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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 have read through SB 320. The Department of Agriculture makes no comment on the cottage laws, however. What is the primary source for requirements?

If I want to specialize in gluten free baked goods out of my kitchen, do I need to do anything special, other than have a food handler’s license and DBA license for my business? I’m wondering specifically if I have to do anything special with the labeling requirements?
Any info would be great. Thanks.

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