Checklist for Starting a Small Food Processing Business
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This checklist is to assist small food processing operations that are making foods considered not potentially hazardous by the Alaska Department of Environmental Conservation, Food Safety and Sanitation Program (DEC). This includes, but may not be limited to, baked goods, jams and jellies, and confections. This checklist is not intended for individuals operating under the DEC Cottage Foods Exemption, also referred to as Home-Based Food Businesses. This checklist is not intended for food service facilities with or without seating, food markets, or for processing of meat or fish, acidified vegetables, canned low-acid foods, beverages, bottled water, or dairy products. Detailed information can be found at https://dec.alaska.gov/eh/fss/cottage-food/.
DEC Plan Review
Producers must meet with a DEC contact and discuss their entire operation before production begins.
Online Resource: Find your local office at https://dec.alaska.gov/eh/fss/staff.
Cost: Varies from $250 to $400 depending on product (one-time fee)
DEC Annual Permit
Online Resource: Find your local office at: https://dec.alaska.gov/eh/fss/staff.
Cost: Varies from $250 to $400 depending on product (annual fee)
Alaska Business License
This license is necessary to be able to legally sell your products. Most of the form is self-explanatory except that you will be asked to input a North American Industry Classification System (NAICS) code.
Online Resource: https://www.commerce.alaska.gov/web/cbpl/BusinessLicensing/BusinessLicensingFormsFees.aspx
Cost: $50 annual fee
City or Local Business License and Sales Tax Registration
Check with your city to determine if there is a city business license and/or sales tax requirements. Some communities may also have additional requirements or licenses for food processing businesses.
Cost: Annual fee varies
Product Liability Insurance
Product liability insurance is highly recommended to protect against any potential liability associated with a foodborne illness that may occur in association with your food products. Contact your personal insurance provider to find out if this service is available; if not, there are a number of other options. To discuss which option is best for you, please contact the Alaska Small Business Development Center or the Alaska MEP.
Contact: Small Business Development Center State Office, 800-478-7232 or http://aksbdc.org
Contact: Alaska MEP, https://alaska-mep.com/
FDA Food Facility Registration
The FDA requires all food facilities that are processing food products in the United States to register with the FDA. This is done with a simple form that asks for the physical location of the processing facility and the main contact for that facility.
Contact: For more information, visit www.access.fda.gov, following the link to “FURLS Food Facility Registration Module (FFRM)”
Cost: Free
Certified Food Protection Manager’s Certification
A certified food protection manager (CFPM) is responsible for monitoring and managing all food establishment operations to ensure that the facility is operating in compliance with food establishment regulations. This certification must be obtained in order to run a food processing operation.
Contact: For more information, visit https://dec.alaska.gov/eh/fss/resources/cfpm/#upcoming.
Cost: Varies depending on certification program. Expect to pay between $75 and $100 for the proctored exam and between $100 and $300 for the training.
Nutrition Labeling
Nutrition facts labels tell the consumer about the nutrition of a particular product. This information includes serving size, number of servings in the package, calories per serving and the amount of various nutrients contained in the product.
Cost: Generally expect to pay $75 to $150 for the generation of your nutrition facts panels.
There is a small business nutrition labeling exemption that states that producers with fewer than 100 fulltime employees and fewer than 100,000 units sold in the U.S. within a 12-month period are NOT required to have a nutrition label on their products. However, an exemption must be filed annually with the FDA. This exemption does not apply if you choose to make any health claims about the food product you wish to sell and you MUST have a nutrition label.
Another type of exemption applies for retailers (no wholesale sales) with annual gross sales of not more than $500,000 or with annual gross sales of foods or dietary supplements to consumers of not more than $50,000. For these exemptions, a notice does not need to be filed with the Food and Drug Administration (FDA).
Contact: For more information, visit www.fda.gov/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation/LabelingNutrition/ucm2006867.htm
Cost: Free to file a nutrition labeling exemption with FDA.
Recall Plan
Basic record keeping is paramount to the success of your business. Create a record keeping system to track information on each food product that comes into your facility and use it to keep track of where your finished products are distributed. Create lot numbers for every batch of product that you make in your facility. There are free templates available online, or the Alaska MEP can assist you in developing a recall plan for your process.
Contact: Alaska MEP, https://alaska-mep.com/
Cost: Free
Fire Zoning and Code Regulations
Talk to your local building permit office or office of the Alaska State Fire Marshal to discuss land zoning and building code regulations before you begin any new construction or physical changes to an existing facility.
Contact: The Alaska State Fire Marshal statewide, 907-269-2004, https://dps.alaska.gov/fire/home
In the following locations, inquiries should be made directly to the city offices:
Juneau: 907-586-0770 or 907-586-0715, https://juneau.org/community-development
Fairbanks: 907-459-6720, https://www.fairbanksalaska.us/building
Kenai: 907-283-8233, https://www.kenai.city/building
Ketchikan: 907-225-3111, https://www.ktn-ak.us/permits
Seward: 907-224-3445, https://www.cityofseward.us/departments/building-inspector
Kodiak: 907-486-8072, https://www.city.kodiak.ak.us/bs
Sitka: 907-747-1832, https://www.cityofsitka.com/departments/Building
Soldotna: 907-262-9107, https://www.soldotna.org/departments/building-permits-and-inspections
Wasilla/Lakes: 907-373-9050, https://www.cityofwasilla.com/government/forms-and-permits
Water and Wastewater Regulations
Check local city and borough regulations for information regarding water and wastewater.
Contact: Alaska DEC Division of Water, 907-465-5180, https://dec.alaska.gov/water/
Sarah R-P. Lewis, Extension Faculty, Health, Home and Family Development. Originally written by Kate Idzorek, former Extension Food Research Technician.
Revised January 2022