A Cottage Industry is a business or manufacturing that is carried out in a family home by the family living there. (1) Mostly Cottage Industries are labor intensive and face significant disadvantages in competing with major industry. There are many major industries that have a start as a cottage industry prior to the industrial revolution. It seems that where there is a surplus of cheap labor there are a significant number of cottage industries. Places such as undeveloped countries where there is less capital, but a large labor pool. (2)
Each country, state, and city has different laws governing Cottage Industries. For the most part each government entity limits what foods can be sold, where they can be sold, who they can be sold to, and how much money you can make per year.
In Alabama
Alabama created a cottage food law (SB 159) in 2014. Previously, this state only allowed homemade food sales at farmers markets. This cottage food law is relatively restrictive. It allows direct, in-person sales of many non-perishable food items. Cottage food operators must take a food safety training course and are limited to $20,000 of sales per year. (3)Alabama also has the requirements of taking a food safety course and afterwards a review course that covers labeling. In addition Alabama requires the Cottage Industry to charge sales taxes and limits the amount sold to a gross total of $20,000 per year. (3)
In Florida
Florida law allows individuals to use their unlicensed home kitchens to produce for sale certain foods that present a low risk of foodborne illness. Cottage food operators can produce and sell these products directly to consumers without obtaining a food permit from the Florida Department of Agriculture and Consumer Services. Gross sales for a cottage food operation must not exceed $50,000 annually. (4)References:
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