legal Level of processing vs legal issues/permits

H

Hotcanoe

Hi all.
 
Total newbie here. Have had fun in the past few years growing a variety of various peppers and concocting homemade sauces. Friends and family like my sauces (doesn't everybody say that? :) ) so this year I might step it up a notch volume wise. Planning on buying a large number of seeds to grow. That way even if my brown thumb strikes I should still have a good amount. With a little luck I will have LOTS of harvested peppers before it is all said and done.
 
So, I might end up with a large amount of some pretty hot peppers. Would be nice to sell the excess. Which brings me to my question. What levels of permiting and legal exposure come with the different points in the pepper production chain?
 
Do I really need any permiting or the like  to sell seeds on Ebay or Craig's List? Obviously you would want to at least check various states import laws regarding seeds or produce. And what about legal exposure? Sure anyone can sue you for anything, but barring gross negligence could you sucessfully be sued for selling seeds?
 
Then at the next level. Selling fresh pods on Ebay or Craig's List or the local farmer's market. Same questions as above.
 
What about simple processing (as oppossed to a sauce/salsa)? Like canning the peppers. Pickling? Or stuff like that? That would seem to me to as safe or safer than fresh peppers. But maybe the law doesnt see it that way. Same questions as above.
 
Does selling stuff that you label as requireing refrigeration (rather than claiming it to be shelf safe even though it probably is) help any?
 
Same questions for drying or making powder.
 
Just wondering what the middle ground is between selling fresh peppers and selling your own sauces as a full up business (with proper kitchens, co packers, permiting, insurance, and such).
 
And a related question. Let's say I grow a bunch of peppers in my residential yard but might use them latter. So maybe I dry them or freeze them or can/pickle them.
 
Can I then LATER do the whole full up totally legit and legal and permitted business and use the peppers I saved before I did anything "official"?
 
Sorry if this post is in the wrong forum or these questions have been answered. I've done a fair bit of reading and searching here and most of the questions and answers of this nature I've found so far tend to lean more towards the full scale business end of things.
 
Thanks in advance guys and gals.
 
Hotcanoe
 
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When you invite someone to your home and cook dinner for them, you don't need a permit, because your guests can make their own assessment of you and the safety of the food you produce.
 
When you sell food to an anonymous buyer, that person cannot make that same assessment, so we have food regulations to at try and ensure that food sold in anonymous transactions is safe. 
 
My advice to selling food is to be legal and insured. The risk/reward ratio of being illegal just doesn't add up 
 
If you make someone sick, or, even if someone just claims you made them sick, you're toast. You lose everything you own. You're taking that risk for what? The possibility of making a few extra bucks?
 
Some of the regs can be a PITA (especially some of the local county to county variations that make no sense) but in general, most are there for a good reason. Research them, you will learn a few things that will make you a better food manufacturer. (For example, you said you said you though that selling canned peppers is safer than selling fresh. Nope  - serious knowledge deficit there. You can kill someone with an improperly canned peppers.   
 
"Foodborne botulism has often been from home-canned foods with low acid content, such as asparagus, green beans, beets and corn and is caused by failure to follow proper canning methods. However, seemingly unlikely or unusual sources are found every decade, with the common problem of improper handling during manufacture, at retail, or by consumers; some examples are chopped garlic in oil, canned cheese sauce, chile peppers, tomatoes, carrot juice, and baked potatoes wrapped in foil."
 
http://www.cdc.gov/nczved/divisions/dfbmd/diseases/botulism/ 
 
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Depends on what state you are in.
 
A typical scenario would be liability insurance and a department of agriculture permit, such as to sell at a farmers market.
 
The liability insurance might run you approximately $2,000 a year. The food permit will likely require an inspection, many states look for at the least 3 sinks, one for bleach, one to rinse etc.
 
You will need to research it for your state.
 
After you have gone through all of the hoops you will be free to then pay for custom labeling !  just kidding !
 
You will then be free to test your success.
 
Wish you the best.
 
Brazil doesn't have so many restrictions as the United States :)
 
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Hotcanoe said:
Hi all.
 
Total newbie here. Have had fun in the past few years growing a variety of various peppers and concocting homemade sauces. Friends and family like my sauces (doesn't everybody say that? :) ) so this year I might step it up a notch volume wise. Planning on buying a large number of seeds to grow. That way even if my brown thumb strikes I should still have a good amount. With a little luck I will have LOTS of harvested peppers before it is all said and done.
 
So, I might end up with a large amount of some pretty hot peppers. Would be nice to sell the excess. Which brings me to my question. What levels of permiting and legal exposure come with the different points in the pepper production chain?
 
Do I really need any permiting or the like  to sell seeds on Ebay or Craig's List? Obviously you would want to at least check various states import laws regarding seeds or produce. And what about legal exposure? Sure anyone can sue you for anything, but barring gross negligence could you sucessfully be sued for selling seeds?
 
Then at the next level. Selling fresh pods on Ebay or Craig's List or the local farmer's market. Same questions as above.
 
What about simple processing (as oppossed to a sauce/salsa)? Like canning the peppers. Pickling? Or stuff like that? That would seem to me to as safe or safer than fresh peppers. But maybe the law doesnt see it that way. Same questions as above.
 
Does selling stuff that you label as requireing refrigeration (rather than claiming it to be shelf safe even though it probably is) help any?
 
Same questions for drying or making powder.
 
Just wondering what the middle ground is between selling fresh peppers and selling your own sauces as a full up business (with proper kitchens, co packers, permiting, insurance, and such).
 
And a related question. Let's say I grow a bunch of peppers in my residential yard but might use them latter. So maybe I dry them or freeze them or can/pickle them.
 
Can I then LATER do the whole full up totally legit and legal and permitted business and use the peppers I saved before I did anything "official"?
 
