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Cottage Food
Selling and Samples
Cottage Food Producers may sell up to $50,000 yearly in gross sales of certain foods with no license, registration, or inspection. However, $75,000 is allowable if the cottage food operation sells cottage food products at a price of $250 or more per unit.
- Cottage food businesses may advertise online and collect payments in-person or through a pay app.
- Cottage food products must be sold directly from the cottage food operation to the consumer.
- A cottage food product may be sold by internet or mail order or may be delivered to a consumer through a third-party food delivery platform if the cottage food operation provides an opportunity for a consumer to directly interact with the cottage food operation before the cottage food product is sold.
- A cottage food product may only be sold or delivered within Michigan.
Where can I sell my Cottage Food products?
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Frequently Asked Questions
How do I sell my Cottage Foods?
Cottage foods may only be sold by the producer directly to the consumer at farmers markets, farm stands, roadside stands, and similar venues. You cannot sell your cottage foods to a retailer or restaurant for further use or sale; or to wholesalers, brokers, or distributors who intend to resell the cottage foods. Cottage food businesses may advertise online and collect payments in-person or through a pay app. A cottage food product may be sold by internet or mail order or may be delivered to a consumer through a third-party food delivery platform if the cottage food operation provides an opportunity for a consumer to directly interact with the cottage food operation before the cottage food product is sold. A cottage food product may only be sold or delivered within Michigan.
Why can't I sell my Cottage Foods to my favorite restaurant or grocery store?
The Cottage Food Law does not allow this. Because your home kitchen is unlicensed and not inspected, the safe food handling practices are not evaluated by any food safety official. Since the safe food handling practices are not being evaluated, the food is not considered an approved source for use in a restaurant or grocery store. Also, it is not possible for the final consumer to discuss your food safety practices with you, since you are not selling or serving the product to the consumer.
What oversight does the Michigan Department of Agriculture & Rural Development (MDARD) have over my Cottage Food operation?
Cottage Food operations are considered to be food establishments, but will not have to meet the licensing and inspection requirements outlined in the Michigan Food Law. Food offered to the public in Michigan must be safe and unadulterated, regardless of where it is produced. As a Cottage Food Operator, it is your responsibility to assure the food you make is safe. In the event a complaint is filed or a foodborne illness is linked to your food, MDARD will investigate your operation as part of our responsibility under the Michigan Food Law. As part of that investigation, it may be necessary for MDARD to enter and inspect your Cottage Food production and storage areas, view and copy records, and take photos during the course of a complaint investigation. MDARD also has the right to: seize product suspected of being adulterated; order corrections of label violations; and require you to discontinue making unapproved products.
Are there any other limits I need to know about Cottage Foods?
Yes. You are limited in the amount of money you can make selling cottage foods, which is up to $50,000 yearly, however, $75, 000 is allowable if the cottage food operation sells cottage food products at a price of $250 or more per unit. You need to maintain sales records and provide them to a Michigan Department of Agriculture & Rural Development (MDARD) food inspector, upon request (MDARD has regulatory responsibility for the Cottage Food Law). You must also meet all other requirements of the law, including labeling and packaging.
Where can I store ingredients and finished products for my Cottage Food business?
Ingredients and finished Cottage Food products shall be stored in your single family domestic residence where the Cottage Food products are made. This includes your kitchen, a spare room or a basement that is free of dampness/water, pests, or other insanitary conditions. You may not use a garage, shed, barn, or other outbuilding as a storage facility for your Cottage Food business.
Can nonprofit organizations produce and sell Cottage Foods?
No. Nonprofits do not have a single family domestic residence, and therefore do not qualify as a Cottage Food business.
Can I donate my Cottage Food products to a public auction or other give-away venue (e.g., for silent auction baskets, such as a fundraiser or to a soup kitchen)?
No. You would be allowed to personally give away your product from your sales booth, but you cannot donate it for someone else to give it away or use it as an item in a fundraiser auction.
Can I sell my Michigan Cottage Food product in another state?
You will need to check with the other state to determine its regulatory requirements.
Can producers from other states sell products in Michigan under the Cottage Food Law?
No. The Cottage Food Law applies only to businesses where the home kitchen (primary domestic residence) is physically located in Michigan.
Are bake sales or potlucks covered under the Cottage Food Law?
No. Bake sales are not covered under the Cottage Food Law, because they typically involve foods prepared in home kitchens from several sources and sold by people other than those who baked them. However, bake sales or potlucks run by charitable, religious, fraternal, or other non-profit organizations and serving only home-prepared foods are exempted from licensing under Michigan's Food Law. This exempts an eligible organization from licensing requirements only. All food sales are subject to all other regulatory requirements. MDARD will investigate any complaint allegations it receives that may be generated by the sale (e.g., foodborne illness, allergic reactions, etc.). As a good practice, those who host bake sales and potlucks should remind food preparers of basic safe food handling practices and ask their bakers to provide ingredient labels and include the name of the food preparer on each item.
Can I sell my Cottage Foods over the Internet?
A cottage food product may be sold by internet or mail order or may be delivered to a consumer through a third-party food delivery platform if the cottage food operation provides an opportunity for a consumer to directly interact with the cottage food operation before the cottage food product is sold. A cottage food product may only be sold or delivered within Michigan.
Can I sell my Cottage Foods to a wholesaler, broker, or distributor?
No. Under the Cottage Food Law, it is not legal for a producer to sell to a wholesaler, broker, or distributor who would then resell the product.
How can I advertise my Cottage Food products?
You can use your website or social media to advertise your products or market your business. You can advertise your Cottage Foods online.
Can I take orders for my Cottage Food products over the phone?
Yes. You can take orders for your cottage food products over the phone and deliver them to a consumer through a third-party food delivery platform if the cottage food operation provides an opportunity for a consumer to directly interact with the cottage food operation before the cottage food product is sold. A cottage food product may only be sold or delivered within Michigan.
Can I advertise my Cottage Food business in the newspaper, trade shows, craft shows?
Yes. Advertising is allowed; Products may be delivered to a consumer through a third-party food delivery platform if the cottage food operation provides an opportunity for a consumer to directly interact with the cottage food operation before the cottage food product is sold. A cottage food product may only be sold or delivered within Michigan.
Is it possible to place my Cottage Food products in a store or restaurant on consignment?
No. Cottage Food products cannot be sold on consignment. The sale must be directly from the cottage food operation or producer to the consumer. Another person or business cannot sell your products for you.
Sampling of Cottage Foods
Can I serve free samples of my Cottage Food Products?
Yes. As long as your product meets the requirements of the Cottage Food Law and is a non-potentially hazardous food, sampling is allowed. Your product cannot be cooked or prepared in a way that makes it a potentially hazardous food/temperature control for safety food (for example: you can't add sour cream to a dried dip mix or serve anything that can't be kept safely at room temperature - these examples would require a food license). You must also follow the same food safety handling and preparation requirements of licensed vendors who sell at farmers markets, as outlined in the "Guidelines for Providing Safe Food Samples at Farmers Markets".