want to sell cupcakes at Farmer’s Markets… I have a dog but he is not in the house when I bake… I also have just passed the Food Handler’s License test… should I carry the certificate when selling? What else do I need to carry with me? Knowing all the above, does this sound like I am covered?

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