Sorry if this post is in the wrong forum or these questions have been answered. I've done a fair bit of reading and searching here and most of the questions and answers of this nature I've found so far tend to lean more towards the full scale business end of things.
 
Thanks in advance guys and gals.
 
Hotcanoe
Click to expand...
 
Greeting from Ohio
 
Like you I recently increased my plant growth so I could do more like you. 
    First thing to realize is that each State can be different on their rules regarding fresh fruit/veggie sales (within your own State) and the sale of low acidic(for me in Ohio 4.6ph and above) and dry herbs/rubs ... etc.
  In Ohio we have a "Cottage Food Production Operation" which allows people to grow and sell fresh picked items and processed foods that meet the State's requirement for sale within the State of Ohio.
 
   When you start smoking and drying for future use that's when you have to meet stricter guidelines and use specific equipment to process/store your peppers. ...example: I wanted to use a co-packer for some things but they didn't offer the peppers that I needed for my recipe and even though I had these peppers they couldn't readily use them due to the restrictions in place for processing and storage/handling of my peppers.
        They not only had to meet State but Federal requirements due to shipping to another State and being used in a food process for resale to the public. It's a huge hurdle but one that needs to be dealt with when the time comes to expand on your ideas. They, the co-packer, needed proper documentation that shows food and safety rules were followed and were inspection by your local Health organization along with data sheets on your product (peppers)...this would also include you if you are trying to do this on your own.
   The bottom line is: Check with your State's Department of Agriculture | Food Safety for more info. Doing it locally generally not a huge thing but always protect yourself and the people you sell too !
 
Good Luck with your Endeavors !
 
OhioHeat
 
------------------------------------------- excerpts from State of Ohio Agri Site --------------------------------------

Cottage Foods

What is a Cottage Food Production Operation?
What foods are permitted to be manufactured for sale or distribution by a Cottage Food Production Operation?
A "Cottage Food Production Operation" is defined in Chapter 3715 of the Ohio Revised Code to mean, a person who, in the person's home, produces food items that are not potentially hazardous foods, including bakery products, jams, jellies, candy, fruit butter, and similar products specified in rules. These foods must be labeled properly or they will be considered misbranded or adulterated
"Home" means the primary residence occupied by the residence's owner, on the condition that the residence contains only one stove or oven used for cooking, which may be a double oven, designed for common residence usage and not for a commercial usage, and that the stove or oven be operated in an ordinary kitchen within the residence.
 
What Foods are NOT Allowed to be Manufactured for Sale or Distribution by a Cottage Food Production Operation?
Permitted foods are non-potentially hazardous bakery products (such as cookies, breads, brownies, cakes, fruit pies, etc.), candy (including no-bake cookies, chocolate covered pretzels or similar chocolate covered non-perishable items), jams, jellies, fruit butters, granola (including granola bars and granola bars dipped in candy), popcorn (including flavored popcorn, kettle corn, popcorn balls, caramel corn, but does not include un-popped popping corn), unfilled baked donuts, waffle cones, pizzelles, dry cereal and nut snack mixes with seasonings, roasted coffee (coffee may be whole beans or ground), dry baking mixes (for making items such as breads and cookies), dry herbs and dry herb blends, dry seasoning blends (such as dry barbecue rubs and seafood boils) and dry tea blends.
 
What are the requirements for the labeling of Cottage Food products?
A "Cottage Food production Operation" is not permitted to process acidified foods, low-acid canned foods, potentially hazardous foods or non-potentially hazardous foods not listed above. Low acid food means any food with a finished equilibrium pH greater than 4.6 and a water activity greater than 0.85. Acidified food means a low acid food to which acids or acid foods are added (Ex. Beans, cucumbers, cabbage, puddings, etc.). Potentially hazardous food means it requires temperature control because it is in a form capable of supporting the rapid and progressive growth of infectious or toxigenic microorganisms (Ex. Raw or cooked animal products, cooked vegetables, garlic in oil, cheese cakes, pumpkin pies, custard pies, cream pies, etc.).
 
What does the Statement "This Product is Home Produced" Mean?
A "Cottage Food Production Operation" is required to label all of their food products properly, which include the following information on the label of each unit of food product offered or distributed for sale:

 
  • Statement of Identity - the name of the food product
  • Net Quantity of Contents - the net weight, in both U.S. Customary System and International System
  • Ingredient List - ingredients of the food product, listed in descending order of predominance by weight
  • Statement of Responsibility - the name and address of the business
  • The following statement in ten-point type: "This Product is Home Produced".


Note: If nutrient content claims (i.e. low fat, salt free, etc.) or health claims (i.e. may reduce heart disease) are made, the product must bear all required nutritional information in the form of the Nutrition Facts panel. All labeling components are to comply with 21 CFR Part 101, food labeling. The FDA Food Labeling Guide is an excellent resource of the proper labeling of food products.

Where may Cottage food Production Operations Sell Their Food ProductsCottage Food Products may only be sold in Ohio. Cottage Food Products that are properly identified and labeled 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, registered farmers markets, and sold and/or used in preparing food in a restaurant.

The statement means that the food product was produced in a private home that is not subject to inspection by a food regulatory authority.
 
Does a Cottage Food Production Operation Need to Acquire a License to Process and Package Food Products?
 
 

No. A "Cottage Food Production Operation" is exempt from inspection and licensing by the Ohio Department of Agriculture. However, all food products, including those produced and packaged by "Cottage Food Production Operations," are subject to food sampling conducted by the Ohio Department of Agriculture to determine if a food product is misbranded or adulterated.
Questions? Contact ODA Division of Food Safety:
 

REF: http://www.agri.ohio.gov/divs/FoodSafety/foodsafety.aspx#tog
 
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