Starting A Baked Goods Business In Nevada

suppliers comply with state and federal regulationsin order to maintain their licenses. These processesensure to customers that their food products aresafe. Recalls of food products due to safety issuesoften occur for ingredients due to contamination,missed labeling of allergen ingredients, orcontamination by pathogens or debris. By trackingthe ingredients used, you will be able to determineif your product contains the dangerous recalledingredients or if your product is safe.2. Keep all kitchen equipment and utensils usedto produce cottage food products clean andin good condition.o Wash, rinse and sanitize all food contactsurfaces, equipment and utensils beforeeach use.o Ensure water used during thepreparation of cottage food productsmeets potable drinking water standards.o Keep all food preparation and food andequipment storage areas free of rodentsand insects.3. Keep all food that is manufactured, produced,prepared, packed, stored, transported, andkept for sale free from adulteration andspoilage.o Get ingredients from approved sources.o Protect food from dirt, vermin,unnecessary handling, dropletcontamination, overhead leakage, orother environmental sources ofcontamination.o Prevent cross contamination of foodsand ingredients with raw animalproducts and chemicals.o Prepackage all food to protect it fromcontamination during transport, display,sale and purchase by consumers.Where Can You Get Food Ingredients?Purchase produce and other food ingredients fromapproved sources only. Approved sources includelocal licensed farms, commercial grocers andcommercial food suppliers. It is important to knowwhere food ingredients come from, and whetherthe supplier follows food safety protocol. LicensedHomegrown fruits and vegetables may be used inbaked goods as long as they are washedthoroughly, incorporated into the batter, andproperly baked. Homegrown produce can befrozen in order to be used in baked goods at a laterdate. Home-canned products, such as cannedpumpkin or fruit pie fillings, are not allowed underthe Cottage Food Law and cannot be used incottage food baked goods (Regulatory Guidance forBest Practices, Cottage Foods, April 2012).Safely Selecting, Storing and PreparingIngredientsIngredient selection, storage and preparationcontribute to food safety. Select ingredients thatare in sound condition and check for spoilage,contamination and adulteration. Promptly storeingredients that need refrigeration.Dry ingredients, such as flour and sugar, should bestored in air-tight containers in a cool, dryenvironment. This should help prevent spoilageand the infestation of weevils. Weevils are tinybeetles that may infest grain and rice foods. Theycan chew through paper or plastic packaging. If anyingredient shows signs of weevils and/or their eggs,do not use it when preparing cottage foodproducts.Wash all fresh fruits and vegetables with cool tapwater before using. Wash produce before peelingin order to prevent dirt and bacteria fromtransferring from the peeler or knife onto the fruitor vegetable. In order to reduce bacteria that maybe present, dry produce with a clean cloth or papertowel.6

grating these ingredients contributes to productquality and shelf life. Another option is to have thewater activity of the vegetable or fruit chunksevaluated.Fruit pies and cobblers are typically allowed underthe Nevada Cottage Food Law. However, these andany other baked goods that are moist need thewater availability lowered by sugars or salt. If usinga low-sugar recipe, the product must berefrigerated and therefore is not a cottage food.If you shop using reusable grocery bags, clean themregularly. Wash canvas and cloth bags in thewashing machine, and wash plastic reusable bagsthoroughly with hot, soapy water.If a recipe calls for an ingredient at roomtemperature, warm or heat the perishableingredient just prior to using. Never leave eggs outof the refrigerator for over two hours. If a recipecalls for room temperature eggs, allow eggsneeded to warm at room-temperature for 20minutes or in warm (120 F) water for five minutes.Apply egg washes immediately before baking; donot apply an egg wash to a baked product that willnot be baked further (www.homebaking.org).Life of IngredientsMany food products have dates stamped onto theirpackaging. Dating can be found on meat, poultry,dairy products, eggs and shelf-stable products,such as cans or boxed foods. These dates are notrequired by the federal government; however,providing dating on food packaging can be useful toconsumers. There are different dates to be awareof: Recipes that call for fruits or vegetables, such ascarrot cake or apple muffins, run a risk of moldcontamination if the fruit or vegetable ingredientsare in chunks. These ingredients should be gratedto avoid potential mold growth. Additionally,A “Sell-By” date tells a store how long todisplay the product for sale. Productsshould be purchased before this dateexpires.A “Best if Used By (or Before)” date isrecommended for best quality and flavor.This date does not indicate product safety.A “Use-By” date is the last daterecommended for use of the product atpeak quality. The manufacturer determinesthis date. This refers to best quality and notproduct safety.These product dates do not always pertain to useafter purchase and storage at home, with theexception of “Use-By” dates. If the other datesexpire during home storage, a product should besafe and of good quality if handled properly.Egg cartons generally have a “Sell-By” or“Expiration” date printed on them. Alwayspurchase eggs before these dates and refrigeratethem promptly at home. They should be placed inthe coldest area of the refrigerator. For bestquality, eggs should be used within three to fiveweeks of the date of purchase. Though the printed7

