NOTE: This is the first installment of a three-part series regarding the food industry in Delaware from the Small Business Development Center The article focuses on new cottage industry food guidelines and business assistance counseling available to help farmers market and other venue managers and vendors. The second installment will focus on food trucks and the third features restaurants and eateries.
The summer of 2016 may be the best year yet for those in Delaware’s food industry, especially considering the recent popularity of the “farm-to-table” movement, farmers markets, food trucks and a proliferation of award-winning restaurants. With Delaware’s new “foodie heaven” status, there are new operational regulations proposed to ensure high quality and safety in the industry.
“We have a number of small business clients that are either in the food business, or are food business start-ups,” said Bill Pfaff, Director of the Delaware Small Business Development Center for Kent and Sussex counties. “Current and new business owners need to be aware of the new rules and regulations so that they continue to provide a high-quality product,” he added. Pfaff added that customers go beyond the traditional restauranteur to include farm products and food truck owners.
“Farmers markets are just now starting to ramp up for the season,” Mr. Pfaff said. “There are newly-proposed Division of Public Health (DPH) food regulations that should expand the opportunity for ‘cottage industry’ food producers.”
For those who wish to produce and sell prepared food products at any of Delaware’s farmers markets or other venues, a public hearing on proposed regulations has been scheduled by the Division of Public Health, Department of Health and Social Services, for Wednesday, May 25, 10 a.m. in the first-floor conference room of the Jesse Cooper Building on 417 Federal Street in Dover.
Copies of the proposed State regulations are available for review now in the May 1, 2016 edition of the Delaware Register of Regulations, accessible online at: http://regulations.delaware.gov or by calling the Division of Public Health at 302-744-4951.
These “cottage food” regulations will establish registration procedures and standards of practice for conducting food processing operations in home-style kitchens that “safeguard public health and provide to consumers food that is safe, unadulterated and honestly presented.” The regulations are considered draft at this time with public comment accepted until June 9. At that time, comments will be reviewed and any necessary revisions made to the draft regulations. It is anticipated that these regulations will be finalized in late summer.
The new regulations may be viewed in the industry as “good news,” and should foster growth in the cottage food business that could spill over into additional Delaware businesses selling at local farmers markets or other venues. While the current DPH regulations do not allow for production of food products in residential kitchens for sale to consumers, this proposed DPH program will allow for development of a new business community serving a niche market of customers at farm markets and other outlets throughout Delaware. The regulations establish basic food safety requirements for these operations.
Those who wish to make written suggestions, testimony, briefs or other written materials concerning the proposed regulations can submit comments to Jamie Mack at the Division of Public Health by Thursday, June 9, 2016, to 417 Federal Street, Dover, DE 19901, or email: jamie.mack@state.de.us, or by phone, 302-744-4951.
The popularity of farmers markets continues to grow in the First State. Today, there are 24 community-run markets that sell Delaware produce and other farm-generated goods. Last year, Delaware farmers markets set a record with more than $3 million in sales. About a third now accepts Electronic Benefits Transfer (EBT) transactions, which allows families to purchase Delaware-grown products as part of the Supplemental Nutrition Assistance Program (SNAP).
All community-run farmers markets are operated at the local level, by municipalities, business groups, farmers or market associations, with the Department of Agriculture providing support and marketing assistance. Farmers and others interested in becoming a vendor, or community groups interested in starting a local market, can contact Department of Agriculture marketing specialist David Smith at 302-698-4625 or davidm.smith@state.de.us.
In addition, the Delaware Department of Agriculture (DDA) and the University of Delaware Cooperative Extension partner on a food safety course and certification for on-farm food entrepreneurs. Delaware farmers can complete an eight-hour, one-day training session, pass the exam and then have their kitchens inspected and licensed by DDA’s Food Products Inspection Section. The certification program covers foods produced and sold on their farm, at a roadside stand, farm market or farmers market. With the proposed regulations from DPH, the two agencies are discussing how to best partner to serve the entrepreneurs that take advantage of these programs.
Products covered are known as “foods not requiring refrigeration or other steps for safety” and include baked breads, cakes, muffins or cookies with a water activity of .85 or less; non-chocolate candies; jams, jellies, preserves, marmalades and fruit butters with an equilibrated pH of 4.6 or less or a water activity of.85 or less; fruit pies with an equilibrated pH of 4.6 or less; herbs in vinegar with an equilibrated pH of 4.6 or less; honey and herb mixtures; dried fruit and vegetables; spices or herbs; maple syrup and sorghum; snack items such as popcorn, caramel corn and peanut brittle; and roasted nuts.
The Agriculture Business Training and Development Initiative is a new program being funded by the U.S. Department of Agriculture (USDA) Farmer’s Market Promotion Program at Delaware State University. This program provides business expertise to help farmers market managers effectively operate farmers markets.
Managers receive free technical and business assistance designed to increase revenue and maximize value-added production opportunities for farmers market vendors. For a small fee, managers and vendors can receive SERVSAFE® certification. For more information about the program, email: fmpp@desu.edu or call 302-857-6953.
For more information on the food safety certification information for on-farm food entrepreneurs, visit the website at http://dda.delaware.gov/foodprod/index.shtml, or call the Delaware Department of Agriculture at 302-698-4500.
For free food business start-up and expansion counseling, contact the Delaware Small Business Development Center at 302-856-1555, or request online at www.DelawareSBDC.org.
The second in this three-part series will cover food truck operations, followed by restaurants and eateries. The Delaware Small Business Development Center, a unit of the University of Delaware Office of Economic Innovation and Partnerships, is funded in part through a Cooperative Agreement with the U.S. Small Business Administration and in part through the State of Delaware.
