A home-based food business, also called a cottage food business, is any food-related business run from a residential property. This includes making and selling homemade food such as baked goods, jams, and candies from your small farm.
Home-based businesses can sell at farmers' markets, food fairs, and online as well.
Legal and Licensing Requirements for Home-Based Food Businesses in Ontario
In Ontario, home-based food businesses must adhere to strict food safety regulations under the Ontario Health Protection and Promotion Act. The regulations vary depending on the type of food being sold. For instance, businesses selling temperature-sensitive foods or raw products like sushi must follow specific guidelines.
It is important to contact your local public health unit to understand the rules based on your business's food products.
Certain businesses may be exempt from regulations if they only produce low-risk foods, like baked goods and candies. These exemptions might include skipping certain requirements like dedicated handwashing stations or commercial dishwashing standards.
Food Safety and Handling Requirements
All food businesses in Ontario must ensure safe food handling. The Ontario Food Premises Regulations mandate that at least one employee be certified in Food Handling. This certification can be obtained through a provincial-approved course. Compliance with these standards is essential to maintain food safety and prevent contamination.
Regulations for Food Premises
Home-based food businesses must maintain a clean kitchen, store food properly, and follow waste management practices. The kitchen should be inspected by health authorities to ensure it meets the required sanitation and safety standards. Some municipalities may require the use of commercial-grade kitchens, depending on the food being prepared.
Insurance Requirements for Home-Based Food Businesses in Ontario
Insurance is crucial for protecting your home-based food business from risks like property damage or foodborne illnesses. Business owners can obtain property and liability insurance, with some licenses requiring liability insurance to be in place before approval.
Selling Food Online
Selling food online is a convenient way to reach customers without needing extra permits or licenses. There are a number of ways to easily set up ecommerce or payment gateways for home-based business.
Selling at Farmers' Markets and Food Fairs
Selling at farmers’ markets or food fairs often requires a Temporary Food Establishment Permit, depending on your location. This permit ensures your food handling and sanitation meet safety standards. Event organizers may also require additional insurance for participation.
Conclusion
To start a home-based food business in Ontario, you must comply with health and food safety regulations, get the necessary certifications, and meet local public health standards. Acquiring insurance and understanding your selling options, both online and in-person, will help protect your business and ensure compliance.