date will expire during that time, the eggs are safeto use when refrigerated properly.Foods may develop an off odor, appearance orflavor due to bacteria spoilage. If a product hasthese characteristics, do not use it. If foods aremishandled, the chances of bacteria and pathogensincrease, as does the risk of foodborne illness –before or after the date on the package. Examplesof mishandling include food being leftunrefrigerated longer than two hours or beinghandled by someone who does not practice propersanitation practices. Be sure to follow handling andpreparation instructions on product labels toensure quality and safety.Safely Using Frozen FoodsWhen using frozen fruits, vegetables or otherfoods, it is important to be aware that as soon asthese foods begin to thaw and become warmerthan 41 F, any bacteria present before freezing canbegin to multiply. Frozen foods must remain frozenuntil ready to thaw and use.The USDA recommends three safe ways to thawfoods:1. in the refrigerator,2. in cold water (in a leak-proof bag andchanging cold water every 30 minutes),3. in the microwave.Never thaw frozen foods on the countertop.Prepping Your WorkspaceAnother food-safety consideration is how toproperly clean the kitchen and utensils beforepreparing cottage foods. Having a clean workspaceis integral to preventing the spread ofcontaminants and foodborne illness. Keep kitchensurfaces such as countertops, utensils, cuttingboards and appliances clean with hot, soapy water.Consider using natural cleansers to avoid possiblesensitivities to chemicals such as bleach, thoughbleach is often recommended for disinfectingsurfaces. Immediately clean counters with drips orspills of raw egg and dispose of or change the clothused. Do not use unclean or smelly dishcloths,towels or sponges, as this is a sign of potentialbacterial growth. Dishcloths and towels should bewashed often and in the hot cycle of the washingmachine. Hot pads used to handle baked goodsshould be washed frequently. Utensils should bewashed in hot, soapy water or run in thedishwasher on the hot wash setting.It is recommended tohave a cutting boardspecifically for producein order to preventcross-contaminationbetween raw meatsand fresh produce.Always use a cleancutting board and wash it thoroughly in hot soapywater after use. Cutting boards may also bewashed in a dishwasher. To disinfect a cuttingboard, a fresh solution of 1 tablespoon ofunscented, liquid chlorine bleach per gallon ofwater may be used. Flood the surface with thebleach solution and let stand for several minutes.Rinse with water and let air dry.When using bleach as a cleaning and disinfectingagent, be sure to check the percentage on thebottle is 5 percent sodium hypochlorite as somegeneric brands sell bottles of bleach with a lowerpercentage.Baking EquipmentBaking equipment, including pans, bowls, utensils,mixers or any other equipment should be clean and8

in proper working order. Avoid using pans orutensils that have rust on them. Use an oven thatheats to the correct temperatures. This can beverified by using an oven thermometer. Useingredients that have been stored correctly, suchas eggs that have been properly refrigerated anddry ingredients that have been stored according topackage directions. Following these guidelines willhelp to minimize risk of foodborne illness.Baked goods from the list of approved cottagefoods have a low risk of causing foodborne illness.This is due to being baked at high temperatures fora length of time determined to kill bacteria. Followbaking instructions outlined in the recipes toensure quality control and food safety.The greatest concern for food safety of bakedproducts is recontamination after baking.Recontamination can be minimized by alwayshaving clean hands and wearing clean disposablegloves while packaging baked goods. Bakedproducts should be placed into appropriatepackaging as soon as possible after cooling. Oncepackaged, products should be properly stored toreduce the chances of contamination.Product TraceabilityKnowing where ingredients come from allowsCottage Food Operators to know where sources ofpossible contamination originate if there were tobe a complaint about a food product. It is highlyrecommended to create a simple system to recordwhat ingredients are used and their sources forevery batch of product produced.Commercial operations are required to developdetailed documentation and records for eachproduct produced and sold. By following state andfederal regulations, these records detail the how,where and when of the safety practices for eachproduct. These records are not required forCottage Food Operations; however, by becomingfamiliar with what is required by state and federalregulations for commercial food production,Cottage Food Operators will better understandwhat is needed to keep cottage food products safefor consumers. By keeping simple records thatinclude details of where each ingredient is sourcedfrom, creating batch numbers for each batch ofproducts produced, and recording food-safetypractices, food operators will be prepared toidentify possible sources of contamination, if theyoccur, or simply be reassured of the steps taken toproduce a high-quality safe product. Additionally,they will be better prepared to transition fromcottage food production to commercial productionin a licensed kitchen.HandwashingProper handwashing is important to food safety,and the following handwashing steps are useful toput into practice:How to Wash Your Hands Rinse hands underRinse hands thoroughlyclean running water. under clean running water.Apply soap.Rub handsvigorously for 10 to15 seconds,removing dirt fromunder fingernails,surfaces of handsand exposedportions of arms.Dry hands thoroughly witha clean towel or single-usedisposable towels.If possible, use a towel toturn off the faucet.9

Wash Hands BeforeYou Handle or preparefoodWash Hands After You Prepare foodTouch raw food, especiallymeatsSwitch food-preparationtasksTouch eggsUse the restroomCough or sneezeHandle dirty dishes orgarbagePet animalsSmokeUse the phoneTouch hair, face, body orother peopleTouch a sore or cutTelephone callsand many otherdistractions cancause your handsto becomecontaminated. It isimportant to cleanyour hands orchange your glovesagain beforehandling food.Take precautionsto avoidcontamination ofwork areas duringfood production.Additional required labeling information should beprominent and conspicuously in English. Print sizeshould be at least one-sixteenth of an inch basedon the lower case letter “o.” Label informationmust include the following:1. Statement of identity – the common name(i.e. ginger cookies) or the descriptiveidentity (Country Christmas Ginger Cookies)of the packaged food item.2. Net quantity of contents – net weight inounces, pounds or grams; or net content influid ounces, pints or liters; or number ofpieces.3. Ingredient statement – a list of ALLingredients, in descending order ofpredominance by weight. This includeslisting all ingredients of an ingredient that initself contains more than two ingredients.4. The name and physical address where theproduct was manufactured, packaged ordistributed.5. Declaration of any food allergen containedin the food, unless the food source isalready part of the common or usual nameof the product or clearly identified in theingredient list.English Muffin Bread1 loafIngredients: Flour, water, yeast, sugar, salt.Labeling Requirements and Considerations forCottage Food ProductsNRS Chapter 446.886 has specific labelingrequirements for foods prepared in a Cottage FoodOperation. The foremost label required must state:“MADE IN A COTTAGE FOOD OPERATION THAT ISNOT SUBJECT TO GOVERNMENT FOOD SAFETYINSPECTION.” This label must be prominentlyaffixed to each product.Contains: Wheat.MADE IN A COTTAGE FOOD OPERATIONTHAT IS NOT SUBJECT TO GOVERNMENTFOOD SAFETY INSPECTIONBaked Wonders by George100 Goodie Road, Caliente, NV 89008775-726-XXXXSample Cottage Food Label10

Major food allergens include milk, eggs, fish,crustacean or bivalve shellfish, tree nuts, wheat,peanuts and soybeans, and any ingredient thatcontains protein derived from any one of theseingredients or additives.Allergen information must be included in one oftwo ways: In parentheses following the name of theingredient, for example: lecithin (soy), flour(wheat) and whey (milk); or Immediately after or next to the list ofingredients in a “contains” statement.Example: Contains wheat, milk and soy.Food allergens are critical. Follow the guidelinespertaining to food labeling closely.Federal guidelines for food product labeling differand should be taken into consideration if movingfrom cottage food production to commercialproduction. The Food and Drug Administrationguidelines for food labeling can be found n/ucm2006828.htm.Packaging ConsiderationsPackaging must be durable in order to protect fooditems from contamination during transport,display, sale and purchase by consumers. Packagingfor baked goods must be breathable, meaning thepackaging must transmit oxygen through it, or it isconsidered reduced oxygen packaging. Reducedoxygen packaging is prohibited in the Cottage FoodOperation because it can be very dangerous byproviding the environment for the growth ofhealth-hazardous organisms without anyappearance of a problem. Reduced oxygenpackaging includes: vacuum packaging modified or controlled atmospherepackaging, which includes oxygenscavenging packaging (includes oxygenremover packets).Bakery boxes, plastic bags closed with a twist tie,paper bags and clamshells are examples ofpackaging that may be used. If unsure whetherpackaging is considered reduced oxygen packaging,contact the manufacturer and ask about theoxygen transmission rate. If there is any numberabove 100cc O2/m2/24 hours for oxygentransmission, the packaging is not considered to bereduced oxygen packaging.Pricing and Marketing Your ProductDetermining a price and plan to market a local foodis often challenging because there are manyvariables that should be considered (University ofMaryland, 2014). The price of a product can be setaccording to the value that it provides for thecustomer. You need to know your customers’ likes,needs and willingness to pay for the product. Eachproduct must provide a solution for yourcustomers. For example, a local food may remindcustomers of a pleasant past when it tastes likefood their Grandma made, has a story that createsa connection back to nature or is developed withhealthy ingredients to fulfill a health need ordesire. It is important to provide a product that ismore than just food, because the small scale oflocal foods makes them higher priced to make thansimilar products in the grocery store.Although calculating your costs and returns isconsidered a burden to many small businessmanagers, it can create peace of mind to determinehow to receive an income for all of the work.11

The price must cover your cost of producing theproduct and the desired net income for thebusiness. Many small businesses ignore this step,which results in losing money over time. A simplecalculation of costs can ensure that the product willmake an income and not lose money.Calculation for pricing of oatmeal cookiesCost for four dozen oatmeal cookiesingredients: flour, oatmeal, soda, salt, butter,sugar, vanilla, eggs, raisins 7.28Packaging: 8 clamshell containers 0.885Baking and packaging labor: 33 minutes x 11.50/hour 6.325Total cost of goods 7.28 0.885 6.325 15.01 for 4 dozen cookies in 8 packages 15.01 cost for 8 packages equals 1.876 perpackage.16 packages of cookies are 1/8 of total goods sold atmarket.Transportation: 36 miles round-trip to market x 0.56/mile 20.16Marketing and selling labor: 15 minutes on socialmedia and 3 hours for market x 11.50 37.375Cost of selling at the market 20.16 37.375 57.535Market cost attributed to cookies sales 57.535/8 7.19Market cost for cookies per package 7.19/16 0.45.Market cost 0.45 cost of goods per package 1.876 2.326 per package50% additional costs: damaged and unsold product,kitchen costs, advertising, signs, etc. 1.163 2.326 1.163 3.489Market space fee 5% of sales:5% of 3.489 0.174Price per container of 6 cookies will need to be atleast 3.489 0.174 3.67Using this calculation will help to determine whichfoods can provide an income and have a cost ofproduction within the range that customers arewilling to pay (Lewis, 2013). Some local foods costmore to produce than customers are willing to pay.You must know where you can position the productinformation and sales to access the targetedcustomers. In order to sell your product to thecustomer, they must learn enough about theproduct to want to buy it and then be able toconveniently buy it. It is important to plan for timeand costs associated with gaining access tocustomers (Gatzke, 2012). Knowing yourcustomers’ habits will help determine where toaccess them.Modern customers with interest in local food wantto know the story behind the product, such as whoproduced it and how it provides a solution for theirneeds (Ettenson et.al, 2014). Customers can findproducts for cheap prices at large stores. WithIn

in person by Small Business Administration offices . local licensed farms, commercial grocers and commercial food suppliers. It is important to know where food ingredients come from, and whether . business. structure/starting-managing-business . and . Starting a Baked Goods Business in Nevada